FISCAL NOTE

Date Requested: January 09, 2019
Time Requested: 06:06 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
1516 Introduced SB27
CBD Subject: Legal Gaming


FUND(S):

Lottery

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources



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. The Lottery anticipates an increase in revenue without additional costs should SB27 pass. Based upon an estimated increase in KENO game sales between 10% and 20%, the Lottery projects an increase in gross revenue between $413,752.00 and $827,504.00. After deductions for prizes, commissions, and administrative costs, the revenue to the Lottery Fund could increase in the range of $72,726.00 to $145,452.00.



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 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 72,726 145,452


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. By allowing KENO sales at any traditional lottery location, the Lottery anticipates an increase in gross revenue in the range from $413,752.00 to $827,504.00 and a net increase in revenue to the Lottery Fund between approximately $72,726.00 to $145,452.00, without installing any new equipment or incurring any additional costs.



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. SB27 will permit the KENO draw game to be sold in the same locations as all traditional lottery games. Currently, KENO may only be sold in certain ABCA licensed, adult only environments (bars and taverns) and is the only traditional game with this restriction. The Lottery has approximately 1,500 traditional lottery retailers, and only a small percentage are located in adult environments. Currently, less than 300 retail locations offer KENO. Most of those locations are operated by dual-licensees who have limited video lottery (slot machines), and may, in many cases, offer KENO themed video lottery games for patrons to play in the same location. The estimated increase in revenue to the Lottery Fund would be due to the removal of the above-referenced restriction.



    Person submitting Fiscal Note: Tracy L. Webb, General Counsel
    Email Address: twebb@wvlottery.com