New lotto director
McLaughlin hits the jackpot

GUILDERLAND — For the lotto, all you need is a dollar and a dream.

However, someone has to oversee the nearly $7 billion brought in by the state lottery. Today, that man is Robert J. McLaughlin.

The New York Lottery has just named him to be its new director of all state-wide operations.

McLaughlin, of Guilderland’s Fort Hunter area, started his new $140,000-year job on Nov. 6, and he told The Enterprise that he’s ready for the challenge.
"The new job is great," he said. "It’s an honor to be appointed."

McLaughlin was appointed by the state’s Tax and Finance commissioner, Andrew S. Eristoff.

Citing his goals, McLaughlin said that he wants to continue generating billions of dollars for education around the state, expand revenues brought in through video lottery terminals, and maintain vigilance for gambling addiction problems in New York.

McLaughlin is now responsible for the lottery’s ticket sales and distribution, prizes, drawings, accounting, auditing, investigations, sales agent relations, reviewing budgets, and for personnel matters.
"He oversees the entire New York State Lottery," said New York Lottery spokeswoman, Jennifer Mauer. "It’s like running a Fortune 500 business, except that we’re a state agency."

Where the money goes

The New York Lottery reported $6.8 billion in revenues last year, giving $2.2 billion, or about 32 percent, to education.

The lottery is also a major supporter of the New York State Empire Games, the largest state-run amateur athletic competition in the country. According to the State Education Department, the New York Lottery has raised $29 billion for schools since 1967.

More than $3.8 billion, or about 56 percent of revenues last year goes to prizes. Commissions for traditional lottery facilities take about 6 percent, with roughly another 6 percent going to video gaming facilities, contractor fees, and various operating costs, according to the lottery’s 2005-06 fiscal year allocations.

In the 2004-05 fiscal year, the New York Lottery reported giving $4.2 million to the Guilderland Central School District; $1.5 million to the Berne-Knox-Westerlo Central School District; and $908,000 to the Voorheesville Central School District. The lottery revenue is distributed each year from a dedicated lottery fund held by the state comptroller.
"It’s determined by the New York State Legislature," Mauer told The Enterprise. "We raise the money and the comptroller actually distributes it, but the legislature comes up with the formula."

The formula is included with the annual budget.

Last month, the New York Lottery announced that, for the first time in its history, it had awarded checks to over 90 new millionaires in less than one year.

It is the largest lottery in the nation and the sixth-largest in the world, according to McLaughlin.

Where the money comes from

The big money-makers are the scratch-offs.
"Half of the income is in the instant games," said McLaughlin. "About $3 billion a year come from them."

The lottery is betting on even more revenue coming in from video lottery terminals (V.L.T.’s) from race tracks and other video lottery facilities around the state. Currently, there are eight facilities in New York.

In Yonkers alone, at its Empire City facility, V.L.T.’s brought in $300 million in net revenues for education, and its revenues are expected to more than double to $700 million this year with 5,500 video machines, according to McLaughlin.

When it comes to curbing gambling addiction, McLaughlin said the New York Lottery takes the problem seriously and requires all of the V.L.T. operators to post gambling problem signs at their venues.
"We always put out messages to play responsibly," said McLaughlin.
"We provide training for all of our employees on spotting problem gambling," he said. "We suggest that they send those individuals to our 1-800 gambling hotline for additional help."

Mauer told The Enterprise that messages on gambling and the Lotto’s hotline number are printed on all points of sales throughout the state and the lottery works with the state’s Office of Alcoholism and Substance Abuse and the New York Council on Problem Gambling.

The hotline number is 1-800-437-1611 and the New York Lottery headquarters are in Schenectady.

"Lottery Central"
"The Lottery is very happy to be in downtown Schenectady," McLaughlin said, calling the location, "Lottery Central."

McLaughlin has worked for the New York Lottery for the past three years as the former deputy director and he has also worked as its general counsel. He has served, too, as the senior vice president and general counsel for the State Environmental Facilities Corporation.
"While I worked for the environmental facilities corporation, I actually worked on a lot of water and sewer bonds for various water and sewer projects in the Guilderland area," McLaughlin said.

Before his career in public service, McLaughlin was the first vice president and counsel to the former Greater New York Savings Bank in Brooklyn and was also previously a partner of the law firm Pieper Hoban & Royce, P.C. in Mineola, N.Y. He received his law degree in 1986 and his bachelor’s of science degree in 1983 — both from St. John’s University.

McLaughlin has been a lawyer for the past 20 years and lives in Guilderland with his wife and three children.
"This is all very exciting and I am looking forward to the challenge," said McLaughlin of his post. "The income for education is growing at just an incredible rate."