Division of the Lottery

Controls and Accountability Over Video Lottery Revenue

Horse racing tracks in New York State may install video terminals offering State lottery games. Certain portions of the revenue generated by these games are to be distributed to the prize winners, the tracks, and the State. We examined the Division of the Lottery’s controls over the distribution of this revenue to determine whether the State’s portion of the revenue was properly accounted and accurately distributed. We also examined the Division’s oversight of the contractors involved in various aspects of the video lottery games. We found that the Division has an adequate system of internal controls over the State’s portion of the revenue and is adequately monitoring the contractors involved in the video lottery games.

For a complete copy of Report 2006-S-4 click here.