FISCAL NOTE
Date Requested: February 12, 2016 Time Requested: 03:55 PM |
Agency: |
Lottery Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2475 |
Introduced |
HB4523 |
|
CBD Subject: |
Legal Gaming |
---|
|
FUND(S):
State Excess Lottery Revenue Fund, State Road Fund
Sources of Revenue:
Other Fund Excess Lottery, State Roa
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill will decrease the deposit to the State Excess Lottery Revenue Fund as it appears to create two (2) statutory transfers, the first on gross revenue, and the second on net. The deposit to the state road fund will simply be a change in the transfer of existing revenues, but will result in a cut in the percentage distributed to local government [municipalities] as well as the share between limited video lottery operators and retailers.
In theory the reallocation of video lottery terminals will generate more revenue from limited video lottery gaming for the State. Therefore, percentages of total revenue are shown below.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2016 Increase/Decrease (use"-") |
2017 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):
# of Terminals- % of revenue
Currently 6 7 11 12
Gross 100.0% 100.0% 100.0% 100.0% 100.0%
Admin 2.0% 2.0% 2.0% 2.0% 2.0%
Road 0.0% 16.7% 28.6% 9.1% 16.7%
Net 98.0% 81.3% 69.4% 88.9% 81.3%
SELRF 47.04% 25.48% 13.49% 34.59% 25.48%
Muni 1.96% 1.63% 1.39% 1.78% 1.63%
O/R 49.00% 40.67% 34.71% 44.45% 40.67%
Road 0.0% 13.6% 19.8% 8.1% 13.6%
Admin= administrative allowance
Road= State Road Fund
SELRF= Excess Lottery Fund
Muni= Municipality
O/R= revenue split between operator and retailer
Memorandum
This bill creates two statutory transfers that redirect money away from the State Excess Lottery Revenue Fund. Redirecting money away from the Excess Lottery Fund will automatically reduce debt service coverage ratio which could have a negative effect on the state's bond ratings.
Person submitting Fiscal Note: Danielle E. Boyd, Managing General Counsel
Email Address: dboyd@wvlottery.com