FISCAL NOTE
Date Requested: March 17, 2025
Time Requested: 04:37 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3335 |
Introduced |
HB3418 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
Fixed Odds Horse Racing Wagering Purse Supplement Fund, Fixed Odds Dog Rac
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses, Creates New Fund: Fixed Odds Horse Racing Wagering Purse Supplement Fund, Fixed Odds Dog Rac
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.
HB3418 is expected to have an insignificant impact on state revenue. The bill will also require additional staff work hours without providing an administrative allowance; however, these costs are minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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 |
0 |
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.
Revenue projections for fixed odds betting on horse and dog racing cannot be reliably estimated due to the absence of comparable state models and sufficient statistical data. Currently, only New Jersey and Colorado offer fixed odds betting on horse racing, but their market dynamics differ significantly from ours. Beyond the lack of comparable models and data, several factors contribute to the uncertainty in forecasting revenue:
1. Market Participation – The level of engagement from sportsbooks, racetracks, casinos, and players remains uncertain.
2. Demographic Challenges—It is difficult to attract younger bettors to horse and dog racing, as they tend to prefer fast-paced, mainstream team sports like football, basketball, and baseball.
3. Parimutuel Conversion—Encouraging traditional parimutuel bettors to switch to fixed-odds wagering is challenging, as they are drawn to larger pool sizes that yield higher payouts.
4. Potential Cannibalization—Fixed-odds wagering could divert revenue from the existing parimutuel racing industry, impacting its financial stability.
These factors make it difficult to generate an accurate revenue projection at this time.
The bill also introduces administrative costs. Since the Lottery is responsible for managing the funds, this will require additional staff hours without providing an administrative allowance.
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.
Regarding 29-22D-21(f) (pg. 13, lines 60-63): Title 21 deals with crimes and penalties, not with individuals who should be excluded from wagering because of their affiliation with the industry, which is the subject matter of 21(f). Therefore, section 21(f) needs to be moved to the Title pertaining to that subject, 29-22D-15, and added as subsection (i).
There is an edit on page 1, line 17. Remove the words “horse or”.
The "Title" and "Note" describing the bill mention dog racing but omit horse racing. This may be misleading to the reader.
Person submitting Fiscal Note: June Somerville
Email Address: jsomerville@wvlottery.com