Tracks Seeking ‘Free Play’ Credits
By JOSELYN KING Political WriterWHEELING - Local racetrack officials convinced voters last year that table gambling was needed to counter competition from Pennsylvania's new slots casinos, most notably that from the nearby Meadows Racetrack and Casino complex.
Now those same officials have approached the West Virginia Lottery Commission about offering "free play" credits in an effort to retain their "preferred players."
It seems many slot machine players are being enticed to Pennsylvania casinos with the promise of $20 to $50 in credits applied to their player's cards. West Virginia's racetracks want the same advantage to bring the players back to the Mountain State.
The state's racetracks said they will lose many of their best players if they are not allowed to offer the free play credits option. James Simms, Wheeling Island Hotel-Casino-Racetrack general manager and chief executive officer, said this could cause his track to scale back its plans to build a new hotel.
Simms said if the tracks are not successful in convincing the commission to allow them to try offering free play credits for a three-month trial period, the track officials will make a similar pitch when the West Virginia Legislature convenes next February for its regular session.
"We're not talking about offering coupons, but about downloadable promotional credits," Simms said.
He said Wheeling Island currently offers redeemable coupons, and a $50 coupon comes with a subsequent $50 cost to the track.
In Pennsylvania, however, casinos offer "free play" credits that have no cash value, and this essentially gives these casinos an unlimited marketing budget, Simms contends.
The idea is after customers spend their $50 credit, they then will reach into their pockets for their own money to gamble.
He estimates The Meadows is offering about $750,000 to $850,000 in credits each week to draw customers from West Virginia and the Wheeling Island Hotel-Racetrack-Casino. In comparison, Simms said the Wheeling Island track's annual marketing budget is about $6 million.
"It costs them nothing," Simms said of free play at The Meadows. "They have the ability to send free plays to everyone in their database. It's the most powerful marketing tool out there. We have a limited budget, and they have an unlimited arsenal."
He termed the move toward free play a "reactionary measure" by West Virginia's track officials.
"I don't think any of us really anticipated how they have been spending money on free play," Simms said. "I have a hard time understanding what they're trying to do. At some point you reach a saturation point, and people won't want to take out their own dollar."
He noted West Virginia tracks are "very appreciative" that they now have table gambling products in their casinos, but that slot machines continue to represent 65 percent of the income at Wheeling Island's track. The same money also is taxed by the state, and means a great deal in revenue to West Virginia's general fund.
Simms said $50 in free play credits at West Virginia casinos would mean a loss in state tax money of about $5.70. However, West Virginia could eventually lose out on a lot more tax money if the tracks continue to lose their slot machine customers, he said.
At present, 26 of the 38 states that offer gambling products are permitted to offer free play credits, Simms said.
"We are confident that through interpretive rule, we would be able to put free play in under promotions," Simms said. "Typically, free play is a marketing promotion. If we find we are unable to do that, we will want to revisit the issue during the next legislative session."
John Melton, West Virginia Lottery Commission general counsel, said there are some technical issues being worked out with the free play matter concerning the commission's central information system before the track's request can be dealt with. He and John Cavacini, West Virginia Racing Commission president, both spoke of West Virginia potentially offering "coupons" to entice frequent players to the tracks' casinos. Cavacini said Simms was spearheading the effort, and he referred all comment to him.
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Joanie1982
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08-04-08 11:36 PM
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The state's racetracks have no more a right to ask for a break in running their businesses than would Krogers or Reisbecks have the right to ask the state to pay for their coupons. These people are pigs! They will NEVER leave, there's too much profit involved. Let them sweat it out, if they're honest buisinessmen, like any other business is expected to do. Gambling is after all a private enterprise.
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dandys
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08-04-08 11:50 AM
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I really think that you should look at the big picture on gaming yes the machines are tight i admit but the reason for the match play is for competition with other casinos no incentives means no play and that means no 48% of revunue for the state and your not goin to sit here and say we dont need the money are you? good day
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frisbeewv
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08-03-08 4:49 PM
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SKWheeling, I like your suggestions. Can we move the legalized prostitution up to next year though? Didn't they say they would have to scale back the hotel plans if they didn't get table gaming? Now..."oh, uh, well, better git-us that there free play too or, uh, gonna have to cut back on the hotel."
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CasualObserver
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08-03-08 4:16 PM
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That is why the casinos make money - because they are ight". I can not believe that any of you blieve that there is skill involved with a slot machine!! Ray charles could see that the casinos were going to ask formore and more and the vos will give it to them because they are addicted! Its sad!!
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BurningUp07
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08-03-08 2:17 PM
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Tightest machines in the country is right, If they don't want to lose players to Pennsylvania maybe they should get some machines you actually win something on. Probably the last ten times I went there I walked out not even 5 dollars ahead, and that is not because I don't know when to quit, the machines just never give ya anything.
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billybob
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08-03-08 1:29 PM
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Next week track will want the state to pay the employees wages. Then after that the water bill the heating bill. Don't forgeet state pays for some of the ad cost. No other business gets a break like the crybabie tracks. Must mean state officials are paid for! Maybe city officials will kick in some money on top of anything already paid out. After all they will now tax the legal residents what ever they want with home rule. Soon will tell you that you can't live in your own house or use your own toilet.
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richardwhee
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08-03-08 12:53 PM
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The foot was in the door with the poker machines, now casinos, Next they will want the whole house. We ask for it, we got it.
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PCGS70
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08-03-08 12:28 PM
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They don't need a tax break to offer free play. They can offer free play anytime they want.
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NancySI
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08-03-08 10:50 AM
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Wow, a $20 slot free play that lasts 1 minute on the tightest slot machines in the country. That will get us back to Wheeling. NOT! Gambling should be about players taking a chance for entertainment not about controlling when and if machines pay out.
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billybob
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08-03-08 9:28 AM
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When will the crying from the track stop? When the suckers run out of money then they can sell their blood! Next they will want to get a law passed so children can gamble their lunch money there. With all the oxygen bottles there maybe they could offer life support and smoke from a main line to the players. How about direct deposit to the track of SS and other retirement accounts.
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SKWheeling
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08-03-08 8:40 AM
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Exactly, wvufan. All the head honchos at Wheeling Island ever do is whine and complain. Mountaineer is not as bad, and it's likely because Arneault is making money in both WV and PA. Here's what I see: In 2008, it's free play. In 2009, it's riverboat gambling; 2010, the purchase of the entire Island as a casino complex; 2011, legalized prostitution for those who have spent their hard-earned money at the track.
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wvufan
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08-03-08 8:13 AM
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Every year we are going to have to put up with the casinos wanting more and more...
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DiesIrae
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08-03-08 12:13 AM
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Perhaps bar owners should be permitted to offer $50.00 in free beer to entice smokers back inside their non-smoking facilities. I'm sure there has been a move to drink in Pennsylvania where one can enjoy a cigarette while doing so.
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