Research

Administrative History

Governor Nelson A. Rockefeller established the Moreland Commission Bingo Control Inquiry by executive order on May 16, 1961. The commission was appointed after State Investigation Commission hearings held in April and May, 1961 in New York City revealed numerous instances of abuses, corruption, and violations of law in the conduct of bingo games. The commission was directed to investigate all phases of bingo in New York State as provided for by Chapters 853 and 854 of the Laws of 1957 (as amended) and to recommend statutory changes needed to eliminate abuses.

The commission conducted investigations in New York City, Buffalo, Syracuse, Rochester, Utica, and rural communities in 19 counties. Sixty-three witnesses were examined in executive sessions of the commission. The commission also examined the books and records of organizations authorized to conduct bingo games, proprietors of premises rented by authorized organizations for the games, and manufacturers and distributors of bingo equipment. Near the end of its investigation, the commission held public hearings in New York City, Buffalo, Syracuse, and Utica.

Among the commission's findings were: professional gamblers had bribed employees of the State Lottery Control Commission and municipal employees; veterans' and religious groups had been organized as fronts for bingo games and the funds meant to benefit religious, charitable, and civic causes had been diverted for personal gain; State Lottery Control Commission members had close ties to licensees, suppliers, and commercial hall operators, creating a conflict of interest; municipal investigation and enforcement efforts were minimal; and license fees were inadequate to cover all costs of supervising and investigating the conduct of bingo games.

In its final report dated February 1, 1962, the commission made twenty-five recommendations, including amendments to the bingo control and licensing laws. Among the recommendations were: reorganize the State Lottery Control Commission and establish strict eligibility requirements to reduce opportunities for conflict of interest; give the State Lottery Control Commission specific authority to investigate violations and evasions of the licensing law, rules, and regulations; direct the State Lottery Control Commission to investigate all new licenses and give it enforcement powers over municipalities; municipalities should perform supervisory and investigatory functions conscientiously; license fees should be sufficient to cover all state and local administrative costs; licensees should exercise stricter self-policing methods to prevent misappropriation of the cash handle of their bingo operations; bingo suppliers should be licensed by the state; and clarify the "lawful purposes" to which bingo proceeds may be applied.