Requires the return of unsold instant lottery game tickets to the division of the lottery when a licensed agent goes out of business, sells their business or if their license is suspended or revoked.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6655C
SPONSOR: Woerner TITLE OF BILL:
An act to amend the tax law, in relation to unsold instant lottery game
tickets
PURPOSE OR GENERAL IDEA OF BILL:
Provides that the State Division of Lottery shall redistribute instant
lottery game tickets if a licensed lottery agent goes out of business or
sells their business, or if a person's license is suspended or revoked.
SUMMARY OF PROVISIONS:
Section 1 amends Subdivision b of § 1604 of the Tax Law to direct the
division to redistribute unsold instant lottery game tickets to other
sales agents when a lottery sales agent goes out of business or sells
their business. If the division is unable to redistribute such unsold
instant lottery game tickets to other licensed sales agents, the commis-
sion shall terminate such instant lottery game.
Section 2 amends § 1607 of the Tax Law to direct the division to redis-
tribute unsold instant lottery game tickets to other sales agents when a
lottery sales agent's license is suspended or revoked. If the division
is unable to redistribute such unsold instant lottery game tickets to
other licensed sales agents, the commission shall terminate such instant
lottery game.
Section 3 provides the effective date.
JUSTIFICATION:
When instant lottery games are created there are a certain number of
grand prizes in the game. Generally, when the last grand prize has been
claimed, the Division of Lottery will end the game. However, when a
lottery agent goes out of business or sells their business to another
person, the Division reclaims the scratch off tickets and puts them into
storage. If there is a grand prize on one of those scratch off tickets,
the instant lottery game does not end because the last grand prize has
not been awarded. That means, people buying tickets think they may win a
grand prize, but the grand prize ticket is not in fact in circulation.
This bill provides that any unused scratch off tickets reclaimed by the
Division must be distributed to other sales agents so the games can end
when there are no more grand prizes to be awarded.
PRIOR LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This bill shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6655--C
2025-2026 Regular Sessions
IN ASSEMBLY
March 6, 2025
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Racing and Wagering -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- reported and referred
to the Committee on Ways and Means -- reported and referred to the
Committee on Rules -- Rules Committee discharged, bill amended,
ordered reprinted as amended and recommitted to the Committee on Rules
AN ACT to amend the tax law, in relation to unsold instant lottery game
tickets
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision b of section 1604 of the tax law, as added by
2 chapter 92 of the laws of 1976, is amended to read as follows:
3 b. 1. The division is authorized to license agents to sell tickets for
4 the state lottery. The division may require a bond from any licensed
5 agent, in an amount to be determined by the division. Every licensed
6 agent shall prominently display [his] their license, or a copy thereof,
7 as may be determined by rules and regulations of the division, in each
8 place of business or activity where lottery tickets are sold.
9 2. When a licensed agent goes out of business or sells their business
10 to another person as defined in section one thousand six hundred five of
11 this article, their license shall expire and any unsold instant lottery
12 game tickets in their possession shall be returned to the division and
13 redistributed to other licensed sales agents, unless such instant
14 lottery game has been terminated by the commission. If the division is
15 unable to redistribute such unsold instant lottery game tickets to other
16 licensed sales agents, the commission shall terminate such instant
17 lottery game. For the purposes of this subdivision, "instant lottery
18 game" shall mean any lottery game conducted on a game ticket authorized
19 or issued by the commission that includes one or more instant play
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10449-06-5
A. 6655--C 2
1 features, such as rub-off coatings, pull-tabs, or other concealed play
2 areas, which, when revealed, indicate whether the player has won a
3 prize.
4 § 2. Section 1607 of the tax law, as amended by chapter 2 of the laws
5 of 1995, subdivision g as added by chapter 701 of the laws of 1996,
6 subdivision h as amended by chapter 162 of the laws of 2002 and para-
7 graph 1 of subdivision h as amended by section 7 of part EE of chapter
8 56 of the laws of 2020, is amended to read as follows:
9 § 1607. Suspension and revocation of licenses. a. The division may
10 suspend or revoke, after notice and an opportunity for a hearing pursu-
11 ant to the state administrative procedure act, any license issued pursu-
12 ant to this article. Such license may, however, be temporarily suspended
13 by the division without prior notice, pending any prosecution, investi-
14 gation or hearing. A license may be suspended or revoked by the division
15 for one or more of the following reasons:
16 [a.] 1. Failure to account for lottery tickets received or the
17 proceeds of the sale of lottery tickets or to file a bond if required by
18 the division or to comply with instructions of the division concerning
19 the licensed activity;
20 [b.] 2. Conviction of any offense as defined in the penal law, or any
21 felony under the laws of the United States or under the laws of the
22 state of New York or any other state or foreign jurisdiction or any
23 crime relating to gaming activities;
24 [c.] 3. Failure to file any return or report, to keep records or to
25 pay any tax required by any article of this chapter;
26 [d.] 4. Fraud, deceit, misrepresentation or conduct prejudicial to
27 public confidence in the state lottery;
28 [e.] 5. With respect to a lottery sales agent, the number of lottery
29 tickets sold by the lottery sales agent is insufficient to meet adminis-
30 trative costs and public convenience is adequately served by other
31 licensees;
32 [f.] 6. A material change, since issuance of the license, with respect
33 to any matters required to be considered by the division under subdivi-
34 sion d or e of section sixteen hundred five of this article[.];
35 [g.] 7. Conviction for misuse of food stamps pursuant to section one
36 hundred forty-seven of the social services law[.]; or
37 [h.] 8. A violation of article thirteen-F of the public health law as
38 provided in this subdivision:
39 [1.] (i) A license shall be suspended for a period of one year upon
40 notification to the division by the commissioner of health of a lottery
41 sales agent's accumulation of three or more points pursuant to subdivi-
42 sion three of section thirteen hundred ninety-nine-ee of the public
43 health law.
44 [2.] (ii) A license shall be revoked for one year upon notification to
45 the division by the commissioner of health of a lottery sales agent's
46 fourth violation of article thirteen-F of the public health law within a
47 three year period.
48 b. In any case in which a sales agent's license has been suspended or
49 revoked, any unsold instant lottery game tickets shall be returned to
50 the division and redistributed to other licensed sales agents for sale
51 to the public, unless such instant lottery game has been terminated by
52 the commission. If the division is unable to redistribute such unsold
53 instant lottery game tickets to other licensed sales agents, the commis-
54 sion shall terminate such instant lottery game. For the purposes of
55 this section, "instant lottery game" shall mean any lottery game
56 conducted on a game ticket authorized or issued by the commission that
A. 6655--C 3
1 includes one or more instant play features, such as rub-off coatings,
2 pull-tabs, or other concealed play areas, which, when revealed, indi-
3 cate whether the player has won a prize.
4 § 3. This act shall take effect immediately.
