FISCAL NOTE
Date Requested: February 12, 2026
Time Requested: 05:12 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1576 |
Introduced |
HB5464 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
State Excess Lottery Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
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 bill does not specify the methodology for calculating cumulative inflation for the period June 30, 2001, through June 30, 2026. For purposes of this estimate, cumulative inflation was calculated using the Consumer Price Index (CPI) published by the Bureau of Labor Statistics. Based on the most recent available data (through 2025), cumulative inflation for the period June 30, 2001, through June 30, 2025, is 83%.
Application of the 83% cumulative inflation adjustment to Racetrack Video Lottery Gross Terminal Revenue Benchmark 2 (Benchmark 2) for all four racetracks is projected to reduce Excess Lottery Fund revenues by $4,432,758 in FY27. Because the administration allowance is calculated as a percentage of gross terminal revenue, the adjustment would result in a corresponding increase in the administration allowance. In subsequent fiscal years, the impact on the Excess Lottery Fund would vary based on the applicable inflation rate and each racetrack’s gross terminal revenue.
Any reduction in Excess Lottery Fund revenues reduces the amounts available for debt service. To the extent that revenues decline without a corresponding reduction in debt obligations, debt coverage ratios could weaken. Sustained reductions in coverage levels may be considered by rating agencies in evaluating the State’s bond ratings. The degree of risk would depend on overall revenue performance, debt service requirements, and other available pledged resources in a given fiscal year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
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 |
-4,432,758 |
0 |
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 the Summary 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.
The bill does not specify the methodology for calculating cumulative inflation for the period June 30, 2001, through June 30, 2026. For purposes of this estimate, cumulative inflation was calculated using the Consumer Price Index (CPI) published by the Bureau of Labor Statistics. Based on the most recent available data (through 2025), cumulative inflation for the period June 30, 2001, through June 30, 2025, is 83%.
Application of the 83% cumulative inflation adjustment to Racetrack Video Lottery Gross Terminal Revenue Benchmark 2 (Benchmark 2) for all four racetracks is projected to reduce Excess Lottery Fund revenues by $4,432,758 in FY27. Because the administration allowance is calculated as a percentage of gross terminal revenue, the adjustment would result in a corresponding increase in the administration allowance. In subsequent fiscal years, the impact on the Excess Lottery Fund would vary based on the applicable inflation rate and each racetrack’s gross terminal revenue.
Any reduction in Excess Lottery Fund revenues reduces the amounts available for debt service. To the extent that revenues decline without a corresponding reduction in debt obligations, debt coverage ratios could weaken. Sustained reductions in coverage levels may be considered by rating agencies in evaluating the State’s bond ratings. The degree of risk would depend on overall revenue performance, debt service requirements, and other available pledged resources in a given fiscal year.
The bill also reallocates revenues from the Greyhound Development Fund to the Thoroughbred Development Fund. This reallocation does not affect total revenues and, therefore, is not reflected in the fiscal impact table. However, it results in a redistribution of funds between the two development funds. Based on FY27 projections, approximately $1.3 million that otherwise would have been allocated to the Greyhound Development Fund is expected to be redirected to the Thoroughbred Development Fund.
Person submitting Fiscal Note: June Somerville
Email Address: jsomerville@wvlottery.com