Monday, February 26, 2007

The city of Wheeling would receive a projected $1 million annually from
table gambling profits after changes to legislation made by Senate Judiciary
Committee members Thursday. "Under the House version, Wheeling's share would
have been $180,000," explained state Sen. Andy McKenzie, R-Ohio, a member of
the Senate Judiciary Committee. The table gambling legislation, House Bill
2718, passed the Senate Judiciary Committee by voice vote Thursday - but not
before committee members altered how tax dollars from table gambling would
be allocated. Specifically, tax money previously designated to the race
prize purse fund at the state's four racetracks has been redirected to
municipalities - to those that house tracks, as well as to all of West
Virginia's 55 counties. "We amended the bill significantly," said Senate
Judiciary Committee Chairman Jeff Kessler, D-Marshall. "We adjusted the
allocation of monies. "Under the House version, the purse fund would have
got 6 percent of the gross profits. That has now been changed to 2 percent,
and we have reallocated the other 4 percent to municipalities."
The changes are as follows: 1 percent of the gross profits would be directed
to the counties where racetracks are located - Ohio, Hancock, Kanawha and
Jefferson. 2 percent would be split among racetrack municipalities -
Wheeling, Chester, Nitro, W.Va. and Charles Town, W.Va. An additional 0.5
percent would be specifically for Wheeling and Nitro for providing related
services. The remaining 0.5 percent would go to the state's general fund.
West Virginia's racetracks would continue to pay 35 percent of their gross
table gambling revenue in taxes. Of this tax amount, 76 percent would be
placed in a newly created State Debt Reduction Fund. But the remaining 24
percent would be directed as follows, under the changes made by the Senate
Judiciary Committee:

10 percent would be divided among the remaining 51 counties in the state.

10 percent would be divided among the remaining 203 municipalities in West
Virginia.

4 percent would be placed into track employee pension funds.

The Senate Judiciary Committee specified that the money received by
municipalities be used for capital improvements and municipal pensions.
Counties can use the funds to cover regional jail costs.

The West Virginia Lottery Commission has predicted that table gambling would
bring in an additional $10 million annually to racetracks.

The racetracks still would have to pay an initial $1.5 million license fee
to offer table gambling products, as well as an annual $2.5 million renewal
fee under the legislation.

"We thought it important that all municipalities in the state share in these
revenues," Kessler said. "We thought it was important that all 1.8 million
people in the state and the track employees get the money - rather than the
tracks and owners of the dogs and horses that race. Many of them live out of
the state."

State Sen. Ed Bowman, D-Hancock, termed West Virginia's purse fund "one of
the richest in the country."

"We will still have additional $3 million going in there, according to
figures provided by the lottery commissioner," John Musgrave, Bowman said.
"He told us his figures are 'conservative,'but once people come in to play
table games, slot play will increase. There will be more money from slots
going into the fund.

"The fund could realize as much as another $10 million," he added. "They
could get another $13 million, if he is correct. This is a very rich purse
fund."

The senators said they already have conversed with Senate President Earl Ray
Tomblin, D-Logan, as well as Senate Finance Committee Chairman Walt Helmick,
D-Pocohontas, regarding the legislation.

The Senate Finance Committee is slated to pick up the table gambling bill
early next week. If quickly approved in committee, a vote by the whole
Senate on the legislation could come within a week.

"They say the bill is satisfactory,'' Bowman said. ''But there are X number
of committee members. Not knowing their thoughts, it is hard to say.''

McKenzie added that Senate Judiciary Committee members knew they had to make
a decision.

"The House put a higher emphasis on the purse fund than the counties and
municipalities in West Virginia," he said. "We shifted the numbers and made
cities, counties and pensions more important."