Provides for the treatment of pathological gambling from revenues derived from pari-mutuel betting

1. amend Section 1.03 of the Mental Hygiene Law by adding two new subdivisions 54 and 55 to define pathological gambling as a chronic and progressive inability to resist impulses to gamble which compromises, disrupts and damages family, personal and vocational pursuits; and pathological gambler as a person who is afflicted with an illness of pathological gambling;

2. amend Section 7.07(a) of the Mental Hygiene Law to charge the Office of Alcoholism and Substance Abuse Services with the responsibility for developing plans, programs and services related to pathological gambling treatment and education;

3. amends Section 7.15(a) of the Mental Hygiene Law to include among the responsibilities of the Commissioner. the development and promotion of pathological gambling treatment and education programs and services;

4. add a new Section 41.56 of the Mental Hygiene Law which would authorize the development, expansion and operation of pathological gambling treatment and education programs by the Office of Alcoholism and Substance Abuse Services and through contractual agreement with not-for-profit corporations and proprietary hospitals. Such provisions would also require the Commissioner to submit an annual report to the Governor and the Legislature by January 30th following enactment detailing the implementation of the pathological gambling program development requirements upon the Office of Mental Health and plans for future development

5. amend the State Finance Law by adding a new Section 91-g establishing the Pathological Gambling Treatment and Education Fund. The fund which would be in the custody of the State Comptroller would receive deposits from the State Lottery Fund and the Commissioner of Taxation and Finance for the development. expansion and operation of pathological gambling treatment and education programs to be funded consistent with Section 41.56 of the Mental Hygiene Law;

6. amend Subdivision 92-c of the State Finance Law by adding a new paragraph (vi) to authorize the expenditure of State Lottery Fund proceeds for the purpose of pathological gambling treatment and education;

7. amend Section 92-c of the State Finance Law by adding a new Subdivision 9 to require that twenty percent of unclaimed lottery prize money be deposited into the Pathological Gambling Treatment and Education Fund; and 8. amend Sections 232, 328. 426, and 529 of the Racing, Pari-Mutuel Wagering and Breeding Law to require that twenty percent of the unpaid money held by horse racing corporations and associations authorized to conduct pari-mutuel betting, be properly deposited in the Pathological Gambling Treatment and Education Fund.

Justification

Pathological gambling has been recognized by the American Psychiatric Association as a "progressive disorder in which an individual has a psychological uncontrollable preoccupation and urge to gamble." This results in excessive gambling, which compromises, disrupts or destroys the gambler's personal life, family relationships and vocational pursuits. These problems in turn lead to intensification of the gambling behavior. The cardinal features are emotional dependence on gambling, loss of control and interference with normal functioning. Recent New York State Office of Mental Health research indicates that as many as 269,000 of New York State's adults can be classified as probable pathological gamblers and between 230,000 and 486,000 other adults can be classified as problem gamblers.

While much progress has been made in the development of pathological gambling treatment technologies, the lack of sufficient funding has prevented the establishment of needed treatment services. This bill would address the funding shortage by making available for pathological gambling treatment and education unclaimed lottery and horse racing prize monies.

As the State of New York continues to expand and promote state-operated gambling, it is only fitting that a portion of the proceeds from this activity be set aside to assist those who cannot control their urge to gamble. In fact. in 1992. the Legislature approved the use of approximately $41 million in unclaimed funds to continue its interest in this enterprise. Unfortunately. none of this money could be used to offset the cost of operating the state's three treatment programs which received a pitiful total of only $400.000.

This bill would ensure that as long as this State continues to be involved in the gaming industry, those who are addicted to gambling will also be assured of treatment and education.

Legislative history

A.4536 of 2001-2002: referred to Mental Health A.7425 of 2003-2004: referred to Mental Health A.1202 of 2005-2006: referred to Mental Health 2007-08: S.4079-A Referred to Mental Health & Developmental Disabilities.

Fiscal implications

The most recent available figure for unclaimed lottery and horse racing prize money is approximately 41.5 million; 31.8 million for the lottery and $9,700,000 for horse racing. The 20% diversion authorized by this bill would make available $4.3 million from the unclaimed lottery prize money and $1,940,000 from the unclaimed horse racing prize money.

Effective date

This act shall take effect one year after it shall have become a law.