Casino news source: Charleston Daily Mail - http://www.dailymail.com
Jobs at stake in Wheeling
by Steve Novotney
For the Daily Mail
WHEELING — Even as the House of Delegates approved local option elections on table games, some employees at the Wheeling Island Racetrack and Gaming Center remain skeptical. And they are nervous about job security. That’s why 54-year-old Elvina Davis, a money room employee and self-proclaimed “non-fan” of politics, joined 600 other employees in writing letters to Gov. Joe Manchin. “I felt the need to write a letter to the governor because I’m one of the people who may lose their job if our legislators don’t do something to create jobs here at Wheeling Island,” she said. “I’ve only been here a little longer than three years so that means I could lose my job. That wouldn’t be a good thing because at my age there are not too many people who will hire me. “I don’t expect a response from the governor. If I received one, I think it would be nice, but I just felt he needed to know how people feel about this issue not only in Charleston but also here in Wheeling,” Davis said. “I believe the people of Ohio County should be allowed to make this decision. They should be able to decide what they want, and what they don’t want.” Carlene Nickerson, a lifelong Wheeling Island resident and a 23-year racetrack employee, remembers when legislators were debating riverboat gaming and video lottery in the early 1990s. “We went through something very similar when the effort was being made to bring in video lottery,” said Nickerson, 47, director of cage operations. “The live greyhound racing was declining and there was the threat of a lot of jobs cuts. But then we got video lottery in 1994 and the threat went away. There’s been nothing but growth at Wheeling Island since. “We’re all hoping for this situation with table games to finally work out the same way,” Nickerson added. “We’re just sitting here waiting. Most of us are sitting here scared because this (table games) has been talked about for the past three years and we still are not operating the table games.” While Nickerson and her racetrack co-workers avoided job losses in the 1990s, Kevin Schaffer has been faced with the reality of the Northern Panhandle’s economic decline during the past two decades. “I’ve been laid off from almost every job I’ve ever had, but I want to stay in this area because this is where my family is,” said Schaffer, 45. “That’s why I’ve been so happy since I started here because the work has been steady. “There are not many jobs in this area, but I don’t want to move away. I’ve tried that and hated it,” Schaffer said. “That’s why I walked right up to my boss, Bob Marshall, and thanked him for fighting for my job. “I’m a security guard. Who’s going to fight for a security guard? Well, Mr. Marshall is, and his employees appreciate it.” Schaffer, too, has contacted Manchin. “I went to Charleston and spoke directly to the governor, but when I talked to him he only offered me the prewritten speech he’s repeated over and over,” he said. “I was disappointed because when he was running for governor — and I remember this distinctly — he said he was for table games. Then he got in office and he said he wasn’t going to put it on his agenda unless it was brought up. “Gov. Manchin hasn’t opened up West Virginia for business, not at all. He hasn’t brought any jobs to the Northern Panhandle at all. Well, this is his chance.” Robert Marshall, president of the Wheeling Island center, said implementation of table games would enable him to add as many as 400 new positions. But if the bill fails to clear the state Senate, 350 positions could be lost because of video gaming competition in Pennsylvania. “There is no question in my mind that this is a jobs and economic development issue,” Marshall said. “That’s the message we have attempted to deliver in the Capitol. We just hope (the legislators) are listening.” The Wheeling Island center employs nearly 1,000 workers in management, gaming operation and observation, food service, hotel services, simulcast wagering and live greyhound racing. Local-option elections on table games in the four counties with racetracks could be held if the bill becomes law. “I hope it makes it to that point,” said Delegate Orphy Klempa, D-Ohio. “The executives of the Wheeling racetrack have said that if table games are approved on the state and county levels, they would begin a $25 million physical expansion to the facility and add hundreds of jobs. The problem is convincing some of my colleagues in the House of Delegates and in the Senate that this is about business expansion and not just gaming expansion. “There are a lot of members in the House and in the Senate who are only focused on gaming and the addiction to gambling,” Klempa added. “I know I’ve worked hard to communicate the importance of this to our community in the Northern Panhandle. If they are listening, then it’s my feeling that if this is ever going to pass on the state level, this is the year.” The scope of the expansion Marshall has planned for the Wheeling Island facility will depend, he said, on the state’s take of new revenue. When table games legislation was introduced in 2004 in the state Senate, the rate was 12 percent on gross revenue. In the bill that passed the House on Friday, the rate was 35 percent —plus a $1.5 million licensing fee and an annual $2.5 million operating fee. “This bill will go to the Senate and be worked on some more, so we hope they come down from 35 percent at least a little bit, but if not it will probably impact how much we can invest and when we can invest,” Marshall said. “It will already cost us about $8 million to get into this business. We’ll then add more jobs, between 350 and 400 new jobs at the track — most of which will be directly related to the table games.” Marshall plans to install more than 30 poker tables and nearly 25 blackjack tables. Roulette and craps also will be offered. “We also believe we need many more amenities for the table games player than what we offer now,” he said. “We believe we’ll need more suites in the hotel, and we believe we will need a spa and another restaurant, and that all means even more jobs. “But I think (the 35 percent) tax rate will potentially impact that investment. There is also the potential that the tax rate could be too high and we could just walk away from it.” If the legislation would stall for a third consecutive regular session, or if the tax percentage were set too high for profitable operation, Marshall said staff reductions would be unavoidable in light of video slots competition from Pennsylvania. Democratic Gov. Ed Rendell championed a slot bill in 2003 that permits as many as 61,000 video gaming machines at 14 locations, including The Meadows in bordering Washington County and in downtown Pittsburgh. Two video gaming locations already operate in central and eastern Pennsylvania, and slots play is expected to start at The Meadows as early as May. The Meadows is 29.6 miles from Wheeling Island. “In this business, convenience is always No. 1,” Marshall said. “Convenience comes into play when a customer is making the decision about where to go for that brand of entertainment, and the majority of our business comes from the Pittsburgh and Morgantown markets. “Those customers will have another option, a more convenient option, and that means we’ll lose a lot of business,” Marshall said. “If that were to be the situation we would have to continue fighting for our market share while also getting into some kind of defense mode.” That, Marshall confirmed, that would involve the eliminations of hundreds of positions in all areas. “Some people may say it’s a new gaming bill, but it’s not a new gaming bill,” he said. “Our reality is that people want to see the dealers, they want to see someone spinning the wheel. They want that kind of interaction. “It’s a tough issue to vote on, I know, but if the answer is ‘no’ then it would cause us to go from 1,000 employees to somewhere around 750, so it would impact a lot of our employees.” |
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