CHARLESTON, W.Va. — Limited Video Lottery retailers are already taking advantage of a new state law that allows them to move around video lottery machines to better performing locations.
West Virginia Lottery Director Alan Larrick told members of the Lottery Commission at its monthly meeting Wednesday changes have been made at 187 locations in the first few weeks of the law.
“Some retailers are moving their machines from locations that maybe weren’t doing as well to better operating locations—so that’s a plus,” Larrick said.
The law allows the maximum number of machines to go from 5 to 7 at any one location that is already permitted for 7.
Larrick said the Lottery really had no way to predict the initial surge of switching.
“It was hard to tell. Some retailers and some are doing well. The ones that are doing well are obviously taking advantage of this,” Larrick said.
Meanwhile, bid opening is scheduled for next Wednesday, Aug. 2, on permits for an additional 750 video lottery machines. The 2001 state law legalizing video lottery machines in bars and clubs set a limit of 9,000 machines there are currently approximately 6,800.
Larrick said allowing existing machines to be moved to better performing locations and putting additional permits out to bid should drive up the bottom line.
“The more locations that sell the more money we make and that’s what we’re hoping for,” Larrick said.
Lottery officials previously told state lawmakers the changes could bring in an additional $10 to $12 million in annual revenue. The minimum bid for the additional terminal permits will be $2,000.
Meanwhile, Larrick said while gambling competition from neighboring states remains significant there appears to have been some leveling off.
“I think we’re seeing a little bit where people initially maybe went to the newer facilities, went to these places, saw the additional traffic, cost of going to these places and I think we’re seeing the trickle back where they are coming back to our casinos,” Larrick said.
Also at Wednesday’s meeting, the Lottery Commission made a move to begin changing the state Lottery Rule that would remove a $500 start-up fee for lottery retailers to cover landline installation. Landlines are no longer used in the lottery system. Larrick said he’s hopeful removing the fee would encourage more businesses to begin offering Lottery products.