OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-957

AN ACT CONCERNING THE REGULATION OF GAMING AND THE AUTHORIZATION OF A CASINO GAMING FACILITY IN THE STATE.

AMENDMENT

LCO No.: 8030

File Copy No.: 310

House Calendar No.: 569

Senate Calendar No.: 173


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Resources of the General Fund

GF - Revenue Impact

None

See Below

Consumer Protection, Dept.; Department of Economic & Community Development

GF - Potential Revenue Gain

See Below

See Below

Note: GF=General Fund

Municipal Impact: See below

Explanation

The amendment strikes the underlying bill and its associated fiscal impact. The amendment results in a potential significant revenue gain in fees by requiring the Commissioners of Consumer Protection and Economic and Community Development to issue a request for proposal for a casino gaming facility.

The amendment requires a fee of $15 million for each proposal. However, under the amendment the fee is: (1) refundable in the event a responder is not chosen or the casino gaming facility is not authorized by the General Assembly and (2) waived for any response submitted by the Mashantucket Pequot or Mohegan Tribes. The fee revenue could be realized as early as FY 18.

It is anticipated that the Departments of Consumer Protection and Economic and Community Development can develop the request for proposal and evaluate any received responses without additional resources.

Gross Gaming Revenue. The amendment specifies that responders must pay the state 35% of gross gaming revenue from video slot machines and all other games at the proposed facility. The timing and magnitude of the revenue impact to the state is dependent on the operation date, location, and legislative authorization of the facility.

It is unclear what, if any, impact this would have on casino gaming revenue the state currently receives. In FY 16, the state received approximately $265.9 million in tribal casino gaming payments.

Municipal Impact. The amendment requires any development agreement between a casino developer and a municipality to 1) include an annual payment to the municipality of at least $8 million, 2) be subject to a referendum paid for by the developer, and 3) include a revenue sharing agreement between the developer and municipalities adjacent to the municipality where such casino is located.

To the extent that this agreement occurs, there is a revenue gain of at least $8 million annually to any municipality that enters into it. There is an additional revenue gain to adjacent municipalities that will vary based on the provisions of any revenue sharing agreement.

There is no cost to municipalities associated with any referenda, as the amendment requires the casino developer to provide any necessary funding for such referenda.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

Sources:

Connecticut Attorney General 2017-02 Formal Opinion