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F I S C A L I M P A C T R E P O R T
SPONSOR Altamirano
ORIGINAL DATE
LAST UPDATED
2/9/07
HB
SHORT TITLE Nonprofit Gaming Machine Operation Hours
SB 517
ANALYST Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Gaming Control Board (GCB)
SUMMARY
Synopsis of Bill
Senate Bill 517 would increase the aggregate value of prizes a bingo licensee can offer on each
occasion from $1,500.00 to $3,000.00, allow nonprofit gaming operator licensees that are also
bingo licensees to sell pull tabs anywhere on their premises at all times gaming machines are in
operation and removes the 12:00 noon to 12:00 midnight time restriction on the operation of
gaming machines at nonprofits and instead allow nonprofit gaming operator licensees to operate
up to 12 hours a day at any time during the day.
FISCAL IMPLICATIONS
According the Gaming Control Board, this bill would probably result in an increase in tax reve-
nues from nonprofit bingo and gaming operator licensees by allowing them to run their bingo
and gaming machine operations more profitably. It is not possible to predict the total amount of
the increase.
PERFORMANCE IMPLICATIONS
LFC staff note that this bill might increase the ratio of gaming revenue generated to general
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Senate Bill 517 – Page
2
funds expended.
OTHER SUBSTANTIVE ISSUES
LFC notes that this bill will help non-profits better target their market. For example, they may
reduce operating hours on the weekdays and increase them on weekends.
LFC files indicate that a similar bill was introduced in previous session to increase the number of
hours of operation for gaming at racetracks, although there is no limit on the number of hours a
racetrack may operate gaming machines contained in the Indian gaming compacts that would
impact the tribes’ obligations to make revenue sharing payments, the gaming tribes will likely
take the position that an increase in hours that racetracks may operate gaming machines impacts
the exclusive rights they enjoy to offer gaming machines. The tribes may believe this true in the
case of this bill as well.
POSSIBLE QUESTIONS
Does this impact tribal gaming compacts.
EO/sb