Division of the Lottery

Study Comparing the Telecommunications Costs for New York State's On-Line Lottery Games to Such Costs in Other Selected States (95-D-26)

The Division administers games of chance to raise revenue for public education. Some of these games are conducted through on-line computer terminals. We compared the telecommunications costs for New York's on-line lottery games to the costs in four other states with comparable on-line lottery games. We found that the cost in New York ($199 per terminal per month) was far higher than the cost in the other four states (between $56 and $98 per terminal per month). If the cost per terminal in New York could be reduced to the cost in any of the other four states, the lottery revenue available for public education in New York would be increased by between $10 and $14 million a year. We determined that some of the other states were able to lower their telecommunications costs by exploring the use of radio and satellite technologies and negotiating with their local telephone companies.

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