Senate Bill No. 718
(By Senator Schoonover, By Request, and Sprouse)
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[Introduced February 23, 1998; referred to the Committee on the
Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact sections one, two, three, four, five,
six, seven, eight, nine, ten, ten-a, eleven, twelve, thirteen,
fourteen, fifteen and sixteen, article twenty-two-a, chapter
twenty-nine of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to further amend said
article by adding thereto a new section, designated section
four-a, all relating to authorizing one video lottery and
table gaming facility at one historic resort hotel, subject to
a local option election; providing generally therefor; stating
legislative findings and declarations; providing standards for
operation of such table games; providing definitions of terms;
providing for video lottery terminal requirements; providing
standards for video lottery terminal hardware and software;
providing for limits on video lottery wagers; providing for
accounting for video lottery play; providing for video lottery
and table gaming permits and licenses; requiring a local
option election prior to initiation of video lottery and table gaming at a qualified historic resort hotel; providing license
fees for one qualified historic resort hotel and for table
gaming employees; changing the period of video lottery
licenses and establishing the period for table gaming
licenses; providing general duties for all video lottery and
table gaming licensees and permittees; establishing the duties
of table games suppliers; providing for the accounting of
video lottery and table gaming revenues; establishing
requirements for maintenance of video lottery terminals;
providing for the number and location of video lottery
terminals; allowing payments to be made in the form of coins,
annuitized payments over time or noncash prizes; to allow game
displays to include video images, actual symbols or both;
providing for transportation and registration of video lottery
terminals; providing hearing and appeal procedure; and
providing for offenses and penalties.
Be it enacted by the Legislature of West Virginia:
That sections one, two, three, four, five, six, seven, eight,
nine, ten, ten-a, eleven, twelve, thirteen, fourteen, fifteen and
sixteen, 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; and that said article be further amended by
adding thereto a new section, designated section four-a, all to
read as follows:
ARTICLE 22A. RACETRACK VIDEO LOTTERY AND TABLE GAMING.
§29-22A-1. Short title.
This article shall be known and may be cited as the "Racetrack
Video Lottery and Table Gaming Act."
§29-22A-2. Legislative findings and declarations.
(a) The Legislature finds and declares that the limited video
lottery games authorized by this article are "lotteries" as that
term is commonly understood and as that term is used in West
Virginia Constitution, article VI, section thirty-six, the video
lottery games authorized by this article being lottery games which
utilize advanced computer technology; and that the Constitution
grants to the Legislature the authority to establish, by general
law, the manner of regulation, control, ownership and operation of
lottery games in the state of West Virginia.
(b) The Legislature further finds and declares that the state
can control, own and operate a video lottery by possessing a
proprietary interest in the main logic boards, all erasable,
programmable read-only memory chips used in any video lottery
equipment or games, and software consisting of computer programs,
documentation and other related materials necessary for the video
lottery system to be operated. The state may acquire a proprietary
interest in video lottery game software, for purposes of this
article, through outright ownership or through an exclusive product
license agreement with a manufacturer whereby the manufacturer retains copyrighted ownership of the software but the license
granted to the state is nontransferable and authorizes the state to
run the software program, solely for its own use, on the state's
central equipment unit and electronic video terminals networked to
the central equipment unit.
(c) The Legislature further finds and declares that the state
can control and regulate a video lottery and table games if the
state limits licensure to a limited number of video lottery
facilities located at qualified horse or dog racetracks and at one
qualified historic resort hotel, extends strict and exclusive state
regulation to all persons, locations, practices and associations
related to the operation of licensed video lottery and table gaming
facilities, and provides comprehensive law enforcement supervision
of video lottery and table gaming activities.
(d) The Legislature further finds and declares that since the
public has an interest in video lottery and table gaming operations
and since lottery operations conducted pursuant to West Virginia
Constitution, article VI, section thirty-six, and under this
article represent an exception to the general statutory policy of
the state concerning wagering for private gain, participation in a
video lottery or table games by a licensee or permittee under this
article shall be deemed a privilege conditioned upon the proper and
continued qualification of the licensee or permittee and upon the
discharge of the affirmative responsibility of each licensee to provide to the regulatory and investigatory authorities established
by this article any assistance and information necessary to assure
that the policies declared by this article are achieved.
Consistent with this policy, it is the intent of this article to
preclude the creation of any property right in any license or
permit issued by the state under this article, the accrual of any
value to the privilege of participation in any video lottery or
table gaming operation, or the transfer of any license or permit,
and to require that participation in video lottery or table gaming
operations be solely conditioned upon the individual qualifications
of persons seeking such privilege.
(e) The purpose of this article is to define and provide
specific standards for the operation of video lottery games at
pari-mutuel racing facilities licensed by the state racing
commission pursuant to article twenty-three, chapter nineteen of
this code, and to define and provide specific standards for the
operation of video lottery and table games at one qualified
historic resort hotel in this state. The Legislature finds and
declares that the existing pari-mutuel racing facilities and
historic resort hotels in West Virginia provide a valuable tourism
resource for this state and provide significant economic benefits
to the citizens of this state through the provision of jobs and the
generation of state revenues; that this these valuable tourism
resources is are threatened because of a general decline in the racing industry and because of increasing competition from racing
facilities and lottery products offered by neighboring states and
competition from resort hotels outside this state with gaming
amenities; and that the survival of West Virginia's pari-mutuel
racing industry is in jeopardy unless modern lottery games are
authorized at the racetracks; and that the sustained year-round
operation of a historic resort hotel is enhanced by authorizing
certain gaming amenities for registered guests.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video
lottery or table gaming license or permit.
(b) "Associated equipment" means any hardware located on a
licensed racetrack's facility'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 table gaming
license or permit, or who has been granted a video lottery license
or permit or table gaming 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 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 in the form of video images, actual symbols or
both.
(k) "Gaming devices and supplies" means gaming tables for all
authorized table games, roulette wheels, cards, dice, chips or any
other device, mechanism or equipment or related supplies utilized
in the operation of an authorized table game.
(k)(l) "Gross terminal income" means the total amount of cash,
vouchers or tokens inserted into the video lottery terminals
operated by a licensee, minus the total value of coins and tokens
won by a player and game credits which are cleared from the video
lottery terminals in exchange for winning redemption tickets.
(l)(m) "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 or granted to one
qualified historic resort hotel permitting the racetrack or
qualified historic resort hotel to operate video lottery terminals
authorized by the commission.
(n) "Licensee" means the person who owns a licensed facility.
(o) "Licensed facility" means a licensed racetrack or a
licensed historic resort hotel.
(p) "Licensed historic resort hotel" or "historic resort
hotel" means a qualified historic resort hotel which has been
issued a video lottery license under the provisions of this
article.
(m)(q) "Lottery" means the public gaming systems or games
established and operated by the state lottery commission.
(n)(r) "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 thereof, the random
number generator thereof, or the cabinet in which it is housed, and
whose product is intended for sale, lease or other assignment to a
licensed racetrack facility in West Virginia, and who contracts
directly with the licensee for the sale, lease or other assignment
to a licensed racetrack facility in West Virginia.
(s) "Net table game income" means the total of all wagers on
table games less all amounts won by players. No deduction for any
or all costs and expenses of a licensee related to the operation of
table games shall be deducted in calculating net table game income.
(o)(t) "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 facility. 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.
(u) "Non-cash prize" means merchandise which a video lottery
player may be given the option to receive in lieu of cash in
exchange for a winning redemption ticket and which shall be assigned a redemption value equal to the actual cost of the
merchandise to the licensed facility.
(p)(v) "Own" means any beneficial or proprietary interest in
any property or business of an applicant or licensed racetrack
facility.
(q)(w) "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.
(r)(x) "Permit" means authorization granted by the commission
to a person to function as either a video lottery manufacturer,
service technician, or validation manager, table games supplier or
table games employee.
(s)(y) "Person" means any natural person, corporation, association, partnership, limited partnership, or other entity,
regardless of its form, structure or nature.
(t)(z) "Player" means a person who plays a video lottery or
table game on a video lottery terminal at a racetrack licensed
facility licensed by the commission to conduct video lottery games.
(aa) "Qualified historic resort hotel" means a resort hotel
registered by the United States department of the interior as a
national historic landmark in its national registry of historic
places having not fewer than five hundred guest rooms under common
ownership and having substantial recreational guest amenities in
addition to the designated area on the premises of the resort hotel
in which activities authorized by this article may be conducted by
a licensee.
(u)(bb) "Service technician" means a person, employed by a
licensed racetrack facility, who holds a permit issued by the
commission and who performs service, maintenance and repair on
licensed video lottery terminals in this state.
(cc) "Table game" includes baccarat, twenty-one (blackjack),
poker, craps, roulette, wheel of fortune or any other similar Monte
Carlo style table game utilizing specific game rules separately
filed from time to time by the commission with the secretary of
state.
(dd) "Table games employee" means an individual employed by a
licensee in connection with the operation of table games.
(ee) "Table games supplier" means a person engaged in the
business of supplying gaming devices and supplies to a licensed
facility.
(v)(ff) "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, vouchers or tokens 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,
coins or tokens 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, coins or tokens 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 such 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 receive coins or tokens or 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.
(w)(gg) "Validation manager" means a person who holds a permit
issued by the commission and who performs video lottery ticket
redemption services.
(x)(hh) "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 or other screen and
keys, a keyboard or other equipment allowing input by an individual
player, into which terminal device the player inserts coins, or
currency, vouchers or tokens as consideration in order for play to
be available, and through which terminal device the player may
receive free games, coins, tokens or credit that can be redeemed
for cash, annuitized payments over time, a non-cash prize 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 thereof, such as the game
"Travel," and which does not utilize an interactive electronic
terminal device allowing input by an individual player.
(y)(ii) "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.
(z)(jj) "Wager" means a sum of money or thing of value risked
on an uncertain occurrence.
§29-22A-4. Video lottery games authorized.
The state lottery commission is authorized to implement and
operate video lottery games at pari-mutuel racing facilities and at
one qualified historic resort hotel in this state in accordance
with the provisions of this article and the applicable provisions
of article twenty-two of this chapter. The provisions of article
twenty-two of this chapter apply to this article, except in the
event of conflict or inconsistency between any of the provisions of
this article and the provisions of article twenty-two of this
chapter. In that event, the provisions of this article shall
supersede any conflicting or inconsistent provisions contained in
article twenty-two of this chapter.
§29-22A-4a.Table games authorized.
(a) Notwithstanding any provision of law to the contrary, the
operation of table games authorized by this article by a table
games licensee is not unlawful when conducted under the terms
specified in this article.
(b) The state lottery commission shall issue a single table
gaming license authorizing the one licensed historic resort hotel to operate table games at a designated video lottery and table
gaming area in accordance with the applicable provisions of this
article. An applicant for a historic resort hotel table games
license must have been the owner of the qualified resort hotel for
which application is made on the first day of January, one thousand
nine hundred ninety-seven. Such license may be issued and renewed
simultaneously with a video lottery license in accordance with this
article.
(c) The designated video lottery and table gaming area located
at a licensed historic resort hotel must: (1) Be accessible to
disabled individuals; (2) not constitute the main entrance to the
qualified historic resort hotel; and (3) meet any other
qualifications specified in rules adopted by the commission.
(d) An applicant for a table games license under this section
must be located within the jurisdiction of a county permitting
video lottery and table games in accordance with section eight of
this article. Each applicant shall meet the qualifications and
requirements set forth in this article. In determining whether to
grant licenses to operate video lottery and table games at a
qualified historic resort hotel, the commission shall consider the
initial plan submitted by the applicant regarding employment levels
and the extent to which the submitted plan demonstrates an ability
on the part of the applicant to convert at least one hundred twenty
part-time jobs into full-time jobs and an ability to create seventy new jobs at the historic resort hotel all with a salary and benefit
package averaging at least twenty-six thousand dollars annually.
(e) In addition to the duties set forth elsewhere in this
article, the state lottery commission shall:
(1) Establish standards for gaming devices and supplies;
(2) Approve game rules for all table games proposed to be
operated by a table gaming licensee;
(3) Establish standards governing table gaming, including the
maintenance of financial books and records by a table gaming
licensee;
(4) Supervise, inspect and monitor the operation of the
designated table gaming area at a licensed facility, including
inspection of gaming devices and supplies used in such area to
assure continuous compliance with all rules of the commission and
provisions of this article;
(5) Investigate applicants to determine eligibility for a
table games license and, where appropriate, select among competing
applicants;
(6) Issue all permits contemplated hereunder; and
(7) Maintain all appropriate records.
(f) The table games licensee may set minimum and maximum
wagers for any table game.
(g) The table games licensee shall receive wagers only from an
individual present at the designated gaming area.
(h) All gaming operations at the designated gaming area except
video lottery games shall utilize a cashless wagering system
whereby payers' money is converted to tokens, electronic cards or
chips at the request of the wagerer which can only be used for
wagering in the designated gaming area.
(i) The table games licensee may not loan to any person money
or any other thing of value for the purpose of permitting that
person to participate in any table game.
(j) The table games licensee is prohibited from offering any
property or service, other than incidental food and beverages, to
any person as an inducement to participate in a table game. This
prohibition includes the offering of complimentary rooms in
exchange for a guest participating in a table game.
(k) An individual may not remain in the designated gaming area
to participate in video lottery games or table games at a licensed
historic resort hotel if the individual is not a registered
overnight guest in the licensed historic resort hotel.
§29-22A-5. Video lottery terminal requirements; filing of specific
game rules with the secretary of state; application for
approval of a video lottery terminal; testing of video lottery
terminals; report of test results; modifications to previously
approved models; conformity to prototype; seizure and
destruction of terminals.
(a) Video lottery terminals registered with and approved by the commission for use at licensed racetracks facilities may offer
video lottery games regulated, controlled, owned and operated by
the commission in accordance with the provisions of this section,
and utilizing specific game rules separately filed from time to
time by the commission with the secretary of state.
(b) A manufacturer may not sell or lease a video lottery
terminal for placement at a licensed racetrack facility in this
state unless the terminal has been approved by the commission.
Only manufacturers with permits may apply for approval of a video
lottery terminal or associated equipment. The manufacturer shall
submit two copies of terminal illustrations, schematics, block
diagrams, circuit analysis, technical and operation manuals and any
other information requested by the commission for the purpose of
analyzing and testing the video lottery terminal or associated
equipment.
(c) The commission may require that two working models of a
video lottery terminal be transported to the location designated by
the commission for testing, examination and analysis.
(1) The manufacturer shall pay all costs of testing,
examination, analysis and transportation of such video lottery
terminal models. The testing, examination and analysis of any
video lottery terminal model may require dismantling of the
terminal and some tests may result in damage or destruction to one
or more electronic components of such terminal model. The commission may require that the manufacturer provide specialized
equipment or pay for the services of an independent technical
expert to test the terminal.
(2) The manufacturer shall pay the cost of transportation of
two video lottery terminals to lottery headquarters. The
commission shall conduct an acceptance test to determine terminal
functions and central system compatibility. If the video lottery
terminal fails the acceptance test conducted by the commission, the
manufacturer shall make all modifications required by the
commission.
(d) After each test has been completed, the commission shall
provide the terminal manufacturer with a report containing
findings, conclusions and pass/fail results. The report may
contain recommendations for video lottery terminal modification to
bring the terminal into compliance with the provisions of this
article. Prior to approving a particular terminal model, the
commission may require a trial period not in excess of sixty days
for a licensed racetrack facility to test the terminal. During the
trial period, the manufacturer may not make any modifications to
the terminal model unless such modifications are approved by the
commission.
(e) The video lottery terminal manufacturer and licensed
racetrack facility are jointly responsible for the assembly and
installation of all video lottery terminals and associated equipment. The manufacturer and licensed racetrack facility shall
not change the assembly or operational functions of a terminal
licensed for placement in West Virginia unless a request for
modification of an existing video terminal prototype is approved by
the commission. The request must contain a detailed description of
the type of change, the reasons for the change and technical
documentation of the change.
(f) Each video lottery terminal approved for placement at a
licensed racetrack facility must conform to the exact
specifications of the video lottery terminal prototype tested and
approved by the commission. If any video lottery terminal or any
video lottery terminal modification, which has not been approved by
the commission, is supplied by a manufacturer and operated by a
licensed racetrack facility, the commission shall seize and destroy
all of that licensed racetrack's facility's and manufacturer's
noncomplying video lottery terminals and shall suspend the license
and permit of the licensed racetrack facility and manufacturer.
§29-22A-6. Video lottery terminal hardware and software
requirements; hardware specifications; software requirements
for randomness testing; software requirements for percentage
payout; software requirements for continuation of video
lottery game after malfunction; software requirements for play
transaction records.
(a) Video lottery terminals licensed for placement in this state shall meet the following hardware specifications:
(1) Electrical and mechanical parts and design principles may
not subject a player to physical hazards or injury.
(2) A surge protector shall be installed on the electrical
power supply line to each video lottery terminal. A battery or
equivalent power back-up for the electronic meters shall be capable
of maintaining accuracy of all accounting records and terminal
status reports for a period of one hundred eighty days after power
is disconnected from the terminal. The power back-up device shall
be located within the locked logic board compartment of the video
lottery terminal.
(3) An on/off switch which controls the electrical current
used in the operation of the terminal shall be located in an
accessible place within the interior of the video lottery terminal.
(4) The operation of each video lottery terminal may not be
adversely affected by any static discharge or other electromagnetic
interference.
(5) A minimum of one electronic or mechanical coin acceptor or
other means accurately and efficiently to establish credits shall
be installed on each video lottery terminal. Each video lottery
terminal may also contain bill acceptors for one or more of the
following: One dollar bills, five dollar bills, ten dollar bills
and twenty dollar bills. All coin and bill acceptors must be
approved by the commission prior to use on any video lottery terminal in this state.
(6) Access to the interior of video lottery terminal shall be
controlled through a series of locks and seals.
(7) The main logic boards and all erasable programmable read- only memory chips (Eproms) are deemed to be owned by the commission
and shall be located in a separate locked and sealed area within
the video lottery terminal.
(8) The cash compartment shall be located in a separate locked
area within or attached to the video lottery terminal.
(9) No hardware switches, jumpers, wire posts or any other
means of manipulation may be installed which alter the pay tables
or payout percentages in the operation of a game. Hardware
switches on a video lottery terminal to control the terminal's
graphic routines, speed of play, sound and other purely cosmetic
features may be approved by the commission.
(10) Each video lottery terminal shall contain a single
printing mechanism capable of printing an original ticket and
retaining an exact legible copy within the video lottery terminal
or other means of capturing and retaining an electronic copy of the
ticket data as approved by the commission: Provided, That such
printing mechanism is optional on any video lottery terminal which
is designed and equipped exclusively for coin or token pay-outs.
The following information shall be recorded on the ticket when
credits accrued on a video lottery terminal are redeemed for cash:
(I) The number of credits accrued;
(ii) Value of the credits in dollars and cents displayed in
both numeric and written form;
(iii) Time of day and date;
(iv) Validation number; and
(v) Any other information required by the commission.
(11) A permanently installed and affixed identification plate
shall appear on the exterior of each video lottery terminal and the
following information shall be on the plate:
(I) Manufacturer of the video lottery terminal;
(ii) Serial number of the terminal; and
(iii) Model number of the terminal.
(12) The rules of play for each game shall be displayed on the
video lottery terminal face or screen. The commission may reject
any rules of play which are incomplete, confusing, misleading or
inconsistent with game rules approved by the commission. For each
video lottery game, there shall be a display detailing the credits
awarded for the occurrence of each possible winning combination of
numbers or symbols. A video lottery terminal may not allow more
than two five dollars to be wagered on a single game. All
information required by this subdivision shall be displayed under
glass or another transparent substance. No stickers or other
removable devices may be placed on the video lottery terminal
screen or face without the prior approval of the commission.
(13) Communication equipment and devices shall be installed to
enable each video lottery terminal to communicate with the
commission's central computer system by use of a communications
protocol provided by the commission to each permitted manufacturer,
which protocol shall include information retrieval and terminal
activation and disable programs, and the commission may require
each licensed racetrack facility to pay the cost of a central site
computer as a part of the licensing requirement.
(14) All video lottery terminals shall have a security system
which temporarily disables the gaming function of the terminal
while opened.
(b) Each video lottery terminal shall have a random number
generator to determine randomly the occurrence of each specific
symbol or number used in video lottery games. A selection process
is random if it meets the following statistical criteria:
(1) Chi-square test. Each symbol or number shall satisfy the
ninety-nine percent confidence limit using the standard chi-square
statistical analysis of the difference between the expected result
and the observed result.
(2) Runs test. Each symbol or number may not produce a
significant statistic with regard to producing patterns of
occurrences. Each symbol or number is random if it meets the
ninety-nine percent confidence level with regard to the "runs test"
for the existence of recurring patterns within a set of data.
(3) Correlation test. Each pair of symbols or numbers is
random if it meets the ninety-nine percent confidence level using
standard correlation analysis to determine whether each symbol or
number is independently chosen without regard to another symbol or
number within a single game play.
(4) Serial correlation test. Each symbol or number is random
if it meets the ninety-nine percent confidence level using standard
serial correlation analysis to determine whether each symbol or
number is independently chosen without reference to the same symbol
or number in a previous game.
(c) Each video lottery terminal shall meet the following
maximum and minimum theoretical percentage payout during the
expected lifetime of said terminal:
(1) Video lottery games shall pay out no less than eighty
percent and no more than ninety-five percent of the amount wagered.
The theoretical payout percentage will be determined using standard
methods of probability theory.
(2) Manufacturers must file a request and receive approval
from the commission prior to manufacturing for placement in this
state video lottery terminals programmed for a payout greater than
ninety-two percent of the amount wagered. Commission approval must
be obtained prior to applying for testing of such high payout
terminals.
(3) Each terminal shall have a probability greater than one in seventeen million of obtaining the maximum payout for each play.
(d) Each video lottery terminal shall be capable of continuing
the current game with all current game features after a video
lottery terminal malfunction is cleared. If a video lottery
terminal is rendered totally inoperable during game play, the
current wager and all credits appearing on the video lottery
terminal screen prior to the malfunction shall be returned to the
player.
(e) Each video lottery terminal shall at all times maintain
electronic accounting regardless of whether the terminal is being
supplied with electrical power. Each meter shall be capable of
maintaining a total of no less than eight digits in length for each
type of data required. The electronic meters shall record the
following information:
(1) Number of coins inserted by players or the coin equivalent
if a bill acceptor is being used or tokens or vouchers are used;
(2) Number of credits wagered;
(3) Number of total credits, coins and tokens won;
(4) Number of credits paid out by a printed ticket;
(5) Number of coins or tokens won, if applicable;
(5)(6) Number of times the logic area was accessed;
(6)(7) Number of times the cash door was accessed;
(7)(8) Number of credits wagered in the current game;
(8)(9) Number of credits won in the last complete video lottery game; and
(9)(10) Number of cumulative credits representing money
inserted by a player and credits for video lottery games won but
not collected.
(f) No video lottery terminal may have any mechanism which
allows the electronic accounting meters to clear automatically.
Electronic accounting meters may not be cleared without the prior
approval of the commission. Both before and after any electronic
accounting meter is cleared, all meter readings shall be recorded
in the presence of a commission employee.
(g) The primary responsibility for the control and regulation
of any video lottery games and video lottery terminals operated
pursuant to this article rests with the commission.
(h) The commission shall directly or through a contract with
a third party vendor other than the video lottery licensee,
maintain a central site system of monitoring the lottery terminals,
utilizing an on-line or dial-up inquiry. The central site system
shall be capable of monitoring the operation of each video lottery
game or video lottery terminal operating pursuant to this article
and, at the direction of the director, immediately disable and
cause not to operate, any video lottery game and video lottery
terminal. As provided in this section, the commission may require
the licensed racetrack facility to pay the cost of a central site
computer as part of the licensing requirement.
§29-22A-7. License and permit qualifications; individual
qualifications; applicant required to furnish information;
waiver of liability; oath or affirmation; duty to provide
accurate and material information.
(a) No video lottery license or permit or table gaming license
or permit may be granted unless the commission has determined that
the applicant satisfies all of the following qualifications:
(1) An applicant for a video lottery license must be a
qualified historic resort hotel or hold a valid racing license
granted by the West Virginia racing commission under provisions of
article twenty-three, chapter nineteen of this code.
(2) An applicant must be a person of good character and
integrity.
(3) An applicant must be a person whose background, including
criminal record, reputation and associations, does not pose a
threat to the security and integrity of the lottery or to the
public interest of the state. A person who has been convicted of
any violation of article twenty-two of this chapter or of this
article or of any crime related to theft, bribery, gambling or
involving moral turpitude is not eligible for any license or
permit. The commission shall revoke the license or permit of any
person who is convicted of any such crime after a license or permit
is granted.
(4) An applicant must be a person who demonstrates the business ability and experience necessary to establish, operate and
maintain the business for which a video lottery license or permit
or table gaming permit application is made.
(5) An applicant must be a person who has secured adequate
financing for the business for which a video lottery license or
permit or table gaming license or permit application is made. The
commission shall determine whether financing is from a source which
meets the qualifications of this section, and is adequate to
support the successful performance of the duties and
responsibilities of the licensed racetrack licensee or permit
holder. An applicant for a video lottery license shall disclose
all financing or refinancing arrangements for the purchase, lease
or other acquisition of video lottery terminals and associated
equipment in the degree of detail requested by the commission. A
licensed racetrack licensee shall request commission approval of
any change in financing or lease arrangements at least thirty days
before the effective date of the change.
(6) A racetrack An applicant applying for a video lottery
license or a license renewal must present to the commission
evidence of the existence of an agreement, regarding the proceeds
from video lottery terminals, between the applicant and the
representative of a majority of the horse owners and trainers, the
representative of a majority of the pari-mutuel clerks and the
representative of a majority of the breeders or the representative of a majority of the kennel owners for the applicable racetrack who
hold permits required by section two, article twenty-three, chapter
nineteen of this code.
(7) An racetrack applicant applying for a video lottery
license or a license renewal must file with the commission a copy
of any current or proposed agreement between the applicant and any
manufacturer for the sale, lease or other assignment to the
racetrack applicant of video lottery terminals, the electronic
computer components thereof, the random number generator thereof,
or the cabinet in which it is housed. Once filed with the
commission, such agreement shall be a public document subject to
the provisions of article one, chapter twenty-nine-b of this code.
(b) No video lottery license or permit or table gaming license
or permit may be granted to an applicant until the commission
determines that each person who has control of the applicant meets
all applicable qualifications of subsection (a) of this section.
The following persons are deemed to have control of an applicant:
(1) Each person associated with a corporate applicant,
including any corporate holding company, parent company or
subsidiary company of the applicant (but not including a bank or
other licensed lending institution which holds a mortgage or other
lien acquired in the ordinary course of business) who has the
ability to control the activities of the corporate applicant or
elect a majority of the board of directors of that corporation.
(2) Each person associated with a noncorporate applicant who
directly or indirectly holds any beneficial or proprietary interest
in the applicant or who the commission determines to have the
ability to control the applicant.
(3) Key personnel of an applicant, including any executive,
employee or agent, having the power to exercise significant
influence over decisions concerning any part of the applicant's
business operation.
(c) Applicants must furnish all information, including
financial data and documents, certifications, consents, waivers,
individual history forms and other materials requested by the
commission for purposes of determining qualifications for a license
or permit. No video lottery license or permit may be granted to an
applicant who fails to provide information and documentation
requested by the commission. The burden of proving qualification
for any video lottery license or permit or table gaming license or
permit shall be on the applicant.
(d) Each applicant shall bear all risks of adverse public
notice, embarrassment, criticism, damages or financial loss which
may result from any disclosure or publication of any material or
information obtained by the commission pursuant to action on an
application. The applicant shall, as a part of its application,
expressly waive any and all claims against the commission, the
state of West Virginia and the employees of either for damages as a result of any background investigation, disclosure or publication
relating to an application for a video lottery license or permit or
table gaming license or permit.
(e) All application, registration and disclosure forms and
other documents submitted to the commission by or on behalf of the
applicant for purposes of determining qualification for a video
lottery license or permit or table gaming license or permit shall
be sworn to or affirmed before an officer qualified to administer
oaths.
(f) An applicant who knowingly fails to reveal any fact
material to qualification or who knowingly submits false or
misleading material information is ineligible for a video lottery
license or permit or table gaming license or permit.
§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 or at a qualified historic
resort hotel shall be determined by local option election in each
county in which a pari-mutuel racetrack such facility is located.
The local option election on this question may be placed on the
ballot in each county at the any primary, election to be held on
the tenth day of May, one thousand nine hundred ninety-four, or at
any general or special election to be held thereafter. The county
commission of the county in which the racetrack or qualified
historic resort hotel is located shall give notice to the public of
such election by publication thereof 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
[and table games] be permitted within an area at the [name of
racetrack] in which pari-mutuel betting is authorized by law] or [name of qualified historic resort hotel]?
[ ] 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 so notify the applicant, 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
or qualified historic resort hotel 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 [and table games] be permitted within an area at the
[name of racetrack] in which pari-mutuel betting is authorized by
law] or [name of qualified historic resort hotel]?
NameAddressDate
(Post office or street address)
(d) If the commission, prior to the first day of November, one
thousand nine hundred ninety-three, has authorized any racetrack to
conduct video lottery games at its pari-mutuel facility, the games
may continue to operate until the first day of January, one
thousand nine hundred ninety-five, pending the results of any local
option election held pursuant to the provisions of this section.
(e)(d) The commission may not issue any license or permit
until background investigations are concluded. The commission must
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.
(f)(e) The commission shall notify the applicant if an
application is incomplete and the notification shall state the
deficiencies in the application.
(g)(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.
(h)(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.
(i)(h) The following license or permit fees shall be paid
annually by each licensed racetrack facility, or permitted
manufacturer, service technician, or validation manager, table
games supplier or table games employee:
(1) Racetrack or qualified historic resort hotel: $1,000.
(2) Manufacturer: $10,000.
(3) Service technician: $100.
(4) Validation manager: $50.
(5) Table games supplier: $2,000.
(6) Table games employee: $200.
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 or each year thereafter, at which time the license or permits may be renewed: Provided, That video lottery licenses and the table
game license shall be issued for three-year terms.
(j)(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.
(k)(j) The commission shall renew video lottery licenses and
the table games license on a three-year cycle and shall renew
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.
(l)(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.
(m)(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 must 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 licensed racetracks licensees; duties of
table games suppliers; duties of table games employees.
(a) The general duties required of all video lottery license
and permit holders and table gaming license and permit holders are
as follows:
(1) Promptly report to the commission any facts or
circumstances related to video lottery or table gaming operations which constitute a violation of state or federal law.
(2) Conduct all video lottery and table gaming 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 or table gaming
authorized by this article.
(4) Assist the commission in maximizing video lottery and
table gaming 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 or
table gaming 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
gaming devices and supplies.
(7) Keep current in all payments and obligations to the
commission.
(b) The specific duties required of manufacturers are as follows:
(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 facilities.
(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 facilities 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 such video lottery terminals.
(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) The specific duties required of service technicians are as
follows:
(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.
(3) Promptly notify the commission of any electronic or
mechanical video lottery terminal malfunctions.
(d) The specific duties required of validation managers are as
follows:
(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.
(3) Supervise video lottery ticket validation procedures at
the applicable licensed racetrack facility.
(e) The specific duties of table games suppliers are as
follows:
(1) Supply gaming devices and supplies for placement in this
state in accordance with the specifications and procedures
established by the commission.
(2) Provide to licensed facilities technical assistance and
training in the service and repair of gaming devices and supplies
so as to assure the continuous authorized operation and play of
table games.
(f) The specific duties of table games employees are as follows:
(1) Attend all commission mandated meetings, seminars and
training sessions concerning the operation of table games and the
duties of table games employees.
(2) Maintain all skills necessary for the employees'
applicable activities and functions related to table games.
(e)(g) The specific duties required of all licensed racetracks
licensees 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 facility 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 facility.
(6) Ensure that video lottery terminals are placed and remain
placed in the specific locations within the licensed racetrack
facility which have been approved by the commission. No video
lottery terminal or terminals at a racetrack licensed facility
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 licensed facility 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:
Provided, That the director shall not prohibit the use of the terms
"casino", "slots" or other common terms identifying authorized
games.
(13) Install, post and display prominently at locations within
or about the licensed racetrack facility, 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.
(18) Comply with all commission rules and regulations related
to table games if the licensee is authorized by this article to
conduct table games.
(18)(19) 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-10. Accounting and reporting; commission to provide
communications protocol data; distribution of net terminal
income; remittance through electronic transfer of funds;
establishment of accounts and nonpayment penalties; commission
control of accounting for net terminal income; settlement of
accounts; manual reporting and payment may be required;
request for reports; examination of accounts and records.
(a) The commission shall provide to manufacturers, or
applicants applying for a manufacturer's permit, the protocol
documentation data necessary to enable the respective
manufacturer's video lottery terminals to communicate with the
commission's central computer for transmitting auditing program
information and for activation and disabling of video lottery
terminals.
(b) The gross terminal income of a licensed racetrack
facility shall be remitted to the commission through the electronic
transfer of funds. Licensed racetracks facilities shall furnish to
the commission all information and bank authorizations required to
facilitate the timely transfer of moneys to the commission.
Licensed racetracks facilities must provide the commission thirty
days' advance notice of any proposed account changes in order to assure the uninterrupted electronic transfer of funds. From the
gross terminal income remitted by the licensee to the commission,
the commission shall deduct an amount sufficient to reimburse the
commission for its actual costs and expenses incurred in
administering racetrack video lottery at the licensed racetrack
facility, and the resulting amount after such deduction shall be
the net terminal income. The amount deducted for administrative
costs and expenses of the commission may not exceed four percent of
gross terminal income.
(c) Net terminal income shall be divided as set out in this
subsection. The licensed racetrack's facility's share shall be in
lieu of all lottery agent commissions and is considered to cover
all costs and expenses required to be expended by the licensed
racetrack facility in connection with video lottery operations.
The division shall be made as follows:
(1) The commission shall receive thirty percent of net
terminal income from licensed racetracks and forty-seven percent of
net terminal income from a licensed historic resort hotel, which
shall be paid into the general revenue fund of the state to be
appropriated by the Legislature shall be paid into the state
lottery fund created by section eighteen, article twenty-two of
this chapter, to be appropriated by the Legislature: Provided,
That income deposited pursuant to this section shall not be subject
to the provisions of subsections (b), (c), (d) or (e), section eighteen, article twenty-two of this chapter;
(2) Fourteen percent of net terminal income at a licensed
racetrack shall be deposited in the special fund established by the
licensee, and used for payment of regular purses in addition to
other amounts provided for in article twenty-three, chapter
nineteen of this code;
(3) The county where the video lottery terminals are located
shall receive two percent of the net terminal income;
(4) One half of one percent of net terminal income at a
licensed racetrack shall be paid for and on behalf of all employees
of the licensed racing association by making a deposit into a
special fund to be established by the racing commission to be used
for payment into the pension plan for all employees of the licensed
racing association;
(5) The West Virginia thoroughbred development fund created
under section thirteen-b, article twenty-three, chapter nineteen of
this code and the West Virginia greyhound breeding development fund
created under section ten, article twenty-three, chapter nineteen
of this code shall receive an equal share of a total of not less
than one and one-half percent of the net terminal income at each
racetrack: Provided, That for any racetrack which does not have a
breeder's program supported by the thoroughbred development fund or
the greyhound breeding development fund, the one and one-half
percent provided for in this subdivision shall be deposited in the special fund established by the licensee and used for payment of
regular purses, in addition to other amounts provided for in
subdivision (2) of this subsection and article twenty-three,
chapter nineteen of this code;
(6) The West Virginia thoroughbred breeders classic shall
receive One percent of the net terminal income at racetracks which
shall be used for purses. The moneys shall be deposited in the
separate account established for the classic under by the West
Virginia racing commission to be distributed in accordance with the
provisions of section thirteen, article twenty-three, chapter
nineteen of this code;
(7) A licensee shall receive forty-seven percent of net
terminal income;
(8) The tourism promotion fund established in section nine,
article one section twelve, article two, chapter five-b of this
code shall receive three percent of the net terminal income; and
(9) The veterans memorial program shall receive one percent of
the net terminal income until sufficient moneys have been received
to complete the veterans memorial on the grounds of the state
capitol complex in Charleston, West Virginia. The moneys shall be
deposited in the state treasury in the division of culture and
history special fund created under section three, article one-i,
chapter twenty-nine of this code: Provided, That only after
sufficient moneys have been deposited in the fund to complete the veterans memorial and to pay in full the annual bonded indebtedness
on the veterans memorial, not more than twenty thousand dollars of
the one percent of net terminal income provided for in this
subdivision shall be deposited into a special revenue fund in the
state treasury, to be known as the "John F. 'Jack' Bennett Fund".
The moneys in this fund shall be expended by the division of
veterans affairs to provide for the placement of markers for the
graves of veterans in perpetual cemeteries in this state. The
division of veterans affairs shall promulgate legislative rules
pursuant to the provisions of article three, chapter twenty-nine-a
of this code specifying the manner in which the funds are spent,
determine the ability of the surviving spouse to pay for the
placement of the marker, and setting forth the standards to be used
to determine the priority in which the veterans grave markers will
be placed in the event that there are not sufficient funds to
complete the placement of veterans grave markers in any one year,
or at all. The remainder of the one percent of terminal income
shall then continue to be deposited in the special fund in the
division of culture and history created under section three,
article one-i, chapter twenty-nine of this code and be expended by
the division of culture and history to establish a West Virginia
veterans memorial archives within the cultural center to serve as
a repository for the documents and records pertaining to the
veterans memorial, to restore and maintain the monuments and memorial on the capitol grounds and to pay the salary and benefits
of a director of monuments. The director of monuments shall be
responsible for restoring and maintaining all monuments and
memorials situated upon the grounds of the capitol in Charleston,
West Virginia, and, to the extent there are moneys remaining in
this fund thereafter, the director of monuments may use the balance
to landscape the capitol grounds. The director of monuments shall
be under the supervision of and report to the commissioner of the
division of culture and history. The provisions of this
subdivision relating to the creation of the position of director of
monuments shall be effective the first day of January, one thousand
nine hundred ninety-seven.
(d) Each licensed racetrack facility shall maintain in its
account an amount equal to or greater than the gross terminal
income from its operation of video lottery machines, to be
electronically transferred by the commission on dates established
by the commission. Upon a licensed racetrack's facility's failure
to maintain this balance, the commission may disable all of a
licensed racetrack's facility's video lottery terminals until full
payment of all amounts due is made. Interest shall accrue on any
unpaid balance at a rate consistent with the amount charged for
state income tax delinquency under chapter eleven of this code,
which interest shall begin to accrue on the date payment is due to
the commission.
(e) The commission's central control computer shall keep
accurate records of all income generated by each video lottery
terminal. The commission shall prepare and mail to the licensed
racetrack facility a statement reflecting the gross terminal income
generated by the licensee's video lottery terminals. Each licensed
racetrack facility must report to the commission any discrepancies
between the commission's statement and each terminal's mechanical
and electronic meter readings. The licensed racetrack facility is
solely responsible for resolving income discrepancies between
actual money collected and the amount shown on the accounting
meters or on the commission's billing statement.
(f) Until an accounting discrepancy is resolved in favor of
the licensed racetrack facility, the commission may make no credit
adjustments. For any video lottery terminal reflecting a
discrepancy, the licensed racetrack facility shall submit to the
commission the maintenance log which includes current mechanical
meter readings and the audit ticket which contains electronic meter
readings generated by the terminal's software. If the meter
readings and the commission's records cannot be reconciled, final
disposition of the matter shall be determined by the commission.
Any accounting discrepancies which cannot be otherwise resolved
shall be resolved in favor of the commission.
(g) Licensed racetracks facilities shall remit payment by mail
if the electronic transfer of funds is not operational or the commission notifies licensed racetracks facilities that remittance
by this method is required. The licensed racetracks facilities
shall report an amount equal to the total amount of cash inserted
into each video lottery terminal operated by a licensee, minus the
total value of game credits which are cleared from the video
lottery terminal in exchange for winning redemption tickets or are
won as coins or tokens, and remit such amount as generated from its
terminals during the reporting period. The remittance shall be
sealed in a properly addressed and stamped envelope and deposited
in the United States mail no later than noon on the day when the
payment would otherwise be completed through electronic funds
transfer.
(h) Licensed racetracks facilities may, upon request, receive
additional reports of play transactions for their respective video
lottery terminals and other marketing information not considered
confidential by the commission. The commission may charge a
reasonable fee for the cost of producing and mailing any report
other than the billing statements.
(i) The commission has the right to examine all accounts, bank
accounts, financial statements and records in a licensed
racetrack's facility's possession, under its control or in which it
has an interest and the licensed racetrack facility must authorize
all third parties in possession or in control of the accounts or
records to allow examination of any of those accounts or records by the commission.
§29-22A-10a. Lottery commission income to be deposited in state
lottery fund Accounting for table games; distribution of table
games net income.
Notwithstanding the provisions of subdivision one, subsection
(c), section ten of this article, beginning on the first day of
July, one thousand nine hundred ninety-five and continuing
thereafter, the net terminal income received by the commission
shall be paid into the state lottery fund created by section
eighteen, article twenty-two of this chapter, to be appropriated by
the Legislature: Provided, That income deposited pursuant to this
section shall not be subject to the provisions of subsections (b),
(c), (d) or (e), section eighteen, article twenty-two of this
chapter.
(a) A licensee who is authorized by this article to operate
table games shall keep records and accounts of all table gaming
activity in the form and manner required by the commission and
shall submit reports at least monthly on the schedule required by
the commission.
(b) Net table game income shall be remitted to the commission
in the manner required by the commission, and the commission shall
distribute the net table gaming income in the same proportions and
to the same entities as net terminal income is distributed under
section ten of this article.
§29-22A-11. Maintenance of video lottery terminals; manufacturers
required to provide training; notice of availability of
training; reports and certificates of training programs;
terminals to be maintained in the condition approved;
maintenance log required; keys to video lottery terminals;
notice of repairs to the logic area; notice of broken seals on
logic board.
(a) No video lottery terminal may be placed in operation in
this state until the manufacturer provides training in the service
and repair of each approved video lottery terminal model and
service technicians complete such training. Manufacturers must
submit to the commission the following information on each training
program conducted:
(1) An outline of the training curriculum;
(2) A list of the instructors and their qualifications;
(3) Instructional materials; and
(4) The time, dates and location of the training programs.
(b) Manufacturers shall notify all licensed racetracks
facilities who have purchased or leased that manufacturer's video
lottery terminals of all scheduled training programs. Training
programs must be scheduled at convenient locations within this
state to facilitate attendance by service technicians.
Manufacturers must inform licensed racetracks facilities of any new
developments in the service and repair of video lottery terminals and provide appropriate subsequent training programs.
(c) The manufacturers shall issue training certificates to
each person upon successful completion of a video lottery training
program. The certificate shall include the name of the person who
completed the training program and the date and the location of the
training program. A person who successfully completes training is
eligible for a service technician's permit. No person may conduct
maintenance on any video lottery terminal or associated equipment
unless the commission has issued a service technician permit to
that person.
(d) Each manufacturer shall file with the commission the
following information within two weeks after the completion of a
training program:
(1) The name of each person who attended and completed the
training program;
(2) The name of the manufacturer offering the course;
(3) The manufacturer's video lottery terminal models on which
training for service and repair was provided;
(4) The date and location of the training program; and
(5) Copies of all certificates of completion.
(e) A written maintenance log shall be kept within the main
cabinet access area in each video lottery terminal. Every person,
including lottery personnel, who gains entry into any internal
space of a video lottery terminal must sign the log, record the time and date of entry, record the mechanical meter readings and
list the areas inspected or repaired. The maintenance log forms
shall be retained by licensed racetracks facilities for a period of
three years from the date of the last entry. The maintenance logs
shall be available upon request for inspection by the commission.
(f) Licensed racetracks facilities shall provide the
commission with a master key for access into the main cabinet door
of each video lottery terminal placed in operation. A logic box
seal shall be provided by the commission. The seal shall be
affixed by commission personnel to prevent unauthorized access to
the video lottery terminal logic unit.
(g) No repairs to, or replacement of, the logic board or
circuitry within the logic area may occur unless authorized
commission personnel are present and observe the repairs or
replacement. The logic area seal shall not be broken by anyone
other than authorized commission personnel. Each service
technician shall submit a written report within twenty-four hours
after the repairs or replacement are completed and the report shall
include the serial number of any replacement board and the new
logic area seal number.
(h) The software eproms on the logic board of each video
lottery terminal shall be tested by the commission prior to sealing
the logic area. Licensed racetracks facilities or permit holders
shall notify the commission in writing of any discovered damage, tears or breaks in the logic area seal and, upon notice, the video
lottery terminal shall be disabled. The video lottery terminal
shall remain disabled until completion by the commission of an
investigation of the seal damage.
§29-22A-12. Number and location of video lottery terminals;
security.
(a) A racetrack which has been licensed to conduct video
lottery games licensee has the right to install and operate up to
four hundred video lottery terminals at a licensed racetrack
facility. A licensed racetrack facility 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 facility, 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
facilities 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 facility 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 at licensed racetracks
may only be located in the building or structure in which the
grandstand area of the racetrack is located and in the area of such
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 such games
and any variations or composites of such games as may be approved
by the commission: Provided, however, That after the tenth day of
May, one thousand nine hundred ninety-four, for each video lottery
terminal 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 such building or structure where pari-mutuel
wagering is permitted.
(6) For licensed historic resort hotels, video lottery
terminals shall be located only in the
designated gaming area
specified
pursuant to section four-a of this article.
(c) A racetrack 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 such number of security personnel as the
commission determines to be necessary to provide for safe and
approved operation of the video lottery facilities and the safety
and well-being of the players.
§29-22A-13. Payment of credits; no state liability; method of
payment; restrictions on payment of credits; redeemed tickets
required to be defaced; liability for video lottery terminal
malfunction.
(a) No payment for credits awarded on a video lottery terminal may be made unless the ticket meets the following requirements:
(1) The ticket is fully legible and printed on paper approved
by the commission and the ticket contains all information required
by this article;
(2) The ticket is not mutilated, altered, unreadable or
tampered with in any manner;
(3) The ticket is not counterfeit, in whole or in part; and
(4) The ticket is presented by a person authorized to play
video lottery pursuant to this article.
(b) Each licensed racetrack facility shall designate
validation managers and employees authorized to redeem tickets and
to sell and redeem tokens during the business hours of operation.
Credits shall be immediately paid in cash, or by check, by
annuitized payments over time or by a non-cash prize when a player
presents a valid ticket for payment. No credits may be paid in
tokens, chips or merchandise.
(c) Licensed racetracks facilities shall not redeem tickets
for credits awarded on video lottery terminals which are not
located on its premises. A ticket must be presented for payment no
later than ten days after the date the ticket is printed. The
commission is not liable for the payment of any video lottery
ticket credits.
(d) All tickets redeemed by a licensed racetrack facility
shall be defaced in a manner which prevents any subsequent presentment and payment.
(e) The commission is not responsible for any video lottery
terminal malfunction which causes a credit to be wrongfully awarded
or denied to players. The licensed racetrack facility is solely
responsible for any wrongful award or denial of credits.
§29-22A-14. Transportation and registration of video lottery.
(a) Trucking companies or common carriers shipping video
lottery terminals shall be bonded and shall ship all terminals in
sealed trailers.
(b) A manufacturer transporting one or more video lottery
terminals into this state shall, prior to shipment, provide the
commission with the following information on forms prescribed by
the commission:
(1) The full name, address and permit number of the person
shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name, address and license number of the licensed
racetrack facility to which the video lottery terminals are being
sent and the destination of the terminals if different from the
address;
(4) The number of video lottery terminals in the shipment;
(5) The serial number of each video lottery terminal in the
shipment;
(6) The model number and description of each video lottery terminal in the shipment; and
(7) The expected arrival date of the video lottery terminals
at their respective destination within this state.
(c) A licensed racetrack facility which purchases or leases a
video lottery terminal shall, upon receipt of the terminal, provide
the commission with the following information on forms prescribed
by the commission:
(1) The full name, address and license number of the licensed
racetrack facility receiving the video lottery terminal;
(2) The full name, address and permit number of the
manufacturer from whom the video lottery terminal was received;
(3) The serial number of each video lottery terminal received;
(4) The model number and description of each video lottery
terminal received;
(5) The expected date and time of video lottery terminal
arrival; and
(6) The expected date and time of video lottery terminal
installation, and if a video lottery terminal is not placed in
operation, the licensed racetrack facility must notify the
commission of the location where the terminal is stored.
(d) Any person transporting a video lottery terminal from one
location to another in this state, other than for repair or
servicing purposes, shall notify the commission in writing prior to
the transportation of the terminal and provide the following information on forms required by the commission:
(1) The full name, address and license number of the person or
entity transporting the video lottery terminal;
(2) The reason for transporting the video lottery terminal;
(3) The full name, address and license number of the person or
entity to whom the terminal is being sent and the destination of
the video lottery terminal if it is different from the address;
(4) The serial and model number of the video lottery terminal;
(5) The video lottery terminal license number, if affixed;
(6) The manufacturer of the video lottery terminal; and
(7) The expected date and time of video lottery terminal
installation or reinstallation.
(e) Any person shipping video lottery terminals to a
destination outside of this state shall, prior to the shipment,
provide the commission with the following information on forms
prescribed by the commission:
(1) The full name, address and license or permit number of the
person shipping the video lottery terminals;
(2) The method of shipment and the name of the carrier;
(3) The full name and address of the person to whom the video
lottery terminals are being sent and the destination of the video
lottery terminals if different from the address;
(4) The serial number of each video lottery terminal being
shipped;
(5) The model number and description of the video lottery
terminal being shipped;
(6) The video lottery terminal control number, if affixed;
(7) The manufacturer of the video lottery terminal being
shipped; and
(8) The expected date and time of the shipment.
(f) Each video lottery terminal placed in operation in this
state must have a commission registration decal permanently
affixed, with a video lottery terminal registration control number
placed thereon. A decal registration fee is hereby imposed. The
amount of the fee shall equal six percent of the total
consideration paid to the manufacturer for the use or the ownership
of the video lottery terminal. The fee shall be paid by the
manufacturer to the commission prior to the receipt of the
registration decal. The registration decal fee shall be collected
by the commission and deposited to the credit of the general
revenue fund of the state. No person other than authorized
commission personnel shall affix or remove a registration control
number. The affixing of the commission decal on a video lottery
terminal evidences that the decal registration fee has been paid
and that the terminal has been registered, inspected and approved
for operation in this state. No terminal may be transported out of
this state until authorized commission personnel have removed the
commission registration control number.
§29-22A-15. Hearing and appeal procedure; order refusing license
or permit or suspending or revoking same; petition for
hearing; petition requirements; cost of hearings; subpoenas
and subpoenas duces tecum; no stay of suspension or revocation
order; hearing date; place of hearing; continuances; absence
of petitioner; hearing; argument and briefs; evidence
admissible at hearing; record of proceedings; commission's
decision; appeal to circuit court.
(a) If the commission refuses to issue a license or permit, or
suspends or revokes a license or permit, it shall make and enter an
order to that effect including a statement of the reasons for that
action and shall, by certified mail, return receipt requested, mail
a copy of the order to the applicant, or the license or permit
holder, or serve the same in the manner provided for the service of
legal process.
(b) Any applicant or licensee or permit holder adversely
affected by such order has the right to a hearing thereon before
the commission or a person designated as hearing examiner, if a
petition in writing requesting a hearing is served upon the
commission within ten days following the receipt of the order by
such applicant, or license or permit holder.
(c) The petition for a hearing shall be in writing and shall
include an original and one copy. The petition must contain the
following:
(1) A clear and concise statement of each error which the
petitioner alleges to have been committed by the commission in
refusing to issue a license or permit, or suspending or revoking a
license or permit, with each assignment of error being shown in
separately numbered paragraphs.
(2) A clear and concise statement of fact upon which the
petitioner relies as sustaining each assignment of error.
(3) A prayer setting forth the relief sought.
(4) The signature of the petitioner.
(5) Verification by the petitioner.
(d) The person demanding a hearing shall give security for the
cost of the hearing in the amount of three hundred dollars in the
form of certified check, cashier's check or money order, which
shall accompany the petition demanding a hearing.
(e) In all hearings held under this article, oral and
documentary evidence may be required through the use of subpoenas
and subpoenas duces tecum. Subpoenas or subpoenas duces tecum may
be issued by either the commission or its duly appointed hearing
examiner and the following provisions shall govern and control:
(1) Every subpoena or subpoena duces tecum must be served at
least five days before the return date thereof, either by personal
service made by any person eighteen years of age or older, or by
registered or certified mail, but a return acknowledgment signed by
the person to whom the subpoena or subpoena duces tecum is directed is required to prove service by registered or certified mail.
(2) All subpoenas and subpoenas duces tecum shall be issued in
the name of the commission. Service of subpoenas and subpoenas
duces tecum issued at the insistence of the commission are the
responsibility of the commission, but any party requesting issuance
of a subpoena or subpoena duces tecum is responsible for service of
any such subpoena. Any person who serves a subpoena or subpoena
duces tecum is entitled to the same fee as sheriffs who serve
witness subpoenas for the circuit courts of this state and fees for
the attendance and travel of witnesses shall be the same as for
witnesses before the circuit courts of this state.
(3) All fees shall be paid by the commission if the subpoena
or subpoena duces tecum is issued, without the request of an
interested party, at the insistence of the commission.
(4) All fees related to any subpoenas or subpoena duces tecum
issued at the insistence of an interested party shall be paid by
the interested party.
(5) All requests by an interested party for a subpoena and
subpoena duces tecum shall be in writing and shall contain a
statement acknowledging that the requesting party agrees to pay
such fees.
(6) Any person receiving a subpoena or subpoena duces tecum
issued hereunder shall honor the same as though it were issued by
a circuit court of this state and shall appear as a witness or produce such books, records or papers as are requested in response
to a subpoena or subpoena duces tecum. In case of disobedience or
neglect of any subpoena or subpoena duces tecum served on any
person or the refusal of any witness to testify to any matter
regarding which he or she may be lawfully interrogated, the circuit
court of the county in which the hearing is being held, or the
judge thereof in vacation, shall, upon application by the
commission, compel obedience by contempt proceedings as in the case
of disobedience of the requirements of a subpoena or subpoena duces
tecum issued from the circuit court or a refusal to testify
therein.
(f) The service of a petition for hearing upon the commission
shall not operate to suspend the execution of any suspension or
revocation of a video lottery license or permit with respect to
which a hearing is being demanded.
(g) The commission shall set a date for any hearing demanded
and notify the person demanding a hearing not later than seven days
before the hearing date of the date and time of the hearing, which
hearing shall be held within thirty days after receipt of the
petition.
(h) Hearings may not be delayed by a motion for continuance
made less than ten days before the date set for the hearing.
(i) The commission may designate a hearing examiner to conduct
any hearing.
(j) The petitioner may appear individually, or by legal
counsel.
(k) The petitioner, or his duly authorized representative,
may, with the approval of the commission, waive the right to a
hearing and agree to submit the case for decision upon the petition
and record, with or without a written brief. Waivers and
agreements must be in writing or upon the record.
(l) The petitioner shall be given an opportunity for argument
within the time limits fixed by the commission following submission
of evidence. The commission, upon request of the petitioner, shall
accept briefs in addition to or in lieu of argument. Briefs must
be filed within ten days after the hearing date.
(m) The commission may admit any relevant evidence, except
that it shall observe the rules of privilege recognized by law. A
finding is to be supported by the kind of evidence commonly relied
upon by reasonably prudent men in the conduct of their affairs,
whether or not the evidence would be admissible before a jury.
The commission may exclude any evidence which is irrelevant, unduly
repetitious or lacking in substantial probative effect.
(n) There shall be a record made of all hearings held pursuant
to this article.
(o) After the conclusion of the hearing and within ten days of
receipt of the transcript thereof and receipt of any briefs, the
person designated by the commission as hearing examiner shall prepare a recommended decision, supported by findings of fact and
conclusions of law, affirming, modifying or vacating the earlier
order of the commission. Thereafter, the commission, within ten
days of receipt of the recommended decision, shall either accept or
reject the recommended decision, and if it accepts the decision, it
shall cause the director to sign and acknowledge the recommended
decision as its own, after having reviewed the transcript and all
exhibits attached and affixed thereto; and if it shall reject the
same, it shall within ten days of receipt of the recommended
decision prepare a decision setting forth its own findings of fact
and conclusions of law. In either event, the decision shall be
final unless vacated or modified upon judicial review thereof. A
copy of the decision shall be served upon each party to the hearing
and their attorney of record, if any, in person or by registered or
certified mail.
(p) A petition for appeal by an applicant, licensee or permit
holder may be filed with the circuit court of Kanawha County, West
Virginia, or with the circuit court of the county in which the
racetrack facility is located, if filed no later than thirty days
after the date upon which the petitioner receives notice of the
final decision of the commission.
§29-22A-16. Offenses and penalties.
(a) A licensee who places a video lottery game, or video
lottery terminal or table game into play without authority of the commission to do so is guilty of a misdemeanor, and, upon
conviction thereof, shall be confined in jail not more than one
year and fined not more than five thousand dollars, except that in
the case of a person other than a natural person, the amount of the
fine imposed may be not more than twenty-five thousand dollars.
(b) A person who operates, carries on or exposes for play a
video lottery game, or video lottery terminal or table game after
the person's license has expired and prior to the actual renewal
thereof is guilty of a misdemeanor, and, upon conviction thereof,
shall be confined in jail not more than one year and fined not more
than five thousand dollars, except that in the case of a person
other than a natural person, the amount of the fine imposed may be
not more than twenty-five thousand dollars.
(c) A licensee who possesses any video lottery terminal or
other device, equipment or material which the person knows has been
manufactured, distributed, sold, tampered with or serviced in
violation of the provisions of this article is guilty of a
misdemeanor, and, upon conviction thereof, shall be confined in
jail not more than one year and fined not more than five thousand
dollars, except that in the case of a person other than a natural
person, the amount of the fine imposed may be not more than
twenty-five thousand dollars.
(d) A licensee who knowingly conducts, carries on, operates or
exposes for play, or allows to be conducted, carried on, operated or exposed for play any video lottery game, video lottery terminal,
table game or other device, equipment or material which has in any
manner been tampered with, or placed in a condition, or operated in
a manner, the result of which tends to deceive the public or tends
to alter the normal random selection of characteristics or the
normal chance of the video lottery game which could determine or
alter the result of the game is guilty of a misdemeanor, and, upon
conviction thereof, shall be confined in jail not more than one
year and fined not more than five thousand dollars, except that in
the case of a person other than a natural person, the amount of the
fine imposed may be not more than fifty thousand dollars.
(e) A licensee who employs or continues to employ an
individual, not issued a permit under the provisions of this
article, in a position with duties which would require a permit
under the provisions of this article is guilty of a misdemeanor
and, upon conviction thereof, shall be confined in jail not more
than one year and fined not more than five thousand dollars, except
that in the case of a person other than a natural person, the
amount of the fine imposed may be not more than twenty-five
thousand dollars.
(f) A person who, without obtaining the requisite permit as
provided for in this article, works or is employed in a position
with duties which would require a permit under the provisions of
this article is guilty of a misdemeanor, and, upon conviction thereof, shall be confined in jail not more than one year and fined
not more than ten thousand dollars.
(g) A person who, while a video lottery game or table game is
being played at a licensed racetrack facility, uses, or assists
another in the use of, an electronic, electrical, or mechanical
device which is designed, constructed, or programmed specifically
for use in obtaining an advantage at playing any video lottery game
or table game is guilty of a misdemeanor, and, upon conviction
thereof, shall be confined in jail not more than six months or
fined not more than one thousand dollars, or both.
(h) A person who knowingly violates a provision of this
article, or the rules of play or game rules of a video lottery game
or table game and who profits thereby in an amount equal to one
thousand dollars or more, is guilty of a felony, and, upon
conviction thereof, shall be imprisoned in the penitentiary not
less than one nor more than ten years, or, in the discretion of the
court, be confined in jail not more than one year and shall be
fined not more than two thousand five hundred dollars. If the
person profits thereby in an amount less than one thousand dollars,
such person is guilty of a misdemeanor, and, upon conviction
thereof, shall be confined in jail for a term not to exceed one
year or fined not to exceed two thousand five hundred dollars, or
both.
(i) A person who fails to perform any of the duties or obligations created and imposed upon them by the provisions of this
article shall be subject to a civil penalty as may be determined by
the commission, not to exceed ten thousand dollars.
NOTE: The purpose of this bill is to authorize video lottery
and table games under the control of the West Virginia Lottery
Commission to be played at one historic resort hotel in this state,
subject to a local option referendum; and to modify the Video
Lottery Act to allow game displays to include video images, actual
symbols or both; to allow coins, annuitized payments over time and
non-cash prizes to be awarded as video lottery prizes; and to limit
wagers to five dollars per video lottery game.
Strike-throughs indicate language that would be stricken from
the present law and underscoring indicates new language that would
be added. Section four-a is new; therefore strike-throughs and
underscoring have been omitted.