Relates to restrictions upon the conduct of games of chance

3 Co-sponsors

• Patrick M. Gallivan
• Mark Grisanti
• William J. Larkin Jr.

BILL NUMBER:S7506

Title of bill

An act to amend the general municipal law, in relation to restrictions upon games of chance

Purpose of the bill

Technical amendments to permit authorized organizations that operate without profit to its members to increase their revenues by increasing the total aggregate value of prizes awarded by raffle that such author- ized organizations may award.

Summary of specific provisions

These technical amendments would permit authorized organizations to increase their revenues by increasing the total aggregate value of prizes awarded by raffle, under the current statutory limits to two million dollars.

Justification

The Buffalo Sabres Foundation (an authorized organization) currently conducts 50/50 split club raffles at each Buffalo Sabres home game. The proceeds from each raffle help offset the cost of operating the Buffalo Junior Sabres, a scholarship program for Western New York area high school students as well as donations to entities such as Roswell Park Cancer Research Institute and St. Mary's Hospital.

Started in 2007, the raffles have generated hundreds of thousands of dollars for the Foundation, as well as hundreds of thousands of dollars in winning prize money. The success of these raffles has generated interest from other New York based sports franchises, such as the New York Islanders and Buffalo Bills who are interested in running similar raffles. The Foundation's raffles continue to grow in popularity and as such they are currently exceeding the aggregate statutory limits currently set forth.

In 2010 this section of the General Municipal Law was amended increasing the aggregate value from $100,000 to $500,000. Within as little as two years the Foundation has once again pushed up against the statutory limits on aggregate prize awards. Additionally, the Racing and Wagering Board has recently approved the use of automated devices for selling raffle tickets. This will permit the Foundation to sell more tickets over a longer period of time at each game. Estimates are that overall sales will likely increase by 20%. Given these numbers it is clear that the Sabres Foundation and other potential charitable organizations in New York State need the $500,000 prize threshold to be increased to two million dollars.

Throughout the course of the NHL hockey season the Sabres Foundation has opportunities (New Year's Eve, Playoff Games, Special Anniversary dates, etc.) to offer guaranteed minimum raffle prizes. On more than one occa- sion the raffle prize has pushed up against the $50,000 limit that

currently exists. To take advantage of those opportunities the $50,000 limit on a single prize should be increased to $100,000.

Prior legislative history

New bill.

Fiscal implications

An increase in aggregate prize money awarded will result in additional revenues to the New York State Racing and Wagering Board, as well as additional taxable revenue from the prize winners.

Local fiscal implications

This amendment would provide additional monies to charitable insti- tutions located throughout the Western New York region.

Effective date

This act shall take effect immediately.