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Senate Bill No. 478
(By Senators Miller, Laird, Barnes and Williams)
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[Introduced March 7, 2013; referred to the Committee on the
Judiciary; and then to the Committee on Finance .]
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A BILL to amend and reenact §29-22A-3 of the Code of West Virginia,
1931, as amended; to amend and reenact §29-22B-332 of said
code; and to amend and reenact §29-25-2 and §29-25-24 of said
code, all relating to
deleting those video lottery games which
allow players an option to select replacement symbols or
numbers or additional symbols or numbers after the game is
initiated and in the course of play
from the definition of
"video lottery game"; and permitting an employee of an
historic resort hotel to wager at the gaming facility of that
historic hotel.
Be it enacted by the Legislature of West Virginia:
That §29-22A-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §29-22B-332 of said code be amended
and reenacted; and that §29-25-2 and §29-25-24 of said code be
amended and reenacted, all to read as follows:
ARTICLE 22A. RACETRACK VIDEO LOTTERY.
§29-22A-3. Definitions.
As used in this article:
(a) "Applicant" means any person applying for any video
lottery license or permit.
(b) "Associated equipment" means any hardware located on a
licensed racetrack's premises which is connected to the video
lottery system for the purpose of performing communication,
validation or other functions, but not including the video lottery
terminals or the communication facilities of a regulated public
utility.
(c) "Background investigation" means a security, criminal and
credit investigation of a person, as defined in this section, who
has applied for a video lottery license or permit, or who has been
granted a video lottery license or permit.
(d) "Central computer," "central control computer" or "central
site system" means any central site computer provided to and
controlled by the commission to which video lottery terminals
communicate for purposes of information retrieval and terminal
activation and to disable programs.
(e) "Commission" or "state Lottery Commission" means the West
Virginia Lottery Commission created by article twenty-two of this
chapter.
(f) "Control" means the authority to direct the management and policies of an applicant or a license or permit holder.
(g) "Costs" means the expenses incurred by the commission in
the testing and examination of video lottery terminals and the
performance of background investigations and other related
activities which are charged to and collected from applicants or
license or permit holders.
(h) "Director" means the individual appointed by the Governor
to provide management and administration necessary to direct the
state lottery office.
(i) "Disable" or "terminal disable" means the process of
executing a shutdown command from the central control computer
which causes video lottery terminals to cease functioning.
(j) "Display" means the visual presentation of video lottery
game features on a video lottery terminal in the form of video
images, actual symbols or both.
(k) "EPROM" and "erasable programmable read-only memory chips"
means the electronic storage medium on which the operation software
for all games playable on a video lottery terminal resides and
which can also be in the form of CD-ROM, flash RAM or other new
technology medium that the commission may from time to time approve
for use in video lottery terminals. All electronic storage media
are considered to be the property of the State of West Virginia.
(l) "Floor attendant" means a person, employed by a licensed
racetrack, who holds a permit issued by the commission and who corrects paper jams and bill jams in video lottery terminals and
also provides courtesy services for video lottery players.
(m) "Gross terminal income" means the total amount of cash,
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.
(n) "License" or "video lottery license" means authorization
granted by the commission to a racetrack which is licensed by the
West Virginia Racing Commission to conduct thoroughbred or
greyhound racing meetings pursuant to article twenty-three, chapter
nineteen of this code permitting the racetrack to operate video
lottery terminals authorized by the commission.
(o) "Lottery" means the public gaming systems or games
established and operated by the state Lottery Commission.
(p) "Manufacturer" means any person holding a permit granted
by the commission to engage in the business of designing, building,
constructing, assembling or manufacturing video lottery terminals,
the electronic computer components of the video lottery terminals,
the random number generator of the video lottery terminals, or the
cabinet in which it is housed, and whose product is intended for
sale, lease or other assignment to a licensed racetrack in West
Virginia, and who contracts directly with the licensee for the
sale, lease or other assignment to a licensed racetrack in West Virginia.
(q) "Net terminal income" means gross terminal income minus an
amount deducted by the commission to reimburse the commission for
its actual costs of administering racetrack video lottery at the
licensed racetrack. No deduction for any or all costs and expenses
of a licensee related to the operation of video lottery games shall
be deducted from gross terminal income.
(r) "Noncash 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 racetrack.
(s) "Own" means any beneficial or proprietary interest in any
property or business of an applicant or licensed racetrack.
(t) "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 January 1, 1994, 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.
(u) "Permit" means authorization granted by the commission to
a person to function as either a video lottery manufacturer,
service technician or validation manager.
(v) "Person" means any natural person, corporation,
association, partnership, limited partnership, or other entity,
regardless of its form, structure or nature.
(w) "Player" means a person who plays a video lottery game on
a video lottery terminal at a racetrack licensed by the commission
to conduct video lottery games.
(x) "Service technician" means a person, employed by a
licensed racetrack, who holds a permit issued by the commission and
who performs service, maintenance and repair on licensed video
lottery terminals in this state.
(y) "Video lottery game" means a commission approved, owned
and controlled electronically simulated game of chance which is
displayed on 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, 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) (5) Allows a player at any time to simultaneously clear
all game play credits and print a redemption ticket entitling the
player to receive the cash value of the free plays cleared from the
video lottery terminal; and
(7) (6) Does not use the following game themes commonly
associated with casino gambling: Roulette, dice, or baccarat card
games: Provided, That games having a display with 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.
(z) "Validation manager" means a person who holds a permit
issued by the commission and who performs video lottery ticket
redemption services.
(aa) "Video lottery" means a lottery which allows a game to be
played utilizing an electronic computer and an interactive computer
terminal device, equipped with a video screen and keys, a keyboard
or other equipment allowing input by an individual player, into
which the player inserts coins, 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 noncash 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
of the game, such as the game "Travel," and which does not utilize
an interactive electronic terminal device allowing input by an
individual player.
(bb) "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.
(cc) "Wager" means a sum of money or thing of value risked on
an uncertain occurrence.
ARTICLE 22B. LIMITED VIDEO LOTTERY.
§29-22B-332. Video lottery game defined.
"Video lottery game" means an electronically simulated game of
chance that is approved, owned and controlled under this article by
the commission, which is displayed on the screen or video monitor
of a video lottery terminal and that:
(1) Is connected to the commission's central control computer by an on-line or dial-up communication system;
(2) Is initiated by a player's insertion of coins or currency
into a video lottery terminal, which causes game play credits to be
displayed on the video lottery terminal and, with respect to which,
each game play credit entitles a player to choose one or more
symbols or numbers or to cause the video lottery terminal to
randomly select symbols or numbers;
(3) Allows the player to win additional game play credits
based upon game rules which establish the random selection of
winning combinations of symbols or numbers or both and the number
of free-play credits to be awarded for each winning combination of
symbols or numbers or both;
(4) Is based upon computer-generated random selection of
winning combinations based totally or predominantly on chance;
(5) In the case of a video lottery game which allows the
player an option to select replacement symbols or numbers or
additional symbols or numbers after the game is initiated and in
the course of play, either: (A) Signals the player, prior to any
optional selection by the player of randomly generated replacement
symbols or numbers, as to which symbols or numbers should be
retained by the player to present the best chance, based upon
probabilities, that the player may select a winning combination;
(B) signals the player, prior to any optional selection by the
player of randomly generated additional symbols or numbers, as to whether the additional selection presents the best chance, based
upon probabilities, that the player may select a winning
combination; or (C) randomly generates additional or replacement
symbols and numbers for the player after automatically selecting
the symbols and numbers which should be retained to present the
best chance, based upon probabilities, for a winning combination,
so that in any event, the player is not permitted to benefit from
any personal skill, based upon a knowledge of probabilities, before
deciding which optional numbers or symbols to choose in the course
of video lottery game play;
(6) (5) Allows a player at any time to simultaneously clear
all game play credits and print a redemption ticket entitling the
player to receive the cash value of the free plays cleared from the
video lottery terminal; and
(7) (6) Does not use game themes of roulette, dice or baccarat
card games commonly associated with casino gambling: Provided,
That games having a video display depicting symbols that appear to
roll on drums to simulate a classic casino slot machine, game
themes of other card games and keno may be used.
ARTICLE 25. AUTHORIZED GAMING FACILITY.
§29-25-2. Definitions.
As used in this article, unless the context otherwise
requires, the following words and phrases have meanings indicated:
(a) "Applicant" means any person or entity applying for a license.
(b) "Adjusted gross receipts" means the gross receipts of a
gaming facility from West Virginia Lottery table games less
winnings paid to wagerers in such games.
(c) "Annual average gross receipts of the pari-mutuel
racetracks with table games licenses" means the amount obtained by
adding the adjusted gross receipts of all West Virginia pari-mutuel
racetracks with table games licenses and then dividing that
calculation by the number of West Virginia pari-mutuel racetracks
with table games licenses.
(d) "Background investigation" means a security, criminal and
credit investigation of an applicant who has applied for the
issuance or renewal or a license pursuant to this article or a
licensee who holds a current license.
(e) "Controlling interest" means:
(1) For a partnership, an interest as a general or limited
partner holding more than five percent interest in the entity;
(2) For a corporation, an interest of more than five percent
of the stock in the corporation; and
(3) For any other entity, an ownership interest of more than
five percent in the entity.
(f) "Controlling person" means, with respect to another
person, any person directly or indirectly owning or holding a
controlling interest in that other person.
(g) "Commission" means the state Lottery Commission created in
section four, article twenty-two of this chapter.
(h) "Designated gaming area" means one or more specific floor
areas of a licensed gaming facility within which the commission has
authorized operation of video lottery terminals or West Virginia
Lottery table games, or the operation of both video lottery
terminals and West Virginia Lottery table games.
(i) "Director" means the Director of the state Lottery
Commission.
(j) "Erasable programmable read-only memory chips" or "EPROM"
means the electronic storage medium on which the operation software
for all games playable on a video lottery terminal resides and can
also be in the form of CD ROM, flash ROM or other new technology
medium that the commission may from time to time approve for use in
video lottery terminals. All electronic storage media are
considered to be property of the State of West Virginia.
(k) "Fringe benefits" means sickness and accident benefits and
benefits relating to medical and pension coverage.
(l) "Gaming devices and supplies" mean gaming tables for all
West Virginia Lottery table games, roulette wheels, wheels of
fortune, video lottery terminals, cards, dice, chips, tokens,
markers or any other mechanical, electronic or other device,
mechanism or equipment or related supplies utilized in the
operation of a West Virginia Lottery table game.
(m) "Gaming facility" means a designated area on the premises
of an existing historic resort hotel in which West Virginia Lottery
table games are conducted by a gaming licensee.
(n) "Gaming licensee" means the licensed operator of a gaming
facility.
(o) "Gross receipts" means the total amount of money exchanged
for the purchase of chips, tokens or electronic cards by patrons of
a gaming facility reduced by gross terminal income to the extent
gross terminal income is included in the amount of money exchanged.
(p) "Gross terminal income", as used in this article and as
used in article twenty-two-a of this chapter, means the total
amount of cash, vouchers or tokens inserted into the video lottery
terminals operated by a licensee, minus promotional credits played,
and 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.
(q) "Historic resort hotel" means a resort hotel registered
with 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 gaming facility.
(r) "Historic Resort Hotel Fund" means the special fund in the
State Treasury created in section twenty-two of this article.
(s) "Human Resource Benefit Fund" means the special fund in
the State Treasury created in section twenty-two-a of this article.
(t) "Human Resource Benefit Advisory Board" or "board" means
the advisory board created in section twenty-two-a of this article.
(u) "License" means a license issued by the commission,
including:
(1) A license to operate a gaming facility;
(2) A license to supply gaming devices and supplies to a
gaming facility;
(3) A license to be employed in connection with the operation
of a gaming facility; or
(4) A license to provide management services under a contract
to a gaming facility under this article.
(v) "Licensed gaming facility employee" means any individual
licensed to be employed by a gaming licensee in connection with the
operation of a gaming facility.
(w) "Licensed gaming facility supplier" means a person who is
licensed by the commission to engage in the business of supplying
gaming devices and gaming supplies to a gaming facility.
(x) "Licensee" means a gaming licensee, a licensed gaming
facility supplier or a licensed gaming facility employee.
(y) "Manufacturer" means any person holding a license granted
by the commission to engage in the business of designing, building,
constructing, assembling or manufacturing video lottery terminals, the electronic computer components of the video lottery terminals,
the random number generator of the video lottery terminals, or the
cabinet in which it is housed, and whose product is intended for
sale, lease or other assignment to a licensed gaming facility in
West Virginia and who contracts directly with the licensee for the
sale, lease or other assignment to a licensed gaming facility in
West Virginia.
(z) "Net terminal income" means gross terminal income minus an
amount deducted by the commission to reimburse the commission for
its actual cost of administering video lottery at the licensed
gaming 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.
(aa) "Person" means any natural person, corporation,
association, partnership, limited partnership, limited liability
company or other entity, regardless of its form, structure or
nature.
(bb)"Premises of an existing historic resort hotel" means the
historic resort hotel, attachments of the historic resort hotel,
and the traditional, immediate grounds of the historic resort
hotel.
(cc) "Promotional credits" means credits given by the licensed
gaming facility or licensed racetrack to players allowing limited
free play of video lottery terminals in total amounts and under conditions approved in advance by the commission.
(dd) "Video lottery game", as used in this article and as used
in article twenty-two-a of this chapter, means a commission-
approved, -owned and -controlled electronically simulated game of
chance which is displayed on a video lottery terminal and which:
(1) Is connected to the commission's central control computer
by an online or dial-up communication system;
(2) Is initiated by a player's insertion of cash, 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 credits 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 a 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) (5) Allows a player at any time to simultaneously clear
all game play credits and print a redemption ticket entitling the
player to receive the cash value of the free plays cleared from the
video lottery terminal; and
(7) (6) Does not use the following game themes commonly
associated with casino gambling: Roulette, dice or baccarat card games: Provided, That games having a display with 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.
(ee) "Wager" means a sum of money or thing of value risked on
an uncertain occurrence.
(ff) "West Virginia Lottery table game" means any game played
with cards, dice or any mechanical, electromechanical or electronic
device or machine for money, credit or any representative of value,
including, but not limited to, baccarat, blackjack, poker, craps,
roulette, wheel of fortune or any variation of these games similar
in design or operation and expressly authorized by rule of the
commission, including multiplayer electronic table games, machines
and devices, but excluding video lottery, punchboards, faro,
numbers tickets, push cards, jar tickets, pull tabs or similar
games.
§29-25-24. Individual gaming restrictions.
(a) An individual may enter a designated gaming area or remain
in a designated gaming area only if the individual:
(1) Is either;
(A) A registered overnight guest at the historic resort hotel
on whose premises the gaming facility is located;
(B) A person who is a not a registered overnight guest, but is
a registered participant at a convention or event being held at the
historic resort hotel: Provided, That this paragraph does not apply on any calendar day when less than four hundred guest rooms
are occupied at the historic resort hotel; or
(C) A member of a homeowner or facility association that
entitles members to substantial privileges at the historic resort
hotel on whose premises the gaming facility is located or an
overnight guest of such a member: Provided, That the association
was in existence as of April 1, 2009;
(2) Is at least twenty-one years of age;
(3) Is not visibly intoxicated;
(4) Has not been determined by the gaming facility operator or
the commission to be unruly, disruptive or otherwise interfering
with operation of the gaming facility; or to be likely to commit,
or to attempt to commit, a violation of this article; and
(5) Has not been barred by the commission from entering a
gaming facility.
(b) Notwithstanding any provisions of this code to the
contrary, no employee of the commission or employee of the historic
resort hotel or any member of his or her immediate household may
wager at the gaming facility.
NOTE: The purpose of this bill is to
delete those video
lottery games which allow players an option to select replacement
symbols or numbers or additional symbols or numbers after the game
is initiated and in the course of play
from the definition of
"video lottery game." The bill, thus, removes the autohold
restrictions on video lottery games. The bill also permits employees of an historic resort hotel to wager at the gaming
facility of that historic hotel.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.