Racino is a word that may have yet to reach some dictionaries but it sums up exactly gambling venues at racetracks. More and more racinos are being opened around the USA as slot machines make their debut at pari-mutuels in states such as Pennsylvania and Florida. So far only Iowa has taken gaming that one step further and allowed table games at its racetrack gaming locations. Other states are now considering further legislation that would allow their racinos to compete with tribal casinos and the commercial casinos in neighbouring states.

Hardly is the ink dry on the first racetrack licences for slot machines in Pennsylvania than some legislators are pushing for upping the ante in order to compete better with other states. As the chief of staff for the proposed House speaker Bill DeWeese reportedly said, “There is no practical difference between putting $20 in a slot machine and $20 on a blackjack table.” DeWeese is drafting a bill that would permit table games at Pennsylvania’s new slots parlours.

In Iowa, where table games at racetracks were legalised in 2004, legislators passed the bill without a referendum. In 2002 the electorate voted by 74% in support of gaming in the state and are expected to be consulted again by referendum in 2010. West Virginia, by contrast, has a bill passed in the Senate to allow voters in four counties with racetracks to decide on legalising the games that has stalled in the House since 2005. The elections earlier this month are expected to alter the situation and the new delegates to put the issue back on the agenda.

Slot machines will still provide most revenue at racinos. In general table games account for only around 15% of casino revenue. Whilst Pennsylvania and West Virginia agonise over expanding their gaming laws, other states are increasing gaming revenue by alternative means. Delaware and Arkansas have introduced electronic versions of favourite table games at their racinos without having to alter legislation.

West Virginia is expecting to lose around US$62 million in the next budget year as Pennsylvania slot machines, which could number 61,000, tempt gamblers to cross the border. Between one third and one half of West Virginia’s racino customers come from Pennsylvania, so the state could see a sharp decline in gambling revenue.

Meanwhile, in Pennsylvania, some are urging that legislation should not undergo change to allow table games until the state’s slots venues are all up and running and a future assessment made. Governor Ed Rendell has already said a new bill would be far too premature and that weighing the social and economic impact of the new licences would take two to three years. (E-11.30.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage