FISCAL NOTE

Date Requested: February 10, 2016
Time Requested: 01:59 PM
Agency: Racing Commission
CBD Number: Version: Bill Number: Resolution Number:
2562 Introduced SB562
CBD Subject: Legal Gaming


FUND(S):

Racing Commission General Administrative Fund

Sources of Revenue:

Special Fund

Legislation creates:

A New Program



Fiscal Note Summary


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


    SB562 creates the opportunity for Advance Deposit Wagering facilities to be licensed to do business in West Virginia. The impact of ADW in the State of West Virginia is an opportunity for an increase in pari-mutual wagering activity on thoroughbred and greyhound racing, resulting in an increase in revenue to the Racing Commission and the General Revenue Fund. The increase in revenue is a result of taxing total wagers made through an ADW facility as well as an annual licensing fee.



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 0 350,000 350,000


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


    The West Virginia Racing Commission does not anticipate any additional cost associated with the regulation of an ADW facility. It is anticipated that the amount of time required to perform the regulatory duties will be absorbed within our current structure. It is somewhat difficult to determine an increase in state revenue. Our research included reviewing other State Racing Commission's annual wagering statistics in relation to their ADW performance. Based on our research, we are estimating a conservative increase in wagering of thirty (30) percent. SB562 allows for one-half percent of total annual ADW wagers be deposited into the Racing Commission General Administrative Fund. Estimated revenue generated from pari-mutual tax is $115,000. SB562 allows for one percent of total annual ADW wagers be deposited into the State General Revenue Fund. Estimated revenue generated for the General Revenue Fund is $230,000. The remaining estimated revenue is associated with license fees charged to an ADW facility and deposited into the Racing Commission General Administrative Fund.



Memorandum


    



    Person submitting Fiscal Note: Joe Moore, WVRC Executive Director
    Email Address: joe.k.moore@wv.gov