Monday, February 19, 2007

The West Virginia House of Delegates was expected to vote today on
legislation that could lead to table gambling at the state's racetracks.
House Bill 2718 was set to have its third and final reading, then a vote for
passage before lawmakers leave for the weekend. If passed today, the measure
moves on to the State Senate.
The bill would allow officials at the state's four racetracks - located in
Ohio, Hancock, Kanawha and Jefferson counties - to petition to put a table
gambling referendum before their county's voters. On Thursday, delegates
debated 33 amendments that were added to the bill on the floor after its
second reading. Among these was one that would have raised state's tax rate
on gross revenues from table gambling from 35 to 42 percent. The additional
monies would have gone into three new funds-the Community Based Service
Fund, the County Regional Jail Inmate Expense Fund and a State Debt
Reduction Fund. The amendment was rejected. As presently written in the
legislation, the 35 percent state tax from table gambling would be directed
as follows: 6 percent for race prize purses at the tracks. Up to 12 percent
of revenues for State Lottery Commission to administer and enforce table
gambling regulations. 2 percent to be shared by horse and dog breeding
funds. Up to $500,000 for compulsive gambling programs. The remaining
dollars would go into the state's general fund. Of this money, 79 percent
would be placed into a newly created State Debt Reduction Fund. In addition,
racetrack counties and racetrack municipalities each would get 5 percent of
the state's take, while other West Virginia counties would divide 5 percent
and other municipalities would share another percent. The remaining 1
percent would go to track employee pensions. The legislation would charge
each track $1.5 million for an initial gaming license, and $2.5 million
annually to renew one. The revenue would fund in-home senior care. During
four and half hours of debate, the House also voted down a series of
amendments from gambling foes. With the Democrats holding 72 of 100 seats,
these amendments failed largely along party lines. As a possible prelude to
today's vote, none received more than 39 votes. Proposals rejected Thursday
included one that sought a constitutional amendment on the issue. As the
bill would add the games to the state lottery system, Delegate Corey Palumbo
and others argued the Supreme Court could reject it if there is not a
constitutional amendment allowing the games. ''Will the state own and
operate these table games? That's the most significant point,'' the Kanawha
County Democrat said. ''We will not be making day-to-day operational
decisions at these racetracks.''