FISCAL NOTE
Date Requested: February 13, 2018
Time Requested: 02:48 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2614 |
Introduced |
HB4552 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to amend the definition of raffle to include raffles conducted by electronic means.
According to our interpretation, the proposed bill would amend the definition of “raffle” to allow “electronic presentations of tickets.” Due to ambiguity in the language, however, the proposed bill could allow for an influx of slot machines under the guise of “video enhanced raffle ticket dispensers.” Such devices would compete with Limited Video Lottery (LVL) machines, thereby affecting State video lottery revenues. It is difficult to estimate what impact this may have, but it is anticipated that resulting revenue losses could be significant.
Additional administrative costs to the State Tax Department would be significant to regulate and enforce the proposed bill.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
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):
According to our interpretation, the proposed bill would amend the definition of “raffle” to allow “electronic presentations of tickets.” Due to ambiguity in the language, however, the proposed bill could allow for an influx of slot machines under the guise of “video enhanced raffle ticket dispensers.” Such devices would compete with Limited Video Lottery (LVL) machines, thereby affecting State video lottery revenues. It is difficult to estimate what impact this may have, but it is anticipated that resulting revenue losses could be significant.
Additional administrative costs to the State Tax Department would be significant to regulate and enforce the proposed bill.
Memorandum
The stated purpose of this bill is to amend the definition of raffle to include raffles conducted by electronic means.
As written, the proposed bill may have several unintended consequences. The bill does not define the term “electronic presentations of tickets,” which could include more devices than intended. Further, the bill’s language is ambiguous with respect to restrictions on venue, age of user, and number of devices allowed per venue. Without additional guidance, the bill could allow multiple such devices in public places and make such devices available to children. In addition, the proposed bill could allow entry of slot machines under the guise of “video enhanced raffle ticket dispensers” that would be in direct competition with Limited Video Lottery machines.
A similar concern occurred in 2008, prior to the ban on electronic raffle devices. At that time, there was an influx of illegal slot machines billed as “video enhanced raffle ticket dispensers” in the State. The Tax Department’s Criminal Investigation Division currently lacks necessary resources to regulate such activity.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov