STATE-CONDUCTED LOTTERIES.

SEC. 1208. STATE-CONDUCTED LOTTERIES. (a) Exemption From Wagering Tax.— Paragraph (3) of section 4402 (relating to State-conducted sweepstakes) is amended to read as follows: “(3) State-conducted lotteries, etc.— On any wager placed in a sweepstakes, wagering pool, or lottery which is conducted by an agency of a State acting under authority of State law, but only if such wager is placed with the State agency conducting such sweepstakes, wagering pool, or lottery, or with its authorized employees or agents.” (b) Exemption From Occupational Tax on Coin-Operated Devices.— Section 4462(b) (relating to exclusions from definition of coin-operated gaming devices) is amended— (1) by striking out “or” at the end of paragraph (1), (2) by striking out the period at the end of paragraph (2) and inserting in lien thereof “; or”, and (3) by adding at the end thereof the following new paragraph: “(3) a vending machine which— “(A) dispenses tickets on a sweep stakes, wagering pool, or lottery which is conducted by an agency of a State acting under authority of State law. and “(B) is maintained by the State agency conducting such sweepstakes, wagering pool, or lottery, or by its authorized employees or agents.” (c) Effective Dates.— (1) The amendment, made by subsection (a) shall apply with respect to wagers placed after March 10, 1964. (2) The amendments made by subsection (b) shall apply with respect to periods after March 10, 1964.