FISCAL NOTE

Date Requested: February 08, 2016
Time Requested: 10:56 AM
Agency: Lottery Commission
CBD Number: Version: Bill Number: Resolution Number:
1184 Comm. Sub. SB116
CBD Subject: Legal Gaming


FUND(S):

Excess Lottery Fund

Sources of Revenue:

Other Fund Excess Lottery Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


In theory the reallocation of video lottery terminals will generate more revenue from limited video lottery gaming for the State, however, we cannot assume this as there is no way to predict the results. Therefore, an estimate of revenues from bid fees and additional license fees will be used to project the revenues from SB 116 [Comm Sub].



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 4,292,585 935,000


Explanation of above estimates (including long-range effect):


No new employees would be required to conduct the rebid or issue additional licenses so there is no cost to the State. As the bill requires the rebid to be conducted by September 1, 2016, revenues for permits would be collected in FY17. License fees will be collected annually upon full implementation. Estimates were prepared as follows: Total Permits Authorized: 9,000 Total Permits Bid: 8,065 Total Available for Bid: 935 Average Bid Per Permit [10 year cycle]: $9,182 For Half Period [halfway through current 10 year cycle]: $4,591 Estimated Bid Fees [FY17]: $4,292,585 Additional License Fees annually [full implementation]: $935,000



Memorandum


N/A



    Person submitting Fiscal Note: Danielle E. Boyd, General Counsel
    Email Address: dboyd@wvlottery.com