NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Sanchez

 

DATE TYPED:

2/7/03

 

HB

 

 

SHORT TITLE:

Joint Lottery Games

 

SB

383

 

 

ANALYST:

Smith

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

NFI

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicates HB32

 

SOURCES OF INFORMATION

 

Responses Received From

 

New Mexico Lottery Authority

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 383 allows the New Mexico Lottery to enter into agreement or contracts with other entities to offer joint lottery games.  The entities may include other states, other countries, a territory of the United States, political subdivisions of another state or territory of the United States, a sovereign nation, an Indian Nation, tribe or pueblo located within the United States or a legal lottery operator outside of the United States.

 

     Significant Issues

 

The country of Mexico has applied to become a member of Powerball.  Currently the New Mexico Lottery Act does not allow for the New Mexico Lottery Authority (NMLA) to participate in lottery games with other countries.  As such, if Mexico is successful in becoming a member of Powerball and the legislation is not changed, the New Mexico Lottery will not be able to continue to sell Powerball tickets. 

 

 

FISCAL IMPLICATIONS

 

In fiscal year 2002, Powerball sales were $43.1 million or 33.4% of total sales.  This equates to $9.9 million in net income.

 

OTHER SUBSTANTIVE ISSUES

 

NMLA notes that by adding Mexico’s player population of approximately 25 million, New Mexico can expect to see its Powerball sales grow an estimated $6.8 million the first full year as a result of faster growing jackpots.  Larger jackpots generate higher ticket sales

 

SS/yr/ls:njw