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West VirginiaHB 30122025 Regular SessionHouse

Relating to Lottery Money Distribution

Sponsored By: Mark Zatezalo (Republican)

Signed by Governor

§29-22A-10§29-22A-10B

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 1 costs, 5 mixed.

Racetracks face payment safeguards and penalties

Racetracks must maintain an account balance at least equal to gross terminal income for transfers on Lottery Commission payment dates. The commission can disable all terminals until overdue amounts are paid, and unpaid balances accrue interest from the due date. The interest rate matches the rate for late state income tax. When electronic transfers fail or the commission requires mail payment, tracks must report and pay cash inserted minus credits cleared for winning tickets. They must mail a sealed, properly addressed envelope by noon on the day the electronic payment otherwise is due.

Extra lottery income funds racing and debt

For net lottery income above each track's fiscal-year-2001 amount, the State Excess Lottery Revenue Fund gets 41% and the track gets 42%. The schedule also assigns 2% to local governments, 0.5% to employee pensions, at least 1.5% equally to thoroughbred and greyhound development, 1% to the Racing Commission, and 3% to tourism. Local shares depend on location, municipal boundaries, and the track's historical racing-fund participation. On July 1, 2005, the purse share fell from 8% to 4%, and a 4% workers' compensation debt share began, capped at $11 million per fiscal year; amounts above that cap go to purses. The debt share ends and goes to regular purses once debt obligations are retired or debt service is provided for, and an independent certified actuary confirms the Old Fund liability is paid or fully provided for.

Lottery connections and racetrack audit rules

The Lottery Commission must give terminal makers and permit applicants the technical instructions needed to connect to its central computer. Connections carry audit data and support remote activation or disabling of terminals. The commission must keep income records and send tracks statements; tracks must report differences, provide records, and authorize access to records held by third parties. To challenge a terminal discrepancy, a track must submit its maintenance log with current mechanical meter readings and an audit ticket with electronic readings. The commission can examine track accounts and decides unresolved discrepancies in its own favor.

Lottery shares for tracks and communities

For each track's net lottery income up to its fiscal-year-2001 amount, the law assigns 30% to the Lottery Commission and State Lottery Fund and 46.5% to the track. Other shares include 2% for local governments, 1% for employee pensions, at least 1.5% split equally between thoroughbred and greyhound development funds, and 1% for the Racing Commission. Local splits above fiscal-year-1999 levels depend on the track's municipal location, whether the county has municipalities, and thoroughbred-fund participation before January 1, 1999. The purse share fell from 14% to 7% on July 1, 2005, when a 7% workers' compensation debt share began; that debt share returns to purses after the Governor certifies the required debt and old-fund liability payments or financial arrangements. For fiscal years beginning after June 30, 2004, the 3% public-purpose share is divided into 1.375% for tourism, 0.375% for Development Office promotion, 0.5% for research, 0.6875% for Capitol renovation, and 0.0625% for Capitol parking.

Matching money for racetrack improvements

The Lottery Commission's administrative deduction is capped at 4% of gross terminal income; deductions above actual costs go to the State Lottery Fund. For fiscal years ending June 30, 2011, through June 30, 2030, that allowance can include up to $9 million yearly for modernization. Each track's modernization account receives a share based on its share of the administrative allowance and pays $1 per $2 of qualifying private spending, limited by its balance. Eligible spending includes new, unused lottery terminals, related equipment, and property improvements on or next to the West Virginia track; improvements must last at least three years and enter service after July 1, 2011. Funded terminals must stay at the licensed location for five years; unused balances revert after one additional fiscal year, and a separate 4% of gross income above the fiscal-year-2001 amount goes to the fund identified by law.

New routing for Capitol lottery money

A 1% share of net lottery income previously went equally to two Capitol and cultural-facility funds. For fiscal years beginning after June 30, 2004, that share instead follows a different distribution schedule referenced in the law. The supplied provision does not identify that schedule's recipients or their shares.

Sponsors & Cosponsors

Sponsor

  • Mark Zatezalo

    Republican • House

Cosponsors

  • William Anderson

    Republican • House

  • Vernon Criss

    Republican • House

  • Pat McGeehan

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 120 • No: 6

Senate vote • 4/9/2025

Passed Senate (Roll No. 402)

Yes: 34 • No: 0

House vote • 3/27/2025

Passed House (Roll No. 217)

Yes: 86 • No: 6

Actions Timeline

  1. Chapter 222, Acts, Regular Session, 2025

    7/31/2025House

  2. Approved by Governor 4/29/2025

    4/29/2025House

  3. To Governor 4/14/2025

    4/14/2025House

  4. To Governor 4/12/2025 - House Journal

    4/14/2025House

  5. To Governor 4/14/2025 - Senate Journal

    4/12/2025Senate

  6. Approved by Governor 4/29/2025 - Senate Journal

    4/12/2025Senate

  7. Approved by Governor 4/29/2025 - House Journal

    4/12/2025House

  8. On 3rd reading

    4/9/2025Senate

  9. Read 3rd time

    4/9/2025Senate

  10. Passed Senate (Roll No. 402)

    4/9/2025Senate

  11. Communicated to House

    4/9/2025Senate

  12. Completed legislative action

    4/9/2025Senate

  13. House received Senate message

    4/9/2025House

  14. On 2nd reading

    4/8/2025Senate

  15. Read 2nd time

    4/8/2025Senate

  16. Reported do pass

    4/7/2025Senate

  17. Immediate consideration

    4/7/2025Senate

  18. Read 1st time

    4/7/2025Senate

  19. Introduced in Senate

    3/29/2025Senate

  20. To Finance

    3/29/2025Senate

  21. To Finance

    3/29/2025Senate

  22. On 3rd reading, Special Calendar

    3/27/2025House

  23. Read 3rd time

    3/27/2025House

  24. Passed House (Roll No. 217)

    3/27/2025House

  25. Communicated to Senate

    3/27/2025House

Bill Text

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