FISCAL NOTE
Date Requested: February 20, 2016
Time Requested: 01:34 PM |
| Agency: |
Racing Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2810 |
Introduced |
SB641 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
STATE EXCESS LOTTERY FUND
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB641 defunds and decouples Greyhound Racing resulting in an increase of revenues to the State by redirecting funds previously directed to Greyhound Racing to the State Excess Lottery Fund for appropriation by the State Legislature.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
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 |
21,209,810 |
11,009,860 |
Explanation of above estimates (including long-range effect):
Estimated revenues are a result of redirecting the funding previously directed to Greyhound purses and the Greyhound Breeding Development Fund to the State Excess Lottery Fund for appropriation by the State Legislature. The statutory percentage of Racetrack Video Lottery and Tables Games Revenue deposited into the Greyhound Purse fund has been projected at $7,198,047. The West Virginia Greyhound Breeding Development Fund estimated FY16 Year-End balance is $300,000. Projected deposits into the West Virginia Greyhound Breeding Development Fund for 2017 are $3,211,813. Pass through funding associated with the Greyhound Breeding Development Fund as a result of Racetrack Video Lottery and the Supplemental Purse Program/Unredeemed Tickets totals approximately $600,000. Racetrack Modernization funds to be transferred to the State Excess Lottery Fund for appropriation by the Legislature are approximately $10,199,950. Total estimated revenue redirected to the State Excess Lottery Fund for appropriation by the State Legislature in Fiscal Year 2017 is approximately $21,209,810. Estimated future year deposits are $11,009,860.
Funds in the State Excess Lottery Fund that are currently appropriated by the Legislature to greyhound racing include $4,101,073 to greyhound purses, and $487,385 as pass-through to the greyhound breeding development fund. These funds would also be available to the Legislature to be appropriated elsewhere.
Memorandum
Senate Bill 641 essentially defunds greyhound racing in the state of West Virginia and allows greyhound tracks to maintain a video lottery license without the necessity of a racing license. However, the bill does not officially end the practice of greyhound racing nor does it end the state’s requirement to regulate greyhound racing. Furthermore, the bill does not modify the required number of race days for a track to maintain simulcasting rights (§19-23-12b).
Requiring the WV Racing Commission to continue to regulate greyhound racing would place an undue financial hardship on the Commission. The Commission currently expends approximately $775,000 annually to regulate greyhound racing and there would be very little revenue associated with the activity to cover this cost. Additionally, revenues associated with greyhound racing assist the Commission in the regulation of thoroughbred racing as thoroughbred racing does not generate sufficient levels of revenue to cover the cost of regulation. As such, the Racing Commission would likely be out of funds within 1 fiscal year. With a cessation of greyhound racing, which would likely be the result of SB641, the Racing Commission would operate at an annual deficit of approximately $1,300,000. It would likely require an appropriation from the Legislature to continue operations.
Should greyhound racing be discontinued, an additional $375,385 would also be available by discontinuing capital improvements reimbursement available to the greyhound tracks as this would no longer be necessary (§19-23-13c(b)(3)(A).
Person submitting Fiscal Note: Joe Moore, Executive Director, WVRC
Email Address: joe.k.moore@wv.gov