Ohio, Pa. Slots Spell Trouble
Putting Squeeze on W.Va.By CASEY JUNKINS Staff Writer
Article Photos
WHEELING - West Virginia's Northern Panhandle racetracks won a $436.6 million jackpot of gambling revenue during fiscal 2009 - $18.7 million more than the Wheeling and Chester facilities gathered in fiscal 2008.
But as Wheeling Island Hotel-Casino-Racetrack and Mountaineer Casino Racetrack and Resort look to continue rolling in the revenue this fiscal year, the government on the western side of the Ohio River is looking to plug in 17,500 of its own slot machines by May to help keep Buckeye residents' dollars in Ohio.
There's also an additional 3,000 gambling machines set to come online Aug. 9 in Pennsylvania with the opening of The Rivers Casino in downtown Pittsburgh, as well as the continued expansion of The Meadows Racetrack and Casino in Washington, Pa.
With the additional 20,500 slot machines set to be operational within the next 10 months, it seems West Virginia's northern tracks may be forced to fight a two-front war against its much larger neighbors as it tries to keep its share of gambling profits.
Though Mountaineer's $246.2 million in revenue from slots and table gambling in fiscal 2009 was $4.4 million more than in the previous year, the casino gathered more revenue - as a slot machine only facility - in every fiscal year from 2004 to 2007.
Wheeling Island's $190.4 million in revenue from slots and tables in fiscal 2009 was $14.3 million more than in the previous fiscal year. But this figure is considerably less than the $199.7 million the company gathered from slot machines only in fiscal 2007, as table gambling did not begin until December 2007.
Much of this drop from fiscal 2007's revenue figures can be attributed to the opening of The Meadows.
Jim Simms, president and general manager of the Wheeling track, acknowledged his company's predicament as Ohio and Pennsylvania attempt to squeeze gambling profits from the Mountain State.
"We have a big market in Columbus, and Columbus is two hours away," Simms said regarding how Ohio's plan to install 5,000 slot in the Buckeye State's capital city may affect the Island track.
"And we have been forced to look to Ohio for more customers ever since Pennsylvania came online," he added.
The Ohio gambling plan, a compromise between Democratic Gov. Ted Strickland and Republican legislators, calls for allowing 2,500 slot machines at each of the state's seven established racetracks in an effort to raise $933 million to help fill a two-year budget gap.
Current Buckeye State racetracks are Scioto Downs (owned by Mountaineer's parent company, MTR Gaming Group Inc.) and Beulah Park in Columbus; Northfield Park Racetrack and Thistledown Racetrack in Cleveland; River Downs in Cincinnati; Raceway Park in Toledo; and Lebanon Raceway in Lebanon.
Though some groups may sue to prevent the Ohio slot machines under the premise that voters have rejected the expansion of gambling in Ohio on multiple occasions, Jeannie Roberts, spokeswoman for the Ohio Lottery Commission, said current plans call for having the machines up and running by May.
"The tracks could initially open with fewer than the 2,500 they are scheduled to receive, depending upon how many we have," she said.
Noting that it is still "very early in the process," Roberts said lottery officials will do as directed by the governor and legislature.
"We have very few specifics right now. All I can really tell you is that we are going to do our best," she said of the efforts to get the gambling machines up and running on time.
Nancy Bulla, spokeswoman for the West Virginia Lottery Commission, said that in 2008, the Wheeling Island facility drew about 38 percent of its customers from Ohio, 52 percent from Pennsylvania, 5 percent from West Virginia, and 5 percent from other areas.
Mountaineer reported that 66 percent of its customers came from Ohio in 2008, with 30 percent from Pennsylvania, 2 percent from West Virginia and 2 percent from elsewhere.
Bulla said it is too early to predict how increased competition from Pennsylania and Ohio will impact West Virginia's tracks.
"Generally, competition is a good thing. But we will just have to see how this goes," she said, acknowledging Mountain State tracks saw a "dip" in business when Pennsylvania opened its slot machine parlors.
John Melton, managing general counsel for the West Virginia Lottery Commission, said a loss of gambling business could have a significantly adverse effect on the state's finances, as well as local government budgets.
For fiscal 2009, Wheeling City Manager Robert Herron is expecting the city to receive $1.55 million in tax revenue from slot and table gambling at the Island facility. The Ohio County Commission receives more than $2 million annually in tax proceeds from the track.
The city of Wheeling uses the track revenue to help pay down the unfunded liability in its fire and police pension funds.
Though she acknowledges MTR Gaming's ownership of Scioto Downs in Columbus, spokeswoman Tamara Pettit said the company is "fully committed" to Chester-based Mountaineer.
"We are happy where we are right now with our revenues, considering the opening of The Meadows," she said of the Washington, Pa. facility.
Pettit said the planned Aug. 9 opening of The Rivers in Pittsburgh is a concern to the company.
"We are very aware of what is going on around us in terms of increased competition. But we are going to continue to focus on providing an entire entertainment package," she said, noting the track offers slots, tables, thoroughbred racing, and live entertainment.
For his part, Simms said it is just a matter of "working with what you have."
"We have great people, great slots, great table games, a great hotel, great greyhound racing and great food," he said.
"We will have to see how all of this plays out, but we think it is worth the drive to come here," Simms added.
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gliderider
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07-21-09 10:30 PM
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thats easy,,,,stop going to the casino to feed them.................
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Captain
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07-20-09 6:06 PM
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Yes, it does make one proud to know that pregnant women run from the casino to the ATM multiple times each night to feed the monkeys on their backs.
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gliderider
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07-20-09 2:17 PM
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people of wheeling should be proud that such a nice casino would set up camp in that dump..other towns and cities would love to have one......
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Mumley
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07-20-09 10:48 AM
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Not really a problem, yes some of the revenues will drop but the two tracks in northern WV are destination properties. Players and the such will still come to these locations as they are fun and that's what the people want - some FUN. I still beliese that taxes are way low in WV and that should be adjusted to keep some of the money locally.
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ConservativeKaty
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07-20-09 10:00 AM
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Captain: Aye, Aye! Indeed lotteries and other government-backed gambling, like casinos and slots, are ways to cleverly tax the poor without their typical whining about paying their fair share. It is a way to get back some of their excessive “entitlements” like welfare and social security disability. The problem though is that the poor well dries up quickly and the industry needs to offer fun times for the wealthy as well. High rollers from Communist China would let us get back some of the US dollars we have sent over there. Islamic Muslims are often oil-rich or royal-rich, but I would not want them soiling our soil. Fortunately, in a way, their anti-Christian Allah told them not to gamble. The Yankee Ingenuity of Real America will have to figure different ways, other than casinos and slots, to pry our US money back from them.
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alfred
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07-20-09 8:15 AM
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I WAS THINKING OF BUYING 5 SLOT MACHINES,AND HAVING THEM IN MY RECK ROOM,AND GIVING ALL THE PROCEEDS TO CHARITY.(YOU KNOW THE OLD SAYING,CHARITY BEGINES AT HOME!!!).
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Captain
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07-19-09 11:17 PM
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Slots and casinos, not unlike the lotteries, are nothing more than a tax on the poor.
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CATHYKULL2009
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07-19-09 10:30 PM
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LOL POPEYE YOU SAID THAT RIGHT LMAAAAAAAOO
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popeye
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07-19-09 8:40 PM
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Cathy- Those aren't prostitutes, they are crackheads. I'm mean real prostitution.
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wisdomborn
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07-19-09 7:45 PM
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Ellis, you are absolutely right. Atlantic city is not better one whit for all the casinos there. Gambling is that--a gamble. Only REAL businesses pay REAL dividends. Could you imagine going into Family Dollar, handing cash over for your goods, then spinning the wheel to see "if" you get to keep them, or leave the store empty-handed? plain old weird, but that's what happens at the slots, every day.
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CATHYKULL2009
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07-19-09 6:35 PM
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LOL POPEYE ITS ALREADY HERE
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CATHYKULL2009
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07-19-09 6:30 PM
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ANOTHER THOUGHT I HAVE,, I DO NOT NEED TO WORK THERE NO MORE THANK GOODNESS BECAUSE ITS A SAD SCENE WHEN THESE PEOPLE LOOSE GRIP ON THE WAY THEY ARE GAMBLING I HAVE SEEN PEOPLE LOOSE EVERYTHING INCLUDING THE ROOF OVER THEIR HEADS THANK GOD IM NOT A GAMBLER,,,DONT GET ME WRONG THE ONES THAT CAN AFFORD IT THATS FINE AND THE ONES THAT CAN STOP WHEN ITS TIME TO STOP I HAVE NO ISSUE WITH THAT BUT,,ALOT OF PEOPLE BECOME SO ADDICTED THEY LOOSE EVERYTHING SO THATS THE REAL REASON I QUIT ,,ITS A SAD SITE WHEN SOMEONE SAYS TO YOU ,,,I TOOK MY MORTGAGE MONEY OUT AND I DONT KNOW WHAT TO DO DOES THE CASINO CARE????HUH GAMBLING IS AS BAD AS THE DRUG ABUSE AROUND HERE THANK GOODNESS I NEVER FELL PRAY TO THAT EITHER
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popeye
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07-19-09 6:28 PM
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Legalize prostitution and they will come.
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ConservativeKaty
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07-19-09 6:17 PM
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Casinos can not pay their employees any more or wages would eat away at the juicy $436.6 million net. If workers feel underpaid, let them go somewhere else, or at least feel good that they are helping make money for the state without raising taxes. I would not, however, be opposed to comping loyal employees $50 or so in slot play per week. The naysayers against expanded gambling feel the betting sources are finite or will dry up if spread out too much. The industry just needs to expand its base. We could better educate school students how to gamble when they reach age and have summer or full-time jobs, and we could lure foreign gamblers. For example, the Japanese come to America in droves to play golf but it is against their non-Christian "Buddhist" religion to gamble. The communist Chinese don't golf but they are officially atheists and they are wealthy from their American business ties, so they would be best-odds targets for jackpot junkets.
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CATHYKULL2009
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07-19-09 5:58 PM
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LETS JUST SAY THIS,,,,I CANNOT FIGURE HOW PEOPLE CAN AFFORD TO JUST THROW AWAY THEIR MONEY ON GAMBLING AND LETS SAY,,I WORKED THERE FOR 5 YRS THEY NEED TO PAY THE EMPLOYEES MORE MONEY THE WORK FOR ALMOST NOTHING!!!
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GoldenArm
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07-19-09 3:57 PM
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"It does not go into local services, schools, charities, support businesses, etc." Why do you lie EllisRacist? Seriously, anybody with half a brain can look it up for themselves and see your full of crap. For someone who claims to be far superior to everyone else, you sure do lie a lot. A LOT!!!
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EllisWyatt
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07-19-09 3:11 PM
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Atlantic City has multi-billion dollar hotel/casinos and a great boardwalk. The city is also a slumhole. In fact, New Jersey would be a dirt poor state if not for the fact that people who work in Philly and New York live in Jersey. So, gambling hasn't solved their problems. Atlantic City has a crime rate that is 3 times the national average. West Virginia and Mississippi have legalized gaming and both are the fattest, poorest states in the country. Apparently, gambling has not helped WV. A business recirculates money and creates multiple income and tax streams. Gambling takes your money and sends it elsewhere. It does not go into local services, schools, charities, support businesses, etc. Gambling is a lousy business and a poor choice of an industry to which WV has tied itself.
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Captain
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07-19-09 12:41 PM
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Oh dear, does this mean Wheeling Island Casino will actually have to make an effort to be competitive?
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richardwhee
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07-19-09 12:17 PM
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The writing was on the wall, but some were too dumb to see it. The state, city and spec interests got millions [I got 0] and now they will have to face facts. Sorry!!!!!
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wvhoopie
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07-19-09 11:27 AM
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Gambling in WV was great when we were the only ones around here who had it. Now that the slots are all around us, which is the biggest money maker for a casino, will that table games be the only draw? PA is playing around with the idea of table games but don't look at it for awhile. I prefer sin taxes vs. across the board tax increases so let's keep gambling as a revenue source.
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jbowsher
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07-19-09 10:36 AM
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As a resident of Ohio, I am glad that Ohioans will now be supporting our economy instead of neighboring states!
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kitess
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07-19-09 8:21 AM
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Why not get out of the gambling business and do the old tax and spend thing?
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boxerboy
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07-19-09 8:14 AM
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"Mountaineer reported that 66 percent of its customers came from Ohio in 2008, with 30 percent from Pennsylvania, 2 percent from West Virginia and 2 percent from elsewhere." --Wow. I wonder if they have a Plan B?
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AlexanderShulgin
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07-19-09 7:35 AM
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Wow never saw this coming. Who would have thought other states would do the same thing.
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Panhandle
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07-19-09 7:00 AM
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Maryland is getting slots too. There goes WV's budget.
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