The New York Lottery has a long and interesting history dating back to the 1960s. New York was actually a relative latecomer to instituting a state-sponsored lottery compared to other states. While New Hampshire started the first modern state lottery in 1964, it took New York several more years before passing legislation to allow lottery games. After a long debate and heated controversy, the New York legislature finally approved a lottery bill in 1966. The New York Lottery held its first drawing on March 7, 1967.
Why Did New York Wait to Establish a Lottery?
In the early 1960s, states around the country were facing budget shortfalls. New Hampshire led the way in 1964 by starting a lottery to generate additional revenue. The concept quickly caught on as other states followed suit. With a large population and budget woes of its own, New York seemed like a prime candidate to institute a lottery. However, there was significant opposition from religious groups, morality crusaders, policymakers, and portions of the public. It took several years before pro-lottery factions were able to overcome resistance and pass enabling legislation.
Morality Objections
Some of the hesitation in New York was based on moral grounds. Opponents viewed state-sponsored gambling as an undesirable vice and regressive way to fund government. Various church and civic groups spoke out against lottery legislation on ethical principles. They argued it was wrong for the state to profit off of people’s gambling instincts. There were also concerns it would lead to an increase in illegal numbers games.
Uncertainty About Revenue Potential
In addition to moral objections, there was debate about whether a lottery made financial sense for New York. Estimates varied widely for how much revenue a lottery would actually generate. With such a large, diverse population, predicting ticket sales and profits was difficult. More conservative estimates came in at around $50 million per year. Some optimistic projections went as high as $200-300 million annually. The unknown revenue potential made it harder for proponents to definitively state that a lottery would be a boon for New York’s budget.
Questions About Implementation
There were also logistical issues to iron out if New York were to move forward with a lottery. First, it was unclear who would oversee the lottery. Some felt an existing state agency like the Division of the Budget would be most appropriate. Others argued a new, independent authority should be established to manage games and revenue. Additionally, specifics such as where ticket sales would be allowed, what types of games would be offered, how winners would be publicized, and how exactly funds would be allocated had to be determined. With so many details up in the air, proceeding with a lottery seemed risky to some lawmakers.
What Changed to Allow the Lottery to Pass?
Despite the uncertainty and objections, several key factors ultimately aligned to make way for passage of a New York State lottery bill in 1966:
Increasing Budget Deficits
By the mid-1960s, New York was facing large budget deficits year after year. As the shortfalls grew, so did the pressure to find new revenue sources. It became increasingly clear that raising existing taxes alone would not do enough. With neighboring states already benefiting financially from their lotteries, it seemed a natural solution to explore. The potential for a large influx of new money made instituting a lottery more appealing.
Success in Nearby States
Seeing the positive results in New Hampshire, New Jersey, Connecticut, and other nearby states provided real-world evidence that a lottery could generate substantial revenue. The models implemented by New York’s neighbors addressed some of the uncertainties and made projections more concrete. As surrounding lotteries racked up higher and higher sales, the financial argument became more convincing.
Shift in Public Attitudes
While many New Yorkers continued to oppose a state-run lottery on moral grounds, attitudes were gradually shifting. Gambling was becoming more socially acceptable nationwide in the 1960s. With lottery fever sweeping nearby states, New York began to look like an exception for not having games available. A lottery was legal in New Jersey but not New York, forcing many New Yorkers to cross state lines to purchase tickets. Allowing an in-state lottery would help recapture those sales and keep profits within New York.
Democratic Takeover of the Legislature
The New York legislature was long controlled by Republican majorities that had blocked lottery bills. The 1966 election brought Democrats into the majority for the first time in many years. With Democrat Rockefeller as governor, the new legislature was more inclined to align with the governor’s agenda and pass a lottery bill. Having pro-lottery control of both houses removed a major political barrier.
Details of the New York Lottery Bill
With budget conditions deteriorating and a new Democratic legislature in place, Governor Rockefeller strongly pushed a lottery bill in 1966. After lengthy debate, the New York Senate and Assembly passed the lottery bill by wide margins. Here are some key provisions that were included:
New York State Lottery Control Commission
The bill established the New York State Lottery Control Commission to oversee operations of the lottery. This independent body consists of five members appointed by the Governor. The commission was tasked with duties such as selecting lottery games to conduct, licensing ticket agents, establishing payout policies, and managing advertising.
Allocation of Lottery Profits
Net revenues from the lottery were earmarked for New York’s Education Fund. This ensured proceeds would directly support the state’s schools. The Education Fund finances needs like teachers’ salaries, school building maintenance and repairs, textbooks, and transportation. Tying lottery profits to education helped make the lottery more appealing to the public.
Lottery Games Authorized
The lottery legislation allowed for a wide variety of lottery games under the Commission’s discretion. These included traditional draw games with winning numbers picked from a ball machine, scratch-off instant games, and computerized Quick Draw games. This gave the lottery flexibility to offer an array of options to attract player interest.
Minimum Age Set at 18
Unlike some states where the minimum age to purchase lottery tickets was 21, New York’s law set the age at 18. This opened ticket sales to a wider audience. However, those under 18 were prohibited from playing. Retailers could lose their license for selling to underage individuals.
Ban on Advertising Lottery Odds
In an effort to avoid overemphasizing gambling aspects, the law included a ban on advertising odds or number combinations. This was meant to deter excessive focus on the chances of winning. However, general advertising of prizes and promotions was permitted.
| Key Provisions of 1966 NY Lottery Bill |
|---|
| New York State Lottery Control Commission to oversee operations |
| Lottery profits allocated to state Education Fund |
| Variety of draw, instant, and Quick Draw games authorized |
| Minimum age to play set at 18 |
| Ban on publicizing odds of winning |
The New York Lottery’s First Year
After the legislature passed the enabling act in 1966, the New York Lottery was off and running. The Lottery Control Commission wasted no time getting games up and operational. Some key facts and figures from the lottery’s hugely successful debut year:
First Ticket Sold March 7, 1967
Just under a year after passage of the lottery bill, the very first New York Lottery ticket was sold on March 7, 1967. Sales began at over 7,000 agent locations statewide. The lottery had done extensive work with retailers ahead of time to ensure wide availability of tickets.
Weekly Drawings Started May 1967
The New York Lottery’s inaugural weekly jackpot drawing was held in May 1967, about two months after ticket sales commenced. Drawings took place every Sunday for a top prize that began at $50,000. Players chose six numbers from 1 to 60. Matching all six numbers won the jackpot, with smaller fixed prizes for matching some numbers.
$53 Million in First Year Ticket Sales
Projections for the lottery’s first year ticket sales ranged from $200 to $300 million. When final numbers were tallied, the New York Lottery sold an impressive $53 million in tickets during its initial year. These robust sales showed that public enthusiasm for the new games exceeded even optimistic expectations.
245 Million Tickets Sold
In total, around 245 million individual lottery tickets were purchased across New York in the first year. With an average ticket price of about $0.22, this huge volume of ticket sales was critical to generating revenue. It also kept ticket vendors very busy meeting demand.
$3 Million Transferred to Education Fund
After expenses, the New York Lottery produced $3 million in net profit that was transferred to the state Education Fund in the first year. While not a huge sum given the state’s overall budget, it provided needed assistance to schools and proved the lottery concept could raise significant money.
| New York Lottery First Year By the Numbers |
|---|
| First ticket sold: March 7, 1967 |
| Weekly jackpot drawings started: May 1967 |
| First year ticket sales: $53 million |
| Tickets sold: 245 million |
| Profit transferred to Education Fund: $3 million |
Ongoing Success and Evolution
The instant popularity of lottery games continued well beyond the New York Lottery’s groundbreaking first year. Additional games were steadily added, including daily drawings and scratch cards. Statewide ticket sales routinely surpassed $2 billion annually by the early 1980s. Profits transferred to education soared past $1 billion per year. While some controversy has remained around state-sponsored gambling, the New York Lottery has become a permanent, economically crucial institution. Its success paved the way for other states to pursue similar lottery systems. The indelible legacy as New York’s first and oldest lottery lives on today.
Increase in Game Options
Over its history, the New York Lottery has expanded its portfolio far beyond the original passive draw game. Instant scratch-off tickets were hugely popular after their debut in 1967. In the 1970s, daily number games like Win 4 gave players more frequent chances to win. Video lottery terminals arrived in the 1990s, bringing digital play to retail locations. The variety of game types and frequent introduction of new offerings fueled continuing growth of over 50 years.
Record Profits
Profits from the New York Lottery have skyrocketed in step with soaring ticket sales. Within five years profits had jumped 10x higher than the debut year. For fiscal 2022, the lottery generated a record $3.6 billion in revenue for education. Since inception, it has contributed over $78 billion to the state. The lottery now accounts for about 15% of total state education aid, making it an indispensable funding source.
Adapting to New Technologies
The New York Lottery has evolved its sales and play options along with technological changes. Online ticket purchasing launched in 2013 to adapt to digital shopping habits. Mobile apps allow players to conveniently check numbers on the go. Payment innovations like lottery vending machines and cashless options provide more accessibility. The lottery has strived to integrate emerging technologies in ways that enhance the experience.
Lottery Milestones in New York
1966
New York legislature passes lottery bill to establish state-run games of chance
1967
First New York Lottery ticket sold on March 7
Weekly lottery jackpot drawings start in May
1975
Daily Numbers mid-day drawing debuts
1978
Lottery ticket sales surpass $1 billion annually
1980
Lottery profits transferred to education exceed $1 billion
1982
New York becomes first state to join multi-state Powerball lottery
1990
Lottery sponsors its first televised draw show
1994
Video Lottery Terminals installed at racetracks and other venues
2004
New York joins multi-state Mega Millions lottery
2013
Online play introduced in New York
2022
New York Lottery achieves record $3.6 billion in annual sales
Conclusion
The New York Lottery has come a long way from its humble beginnings in 1967. What started as a weekly jackpot drawing has evolved into an array of multi-million dollar games that provide endless entertainment and excitement. Over 35 other states eventually followed New York’s example in adopting government-run lotteries. Despite intermittent opposition over the decades, lottery playing is now widely accepted across the country. With annual sales continuing to achieve new heights, the future looks bright for New York’s pioneering lottery as it nears its sixth decade bringing fun and profit to the Empire State.