FISCAL NOTE
Date Requested: March 07, 2017
Time Requested: 11:20 AM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2869 |
Introduced |
SB466 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
State Excess Lottery Revenue Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill will not increase revenues to the state, however, it is critical to sustain revenues from limited video lottery. The current structure for determining the state share of revenue is a sliding scaled based on daily aggregate average. Since 2007, the daily aggregate average has been above $140 and, therefore, the state's share of net profits has consistently been 50%. Stabilizing this revenue stream is viewed positively by bond rating agencies, and ensures the state continues to receive the same percentage of revenue from limited video lottery gaming.
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill stabilizes the revenue stream from limited video lottery gaming by fixing the state share at 50%, however, will not increase revenues currently being received by the state.
Memorandum
Special Issues:
In the current environment, if the tax rate were to drop to 46%, it would reduce transfers to the SELRF by $1.1M per month; this amounts to a total loss of $13.2M annually. If it were to drop to 42%, it would reduce transfers by an estimated $2.2M per month; this would amount to a total loss of $26.4M annually.
Person submitting Fiscal Note: Danielle Boyd, Managing General Counsel
Email Address: dboyd@wvlottery.com