LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 13, 1999
TO: Honorable Ron Wilson, Chair, House Committee on Licensing
& Administrative Procedures
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3087 by Haggerty (Relating to the authorization and
regulation of progressive bingo games.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3087, As Introduced: positive impact of $3,796,248 through the *
* biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $1,875,624 *
* 2001 1,920,624 *
* 2002 1,920,624 *
* 2003 1,895,624 *
* 2004 1,920,624 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* 0001 0001 *
* 2000 $(224,376) $2,100,000 5.0 *
* 2001 (179,376) 2,100,000 5.0 *
* 2002 (179,376) 2,100,000 5.0 *
* 2003 (204,376) 2,100,000 5.0 *
* 2004 (179,376) 2,100,000 5.0 *
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Technology Impact
The implementation of the bill would have a technology impact due to the
purchase of personal computers, their replacement in the forth year and
software to support the increased audit and regulatory activities.
Fiscal Analysis
The bill amends the Bingo Enabling Act by authorizing and defining
"progressive bingo"; authorizing higher prize levels; and increasing the
number of bingo balls called from one occasion to the next occasion if
no player completes the required pattern within the specified number of
bingo balls drawn. The bill provides for the regulation of progressive
bingo and increases the prize limit for a progressive bingo game from
$500 per game to $750 per game maximum payout. Progressive bingo
jackpot prize payouts could grow well beyond the $2500 current maximum
payout per occasion, and could draw repeat clientele more often in an
effort to win the growing bingo jackpot.
Methodology
It is assumed that the novelty of the game would generate new interest of
the players and organizations conducting bingo or eligible to conduct
bingo, resulting in a positive impact to bingo gross sales receipts.
In 1997, there were approximately 191,123 bingo occasions conducted. Of
these, a total of 94,809 occasions reported awarding over $2,300 in
regular bingo prizes. In 1998, there were approximately 171,147 bingo
occasions conducted. Of these, a total of 97,316 reported awarding over
$2,300 in regular bingo prizes. The agency estimates 97,000 bingo
occasions, where maximum prizes are currently awarded, would be expected
to include the new progressive game in their program and another 15,000
bingo occasions, or 20 percent of the 74,147 organizations that do not
award the maximum payout, would add the progressive game to their
program, for a total of 112,000 offerings of the new progressive game.
This would represent a total regular prize increase statewide of
$84,000,000.
Based on the agency's estimate of the new game offerings, the net prize
fee of 5 percent due the state would be approximately $4.2 million per
year, or an 18.79 percent increase above the Comptroller's Biennial
Revenue Estimate of $22,358,000 for FY2000 in bingo prize fees payable to
the General Revenue Fund. Of that percentage increase, $2.1 million or
50 percent would be allocated to local jurisdictions who participate in
bingo.
Any significant increase in the number of bingo players or organizations
conducting Charitable Bingo would impact the operation of the Charitable
Bingo Division by placing additional work requirements on staff to
insure the continued integrity of the games during the first five years
of implementating the new provisions. The Audit Section of the
Charitable Bingo Division would need to increase the audit staff by 5
auditors to adequately regulate this increased bingo activity over the
five year period
Local Government Impact
Of the $4.2 million or 18.79 percent increase in bingo revenues, $2.1
million or 50 percent would be allocated to local jurisdictions who
participate in bingo.
Source Agencies: 362 Texas Lottery Commission
LBB Staff: JK, TH, PH