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W.Va.’s Gaming Dependence Grows
 Message was posted: 09:13 Jun 2nd, 2006     
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Casino news from Bluefield Daily Telegraph http://www.bdtonline.com


In the 1980s, West Virginians voted to amend the constitution and allow the lottery in the Mountain State.

Twenty years later, the question is, “What’s next?”

Since the first lottery ticket was sold in West Virginia Jan. 9, 1986, lottery sales have grown by leaps and bounds, totaling close to $8.5 billion during the two decades.

From instant-win tickets and Powerball drawings to slot machines and video poker, the face of gambling in the state’s rural and urban communities has also expanded through the years.

Three primary types of games are available for West Virginia residents and visitors who wish to try their luck at winning a few bucks, or millions.

• Traditional lottery games were the first established in the state by a 1984 vote, Elizabeth White, West Virginia Lottery deputy director of marketing, said. These games include Daily 3 and Daily 4 drawings and scratch-off lottery tickets.

• In 1994, legislation was passed that allowed the four racetracks in the state — two thoroughbred and two greyhound — to have video lottery machines, otherwise known as slots, White said.

• And gray machines, commonly known as poker machines, became regulated statewide after limited video lottery terminal legislation was passed in 2001, she said.

In the 20 years since the West Virginia lottery came into to play, the agency has transferred $2,787,030,000 to the state’s coffers, according to an operating report provided by the lottery.

Off-track and live racetrack betting are also available at the four West Virginia tracks, but these are regulated through the state’s racing commission.

In the fiscal year ending June 30, the state’s racetrack industry contributed an estimated $375 million to the state’s revenue, the third highest behind personal income tax and the sales tax, West Virginia Racing Association President John Cavacini told the Bluefield Daily Telegraph editorial board earlier this year.

The state now generates around $470 million to $480 million per year from lotteries and gaming, Del. Eustace Frederick, D-Mercer said.

“Close to 15 percent of revenue comes from gambling,” he said.

In the 2006 Legislative Session earlier this year, lawmakers debated another gaming option: the possible introduction of casino-type games — such as poker, blackjack, roulette and craps tables — in the counties where racetracks are currently located.

Ohio, Hancock, Jefferson and Kanawha counties have racetracks and slot machines, which are a big draw for tourists, according to industry officials.

But plans to add 61,000 slots in Pennsylvania have racetracks owners in the Northern Panhandle concerned about the negative affect of the competition on Mountain State tracks — and those in the communities who depend on the industry for jobs.

The addition of slot machines in Pennsylvania is expected to decrease the tracks’ revenue to the state by more than $100 million by 2007.

However, the racing association estimates it could increase the figure by $50 million if table games are added.

The issue brought before lawmakers earlier was whether to allow county-option elections for table games in the four counties where the racetracks are located.

The Legislature, primarily the House of Delegates, “chose not to take it up” during the general session, Frederick said.

“It undoubtedly will be back,” the veteran lawmaker said. “The state has gotten so dependent on gambling.”

Even if the Legislature allows county-option elections, it does not mean the addition of table games is a certainty.

A 1999 county-option election to allow gaming at the famed Greenbrier Resort in Greenbrier County was turned down by voters.

Sixty-three percent of West Virginia’s tourism tax revenue is generated by gaming, Cavacini said. Racetracks also attract 12 million tourists to the Mountain State each year.

Currently, the racetrack industry is responsible for more than 4,500 jobs in West Virginia. Cavacini said the number of jobs could increase by 2,000 — if table games are added.

President and CEO of MTR Gaming Group, Inc., Ted Arneault, whose corporation owns Mountaineer Race Track and Gaming Resort in Hancock County, said his company would add 450 to 500 jobs, which would pay $35,000 to $40,000 a year with no college degree — again, if table games are added.

Without the addition of casino-type games, Cavacini said there is potential to lose more than a 1,000 jobs.

But, Frederick wonders if the long-term outlook for the state would not benefit more from efforts to bring in employment from industry and manufacturing.

“Solid jobs, solid income,” he said. “This is certainly gambling when you’re betting on gambling for money.”





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