We were among critics of the plan several years ago to allow "limited" video gambling at thousands of establishments throughout West Virginia. At the time we and others speculated that mini-casinos would sprout on virtually every street corner.
It turns out that we were right. Now, some state officials are pondering what can be done in reaction to public criticism of the proliferation of video gambling establishments.
It may be too late to do anything about the phenomenon, though Gov. Joe Manchin has made it clear he would like to reduce the number of video lottery outlets in the state. He has created a special panel to look into the issue, along with others involving video gambling.
Nine thousand licenses for video gambling devices at locations other than racetracks are authorized under state law. The machines bring an enormous amount of income in to local and state governments. During the 2008 fiscal year alone, they grossed $411 million. During one month, last October, the city of Wheeling alone received more than $27,000 as its share of limited video lottery proceeds. Every community where the machines are located receives a share of revenue from them.
During a period in which Manchin and legislators will have to begin watching state finances more closely, it will be difficult for them to decide to close a substantial number of gambling establishments - and cope with the resulting loss of revenue. No doubt some local officials would object to that, too.
Another obstacle involves just how the state would reduce the number of gambling establishments. Simple fairness comes into the picture. Why should one gambling outlet be allowed to keep its license while another, perhaps within walking distance, is told it must give up its license?
Panel members may have to conclude that the only acceptable method of reducing the number of gambling outlets is to do so over time, by tightening restrictions on new or renewal licenses. Even that brings up questions involving fairness.
In all probability, not much will be done about the issue this year. We expect legislators to be leery of doing anything that might decrease state revenue.
In regard to that, they may want to look at increasing the percentage of money paid into gambling machines that goes to the state. Clearly, to judge by the proliferation of gambling establishments, the business is very lucrative.