The original legislation also would have given casinos more flexibility to decide how many races to hold, reducing the number of required racing days from 200 to 150.
Cavicini said earlier this month the tax reduction would allow casinos to use some of that money to make improvements to their facilities.
Kessler's bill includes no tax reductions and does not reduce the required number of races at state gaming facilities.
Cavicini said the industry could live with the milder bill.
"Reducing the license fees will fix the situation we have as it relates to the huge license fee we pay now. It will help Wheeling Island be able to renew their table games license in July," he said.
Cavicini said ending table games at Wheeling Island would cost the state between $5.5 million and $6.5 million in revenue.
But he said all the other issues raised in the original bill still should be considered, particularly the requirement that all state casinos also must operate racetracks.
"We have to race in order to have gaming operations. Several of the tracks lose a couple million dollars in their racing operations," he said. "There needs to be a legislative discussion of all these issues, and that's not going to happen this session, but I'm hoping it begins with this session."
Phil Reale, lobbyist for the West Virginia Kennel Owners Association, said although Kessler's bill would not reduce the number of races at state tracks, it still would hurt dog breeders because it would reduce race purses.
He said breeders and dog owners count on those purses as part of their livelihoods.
"No one who is the owner or breeder of a thoroughbred horse or greyhound racing dog that has made a business plan based on a certain set of facts, appreciates those facts being changed," he said.
Kessler said in a lean budget year, temporarily reducing the race purses was the only way to offset reductions to table game license fees.
"I don't know how else to do it," he said.
Kessler's bill was referred to the Senate Judiciary and Finance committees after introduction. It must leave those committees by the end of this week; otherwise it will not have enough time to receive the required three readings on the Senate floor before a vote.