Colorado Legislative Council Staff

STATE

CONDITIONAL FISCAL NOTE

No State General Fund Impact

Cash Fund Exempt Revenue Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-108

Rep. Lawrence

 

Date:

Bill Status:

Fiscal Analyst:

December 18, 1997

House SVMA

Harry Zeid (866-4753)

 

TITLE:            CONCERNING THE AUTHORIZATION OF THE STATE LOTTERY DIVISION TO CONDUCT INSTANT SCRATCH LOTTERIES BASED UPON THE GAME OF CHANCE COMMONLY KNOWN AS BINGO.



Summary of Legislation


            Current law prohibits the State Lottery Division from conducting lotteries based on the game of chance commonly known as bingo. This bill would permit the State Lottery Division to conduct instant scratch lottery games based on bingo. A bingo scratch ticket would generate additional lottery cash fund exempt revenue, however, the development and production of a bingo scratch ticket would first require approval by the State Lottery Division. Therefore, the bill is assessed as having conditional state cash fund exempt revenue impact. The bill would become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Cash Fund Exempt



Additional Lottery Scratch Game Revenues

State Expenditures

General Fund

Other Fund


 


 

FTE Position Change

None

None

Local Government Impact — None Identified.


State Revenues


            The bill would eliminate the current law prohibition against the State Lottery Division conducting lotteries based upon the game of chance known as bingo. A bingo scratch ticket would generate additional lottery cash fund exempt revenue, however, the development and production of a bingo scratch ticket would first require approval by the State Lottery Division.


            A scratch lottery game based on bingo is contemplated by the State Lottery Division if the statutory authority is granted for the game. If approved, the bingo scratch game would likely be a $2 card, and would be one of approximately 32 scratch games offered annually that a Colorado lottery retailer may choose to carry. Thirty-three of the 38 states that have lotteries have introduced scratch games involving bingo. It is reported that these states have seen no decline in charitable gaming revenues from bingo as a result of the introduction of bingo scratch games.


            A bingo scratch ticket falls into the category of an "extended play" game. The State Lottery Division estimates that the incremental revenues from a bingo scratch game would be greater than that for the typical scratch games currently being offered. The amount of additional lottery revenues has not been estimated, however, the State Lottery Division believes that the additional incremental revenue may be as much as $6.0 million annually.



State Expenditures


            The State Lottery Division would not require additional funding in order to implement a bingo scratch game. The Division currently receives $3,880,250 (cash fund exempt) for ticket production.



Spending Authority


            The fiscal note would imply that no appropriations or spending authority are required to implement the provisions of the bill.



Departments Contacted


            Revenue