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Gambling News by Gambling Headquarters

Friday, September 29, 2006

Track Official Says Time Is Now For Table Gambling

 

The jingle of slot machines from neighboring Pennsylvania could serve as a wake-up call for West Virginia lawmakers to approve table gambling, Delegate Gil White believes. White, R-Ohio, said without table gambling West Virginia could lose up to $50 million in revenue the first year Pennsylvania comes on-line with its slot machines. Pennsylvania officials on Wednesday approved licenses for five racing facilities in the Keystone State - including The Meadows in Washington County. The horse track will provide direct competition with Wheeling Island Racetrack and Gaming Center for slots customers. Wheeling Island could cut up to 350 jobs if West Virginia does not approve table gambling at its racetracks, said Bob Marshall, the facility's president and general manager. With table gambling, the track could add up to 400 new jobs, he said. Marshall said 60 percent of Wheeling Island's customers come from Pennsylvania. To combat the anticipated loss of customers and revenue, Marshall said the state Legislature needs to act during its next general session in January. "We've been talking about this for a couple years and the reality is it's here," Marshall said, estimating Pennsylvania's slots would be online in April. If approved by the Legislature in January and then by Ohio County voters, Marshall estimated people could be playing table games, such as blackjack, about this time next year at Wheeling Island. Whether any of his 1,000 employees would be laid off in the meantime, Marshall could not say.

He noted during the estimated nine-month transition period, many of his current employees may receive training to become table game dealers.

"According to our polling, 61 percent of West Virginians would approve a local option vote," Marshall said. "This is a great opportunity to add jobs."

He noted Ohio residents are scheduled to vote upon allowing slot machines in November. He expects Maryland to follow soon after. He said 30 percent of Wheeling Island's patrons come from Ohio, while only 5 percent are West Virginians.

The addition of table gambling in Pennsylvania and Ohio, he believes, may be inevitable, but likely will not happen for "years down the road." When it does, though, Marshall believes the competition between the racetracks will be more even.

The challenge for Northern Panhandle lawmakers will be convincing their colleagues in other counties to support the measure.

"It doesn't take a rocket scientist to see that the day is here," White said. "For at least two years, I and others have been saying it was just a matter of time before Pennsylvania was up-and-running with its machines, and we knew this would adversely affect West Virginia's annual budget.

"If we do nothing - and do not allow for table gambling at the racetracks - the state's coffers could be affected by $50 million.

"With no hesitancy, we need to move ahead with an aggressive format to get the table gaming legislation passed," he said. "We need to make certain our colleagues understand that the day is here. What we have been predicting has taken place."

Delegate Randy Swartz-miller, D-Hancock, said he believes Gov. Joe Manchin will not place the table gambling issue on the call for a special session before January.

"Before January, we will make sure our colleagues are updated and educated about what is going on, and we will be that much farther ahead come January," he said.

"There was a very good chance that table gambling legislation would pass in this upcoming session anyway," said Delegate Joe DeLong, D-Hancock. "We already had expected that Pennsylvania would go online soon, so this was no surprise. We saw it coming.

"But the political landscape has started to turn. After this next election, the votes will be there to support the issue."

DeLong said he senses public sentiment throughout West Virginia about table gambling is changing, especially in the Eastern Panhandle.

He added the issue certainly won't be far from legislators' minds as they assemble late this year for a special session on tax reform.

State Sen. Jeff Kessler, D-Marshall, said video gambling is the second largest tax revenue source for the state.

"If we see this revenue reduced by 25 to 30 percent, we will either have to cut programs or find other sources of revenue," he said. "I prefer table gambling because it is mostly out-of-state money being contributed to the state's economy."

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