FISCAL NOTE
Date Requested: February 14, 2019 Time Requested: 01:24 PM |
Agency: |
Lottery Commission, WV |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3279 |
Introduced |
SB612 |
|
CBD Subject: |
Agriculture |
---|
|
FUND(S):
Lottery
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
Only one casino has expressed an intention of opening a secondary location at this time: Wheeling Island Casino operated by Delaware North. Based upon representations by this operator, the anticipated revenues for FY2019 and FY 2020 is $0 because of construction and start up, and a conservative estimate of Net Adjusted Gross Gaming Revenue to the satellite location beginning in FY2021 is $7.1 million.
In terms of costs, the Lottery will incur the cost of compliance and oversight requiring approximately 8-10 investigators and at least 1 auditor, as well as other administrative costs. Lottery estimates this annual cost to be $500,000, with the caveat that it is not possible to provide a detailed estimate with any accuracy without further information regarding the size and scope of any proposed secondary location.
Given the above estimates, the State of West Virginia would receive approximately $2.34 million in additional revenue.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
500,000 |
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 |
2,340,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
See explanation above.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
This is an updated fiscal note based upon revised revenue information provided by Delaware North as of 2/21/2019.
Person submitting Fiscal Note: Tracy L. Webb, General Counsel
Email Address: twebb@wvlottery.com