A bill establishing a National Lottery Commission, providing for national drawings and a sharing of proceeds with participating States.

Makes it a Federal crime to engage in any number game. Provides that this Act shall not apply to any national lottery conducted by the National Lottery Commission.

Establishes a National Lottery Commission to be composed of three members, appointed for a term of five years by the President, by and with the advice and consent of the Senate. Provides that the Commission shall be part of the Internal Revenue Service.

Provides that the Commission shall conduct a national lottery at least once per month and the Bureau of Engraving and Printing in the Department of the Treasury shall print the numbered stamps in sheets of one hundred.

Requires the Commission to distribute the stamps throughout the participating States or in Federal areas. Requires such stamps to be sold at not less than 25 cents for each stamp and such stamps may be sold for cash only to any adult, either singly or in quantity and may be resold by original and subsequent purchasers.

Provides that the stamps shall be bearer stamps and shall be honored for prize money by presentation by the bearer thereof. Reimburses the Post Office Department for such administrative expenses it may incur by reason of the enactment of this Act.

Provides that the pay-out for winning numbers, in any lottery, shall not be less than 40 percent of the net proceeds less the amounts payable under this Act.

Provides that any prize money unclaimed after one year shall escheat to the general funds of the United States Treasury.

Allows any of the several States to elect not to participate by so certifying to the Commission on or before the ninetieth day after the date of enactment of this Act. Credits the net proceeds in excess of pay-out amounts and participating States distribution to the Treasury as follows: (1) the first $100,000,000 so deposited in such calendar year shall be credited to the account of the Law Enforcement Assistance Administration for use in cooperation with the several States in fighting crime; and (2) the remaining amount shall be credited to the account of the Department of Health, Education, and Welfare.

Provides penalties for any person who forges or counterfeits, offers for sale or sells such stamps or intends to defraud the United States or any participant in the lottery and for any person who offers for sale or sells stamps in a State which has elected not to participate in the lottery.