FISCAL NOTE
Date Requested: February 28, 2017
Time Requested: 01:20 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2868 |
Introduced |
SB468 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
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.
SB468 will allow all traditional lottery games [instant games and online draw games]to be sold in the same locations by removing restrictions on where the "Travel Keno" game (KENO) can be sold. Currently, the Lottery's five minute KENO draw game, may only be sold in certain ABCA licensed, adult only environments (bars and taverns); it is the only traditional game with such restrictions.
The Lottery anticipates an increase in sales of approximately $3,000,000 After commissions, prizes, and administrative expense, approximately $600,000 in total revenue will be deposited to the Lottery Fund upon full implementation.
SB468 will increase revenues from Keno game sales and increase deposits to the Lottery Fund. Any increases or new revenues deposited to the Lottery Fund may positively impact the debt service coverage ratio and protect the state's bond ratings.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
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 |
592,300 |
592,300 |
Explanation of above estimates (including long-range effect):
By allowing "TRAVEL Keno" (KENO) sales at any traditional Lottery location without installing additional equipment, the Lottery projects and increase in sales of $3,000,000.
Explanation of deductions from sales (gross revenue):
Retailer Commission: 7%
Approximate Player Expense: 60%
Vendor Administrative Fee: 4.23%
Lottery Administrative Fee*: 9.72%
* Lottery Administrative Fee percentage includes advertising.
Net Sales/Estimated Total Revenues: $592,300 (deposited to the Lottery Fund)
Memorandum
Special Issues/Background: While the Lottery has approximately 1,500 traditional lottery retailers, only a small percentage are located in adult environments (bars and taverns). Currently, less than 300 retail locations offer KENO, and most of those locations are operated by dual-licensees who have limited video lottery (slot machines), and, in many cases, may offer KENO themed video lottery games for patrons to play in that same location. SB468 is intended to stabilize revenue from KENO sales which will contribute to a small increase in the deposit to the Lottery Fund.
Person submitting Fiscal Note: Danielle Boyd, Managing General Counsel
Email Address: dboyd@wvlottery.com