FISCAL NOTE

Date Requested: February 13, 2017
Time Requested: 01:51 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
1231 Introduced HB2405
CBD Subject: Legal Gaming


FUND(S):

State Excess Lottery Revenue, State Road Fund

Sources of Revenue:

Other Fund State Road 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 decrease the deposit to the State Excess Lottery Fund as it appears to create two(2) statutory transfers, the first on gross revenue, and the second on net revenue. The deposit to the State Road Fund will simply be a change in the transfer of existing revenues, but will result in a cut in the percentage distributed to the local government [municipalities] as well as the share between limited video lottery operators and retailers. In theory the reallocation of video lottery terminals will generate more revenue from limited video lottery gaming for the State. Therefore, percentages of total revenue are shown below.



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):


# of Terminals- % of Revenue Current (5 VLTS) 6 7 11 12 Gross Revenue% 100% 100% 100% 100% 100% Admin 2% 2% 2% 2% 2% Road 0 16.7% 28.6% 9.1% 16.7% Net 98% 81.3% 69.4% 88.9% 81.3% SELRF 47.04% 25.5% 13.5% 34.6% 25.5% Muni 1.96% 1.63% 1.39% 1.78% 1.63% O/R 49% 40.67% 34.71% 44.45% 40.67% Road 0% 13.6% 19.8% 8.1% 13.6% Admin= Administrative Allowance ROAD= State Road Fund SELRF= State Excess Lottery Revenue Fund Muni= Municipalities O/R= Split between operator and retailer



Memorandum


This bill creates two statutory transfers that redirect money away from the State Excess Lottery Revenue Fund. Redirecting money away from the Excess Lottery Fund will automatically reduce debt service coverage ratio which could have a negative effect on the state's bond ratings.



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