Legislation based on the simple proposition that the state should be able to place more limited video lottery machines in the hottest locations (SB 116) will be on amendment stage today in the state Senate.
"It looks like easy revenue," said Senate Minority Leader Jeff Kessler, D-Marshall, lead sponsor of the bill. "It is certainly an opportunity for more revenue."
Under current Lottery laws, bars and clubs can have a maximum of five limited video lottery machines, while fraternal organizations can have a maximum of 10.
The bill would increase those maximums to seven and 12, respectively.
However, that simple change could increase LVL revenue by $20 million to $25 million a year, according to an analysis by Michael Haid, executive director of the West Virginia Amusement and Limited Video Association.
Haid's study confirmed what machine distributors have long experienced, that machines at some of the more than 1,300 authorized locations statewide stay constantly busy, while machines at other locations sit idle for long periods of time.
Haid's analysis of limited video lottery revenue found "hot" locations where each machine pulls in $8,000 or $9,000 or more a month for the state, while machines in other locations struggle to clear $500 a month.
"Most of our operators rely on probably 15 percent of their locations for 80 percent of their revenue," Haid said in a recent interview.
"It's an opportunity to enhance some of the Lottery revenue," Kessler said Tuesday. "This is one of the few gaming options that we have under the Lottery that seems to be holding its own."
While revenue from video lottery machines at the state's racetrack casinos has plunged in the face of competition from new casinos in Ohio, Pennsylvania and Maryland, LVL revenue has only slightly declined in recent years, providing about $187 million of state revenue in the 2014-15 budget year.
The Senate passed a similar bill on a 29-4 vote late in the 2015 regular session, but it was never taken up in the House of Delegates.
"I have no idea what they're going to do with it," Kessler said of the current bill's chances in the House, but said he hoped the House will be willing to consider any bills that increase state revenue, given the current funding deficits.
Kessler, a gubernatorial candidate, also said he didn't think his sponsorship of a gaming bill would be an issue in the campaign.
"I would think we're way past the point where gaming is an issue. It's been in the state for more than 20 years," he said.
Reach Phil Kabler at philk@wvgazettemail.com, 304-348-1220, or follow @PhilKabler on Twitter.