|Date Requested:January 13, 2011
Time Requested:05:36 PM
| FUND(S) |
State Teachers Retirement System Benefit Fund
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| Under Racetrack Video Lottery, the racetrack licensees currently pay an annual license fee of $1,000.00 due on July 1. This bill will add an annual fee of $1,000.00 per video lottery terminal that each racetrack is authorized to own or lease, also due on July 1, with the proceeds going directly to the State Teachers Retirement System Benefit Fund. Beginning Fiscal Year 2012, the Lottery Commission would collect and deposit the fee.
Based on the current maximum authorized [not installed] number of video lottery terminals each racetrack is authorized [Charles Town - 6,000; Mountaineer - 3,500; Mardi Gras - 2,000; and Wheeling Island - 2,400], the fee would generate annual revenues of $13.9 million.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||13,900,000||13,900,000|
3. Explanation of above estimates (including long-range effect):
Collecting a single annual fee payment from four racetrack licensees creates no extra need for personnel or current expenses.
| The fee imposed by HB 2140 is in addition to the nearly $314 million now deposited annually into the State Lottery Fund and the State Excess Lottery Revenue Fund from the operation of these video lottery terminals at the four racetracks. Further, although the racetracks are authorized to have 13,900 terminals, there are currently only 10,242 terminals actually operation at the tracks.
The fee is also in addition to the annual tax on Table Games revenue collected by the Lottery Commission totaling nearly $32 million and the pari-mutuel racing tax collected by the State Racing Commission. It is probable that this extra fee will render most or all racetracks unprofitable when combined with increased competition from neighboring states and the economy.
This bill does not apply to the Limited Gaming Facility (The Greenbrier).