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‘Free Play’ Bill On Its Way To Gov. Manchin

April 11, 2009
By JOSELYN KING

WHEELING - Gov. Joe Manchin will now decide whether West Virginia's racetracks can entice slot machine players with "free play" credits and whether gambling will be permitted at all at The Greenbrier resort.

Prior to today's conclusion of the regular session of state Legislature, members approved a measure that would allow the state's four racetracks to offer free play credits just as casinos do in nearby Pennsylvania. The legislation passed the House of Delegates on Friday by a vote of 84-15.

A listing of those voting for and against the bill was not immediately available.

Senate Bill 575, also known as the "Greenbrier Bill," now is on its way to Gov. Joe Manchin to be signed into law. The provision establishing free play credits at racetracks is contained within the legislation, which was aimed at setting rules and tax rates for a possible casino at the historic Greenbrier. It would distribute proceeds among state programs and county and local governments. It would also help The Greenbrier recoup employee benefits costs after it filed for bankruptcy last month.

Critics objected to the provision legalizing free play.

Racetracks in the Northern Panhandle had sought to offer free play credits as they scramble to compete with casinos in the Keystone State. Slot machine players are being drawn to Pennsylvania casinos with the promise of $20 to $50 in credit being applied to their players' cards. This credit has no cash value for tax purposes and comes at no cost to Pennsylvania casinos.

While West Virginia's tracks offer "coupons" to their best customers, these must be cashed in to be redeemed. When the money is placed in the video lottery machines, it then is taxed by the state.

The legislation passed by the West Virginia Legislature establishes a definition for promotional credits as being "credits given by the licensed gaming facility or licensed racetrack to players allowing limited free play of video lottery terminals in total amounts and under conditions approved in advance by the commission."

The amount taken in through promotional credits would not be included under the taxation of gross terminal income, according to the legislation.

Two other bills of note also passed the Legislature in the last week and are on their way to the governor.

Already signed into law by the governor is HB 2795 introduced by Delegate Mike Ferro, D-Marshall which creates a special hunting and fishing license for people with severe disabilities or life-threatening conditions who are under age 21.

Still, other bills seems to have died in the Legislature.

The measure had two readings in the Senate but was abandoned after Gov. Joe Manchin signed an executive order creating a commission to study possible changes to West Virginia's court system.