FISCAL NOTE
Date Requested: March 10, 2017 Time Requested: 01:34 PM |
Agency: |
Racing Commission, WV |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3028 |
Introduced |
SB577 |
|
CBD Subject: |
Legal Gaming |
---|
|
FUND(S):
Racing Commission General Administrative 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.
SB577 authorizes advance deposit account wagering (ADW) on horse and dog racing for West Virginia residents. More specifically, the bill would authorize the Racing Commission to license entities who desire to set up accounts in which West Virginia resident bettors could deposit funds against which they would be able to wager on horse and dog races. Advance account deposit wagering is projected to increase revenues to the Racing Commission, to the racetracks, to the purse funds at the racetracks, and to state breeding development funds.
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 |
75,000 |
75,000 |
Personal Services |
0 |
52,000 |
52,000 |
Current Expenses |
0 |
23,000 |
23,000 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
100,000 |
100,000 |
Explanation of above estimates (including long-range effect):
The estimated total cost considers that the Racing Commission would need to add 1 FTE Auditor to staff to audit that wagering activity and complete the proper transfers of revenue. The increase to current expenses will be general administrative expenses as well as travel required to regulate ADW facilities.
It is estimated that the total gross wagering handle to be gained as a result of authorizing advance account deposit wagering is approximately 10 Million Dollars. Therefore, the 6% Source Market Fee specified in the bill to be paid by ADW licensees to the Racing Commission will be approximately $600,000. From that Source Market Fee, the Racing Commission will retain approximately $100,000 to fund its regulatory activities pertaining to ADW. Further, the racetracks and the purse funds at those racetracks will derive approximately $270,000 each; and the state breeding development funds will derive approximately $60,000.
Memorandum
The above-described revenue projections are based upon a rough analysis of the revenues generated by other states that have ADW, taking into account differences in population between those states and West Virginia. Because of the informal nature of the comparison, it is uncertain whether or not the revenue projections are accurate.
Person submitting Fiscal Note: Joe Moore
Email Address: joe.k.moore@wv.gov