FISCAL NOTE

Date Requested: February 15, 2019
Time Requested: 04:00 PM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
3008 Introduced HB2901
CBD Subject: Boards and Commissions


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