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West Virginia is right up to its limit for video lottery licenses, effectively capping what had been a go-go-go source of government revenue.
"What people perceive as a growing industry really is not," Lottery spokeswoman Libby White said. "For all intents and purposes, it was over the day that 9,000th license was bid out."
The limited video lottery licenses, capped at 9,000 when video lottery was legalized in 2001, were all bought up as of February of last year, but rarely does the state have 9,000 machines actually up and running. There seems to be a saturation point.
Right now, about 275 of the 9,000 limited video lottery licenses have been returned because the businesses have closed or they've been taken over by new owners who have to reapply for licenses.
For some business owners, the machines just might not have been producing enough revenue and were, in turn, shut down.
"If the public sees new retail establishments it's as a result of normal business movement, not growth," White said.
"Every day, the number of retailers we have changes. A place will close, or we'll suspend somebody's license. Somebody will close down; somebody else will open up somewhere else. That's the nature of small business."
The state capped the number of available licenses it would dole out to video lottery retailers to prevent a proliferation of the machines. Many gambling opponents feared an unchecked number of video slot machines would burden low-income families and blight the economies of some small towns.
The last of the 9,000 licenses was approved in February of last year, much later than most critics had expected they'd be snapped up after video lottery was legalized five years ago.
Still, many critics say clusters of slot parlors have taken over some populated areas, spurring city and town leaders in parts of the state to pass ordinances restricting where limited video lottery retailers can set up shop.
Once a retailer closes and their limited video license is suspended, a new owner has 180 days to re-apply for a license and be approved. If they fail to do so, they lose their license. In an area with zoning restrictions, that place of business also would lose its status to be grandfathered in under a local ordinance. A new retailer could apply for and get a license to operate video lottery right next door.
Some of the 275 licenses that have been returned to the state at this point might eventually be available for new retailers interested in getting into the business.
They won't be put out for bid, however, until the state has enough licenses freed up to make the expensive legal bidding process worth its while. Each time the state bids out a chunk of licenses, it must go through a costly process of advertising and legal services, and right now, many of those 275 licenses could end up being transferred from one retailer to another.
"Businesses change hands and have to reapply, so that could be taking awhile," said Nancy Bulla, spokeswoman for the Lottery Commission. "Considering we can have 9,000 statewide, that 275 is really not too many."
The number of licenses approved for the state's racetracks and gaming centers has reached 13,900, with 11,458 of them being operational with machines up and running.
The racetracks and casino resorts have no cap on the number of video slots they can have, but they must go through a hearing process with the Lottery Commission in order to get new machines.
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