Section 37: Sale of lottery tickets in conjunction with game of beano; licensing of certain organizations; restrictions; gross profit minimum; payment of prizes; apportionment of revenue
Section 37. The director may license any organization licensed to conduct the game of beano under the provisions of section 38 to sell lottery tickets or shares; provided, that such tickets are sold only on the premises of said organization for which such license has been issued; and provided further, that the funds derived therefrom shall be used exclusively for educational, charitable or religious purposes. The commission shall sell lottery tickets to such licensed organizations and any such licensed organization reselling such tickets shall not be subject to prosecution for setting up and promoting a lottery or any other crime incidental thereto or for selling or having in its possession said lottery tickets.
The commission shall sell lottery tickets to such licensed organizations and shall determine the price at which said licensed organizations shall resell said tickets, which price shall be printed on each ticket. Each licensed organization shall be entitled to retain as gross profit not more than 30 per cent of the resale value of tickets sold by it, and shall be solely responsible for paying prizes won by tickets sold by it, which prizes shall be determined by the commission and be not less than 45 per cent of the resale value of said tickets.
The commission shall sell lottery tickets to said licensed organizations for 10 per cent of their resale value. The revenue derived by the commission from said sales of lottery tickets shall be apportioned as follows: (1) for the payment of costs; provided, however, that notwithstanding the provisions of section 25, the costs incurred by the commission in the operation and administration of the activities authorized by this section, including the expenses of the commission and the costs resulting from any contract or contracts entered into for promotional, advertising or operational service or for the purchase or lease of lottery equipment, materials and tickets, in no case shall exceed one half of said revenue, subject to appropriation; (2) the balance of said revenue, as determined by the comptroller on June 1 and December 1 of each year, shall be credited to the State Lottery and Gaming Fund to be distributed in accordance with the provisions of section 18C of chapter 58.
Organizations licensed under this section shall be considered sales agents for the purposes of this chapter. Activities authorized by this section shall be subject to all provisions of the state lottery law not inconsistent herewith.