Division of Special Revenue

At a Glance

PAUL A. YOUNG, Executive Director

Established – 1971

Statutory authority – CGS Chapters 54, 98, 226, 226b, 226c and 229a

Central office – 555 Russell Road

Newington, CT 06111

Number of authorized full-time employees –148

Recurring operating expenses -- $9,496,744

Capital outlay -- $40,659

Organizational structure – Executive Administration: Three major Program areas: Legalized Gambling Regulation; Charitable Games Regulation; Management Services.

Mission

The mission of the Division of Special Revenue is to ensure the highest degree of integrity in the conduct of all forms of legalized gambling within the State of Connecticut and the Federally recognized Tribal nations within the State. We accomplish our mission by licensing or permitting all individuals and entities that are involved with legalized gambling and by monitoring and educating to ensure compliance with the gaming laws and the Tribal-State agreements. We assure public confidence in the honesty and fairness of all facets of gambling for the highest quality benefit to the State.

Statutory Responsibility

The Gaming Policy Board and Division of Special Revenue regulate legalized gaming activities in Connecticut pursuant to the provisions of Chapters 54, 98, 226, 226b, 226c and 229a of the Connecticut General Statutes. In addition, the Division regulates Charitable Gaming activities authorized under Chapter 98 of the General Statutes. The Board and Division operate, for administrative purposes only, under the Department of Revenue Services, pursuant to Public Act 80-482.

Gaming Policy Board

The Gaming Policy Board was established in 1979 pursuant to the provisions of sections 12-557d and 12-557e of Chapter 226 of the Connecticut General Statutes. Members of the Gaming Policy Board during the fiscal year were: Nelson C. L. Brown of Glastonbury, Chairman, Gilbert Lebovitz of Rocky Hill, William Farrell of Madison, and Richard Antonetti of Watertown. Actions taken by the Board included approving authorizing alteration of operating hours and performance dates for Pari-Mutuel and Off-Track Betting facilities, and hearing appeals.

Affirmative Action

The Division of Special Revenue, operating under a plan approved by the Commission on Human Rights and Opportunities, is an Affirmative Action/Equal Opportunity Employer. The Division did not knowingly do business with any bidder, contractor, sub-contractor, supplier of materials, or licensee who discriminates against members of any class protected under Connecticut General Statutes Sec. 4-114(a).

Public Service

The Division’s service mandate extends to both the gaming public and the individuals and organizations that are licensed, registered or permitted to conduct gaming or sell lottery products. The public’s confidence in the integrity of gaming has a direct impact upon the ability of any licensed, registered or permitted organization or individual to raise revenue. Through its regulatory vigilance, the Division protects the integrity of all legalized gaming in the state and performs its primary service to patrons, licensees, registrants or permittees as well.

Improvements/Achievements 2004-05

• Launched a new Website
• Re-invigorated the Problem Gambling Council by establishing a permanent home and Chairperson
• Facilitated the passage of needed lottery statutes, during the legislative session, 2004-2005
• Instituted a new vaccination program at greyhound tracks and established database to confirm that vaccinations are up-to-date
• Updated the licensing and lottery regulations
• Received requested ruling from the Attorney General indicating that three-button slot machines are illegal in Connecticut and developed procedures as to how to proceed with the situation when it arises
• Participated in the TOPOFF 3 program initiated by the Governor
• Reduced the usage of the 411 information telephone line reducing the large cost to the State
• Replaced the current telephone system to a digital system
• Initiated project to improve the air quality and eliminate mold at the Division
• Introduced Bingo Event Sealed Ticket games as an additional fundraising option for qualifying nonprofit organizations
• Commended a major re-write of the Agency’s Sealed Ticket Management Information System

Information as required by State Statute

• Followed procedures approved by the Commission on Human Rights and Opportunities to prevent discrimination and to provide for equal opportunity in employment, contracting and service provision, in compliance with C.G.S. 46a-78.

The following information on Division receipts, disbursements, and administrative costs is provided in compliance with C.G.S. 12-564(a).

Summary Information for the Division of Special Revenue Fiscal Year 2004-2005

Division Receipts for Transfer to General Fund:

Amount Returned Amount Transferred⁽¹⁾

Form of Gaming Wagering Revenue to the Public in Prizes to the General Fund

Lottery $ 932,933,942 $ 572,825,222 $268,515,000⁽²⁾

Slot Machines

Foxwoods Casino 9,769,429,104 8,949, 616,904 $204,953,050⁽³⁾

Slot Machines

Mohegan Sun Casino 10,209,198,149 9,357,660,372 $212,884,444⁽³⁾

Off-Track Betting 255,047,341 195,987,595 5,275,182

Charitable Games 50,913,760 25,386,960 1,426,800

Plainfield Greyhound Park 5,760,409 4,239,754 64,837

Bridgeport Shoreline Star 3,497,190 2,580,843 39,462

Total from gaming: $ 21,226,779,895 $19,108,297,650 $693,158,775

Other Receipts and reimbursements available for transfer:

Registration and permit fees (Charitable Games) $ 64,335

License and Registration fees (Pari-Mutuel) $ 50,600

Miscellaneous $ 258,357

Total available for transfer to the General Fund $693,532,067

Other receipts not available for transfer:

Taxes received and paid to host municipalities $ 4,336,257

Refunds and Reimbursements (mainly lottery) $ 1,212,341

Receivables (Casinos) $ 3,202,957

Total agency receipts: $ 702,283,622

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⁽¹⁾ Lottery and casino transfers to the General Fund are made directly by the entities themselves, and not by the Division of Special Revenue.

⁽²⁾ Lottery Figures are preliminary and unaudited.

⁽³⁾Tribal Casino contributions (amount transferred to the General Fund) are calculated based upon 25% of slot machine win, which is wagering revenue less amounts returned to the public in prizes.

Disbursements and Administrative Costs for the Division of Special Revenue 2004-2005

The net cost of administering the Division of Special Revenue for Fiscal 2005 was $9,537,304. This is inclusive of net general fund expenditures, net casino gaming expenditures and the capital equipment purchase fund. Total disbursements are $19,294,346 inclusive of the net cost of administering the Division of Special Revenue and net expenditures of the pending receipts and betting taxes funds.

Net Disbursements for the Division of Special Revenue 2004-2005

Disbursement Amount Percent of Total

Net General Fund expenditures: $ 6,184,471 64.84%

Net casino gaming expenditures: 3,312,273 34.73%

Capital equipment purchase fund: 40,560 .43%

Total Expenditures: (net operating costs) $ 9,537,304 100%

Administrative Costs for Division of Special Revenue 2004-2005

Administrative Costs Amount Percent of Total

Operating Costs

Personal Services / Payroll $ 5,116,360 83%

Data Processing Expenses (combined) 129,681 2

Sealed Tickets (Purchase for Resale) 247,848 4

Telephone & Utilities 190,111 3

General repairs & maintenance (Building) 65,625 1

Office, maintenance, and misc. supplies 70,170 1

Rental of building (81 Alumni Rd.) 50,350 1

All other operating expenses 314,326 5

Net General Fund Costs $ 6,184,471 100%

Casino Gaming 3,312,273

Capital Equipment Purchase Fund 40,560

Total Operating Costs: $ 9,537,304

Non-Operating Costs

Funds awaiting distribution $ 45,776

Betting Taxes⁽¹⁾ 9,711,266

Total Non-Operating Costs: $ 9,757,042

Net Total Costs: $19,294,346

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⁽¹⁾ Transfers to General Fund and payments to host municipalities from Pari-Mutuel and OTB operations.