Lottery news from http://www.dailymail.com/
If Pennsylvania, Ohio and Maryland all jumped on line with video gambling simultaneously, West Virginia would lose more than $100 million in lottery sales, said state Lottery Director John Musgrave.
But of those three states, Pennsylvania soon will be the only legitimate threat to West Virginia. Pennsylvania is expected to offer video slot machines late this year or early 2007.
"When Pennsylvania started issuing licenses, it became a major hurdle," Musgrave said following Monday's monthly lottery commission meeting. "We don't know what they're planning. We're hoping they'll hold off as long as possible."
Pennsylvania already has approved up to 61,000 slot machines to be distributed among 14 license holders, and the state continues to issue slots licenses to racetracks.
The pending losses come on the heels of the Lottery's record-breaking year of $1.5 billion in sales.
Sales shot up 9 percent over the last fiscal year as the Lottery saw increased revenues in all types of games. Limited video lottery revenues alone jumped 18 percent -- or $52 million -- over last year.
Lottery officials say those increases likely will stop once the state faces live competition from its northern neighbor.
Northern Panhandle racetracks such as Wheeling Downs and Mountaineer Racetrack and Gaming Resort will suffer the greatest losses if it loses a chunk of their Pittsburgh market, lottery officials predict.
Earlier this year, Ted Arneault, president of Mountaineer Racetrack and Gaming Resort, said his resort is expecting a 15 percent loss in profits.
Also earlier, the Lottery projected revenues to drop more than $60 million by the next fiscal year. But on Monday, Lottery spokeswoman Libby White said officials are revising those
projections through the summer as Pennsylvania prepares to go on line.
"We do not have enough information at this point for detailed forecasting," White said. "For example, if a Pennsylvania racetrack in Philadelphia starts operating, one would assume it would have minimal impact on West Virginia."
However, White said the Lottery is keeping on eye on The Meadows racetrack, which is 30 minutes east of Wheeling in Washington, Pa.
White said no one knows Pennsylvania's game plan. Racetracks could either start small on the machines to slowly build up their business or they could unleash an onslaught of hundreds of machines at once, she said.
"Their implementation plan will give us far more information on timing the potential physical impact," White said, "and of course, the products that will be affected."
To offset the potential losses, West Virginia hopes to keep a fresh and varied slate of games available.
The Lottery has already introduced Cashola, a video lottery game launched last week in conjunction with Rhode Island and Delaware.
White also said that West Virginia's racetracks have a history of succeeding.
"We've done a good job in West Virginia offering other forms of entertainment at the tracks," she said.
|
|
World Casino Directory 
Gambling Forums 
