FISCAL NOTE
FUND(S):
Excess Lottery Revenue Fund
Sources of Revenue:
Other Fund Excess Lottery Revenue
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill has two functions:
1. Remove all ATMS from limited video lottery retail locations; and
2. Allow only fraternal and veterans organizations to renew their ten-year video lottery terminal permits on July 1, 2011.
1. The Lottery has no way to gauge the effect on state revenue that removal of ATMs will have.
2. 2011: The Lottery estimates a loss of recenue in fiscal year 2011 of $22,920,000. If the Commission chose to impose a minimum bid of $3,000 per terminal for the ten-year permits, the license fees would total $4,080,000 instead of $27,000,000 if all 9,000 terminals.
2012: The Lottery estimates a loss of $164,803,960 in fiscal year 2012 because of the restriction involving fraternal and veterans organizations. Out of the more than 8,000 video lottery terminals in operation statewide, only 1,360 are operated by fraternal or veteran organizations. The annual license fee would be $1,360,000. To this is added the estimated income for the 1,360 machines: $26,448,040. the license revenue and the annual net revenue together are $327,808,040. Deducting this from the estimated 2012 income yields a $164,803,960 loss.
The Estimated 2011 and 2012 losses total $187,723,960.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
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 |
-187,723,960 |
Explanation of above estimates (including long-range effect):
There would likely be a reduction in Lottery Commission employment and other expenses, but an estimate is not available on short notice. The reason is the reduction in the number of limited video lottery locations to be visited and reviewed by the field staff.
Memorandum
Person submitting Fiscal Note: John Melton
Email Address: jmelton@wvlottery.com