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Sweepstakes and Games of Chance

Licensing For Games Of Chance

Licenses are required to operate charitable gaming, including bingo, raffles and Las Vegas nights. Licenses are also required for, racing and wagering.

Licenses may be obtained through an application with the New York State Racing and Wagering Board. Licenses awarded must be displayed in a noticeable area of the premises whenever games of chance are being held.1 If a licensed individual would like to lease their premises to a licensed organization for the purpose of operating games of chance, they must apply through the county clerk or in New York City through the New York City Department of Consumer Affairs.2

Raffles, such as 50/50, operated without licenses are legal as long as the operators will not profit from the raffles in excess of five thousand dollars during one raffle and in excess of twenty thousand dollars during raffles held in a calendar year.3

An application for a license cannot be denied or revoked until a hearing has occurred. Licenses may be amended only if the amendment could have legally been included with the original terms and conditions of the prior license. Payments by licensed individuals for the amended terms may be requested.4

Any fines imposed on the licensed individual cannot be paid with money received through operating games of chance. Alcoholic beverages may be sold on the premises where games of chance are being operated.5

Age Requirement For Participation In Games Of Chance

A person must be at least 18 years old to participate in a game of chance. Anyone under the age of 18 may enter the premises where games of chance are being operated if allowed by the licensed individual. However, they may not conduct a game of chance or participate in conducting a game of chance with a licensed individual.

Prohibited Participation

Licensees cannot participate in a game of chance during their licensing period.

Participation By Senior Citizen Organizations

Licensed senior citizen organizations may operate games of chance where the maximum prize is ten dollars for each game. Only five games can be operated at one time by the organization, and games of chance shall not be held more than 12 times in a calendar year. Participation in the games of chance must be free, the prizes must be nominal, only persons part of the organization can participate in the games of chance, and no profit may be made by persons who help in the operation of the games of chance.

Games Of Chance On Sunday And Holidays

A game of chance cannot be conducted on a Sunday unless the license issued specifically allows the game of chance to occur on a Sunday. Games of chance on a Sunday may only be operated between the hours of noon and midnight. No game of chance is allowed on Easter Sunday or Christmas.

How Do I Collect My New York State Lottery Prize Winnings?

Before a New York State Lottery prizewinner can officially claim their winnings, he or she must complete a winner claim form if required by the rules of the particular game played and the winning ticket must be handed over.6 The New York State Division of the Lottery is left to determine if additional information is required.7 Once a required claim form is filed and verified and the claimant passes the identification requirements, the New York State Division of the Lottery will award the prize.8 Any payments will be sent to the address provided on the claim form unless the consumer does not need to file a form and is allowed to receive the winnings at a lottery-selling store.9 For prizes $25 or less from an instant game ticket, a cash payment may be obtained from the business where the ticket was purchased. For prizes of $100 from an instant game ticket, a cash payment may be obtained from any lottery-selling business. A prize not exceeding $600 from a computerized game ticket may be obtained in cash from a lottery-selling business that sells computerized game tickets. Prizes exceeding $600, sent by mail, paid at an office of the New York State Division of the Lottery, and any lotto subscription prize must be paid by check.10

How Are New York State Lottery Winnings Paid?

Payments may only be made to an individual or an organization. Prize payouts to multiple persons are not allowed unless the lottery director rules otherwise. Organizations may only submit claims if they possess a Federal Employer Identification Number (FEIN) issued by the Internal Revenue Service and provide this number on the claim form. Organizations that do not have a FEIN at the time of filing must designate an individual to file a winner claim form. If multiple claimants file a winner claim form when an individual should have been designated, the New York State Division of the Lottery shall direct the claimants to designate an individual or will select one if the former is not completed.11

What If The Winner In A Minor?

If a person under the age of 18 wins a prize less than $5,000, payment of the prize may be made to an adult member of the prize winner's family or to a guardian. For prizes $5,000 or more won by minors, the New York State Division of the Lottery will make the payment by depositing the money into the bank account of an adult member of the prize winner's family or guardian. The New York State Division of the Lottery is entitled to withhold payment until any evidence that is deemed appropriate is received and reviewed.12

What If The Winner Dies Before His/Her Prize Is Claimed?

The date set for prize payment will not be accelerated because of the prize winner's death. The remaining payments will be paid to the estate of the deceased prize winner unless the New York State Division of the Lottery is advised otherwise by a judicial order. If the deceased prize winner did not designate who shall receive the remaining winnings, any payments will be made to persons who are designated to receive the winnings according to the laws of the State of New York.13

The rights to a prize are unassignable unless through the will of a deceased prize winner or through a judicial order.14

What If There Are Multiple Winners For One Prize?

If multiple claimants file a form for a prize that is payable for life, an individual must be designated on whose life the prize will be paid. In the situation where an individual is not selected by the multiple claimants, the Lottery will choose the youngest of the group as the individual on whose life the prize will be paid. The age of the individual will be based on any legal identification unless official birth records are provided, at which point the age will be based on the records. A legal entity that claims a prize payable for life must designate an officer or member of that legal entity as the person during whose life the prize will be paid. If the legal entity fails to designate an individual, the New York State Division of the Lottery will either select the chief officer of the legal entity or another appropriate person as the individual.15

Unclaimed And Abandoned New York State Lottery Prize Money

A New York State Lottery prizewinner loses entitlement to the prize if it is not claimed within one-year from the date of the drawing or from the close of the game. The unclaimed prize money shall remain in the possession of the lottery. The New York State Division of the Lottery may rule that a prize has been abandoned when, after 18 months have passed since a prize payment check was mailed to the winner, the check has returned to the Lottery undelivered and the correct address for the winner cannot be found or the check has not been returned undelivered but no action is taken by the winner. When a prize has been deemed abandoned, the money is paid to the state comptroller.

Common Sweepstakes Scams

Foreign Scams

 

Foreign prize scams take on a variety of forms and attempt to profit from people who take the bait in "get rich fast" schemes. Foreign lottery offers from countries such as Australia, Canada and Spain, have notified "winners" of their good fortune and asked for hundreds of dollars in return in order to receive their prize. International security firms and disbursement offices alert consumers of confirmed awards that will be sent once money is paid for "entry, judging or postage fees." Consumers are addressed at home through phone calls from fake representatives of businesses who inform them that they will be awarded a special prize once a delivery fee is sent.

Vacation Scams

Winning a free vacation is everyone's dream, but often it turns into a nightmare. The following situation is all too common for some consumers. Notification is received that you are the lucky winner of a free vacation to a far off place. You can escape the hassles of life and get some much needed rest and relaxation. You take the bait, contact the company that informed you of your getaway, and before you have time to blink, a vacation that was supposed to be hassle free is the opposite. Unexpected charges for a vacation that was originally believed to be a prize are now your responsibility. Consumers provide credit card information when first contacted for initial charges, but this information will soon be used to place other charges such as meals, lodging, and transportation on your account, putting the burden of payments on the consumer. Even worse, this financial information can be used to commit identity theft.

Oprah Millionaire Contest E-Mail Scam

With the use of the Internet, some scammers purport to be representing celebrities offering prizes. Popular TV figure Oprah Winfrey was the victim of one such scam. An Oprah Millionaire Contest Show e-mail scam notified consumers of their nomination to attend a prize-giving show. Personal information was requested as well as the need to purchase airfare and fill out a form containing personal questions. It is advised that e-mails of this nature not be opened, as they may open the door to viruses and malware.

For more information on sweepstakes or games of chance, or to file a complaint against a possible scammer, contact:

Federal Bureau of Investigation
J. Edgar Hoover Building
935 Pennsylvania Avenue, NW
Washington, D.C. 20535-0001
(202)-324-3000
http://www.ic3.gov/default.aspx

U.S. Postal Inspection Service
P.O. Box 555
New York, NY 10116-0555
1-800-372-8347
www.usps.gov

New York State Department of State Division of Consumer Protection
1-800-697-1220
www.nysconsumer.gov

Office of the Attorney General
Bureau of Consumer Frauds and Protection
120 Broadway, 3rd Floor
New York, NY 10271-0332
1-800-771-7755
www.ag.ny.gov

Preventing Lottery Scams

Review these tips to help prevent you from falling to scams:

  1. General Municipal Law, Chap. 24, Art. 9-A, Section 193. ↑
     
  2. General Municipal Law, Chap. 24, Art. 9-A, Section 190. ↑
     
  3. General Municipal Law, Chap. 24, Art. 9-A, Section 190-a. ↑
     
  4. General Municipal Law, Chap. 24, Art. 9-A, Section 192. ↑
     
  5. General Municipal Law, Chap. 24, Art. 9-A, Section 194. ↑
     
  6. NYCRR Title 21, Chap XLIV, Section 2803.1. ↑
     
  7. NYCRR Title 21, Chap XLIV, Section 2803.2. ↑
     
  8. NYCRR Title 21, Chap XLIV, Section 2803.3. ↑
     
  9. NYCRR Title 21, Chap XLIV, Section 2803.4. ↑
     
  10. NYCRR Title 21, Chap XLIV, Section 2803.5. ↑
     
  11. NYCRR Title 21, Chap XLIV, Section 2803.7. ↑
     
  12. NYCRR Title 21, Chap XLIV, Section 2803.8. ↑
     
  13. NYCRR Title 21, Chap XLIV, Section 2803.9. ↑
     
  14. NYCRR Title 21, Chap XLIV, Section 2803.11. ↑
     
  15. NYCRR Title 21, Chap XLIV, Section 2803.13. ↑
Last Modified: April 28, 2011