ENROLLED
H. B. 4632
(By Delegate Pettit)
[Passed March 14, 1998; in effect ninety days from passage.]
AN ACT to amend and reenact sections three, eight, nine and
twelve, article twenty-two-a, chapter twenty-nine of the
code of West Virginia, one thousand nine hundred thirty-one,
as amended, all relating to racetrack video lottery;
creating of an additional permitted job classification of
video lottery floor attendant; providing for an annual
license or permit fee; defining of the term "eprom"; and
increasing the number of terminals which may be located in
a nonconforming location.
Be it enacted by the Legislature of West Virginia:
That sections three, eight, nine, and twelve, article
twenty-two-a, chapter twenty-nine of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, be amended and
reenacted, all to read as follows:
ARTICLE 22A. RACETRACK VIDEO LOTTERY ACT.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video lottery license or permit.
(b) "Associated equipment" means any hardware located on a
licensed racetrack's premises which is connected to the video
lottery system for the purpose of performing communication,
validation or other functions, but not including the video
lottery terminals or the communication facilities of a regulated
public utility.
(c) "Background investigation" means a security, criminal
and credit investigation of a person, as defined in this section,
who has applied for a video lottery license or permit, or who has
been granted a video lottery license or permit.
(d) "Central computer," "central control computer" or
"central site system" means any central site computer provided to
and controlled by the commission to which video lottery terminals
communicate for purposes of information retrieval and terminal
activation and to disable programs.
(e) "Commission" or "state lottery commission" means the
West Virginia lottery commission created by article twenty-two of
this chapter.
(f) "Control" means the authority to direct the management
and policies of an applicant or a license or permit holder.
(g) "Costs" means the expenses incurred by the commission in
the testing and examination of video lottery terminals and the
performance of background investigations and other related
activities which are charged to and collected from applicants or
license or permit holders.
(h) "Director" means the individual appointed by the governor to provide management and administration necessary to
direct the state lottery office.
(i) "Disable" or "terminal disable" means the process of
executing a shutdown command from the central control computer
which causes video lottery terminals to cease functioning.
(j) "Display" means the visual presentation of video lottery
game features on the video display monitor or screen of a video
lottery terminal.
(k) "EPROM" and "erasable programmable read-only memory
chips" means the electronic storage medium on which the operation
software for all games playable on a video lottery terminal
resides and which can also be in the form of CD-ROM, flash RAM or
other new technology medium that the commission may from time to
time approve for use in video lottery terminals. All electronic
storage media are considered to be the property of the state of
West Virginia.
(l) "Floor attendant" means a person, employed by a licensed
racetrack, who holds a permit issued by the commission and who
corrects paper jams and bill jams in video lottery terminals and
also provides courtesy services for video lottery players.
(m) "Gross terminal income" means the total amount of cash
inserted into the video lottery terminals operated by a licensee,
minus the total value of game credits which are cleared from the
video lottery terminals in exchange for winning redemption
tickets.
(n) "License" or "video lottery license" means authorization
granted by the commission to a racetrack which is licensed by the West Virginia racing commission to conduct thoroughbred or
greyhound racing meetings pursuant to article twenty-three,
chapter nineteen of this code permitting the racetrack to operate
video lottery terminals authorized by the commission.
(o) "Lottery" means the public gaming systems or games
established and operated by the state lottery commission.
(p) "Manufacturer" means any person holding a permit granted
by the commission to engage in the business of designing,
building, constructing, assembling or manufacturing video lottery
terminals, the electronic computer components of the video
lottery terminals, the random number generator of the video
lottery terminals, or the cabinet in which it is housed, and
whose product is intended for sale, lease or other assignment to
a licensed racetrack in West Virginia, and who contracts directly
with the licensee for the sale, lease or other assignment to a
licensed racetrack in West Virginia.
(q) "Net terminal income" means gross terminal income minus
an amount deducted by the commission to reimburse the commission
for its actual costs of administering racetrack video lottery at
the licensed racetrack. No deduction for any or all costs and
expenses of a licensee related to the operation of video lottery
games shall be deducted from gross terminal income.
(r) "Own" means any beneficial or proprietary interest in
any property or business of an applicant or licensed racetrack.
(s) "Pari-mutuel racing facility", "licensed racetrack",
"racetrack" or "track" means a facility where horse or dog race
meetings are held and the pari-mutuel system of wagering is authorized pursuant to the provisions of article twenty-three,
chapter nineteen of this code: Provided, That, for the purposes
of this article, "pari-mutuel racing facility", "licensed
racetrack", "racetrack" or "track" includes only a facility which
was licensed prior to the first day of January, one thousand nine
hundred ninety-four, to hold horse or dog race meetings, and
which conducts not less than two hundred twenty live racing dates
for each horse or dog race meeting or such other number of live
racing dates as may be approved by the racing commission in
accordance with the provisions of section twelve-b, article
twenty-three, chapter nineteen of this code.
(t) "Permit" means authorization granted by the commission
to a person to function as either a video lottery manufacturer,
service technician or validation manager.
(u) "Person" means any natural person, corporation,
association, partnership, limited partnership, or other entity,
regardless of its form, structure or nature.
(v) "Player" means a person who plays a video lottery game
on a video lottery terminal at a racetrack licensed by the
commission to conduct video lottery games.
(w) "Service technician" means a person, employed by a
licensed racetrack, who holds a permit issued by the commission
and who performs service, maintenance and repair on licensed
video lottery terminals in this state.
(x) "Video lottery game" means a commission approved, owned
and controlled electronically simulated game of chance which is
displayed on the screen or video monitor of a video lottery terminal and which:
(1) Is connected to the commission's central control
computer by an on-line or dial-up communication system;
(2) Is initiated by a player's insertion of coins or
currency into a video lottery terminal, which causes game play
credits to be displayed on the video lottery terminal and, with
respect to which, each game play credit entitles a player to
choose one or more symbols or numbers or to cause the video
lottery terminal to randomly select symbols or numbers;
(3) Allows the player to win additional game play credits
based upon game rules which establish the random selection of
winning combinations of symbols or numbers or both and the number
of free play credits to be awarded for each winning combination
of symbols or numbers or both;
(4) Is based upon computer-generated random selection of
winning combinations based totally or predominantly on chance;
(5) In the case of a video lottery game which allows the
player an option to select replacement symbols or numbers or
additional symbols or numbers after the game is initiated and in
the course of play, either: (A) Signals the player, prior to any
optional selection by the player of randomly generated
replacement symbols or numbers, as to which symbols or numbers
should be retained by the player to present the best chance,
based upon probabilities, that the player may select a winning
combination; (B) signals the player, prior to any optional
selection by the player of randomly generated additional symbols
or numbers, as to whether the additional selection presents the best chance, based upon probabilities, that the player may select
a winning combination; or (C) randomly generates additional or
replacement symbols and numbers for the player after
automatically selecting the symbols and numbers which should be
retained to present the best chance, based upon probabilities,
for a winning combination, so that in any event, the player is
not permitted to benefit from any personal skill, based upon a
knowledge of probabilities, before deciding which optional
numbers or symbols to choose in the course of video lottery game
play;
(6) Allows a player at any time to simultaneously clear all
game play credits and print a redemption ticket entitling the
player to receive the cash value of the free plays cleared from
the video lottery terminal; and
(7) Does not use the following game themes commonly
associated with casino gambling: Roulette, dice, or baccarat
card games: Provided, That games having a video display
depicting symbols which appear to roll on drums to simulate a
classic casino slot machine, game themes of other card games and
keno may be used.
(y) "Validation manager" means a person who holds a permit
issued by the commission and who performs video lottery ticket
redemption services.
(z) "Video lottery" means a lottery which allows a game to
be played utilizing an electronic computer and an interactive
computer terminal device, equipped with a video screen and keys,
a keyboard or other equipment allowing input by an individual player, into which the player inserts coins or currency as
consideration in order for play to be available, and through
which terminal device the player may receive free games or credit
that can be redeemed for cash, or nothing, as may be determined
wholly or predominantly by chance. "Video lottery" does not
include a lottery game which merely utilizes an electronic
computer and a video screen to operate a lottery game and
communicate the results of the game, such as the game "Travel",
and which does not utilize an interactive electronic terminal
device allowing input by an individual player.
(aa) "Video lottery terminal" means a commission-approved
interactive electronic terminal device which is connected with
the commission's central computer system, and which is used for
the purpose of playing video lottery games authorized by the
commission. A video lottery terminal may simulate the play of
one or more video lottery games.
(bb) "Wager" means a sum of money or thing of value risked
on an uncertain occurrence.
§29-22A-8. Form of application; local option elections; issuance
of license; notice of incomplete application; notice of license or permit denial, suspension or revocation; procedure for review of license or permit denial, suspension or revocation; fees, renewal fees and renewal dates; bonding; renewal of
licenses and permits; notice of change affecting license or permit; license or permit not
transferrable or assignable.
(a) The commission shall determine the form of applications to
be used and shall not consider incomplete applications. The
commission may consider an application when the applicant has
completed and executed all forms and documents required by the
commission and all application fees and costs have been paid.
(b) The question of whether video lottery games shall be
permitted at pari-mutuel racetracks shall be determined by local
option election in each county in which a pari-mutuel racetrack
is located. The local option election on this question may be
placed on the ballot in each county at any general election. The
county commission of the county in which the racetrack is located
shall give notice to the public of the election by publication of
the notice as a Class II-0 legal advertisement in compliance with
the provisions of article three, chapter fifty-nine of this code,
and the publication area for the publication shall be the county
in which the election is to be held. The date of the last
publication of the notice shall fall on a date within the period
of the fourteen consecutive days next preceding the election.
On the local option election ballot shall be printed the
following:
Shall West Virginia lottery commission video lottery games be
permitted within an area at the [name of racetrack] in which
pari-mutuel betting is authorized by law?
[ ] Yes[ ] No
(Place a cross mark in the square opposite your choice.)
The ballots shall be counted, returns made and canvassed as in
general elections, and the results certified by the commissioners of election to the county commission. The county commission
shall, without delay, certify the result of the election to the
commission.
(c) Upon receipt of the results of the election from the
county commission, and if a majority has voted "yes", the
commission shall issue the requested license if the applicant is
otherwise qualified for the license. If a majority has voted
"no", the commission shall notify the applicant of the results,
the application shall be denied, and another election on the
issue shall not be held for a period of two years: Provided,
That for purposes of this section, the term "two years" means the
interval between a general election and the next general
election, and in no event shall it mean or encompass a period of
time in excess of one hundred four weeks. If a majority has
voted "yes", another local option election on the issue shall not
be held for a period of five years. A local option election may
thereafter be held if a written petition of qualified voters
residing within the county equal to at least five percent of the
number of persons who were registered to vote in the next
preceding general election is received by the county commission
of the county in which the horse or dog racetrack is located.
The petition may be in any number of counterparts.
The petition shall be in the following form:
Petition For Local Option Election
We, the undersigned legally qualified voters, resident within
the county of __________________, do hereby petition that a
special election be held within the county of _________________ upon the following question: Shall West Virginia lottery
commission video lottery games be permitted within an area at the
[name of racetrack] in which pari-mutuel betting is authorized by
law?
Name Address Date
(Post office or street address)
(d) The commission may not issue any license or permit until
background investigations are concluded. The commission shall
make an affirmative determination that the applicant is qualified
and the applicable license or permit fees have been paid prior to
issuing any license or permit.
(e) The commission shall notify the applicant if an
application is incomplete and the notification shall state the
deficiencies in the application.
(f) The commission shall notify applicants in writing of the
denial, suspension or revocation of a permit or license and the
reasons for the denial, suspension or revocation in accordance
with the provisions of section fifteen of this article.
(g) An applicant may request a hearing to review a license or
permit denial, suspension or revocation in accordance with
section fifteen of this article.
(h) The following license or permit fees shall be paid
annually by each licensed racetrack, or permitted manufacturer,
service technician, floor attendant or validation manager:
(1) Racetrack: ...................................... $1,000
(2) Manufacturer: ...................................$10,000
(3) Service technician: ................................$100
(4) Validation manager: .................................$50
(5) Floor attendant: .....................................$50
The fees shall be paid to the commission at the time of
license or permit application and on or before the first day of
July of each year thereafter, at which time the license or permit
may be renewed.
(i) An applicant for a video lottery license shall, prior to
the issuance of the license, post a bond or irrevocable letter
of credit in a manner and in an amount established by the
commission. The bond shall be issued by a surety company
authorized to transact business in West Virginia and the company
shall be approved by the insurance commissioner of this state as
to solvency and responsibility.
(j) The commission shall renew video lottery licenses and
permits annually as of the first day of July of each year, if
each person seeking license or permit renewal submits the
applicable renewal fee, completes all renewal forms provided by
the commission, and continues to meet all qualifications for a
license or permit.
(k) License and permit holders shall notify the commission of
any proposed change of ownership or control of the license or
permit holder and of all other transactions or occurrences
relevant to license or permit qualification. In order for a
license or permit to remain in effect, commission approval is
required prior to completion of any proposed change of ownership
or control of a license or permit holder.
(l) A license or permit is a privilege personal to the license
or permit holder and is not a legal right. A license or permit
granted or renewed pursuant to this article may not be
transferred or assigned to another person, nor may a license or
a permit be pledged as collateral. The purchaser or successor of
any license or permit holder shall independently qualify for a
license or permit. The sale of more than five percent of a
license or permit holder's voting stock, or more than five
percent of the voting stock of a corporation which controls the
license or permit holder or the sale of a license or permit
holder's assets, other than those bought and sold in the ordinary
course of business, or any interest therein, to any person not
already determined to have met the qualifications of section
seven of this article voids the license unless the sale has been
approved in advance by the commission.
§29-22A-9. General duties of all video lottery license and
permit holders; duties of permitted
manufacturers; duties of permitted service technicians;
duties of permitted validation managers; duties of floor
attendants; duties of licensed racetracks.
(a) All video lottery license and permit holders shall:
(1) Promptly report to the commission any facts or
circumstances related to video lottery operations which
constitute a violation of state or federal law;
(2) Conduct all video lottery activities and functions in a
manner which does not pose a threat to the public health, safety
or welfare of the citizens of this state, and which does not adversely affect the security or integrity of the lottery;
(3) Hold the commission and this state harmless from and
defend and pay for the defense of any and all claims which may be
asserted against a license or permit holder, the commission, the
state or the employees thereof, arising from the license or
permit holder's participation in the video lottery system
authorized by this article;
(4) Assist the commission in maximizing video lottery
revenues;
(5) Maintain all records required by the commission;
(6) Upon request by the commission, provide the commission
access to all records and the physical premises of the business
or businesses where the license or permit holder's video lottery
activities occur, for the purpose of monitoring or inspecting the
license or permit holder's activities and the video lottery
games, video lottery terminals and associated equipment; and
(7) Keep current in all payments and obligations to the
commission.
(b) Manufacturers shall:
(1) Manufacture terminals and associated equipment for
placement in this state in accordance with the specifications and
procedures specified in sections five and six of this article;
(2) Manufacture terminals and associated equipment to ensure
timely delivery to licensed racetracks;
(3) Maintain and provide an inventory of spare parts to assure
the timely repair and continuous operation of licensed video
lottery terminals intended for placement in this state;
(4) Provide to licensed racetracks and permitted service
technicians technical assistance and training in the service and
repair of video lottery terminals and associated equipment so as
to assure the continuous authorized operation and play of the
video lottery terminals; and
(5) Obtain certification of compliance under the provisions of
part fifteen of the federal communication commission rules for
all video lottery terminals placed in this state.
(c) Service technicians shall:
(1) Maintain all skills necessary for the timely repair and
service of licensed video lottery terminals and associated
equipment so as to ensure the continued, approved operation of
those terminals;
(2) Attend all commission mandated meetings, seminars and
training sessions concerning the repair and maintenance of
licensed video lottery terminals and associated equipment; and
(3) Promptly notify the commission of any electronic or
mechanical video lottery terminal malfunctions.
(d) Validation managers shall:
(1) Attend all commission mandated meetings, seminars and
training sessions concerning the validation and redemption of
video lottery winning tickets and the operation of all ticket
validation terminals and equipment;
(2) Maintain all skills necessary for the accurate validation
of video lottery tickets; and
(3) Supervise video lottery ticket validation procedures at
the applicable licensed racetrack.
(e) Floor attendants shall:
(1) Provide change and assistance to persons playing video
lottery games in a licensed racetrack video lottery gaming area;
(2) Open video lottery terminal access doors to clear ticket
paper jams and to insert new paper ticket tapes into the video
lottery terminals; and
(3) Open video lottery terminal access doors to clear bill
jams from the bill acceptors in video lottery terminals.
(f) The specific duties required of all licensed racetracks
are as follows:
(1) Acquire video lottery terminals by purchase, lease or
other assignment and provide a secure location for the placement,
operation and play of the video lottery terminals;
(2) Pay for the installation and operation of commission
approved telephone lines to provide direct dial-up or on-line
communication between each video lottery terminal and the
commission's central control computer;
(3) Permit no person to tamper with or interfere with the
operation of any video lottery terminal;
(4) Ensure that telephone lines from the commission's central
control computer to the video lottery terminals located at the
licensed racetrack are at all times connected and prevent any
person from tampering or interfering with the operation of the
telephone lines;
(5) Ensure that video lottery terminals are within the sight
and control of designated employees of the licensed racetrack;
(6) Ensure that video lottery terminals are placed and remain placed in the specific locations within the licensed racetrack
which have been approved by the commission. No video lottery
terminal or terminals at a racetrack shall be relocated without
the prior approval of the commission;
(7) Monitor video lottery terminals to prevent access to or
play by persons who are under the age of eighteen years or who
are visibly intoxicated;
(8) Maintain at all times sufficient change and cash in the
denominations accepted by the video lottery terminals;
(9) Provide no access by a player to an automated teller
machine (ATM) in the area of the racetrack where video lottery
games are played, accept no credit card or debit card from a
player for the exchange or purchase of video lottery game credits
or for an advance of coins or currency to be utilized by a player
to play video lottery games, and extend no credit, in any manner,
to a player so as to enable the player to play a video lottery
game;
(10) Pay for all credits won upon presentment of a valid
winning video lottery ticket;
(11) Report promptly to the manufacturer and the commission
all video lottery terminal malfunctions and notify the commission
of the failure of a manufacturer or service technician to provide
prompt service and repair of such terminals and associated
equipment;
(12) Conduct no video lottery advertising and promotional
activities without the prior written approval of the director;
(13) Install, post and display prominently at locations within or about the licensed racetrack, signs, redemption information
and other promotional material as required by the commission;
(14) Permit video lottery to be played only during those hours
established and approved by the commission;
(15) Maintain general liability insurance coverage for all
video lottery terminals in an amount of at least two million
dollars per claim;
(16) Promptly notify the commission in writing of any breaks
or tears to any logic unit seals;
(17) Assume liability for lost or stolen money from any video
lottery terminal; and
(18) Submit an audited financial statement, which has been
approved by the commission, to the commission when applying for
a license or permit and annually thereafter prior to the time a
license or permit may be renewed.
§29-22A-12. Number and location of video lottery terminals;
security.
(a) A racetrack which has been licensed to conduct video
lottery games has the right to install and operate up to four
hundred video lottery terminals at a licensed racetrack. A
licensed racetrack may apply to the commission for authorization
to install and operate more than four hundred video lottery
terminals. If the commission determines that the installation of
additional machines is in the best interest of the licensed
racetrack, the lottery commission and the citizens of this state,
the commission may grant permission to install and operate
additional machines.
(b) All video lottery terminals in licensed racetracks shall
be physically located as follows:
(1) The video lottery location shall be continuously
monitored through the use of a closed circuit television system
capable of recording activity for a continuous twenty-four hour
period. All video tapes shall be retained for a period of at
least thirty days;
(2) Access to video lottery terminal locations shall be
restricted to persons legally entitled by age to play video
lottery games;
(3) The licensed racetrack shall submit for commission
approval a floor plan of the area or areas where video lottery
terminals are to be operated showing terminal locations and
security camera mount locations;
(4) No video lottery terminal may be relocated without prior
approval from the commission; and
(5) Operational video lottery terminals may only be located
in the building or structure in which the grandstand area of the
racetrack is located and in the area of the building or structure
where pari-mutuel wagering is permitted under the provisions of
article twenty-three, chapter nineteen of this code: Provided,
That if the commission, before the first day of November, one
thousand nine hundred ninety-three, has authorized any racetrack
to operate video lottery terminals and offer video lottery games
in a location which would not conform to the requirements of this
subdivision, the racetrack may continue to use video lottery
terminals registered with and approved by the commission at that nonconforming location and to offer the games and any variations
or composites of the games as may be approved by the commission:
Provided, however, That on the effective date of this section ,
for each two video lottery terminals located in a nonconforming
location, the racetrack shall locate and operate one video
lottery terminal in the building or structure in which the
grandstand area of the racetrack is located and in the area of
the building or structure where pari-mutuel wagering is
permitted.
(c) A licensee shall allow video lottery games to be played
only on days when live racing is being conducted at the racetrack
and/or on televised racing days: Provided, That this restriction
shall not apply to any racetrack authorized by the commissioner
prior to the first day of November, one thousand nine hundred
ninety-three, to operate video lottery terminals and conduct
video lottery games.
(d) Security personnel shall be present during all hours of
operation at each video lottery terminal location. Each license
holder shall employ the number of security personnel the
commission determines is necessary to provide for safe and
approved operation of the video lottery facilities and the safety
and well-being of the players.