Fiscal Note - SB 0344 - Removes the $500 Limit On Losses Per Excursion
L.R. NO. 0549-01
BILL NO. SB 344
SUBJECT: Gambling
TYPE: Original
DATE: February 25, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Gaming Proceeds $11,995,977 to $14,395,173 to $14,395,173 to
for Education $51,598,468 $61,918,162 $61,918,162
Gaming
Commission $0 to $3,153,868 $0 to $3,784,642 $0 to $3,784,642
Total Estimated
Net Effect on All $11,995,977 to $14,395,173 to $14,395,173 to
State Funds $54,752,336 $65,702,804 $65,702,804
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $1,332,887 to $1,599,464 to $1,599,464 to
$8,887,031 $10,664,438 $10,664,438
FISCAL ANALYSIS
ASSUMPTION
Officials of the Gaming Commission assume this proposal would not fiscally
impact their agency.
The Office of Administration (OA), Division of Budget and Planning states
that gaming analysts from several Wall Street investment firms estimate that
removing the loss limit will increase the win per admission 10 to 30% and
that admissions would increase as much as 10%. OA estimates 37,846,417
admissions in FY98 and a current win per admission of $21.12. Using the
estimated percentage increases, admissions would increase up to 41,631,059,
and win per admission would increase to $23.23 to $27.46. OA assumes the
state impact from gaming tax would be $14,395,173 to $61,918,162 annually;
while the local impact would be $1,599,464 to $6,879,796 annually. OA also
estimates the increase in the number of admissions would have an annual state
and local impact of $0 to $3,784,642. In all estimates, OA assumes no growth
in gaming revenues or admissions.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GAMING PROCEEDS FOR EDUCATION
Income
Gaming Tax $11,995,977 $14,395,173 $14,395,173
to to to
$51,598,468 $61,918,162 $61,918,162
ESTIMATED NET EFFECT ON $11,995,977 $14,395,173 $14,395,173
GAMING PROCEEDS FOR to to to
EDUCATION FUND $51,598,468 $61,918,162 $61,918,162
GAMING COMMISSION FUND
Income
Admission Fees $0 to $0 to $0 to
$3,153,868 $3,784,642 $3,784,642
ESTIMATED NET EFFECT ON $0 to $0 to $0 to
GAMING COMMISSION FUND $3,153,868 $3,784,642 $3,784,642
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
LOCAL
Income
Gaming Tax $1,332,887 $1,599,464 $1,599,464
to $5,733,163 to $6,879,796 to $6,879,796
Admission Fees $0 to $0 to $0 to
$3,153,868 $3,784,642 $3,784,642
ESTIMATED NET EFFECT $1,332,887 $1,599,464 $1,599,464
ON LOCAL FUNDS to to to
$8,887,031 $10,664,438 $10,664,438
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would eliminate the maximum loss limit of $500 per individual
player per gambling excursion.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Gaming Commission
Office of Administration
Division of Budget and Planning
This Fiscal Note is not an official copy and should not be quoted or cited.