CHAPTER 22

FORMERLY

HOUSE BILL NO. 34

AS AMENDED BY HOUSE AMENDMENT NO. 1 AND SENATE AMENDMENT NO. 18

AN ACT PROPOSING AN AMENDMENT TO THE CONSTITUTION OF THE STATE OF DELAWARE RELATING TO GAMBLING.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each House thereof concurring therein):

Section 1. Amend Article II, Section 17 of the Constitution of the State of Delaware by adding a new subsection immediately following subsection (a) to be designated subsection "(b)" and by redesignating existing subsection (b) and (c) accordingly as follows:

"(b) Lotteries (other than slot machines, roulette, craps, and baccarat games) provided that each is sponsored and conducted under the limitations of Section 17B by companies, organizations, or societies which have been in existence for at least two years; provided, however, that no person who shall not have attained the age of 18 years shall participate in any lottery (where money is the prize) otherwise authorized by the Article."

Section 2. Amend Article 11 of the Constitution of the State of Delaware by adding a new section immediately following Section 17A to read as follows:

"§17B. Lotteries not under State control; organizations authorized to conduct; submission to referendum; districts; regulation; penalties.

Lotteries not under State control shall be lawful when sponsored and conducted by Volunteer Fire Companies, Veterans Organizations, Religious or Charitable Organizations, or by Fraternal Societies provided that said Company, Organization or Society has been in existence a minimum of two years and provided the net receipts or profits arising from the conducting or operating of such lotteries by the aforementioned Companies, Organizations, or Societies are used solely for the promotion or achievement of the purposes of such Companies, Organizations, or Societies, and provided further that the aforementioned Companies, Organizations or Societies are operated in a manner so as to come within the provisions of Section 170 of the U.S. Revenue Code and Regulations promulgated thereunder by the U.S. Secretary of the Treasury.

1. The General Assembly shall provide by law for the submission to the vote of the qualified electors of the several districts of the State, or any of them, mentioned in subparagraph 2 of Section 17B of this Article at the General Election held in 1984, the question whether the playing of lotteries not under State control shall be licensed or prohibited within the limits thereof; and in every district in which there is a majority against license, no organization, mentioned in Section 17B, shall thereafter sponsor or permit lotteries not under State control, within said district, until at a subsequent submission of such question a majority of votes shall be cast in said district for license. Whenever a majority of all the members elected to each House of the General Assembly by the qualified electors in any district named in subparagraph 2 of Section 17B of this Article shall request the submission of the question of license or no license to a vote of the qualified electors in said district, the General Assembly shall provide for the submission of such question to the qualified electors in such district at the next general election thereafter.

2. Under the provisions of this Article, Sussex County shall comprise one district, Kent County shall comprise one district, the City of Wilmington, as its corporate limits now are or may hereafter be extended, one district, and the remaining part of New Castle County, one district.

3. The General Assembly shall enact comprehensive legislation providing for licensing for all organizations conducting and regulating the conduct of lotteries under the provisions of this section and may provide such penalties as may be necessary to enforce such legislation.

Approved May 20, 1981.