In West Virginia, between 2014 and 2018, in-person wagers declined by 13 percent at greyhound racetracks Wheeling Island Casino-Hotel-Racetrack in Ohio County and Mardi Gras Casino in Kanawha County, according to West Virginia Racing Commission figures. As a result, state Senate President Mitch Carmichael said he will sponsor legislation next year to eliminate the $15 million transfer to greyhound racing purses and bring that money back to the state.
Similar legislation, passed in 2017, would have directed the $15 million transfer to the Excess Lottery Revenue Fund for distribution by the legislature. It also would have eliminated the requirement for the two tracks to offer greyhound racing; some funds would have gone to greyhound adoption programs.
However, Governor Jim Justice vetoed the bill, citing concerns about potential job losses. The West Virginia Kennel Owners Association estimated 1,700 direct and indirect jobs would be affected by eliminating the $15 million transfer—even though a 2015 report by Spectrum Gaming Group estimated 618 jobs would be lost if the greyhound tracks closed.
In 2018, Wheeling Island took in $10.1 million from in-person wagers, a 9 percent decline from 2014 when in-person bets brought in $11.2 million. At Mardi Gras, in-person wagers fell 24 percent from $4.1 million in 2014 to $3.12 million in 2018.
GREY2K Executive Director Carey Theil said, “This is a Depression-era industry that happens to still exist today and is not economically viable. It is dying all over the country. Racetracks are losing money on dog racing all over the country.” GREY2K recently launched the website greyhoundracingfacts.org, promoting ending greyhound racing in West Virginia.
However, over the same five-year period, total handle at the two greyhound racinos rose by 19 percent, from $105.8 million in 2014 to $126.3 million in 2018. Most of the increase has come from the export handle, which made up 78 percent of the total handle for the two tracks in 2018. The export handle increased 43 percent at Wheeling Island, from $44.3 million in 2014 to $63.4 million in 2018. At Mardi Gras, export handle rose 15 percent, from $31 million in 2014 to $35.8 million in 2018.
Although overall handle increased, greyhound racing has not led to more revenue for the state. Its share of the greyhound handle fell 10 percent between 2014 and 2018, from $1 million to $927,707. Those funds go to the West Virginia Racing Commission, which oversees both horse and greyhound racing.
In the meantime, three states have eliminated greyhound racing. It ended in Colorado in 2010 and in Arizona in 2016. Most recently voters approved an amendment to end greyhound racing in 2020. To date, 41 states have banned greyhound racing; of the six remaining racetracks, two are in West Virginia.
By law, West Virginia casinos must offer live racing so they can have video lottery or table games. The purses for winning races come from a percentage of the wagers placed, and a percentage of video lottery and table games revenue. The 2015 Spectrum report indicated the percentage of revenue collected from video lottery and table games accounted for 95 percent of purse awards in 2015. Video lottery makes up the vast majority of the supplements.
The report stated, “Purses were originally funded exclusively through live handle, but casino supplements have become the dominant source of funding. With the steep decline in greyhound handle, the state is getting close to operating at a deficit; i.e., greyhound racing is not generating enough revenue to cover the racing commission’s cost of regulating it.”
The video lottery payments represent about 10 percent of gross gaming revenue. The racinos pay those funds to the West Virginia Lottery Commission, which then transfers that revenue—currently $15 million–to the purse accounts at both casinos and the racing commission. The Spectrum report noted, “We question whether it is good public policy for one industry to subsidize another in the manner that the casino industry is subsidizing the greyhound industry. With increased casino competition from other states, gross gaming revenue in West Virginia has been meaningfully reduced. As such, it is proper to ask whether the casinos can afford to continue to do so.”
GREY2K’s Theil said, “Greyhound racing in West Virginia cannot exist without this $15 million subsidy. Those funds should be used for other important state programs, like education and repairing roads.”
State Rep. Erikka Storch said, “I can’t even imagine owning a kennel or being a breeder and having the games that are played by the legislature every year trying to get monies that aren’t even theirs.” She said ending greyhound racing would eliminate up to 1,100 jobs with devastating impact on the Wheeling area. She also said the $15 million transfer is not a subsidy. “The money is generated inside the casino and ultimately helps the entire casino. If you want to call it a subsidy, it’s a gambler subsidy. Whether they’re putting the money in the machines or putting the money down on the table, they know that a portion of that is going to the fund that was created.”
