Fiscal Note - SB 0356 - Riverboat Gambling: Loss Limits, Boarding, Local Fees
L.R. NO. 1195-01
BILL NO. SB 356
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 $25,183,562 to $30,220,274 to $30,220,274 to
for Education $67,187,407 $80,624,889 $80,624,889
Gaming $3,153,868 to $3,784,642 to $3,784,642 to
Commission $6,307,736 $7,569,283 $7,569,283
Total Estimated
Net Effect on All $28,337,430 to $34,004,916 to $34,004,916 to
State Funds $73,495,143 $88,194,172 $88,194,172
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 $5,952,041 to $7,142,450 to $7,142,450 to
$13,773,003 $16,527,604 $16,527,604
FISCAL ANALYSIS
ASSUMPTION
The Gaming Commission (GAM) assumes this proposal would not fiscally impact
their agency.
The Department of Elementary and Secondary Education (DESE) assumes this
proposal would not fiscally impact their agency. However, they state
riverboat gambling revenue may increase since this proposal allows passengers
to board whenever the riverboats are docked. In addition, DESE assumes local
governments would be effected because cities and counties with riverboats
would lose the $1 admission fee and instead it would go to the schools.
The Department of Mental Health (DMH) states that this proposal may cause an
impact on the willingness of local governments to contribute part of their
local funds to support the Compulsive Gambling Fund. However, because the
admission fee is a proportionally small part of the collections for the fund,
DMH is assuming no fiscal impact.
The Office of Administration (OA), Division of Budget and Planning estimate
that there will be 37,846,417 admissions on riverboat casinos in the state
each year, and that the $1 admission fee that now goes to local dock cities
and counties would instead go to the local school district(s) in the dock
city. This will result in a shift of $37,846,417 annually.
OA also states that gaming analysts from several Wall Street investment firms
estimate that removing the loss limit and cruising schedules increases the
win per admission 10 to 30% and admissions 10 to 20%. 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 to
41,631,059 to 45,415,700, and win per admission would increase to $23.23 to
$27.46. OA estimates the state impact from gaming tax would be $30,220,274
to $80,624,889 annually; while the local impact would be $3,357,808 to
$8,958,321 annually. OA also estimates the annual state and local impact
from admission fees would be $3,784,642 to $7,569,283. 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 FUND
Income
Gaming tax $25,183,562 $30,220,274 $30,220,274
to to to
$67,187,407 $80,624,889 $80,624,889
ESTIMATED NET EFFECT ON $25,183,562 $30,220,274 $30,220,274
GAMING PROCEEDS FOR to to to
EDUCATION FUND $67,187,407 $80,624,889 $80,624,889
GAMING COMMISSION FUND
Income
Admission Fees $3,153,868 $3,784,642 $3,784,642
to $6,307,736 to $7,569,283 to $7,569,283
ESTIMATED NET EFFECT ON $3,153,868 $3,784,642 $3,784,642
GAMING COMMISSION FUND to $6,307,736 to $7,569,283 to $7,569,283
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
LOCAL
Income - Local school district(s)
Current admission fees $31,538,681 $37,846,417 $37,846,417
Additional admission fees $3,153,868 $3,784,642 $3,784,642
to $6,307,736 to $7,569,283 to $7,569,283
Income - Home dock cities & counties
Gaming tax $2,798,173 $3,357,808 $3,357,808
to $7,465,267 to $8,958,321 to $8,958,321
Loss of Income
Home dock counties and cities ($31,538,681) ($37,846,417) ($37,846,417)
ESTIMATED NET EFFECT $5,952,041 $7,142,450 $7,142,450
ON LOCAL GOVERNMENT to to to
$13,773,003 $16,527,604 $16,527,604
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would allow passengers to board riverboats while they are
docked at any time. It would also remove the maximum loss limit of five
hundred dollars, and would require the one dollar admission fee now paid to
the home dock city or county to instead go to the local school districts.
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
Department of Elementary and Secondary Education
Department of Mental Health
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.