FISCAL NOTE

Date Requested: February 14, 2017
Time Requested: 01:45 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
2285 Introduced SB281
CBD Subject: Legal Gaming


FUND(S):

State Excess Lottery Revenue Fund

Sources of Revenue:

Other Fund State 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 because of so many variables. Therefore, an estimate of revenue from the bid fees and additional license/permit fees will be used to project the revenues from SB281.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 5,454,108 1,188,000


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


No new employees would be required to conduct the rebid or issue additional licenses[permits] so there is no cost to the State. As the bill requires the rebid to be conducted by September 1, 2017, revenues for permits would be collected in FY18. License/Permit fees will be collected annually upon full implementation. Estimates were prepared as follows: Total Permits Authorized: 9000 Total Permits Bid in 2010 [active]: 7812 Total Permits Available for Bid: 1188 Average Bid Per Permit [10 year cycle]: $9,182 For Half Bid Period [halfway through 10 years]: $4,591 Estimate Bid Fees [FY18]: $5,454,108 Additional Permit Fees annually [full implementation]: $1,188,000



Memorandum


N/A



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