FISCAL NOTE
Date Requested: February 02, 2023
Time Requested: 05:05 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3054 |
Introduced |
HB3232 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
Lottery Fund/Excess Lottery Fund
Sources of Revenue:
Special Fund
Legislation creates:
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.
Due to some ambiguities in HB 3232, the Lottery is unable to project what impact it may have on costs and revenues of state government. The Lottery is unsure of what financial obligation it may have to independent evaluators. HB 3232 directs the Lottery to "accredit" independent evaluators and for licensees to "select" independent evaluators but appears to be silent on whether the licensee or the State is responsible for the payment of the evaluator's services. Additionally, while HB 3232 allows the Lottery to determine material misrepresentations of experts/influencers and demand explanation or "further action" to be resolved between influencer, the Lottery, the licensee and the AG's office, the bill itself does not include any penalties. It only mentions "further action" in broad reference to potential penalties. For such reasons, the Lottery is unable to project what impact HB 3232 may have on costs and revenues of state government.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
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):
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.
Due to some ambiguities in HB 3232, the Lottery is unable to project what impact it may have on costs and revenues of state government. The Lottery is unsure of what financial obligation it may have to independent evaluators. HB 3232 directs the Lottery to "accredit" independent evaluators and for licensees to "select" independent evaluators but appears to be silent on whether the licensee or the State is responsible for the payment of the evaluator's services. Additionally, while HB 3232 allows the Lottery to determine material misrepresentations of experts/influencers and demand explanation or "further action" to be resolved between influencer, the Lottery, the licensee and the AG's office, the bill itself does not include any penalties. It only mentions "further action" in broad reference to potential penalties. For such reasons, the Lottery is unable to project what impact HB 3232 may have on costs and revenues of state government.
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.
- HB 3232 is not clear on whether the State or Licensees are responsible for the independent evaluators' services/fees.
- In lines 1 through 5, HB 3232 references the West Virginia State Gaming Control Board, which does not exist. Additionally, in its NOTE, HB 3232 references the purpose of it being to require independent evaluators to report findings to the State of Maryland Gaming Control Board. The Lottery presumes these are typographical errors.
- The title of the new law created by HB 3232 is "regulating fantasy gaming competitions and sports wagering through independent evaluations" which would indicate fantasy gaming competitions and/or Daily Fantasy Sports ("DFS") is within the purview of HB 3232. Based on a July 7, 2016 Attorney General Opinion, DFS and fantasy games are not regulated in the State of West Virginia. Allowing for DFS and fantasy regulation now is contrary to the standing authority on the regulation of DFS and fantasy games in West Virginia.
- The Lottery is not familiar with the independent evaluators contemplated by this bill or the cost that may be associated therewith.
- The Lottery does not know how to interpret the following language in lines 42 through 45: "Those licensees who do meet the criteria for independent evaluator services – based on sports betting content, experts or influencers, and/or content partners definition – will have their independent evaluator fees supplemented by the state of West Virginia until such time they become financial capable to do so, as decided by the state of West Virginia."
Person submitting Fiscal Note: W. Brian Nickerson, General Counsel
Email Address: bnickerson@wvlottery.com