Georgia Gaming Market Assessment - Pennsylvania Treasury

West Virginia
There is one casino and four racinos in West Virginia, but only two facilities are located in the
northern panhandle which represent the main competition to southwestern Pennsylvania
facilities. A third facility, located near the West Virginia capital of Charles Town, would attract
gamers as well.
West Virginia racinos experienced rapidly increasing revenues from inception through 2006, due
largely to continued changes in legislation to remove gaming position and game type limitations,
as well as to increase betting limits. Additionally, it took nearly a decade for the market to reach
a level of maturity with respect to having gaming participation rates being more typical of
national averages. Legislation to permit slots in Pennsylvania resulted in the first notable yearover-year
revenue decline in 2007, though this is being partially offset by the recent legislation
that has permitted table gaming at the West Virginia racinos.
With four racetrack casinos hosting a total of more than 11,250 lottery terminals, West Virginia
gaming revenues approached the $1 billion mark in 2006. Revenue began to fall in 2007 and has
continued through 2010, when the state’s slot revenue only totaled $723 million. The number of
machines has decreased since 2008 to a total of just over 10,300 in 2010. Through the first four
months of 2011, slot revenue is down 1% from 2010, while the number of slots is down almost
10%. The table shows the West Virginia statewide slot revenue performance since 2003.
West Virginia Statewide Slot Performance
Gross Terminal Revenue Change Units Change Win/Unit % Change
2003 $781,544,242 18.75% 9,583 27.75% $224.05 -7.05%
2004 $874,193,223 11.85% 10,590 10.51% $226.77 1.21%
2005 $931,670,726 6.57% 11,209 5.84% $224.04 -1.20%
2006 $970,840,194 4.20% 11,349 1.25% $235.01 4.89%
2007 $929,252,788 -4.28% 11,846 4.38% $215.50 -8.30%
2008 $882,891,300 -4.99% 11,749 -0.82% $202.55 -6.01%
2009 $805,246,659 -8.79% 11,253 -4.22% $196.58 -2.95%
2010 $723,038,912 -10.21% 10,308 -8.40% $194.85 -0.88%
Jan-Apr 2011 $236,863,692 -1.06% 9,702 -9.72% $204.09 9.98%
Source: West Virginia Lottery
Table games were introduced in late December 2007 at Mountaineer and Wheeling. Tri-state
added tables in October 2008 and Charles Town added them in July 2010. Table revenue has
grown from $77.6 million in 2008 to more than $133 million in 2010. This figure is expected to
grow in 2011 as all four facilities operate table games for a full year for the first time. West
Virginia tables have collected more than $68 million in revenue in the first four months of 2011,
representing an increase of 128% from 2010. This increase is inflated, however, as Charles
Town didn’t add tables till July 2010, and Charles Town represents more than $45 million of the
state’s total, attributable to its 112 tables. Table revenue since 2007 is shown below.
The Innovation Group Project #054-11 August 2011 Page 64