Just over a decade ago, West Virginia’s brick and mortar casino industry was in a good place. There were no states in its immediate surroundings with casinos, and West Virginia was able to build a solid industry based on its five casinos, with numbers growing each year.
However, for the past few years, the casino industry has showed signs of struggling. From January to October 2017, the casinos collected $500 million, 7% less than what they won from West Virginian players in 2016. The casinos tallied $685 million from players in 2016, which was a 2.6% dip from 2015.
West Virginia understands that it is facing tough competition from surrounding states. According to a report by the American Gaming Association, “Over the past decade, West Virginia’s casino industry has seen an explosion of competition from surrounding states. In 2006, none of its neighbors had casinos.”
Along three out of the five states on West Virginia’s borders, there are around 30 different casinos, with some of them in direct competition with the state’s biggest casino, Hollywood Casinos at Charles Town Races.
Lawmakers are clearly worried about the trend which shows no sign of changing direction. If anything, things are getting worse and the state has to seek alternatives.
Enter iGaming.
Last year, State Delegate Shawn Fluharty tried to introduce an online gambling bill that would allow the brick and mortar casinos to offer online gambling. The bill did not advance in 2017, but last week Fluharty reintroduced H 3067 with the hope that it will advance further this year.
Putting much of the power in the hands of the West Virginia Lottery Commission, the new bill authorizes the authority to ensure “to a reasonable degree of certainty, that authorized participants are not less than 21 years of age.” In addition, the Commission should verify that gamblers are “physically located within this state or such other jurisdiction that is permissible under this chapter.”
Summary of H 3067
- A licensing fee of $50,000.
- A 14% tax rate on gross gaming revenue.
- The Lottery Commission can enter into interstate igambling compacts.
- Licensed casinos in West Virginia will be allowed to offer online gambling.
