FISCAL NOTE
Date Requested: January 17, 2026
Time Requested: 09:46 AM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1337 |
Introduced |
HB4398 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
WV Lottery Sports Wagering Fund
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.
W. Va. Code §29-22D-16(a) establishes the rate of assessment (“privilege tax”) that the state shall impose and collect from the licensee’s adjusted gross sports wagering receipts from the operation of West Virginia Lottery sports wagering. This rate is currently set at 10%. SB4398 seeks to increase the privilege tax from 10% to 25%.
Based on Lottery projections, HB 4398 will increase state revenue from sports wagering in FY2026 (Apr 1st-June 30th) by $1,147,500.00, and in FY2027 by $5,724,750.00. SB4398 will have no impact on the costs of state government.
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 |
1,147,500 |
5,724,750 |
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.
SB4398 will have no fiscal impact on the costs of state government.
Sports wagering revenues have been consistent over the last three years (FY23- $5.3M; FY24- $5.3M; FY25- $5.7M). The only anticipated long-range increase in revenue would be attributed to the passage of HB4398, increasing in the privilege tax rate on sports wagering revenue from 10% to 25%. Based on Lottery projections, state revenue will increase by $5,724,750 annually commencing in FY2027.
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.
A critical amendment was omitted from HB4398, creating an inconsistency in the tax rate being applied when negative gross receipts are credited to a licensee under certain circumstances. The last sentence in W. Va. Code §29-22D-16(b)(4) should read as follows: "In that case, the commission shall multiply the amount of negative adjusted gross receipts by 25 percent and pay the amount to the licensee in the manner approved by the commission."
Person submitting Fiscal Note: June Somerville
Email Address: jsomerville@wvlottery.com