Under the law, all profits from Lotto are invested back into New Zealand through the Lotteries Commission.
The Department of Internal Affairs administers the fund on behalf of the Lottery Grant Board.
The America's Cup Fund will be open until the end of December 2020 or until all the funding has been fully distributed.
Funding is available for capital projects and items that relate to or connect New Zealanders to the 2021 America's Cup.
An example for a project which could win funding would be a yachting club in the south island which wanted to buy an accessible boat for the disability community to use, Martin said.
"The America's Cup is a global event, and having it here is a significant opportunity – one that can benefit towns and cities across New Zealand in the lead up to, during and post-2021," she said.
The first decision meeting of the Committee will be held in mid-December 2018.
A new Lottery Distribution Committee, responsible for making decisions on applications to the fund, has also been appointed.
But Act Leader David Seymour is not a fan of the new fund.
"New Zealand First's goal has always been to take us back to the 1970s.
"The idea of the Government setting up a special lottery for the Americas Cup? Give us a break. Is there any aspect of life that Government is not getting its tentacles into?"
The newly appointed members have knowledge and experience from a range of different areas as well as being experienced Lottery Committee members.
They are Katie Noble and Richard Pamatatau, who have knowledge of Auckland communities' networks and needs.
Arihia Tuoro and Garth Clarricoat have also been appointed – Marin said the pair has experience in national funding.
Ms Noble has been appointed as the Chair of the Committee.
