OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-5387

AN ACT CONCERNING KENO.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Connecticut Lottery Corporation (Quasi-Public Agency)

GF - Revenue Loss

13.5 million

27.0 million

Connecticut Lottery Corporation (Quasi-Public Agency)

Lottery Enterprise Fund - Savings

6.7 million

2.5 million

Municipal Impact: None

Explanation

The bill repeals the authorization for the Connecticut Lottery Corporation (CLC) to operate keno. This results in an estimated revenue loss of approximately $13.5 million in FY 15 and $27.0 million annually thereafter. This also results in a savings of $6.7 million to CLC in FY 15 and approximately $2.5 million annually thereafter attributable to avoiding costs for the necessary equipment, materials, and ongoing operating expenses necessary to implement keno in the state.

Background

The biennial budget included revenue of approximately $3.8 million in FY 14 and $27.0 million in FY 15 and annually thereafter from Keno. Following adoption of the budget, projected revenues from keno have been reduced to zero in FY 14, $13.5 million in FY 15, and $27.0 million in FY 16 and annually thereafter.  These adjustments, which were included in the January 15, 2014 Consensus Revenue report, are based on the assumption that keno would not be fully implemented until the second half of FY 15.

The Out Years

The annualized ongoing revenue impact identified above would continue into the future.

Sources:

Connecticut Lottery Corporation