Industry News
WVA Table Games a Go
After an abbreviated debate, the West Virginia legislature has signed into law an option for individual counties with existing racetrack casino facilities to permit table games. The move is a direct knee jerk reaction to Pennsylvania’s recent legalization of casinos. Pennsylvania is adjacent to West Virginia.
Soon a casino is set to open in Pittsburgh, so legislators over the border have upped the ante to include table games as a way to set themselves apart from the burgeoning casino scene in Steel Town.
This week West Virginia Governor Joe Manchin signed bill HB2718 into law, which that will permit the state’s four racetracks to have games such as blackjack, craps and roulette in addition to the existing array of slot machines.
While respective counties can wait until next November’s elections to have the referendum, it’s widely expected special elections will be set up so voters in each county can give their input on letting the dice roll. A special election could cost as much as $30,000 to $40,000, but some think if they are held fast enough the money could be paid back through additional tax revenues earned before November. On Tuesday, the Ohio County Commission set a June 9 special election on whether to authorize table games at the Wheeling Island Racetrack.
Elsewhere, MTR Gaming Group, Inc. (NasdaqGS:MNTG) which through its subsidiaries, owns and operates the Mountaineer Race Track & Gaming Resort in Chester as well as other venues outside the state will pursue the referendum in Hancock County, WV at the earliest practicable date.
Edson R. (Ted) Arneault, CEO of MTR Gaming Group, stated, “We are thrilled that the Legislature passed this bill and that Governor Manchin has signed it into law, reserving to the people of Hancock County the final say. If the voters approve table games, our plan is to add approximately 50 table games and 40 poker tables at Mountaineer. The addition of table games will also create approximately 500 jobs in Hancock County, an area suffering high unemployment due to a struggling steel industry.
“Initially, the tables at Mountaineer would be situated within our existing facility allowing a relatively fast start-up. We are enthusiastic about the prospect of offering table gaming to our existing customers, as well as drawing new customers who enjoy table games, and improving Mountaineer’s overall competitive position.”
Racetrack lobbyist John Cavacini told the Charlestown Gazette, “Obviously, we’re very, very happy. It’s the culmination of two years of being faced with the threat of competition from Pennsylvania. I truly believe the racetracks will do exactly what they promised they will do, which is to preserve revenues, preserve jobs, and add 2,000 new jobs.”
The move makes sense on paper, but the regular naysayers are decrying the signed legislation as an action that could portend future gaming expansion within the state.
“It’s a bad bill, and I didn’t think the governor wanted it to become part of his legacy,” said John Carey of the West Virginia Values Coalition.
He said he was particularly concerned by findings in the legislation that declare that racetrack table games are in “the best interest of the state.”
Carey has not yet indicted whether his group will also challenge the law in court, as has another organization; the West Virginia Family Foundation.
Through March 12 of this year, PA gaming has seen $1,576,161,191.03 wagered on the state’s 7,929 slot machines. Pennsylvania has already earned $80,221,484 in taxes, while the casinos have earned revenues of $65,635,759. The state’s tax rate is a huge 55 percent. The state currently has four casinos open, with another eight scheduled to open his year.
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