Monday, April 04, 2005

Video Poker

The law legalized 9,000 new video poker machines like those that had long gone unregulated and untaxed. Though for-profit operators were allowed to operate five machines at a single site, legislators decided fraternals could have 10.

But many fraternals now complain that intended advantage is being undercut by high tax rates that range from 38 percent to 52 percent, declining interest in traditional games and the proliferation of neighborhood clubs.

The Lottery Commission says fraternal organizations have 1,351 machines in 185 locations across West Virginia. In all, there are 7,625 machines in 1,614 locations.

Bingo and raffles used to be lucrative revenue sources for fraternal organizations. However, as the number of video poker machines increased, profits from the traditional games dropped off.

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