Recent articles suggest the Legislature change our racing law to curtail racing. West Virginia Greyhound Owners and Breeders comment as follows:
Changing the law is not necessary.
Racing existed first. Casinos were built on sites developed and paid for by racing.
West Virginia Code authorizes distributions from the net terminal income of the racetrack video lottery (not the main lottery) as follows:
* State lottery fund, 30 percent.
* Track purses, 7 percent to 14 percent.
* Counties and/or municipalities of the racinos, 2 percent.
* Racino licensees (businesses), 46.5 percent.
* Racing development funds, 1.5 percent.
* W.Va. Racing Commission, 1 percent,
* Tourism Promotion Fund, 3 percent.
* Worker's Comp Debt Reduction Fund, 7 percent to 10 percent, and
* Other state building projects, 2 percent.
These are "income" to the above entities for the goods and services they provide. Casinos and racing, or racinos, are treated as one integrated entity at each location. The distributions are NOT "subsidies."
The four racinos also receive relatively small income from pari-mutual wagering.
The four racino locations in West Virginia made a total profit of $118 million in 2011. Since all are owned by out-of-state corporations, we surmise these profits went out of state.
Two of the racino corporations are building competing casinos in the neighboring states of Pennsylvania and Ohio. Profits from West Virginia are helping to build competing casinos.
The racino licensees are distributed 46.5 percent of the net terminal income whether they have racing or not.
With racing, the money paid for racing expenses stays in West Virginia.