Title 9 Part 5001

Tickets may be sold only within New York State by lottery sales agents. Any person may apply for a license to become a lottery sales agent by submitting a completed application form to the commission and any supplements thereto as may be required.

No person under legal age shall be licensed as a lottery sales agent.

Lottery sales agent licenses shall be issued only to persons who are residents of this State or whose place of business is located in this State.

The commission shall license as lottery sales agents to sell lottery tickets only such persons as in the opinion of the commission will best serve public convenience consistent with the purposes of the acts.

A lottery sales agent’s license shall remain in force until suspended, revoked or terminated by the commission in accordance with the provisions of the act or those set forth in this Part. The commission may extend the initial or subsequent licensing period at the commission’s discretion, or may set starting and expiration dates for new or renewed licenses. Upon reasonable notice to existing licensees, the director may require renewal of licenses, establish probation, or set other conditions upon the license. A license fee may be established and required at the discretion of the commission.

Every lottery sales agent shall prominently display such lottery sales agent’s license in an area visible to the general public in each place of business where lottery tickets are sold. In addition, the lottery sales agent shall display an authorized lottery agent decal on a prominent front window or door of the lottery sales agent's premises so as to be readily visible to the public. A lottery sales agent shall maintain and display all informational and promotional material in connection with ticket sales of each lottery game in accordance with instructions issued by the commission.

Upon issuance of a license, a lottery sales agent shall agree to the following conditions:

The commission may require a surety bond from any lottery sales agent in such amount as the commission may determine so as to avoid monetary loss to the State because of a lottery sales agent's activities in the sale of tickets. The bond, if required by the commission, is a condition of becoming or continuing as a lottery sales agent. A financial statement may also be required of any person applying for a lottery sales agent license. The commission may also seek additional surety or guarantee of financial security consistent with the purposes of the acts, as may be deemed appropriate.

A lottery sales agent shall grant access to such lottery sales agent’s books and records related to lottery sales, together with any and all papers and information required for purposes of auditing, at such times as deemed appropriate by the commission in connection with the application or license as a lottery sales agent.

The sale of lottery tickets shall be made only pursuant to a lottery sales agent’s license at the specific location named therein or at such other locations as the commission may approve.

Upon mutual agreement between a lottery sales agent and the commission, any licensed location may be converted from a manual-type operation to a vending machine-type operation, and from a vending machine-type operation to a manual-type operation, for the sale of lottery tickets.

Each lottery sales agent shall permit inspections of such lottery sales agent’s premises upon request by authorized employees of the commission to determine whether said lottery sales agents are complying with the provisions of the acts, the rules, regulations and instructions of the commission, and the licensing agreement. Inspections may be made without notice during normal business hours.

The commission itself may sell lottery tickets at any branch location or at any other location that the commission may establish in the State.

Upon instructions of the commission, vendors shall consign lottery tickets to lottery sales agents and shall collect tickets that the lottery sales agents have not sold. Vendors shall not deliver tickets to a lottery sales agent who has failed to settle such lottery sales agent’s account with respect to outstanding tickets.

All lottery sales agents are required to deposit in a designated depository or bank all monies received by such lottery sales agents from the sale of lottery tickets, less lottery sales agent compensations, and credit, if any, for redeemed tickets along with reports of receipts and transactions on forms provided by the commission for such purpose. In preparing such forms and reports, lottery sales agents shall refer to the manuals and other instructions made available by the commission for each lottery game.

At the conclusion of each drawing that results in the selection of numbers, every lottery sales agent shall cause the winning numbers to be posted in a prominent place in full view at the lottery sales agent's business location. In addition, any other numbers for bonus awards or other prizes should be posted in compliance with instructions from the commission.

Tax Law section 1609(a) governs restrictions on the price charged for lottery tickets and who may sell lottery tickets. In addition, a courier service may charge a convenience charge to a courier customer for services approved by the commission pursuant to Part 5014 of this Title. Any such fee shall be deemed to be independent of a ticket price and shall be subject to the requirements of section 5014.19 of this Title.

The commission may impose a penalty of 1½ percent monthly (18 percent per annum) on any monies due to the commission from lottery sales agents whose accounts are delinquent for more than 30 days.