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.
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The installation of 17,500 video slot machines at Ohio’s seven racetracks could mean fewer Buckeye State residents will cross the Ohio River to head for Wheeling Island Hotel-Casino-Racetrack and Mountaineer Casino Racetrack and Resort.
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.