FISCAL NOTE

Date Requested: February 28, 2019
Time Requested: 11:50 AM
Agency: Lottery Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
3024 Introduced HB2934
CBD Subject: Legal Gaming


FUND(S):

Lottery

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Fund: West Virginia Lottery Interactive Wagering Fund



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. HB2934 allows interactive gaming defined as wagering on computerized games or virtual versions of any game of chance or digital simulation such as casino themed slot simulations or table games. Projected revenue from these activities may generate, based upon a privilege tax rate of 15%, approximately $3.9 million in FY2020 and approximately $5.9 million upon full implementation.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
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 3,900,000 5,900,000


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. Revenues based upon a 15% privilege tax that is now part of the Engrossed version of the bill.



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. There are concerns that parts of HB2934, as proposed, may violate the Federal Wire Act based upon a published interpretation of that statute by the Office of Legal Counsel in the U.S. Department of Justice. The DOJ released its opinion to the public on January 14, 2019. This interpretation expands the prohibition on wagering across state lines from sports betting to all gambling activity. Lottery supports the concept of I-gaming and is analyzing possible legal issues that may arise as a result of this recent development.



    Person submitting Fiscal Note: Tracy L. Webb, General Counsel
    Email Address: twebb@wvlottery.com