(1) The General Assembly may establish a Kentucky state lottery and may establish a state lottery to be conducted in cooperation with other states. Any lottery so established shall be operated by or on behalf of the Commonwealth of Kentucky.
(2) The General Assembly may by general law permit charitable lotteries and charitable gift enterprises and, if it does so, it shall:
(a) Define what constitutes a charity or charitable organization;
(b) Define the types of charitable lotteries and charitable gift enterprises which may be engaged in;
(c) Set standards for the conduct of charitable lotteries and charitable gift enterprises by charitable organizations;
(d) Provide for means of accounting for the amount of money raised by lotteries and gift enterprises and for assuring its expenditure only for charitable purposes;
(e) Provide suitable penalties for violation of statutes relating to charitable lotteries and charitable gift enterprises; and
(f) Pass whatever other general laws the General Assembly deems necessary to assure the proper functioning, honesty, and integrity of charitable lotteries and charitable gift enterprises, and the charitable purposes for which the funds are expended.
(3) Except as provided in this section, lotteries and gift enterprises are forbidden, and no privileges shall be granted for such purposes, and none shall be exercised, and no schemes for similar purposes shall be allowed. The General Assembly shall enforce this section by proper penalties. All lottery privileges or charters heretofore granted are revoked.
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