FISCAL NOTE
Date Requested: March 02, 2017
Time Requested: 01:26 PM |
| Agency: |
Lottery Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2867 |
Introduced |
SB467 |
|
|---|
| CBD Subject: |
Legal Gaming |
|---|
|
FUND(S):
State Excess Lottery Revenue 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.
SB467 authorizes the Lottery Commission to authorize whether the maximum bet for each limited video lottery game manufactured for sale in West Virginia is appropriate based on industry standards and specific game design features and removes restrictions on bill validators approved for machines in this jurisdiction. All games must be tested by an independent testing company approved by the Commission (currently Gaming Labs International) and in the Lottery's test lab before a manufacturer may offer it for sale in the state. Removing limitations on bill validators manufactured for sale in West Virginia and eliminating the $2 maximum bet requirement for games manufactured and sold in West Virginia will provide access to a larger library of approved games and equipment for the limited video lottery licensees in West Virginia.
The number of games that a licensed manufacturer develops for a market is related to the level of customization required by each state’s laws and regulations as compared to industry standard. Eliminating the $2 maximum bet requirement and allowing the Commission to determine the maximum bet around will allow the Commission to be flexible and adapt to industry standards, and, in turn, allow manufacturers to develop and introduce new games for sale to LVL licensees in West Virginia with less customization and cost- this will also allow them to market games sold in other jurisdictions without customizing software changes. By eliminating the $2 max bets, more exciting games with bonuses and higher tiered prize structures can also be developed and sold in this jurisdiction. Licensees have expressed interest in development of a game with a progressive jackpot driven by game play in locations. Players contribute to the progressive jackpot with their gameplay, and excitement grows as the jackpot grows. Larger bonuses and jackpot features that will attract business to a location and give the player a greater chance of reward.
Bill Validators must also currently be customized to not accept $50 and $100 bills when manufactured for use on video lottery terminals in West Virginia. Eliminating this requirement will, again, enhance the library of games and terminals available for sale in West Virginia as well as provide more efficiency in the licensed locations where the staff spends time providing change for fifty and one hundred dollar bills. Additionally, if a location does not have sufficient cash on hand to provide smaller bills for a player who arrives with only fifty or one hundred dollar bills, then that player is unable to play in that location.
Ultimately higher contributions and more exciting game libraries will enhance revenues received from limited video lottery in West Virginia, and encourage manufacturers to develop new games for sale in the market. While we believe this will enhance revenue through gameplay, too many variables exist to estimate a specific dollar value.
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 |
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):
Ultimately higher contributions and more exciting game libraries will enhance revenues received from limited video lottery in West Virginia, and encourage manufacturers to develop new games for sale in the market. While we believe this will enhance revenue through gameplay, too many variables exist to estimate a specific dollar value.
There will be no additional cost to the state.
Memorandum
Security and safety of employees holding fifty and one hundred dollar bills in cash registers is enhanced by allowing players to deposit these bills directly into the machines. Redundant security features and physical barriers protect cash deposited in a video lottery machine, and every dollar played and won is monitored by the Lottery's central system- this provides a different level of security to the business owners and staff.
Person submitting Fiscal Note: Danielle E. Boyd, Managing General Counsel
Email Address: dboyd@wvlottery.com