A bill to amend the Internal Revenue Code of 1954 to exempt State lotteries from the tax on wages and to exclude from gross income amounts won in State lotteries.

Exempts State Lotteries from the tax on wagers imposed under the Internal Revenue Code.

Excludes vending machines dispensing lottery tickets for State lotteries from the definition of a coin-operated gaming device for purposes of the tax on wagers imposed under the Internal Revenue Code.

Excludes from gross income amounts won in State lotteries.