Senate Finance Chairman Roman Prezioso, D-Marion, asked if Wheeling Island -- the hardest hit of the state's four casinos -- can survive.
"We feel there are things that might be done," Musgrave responded, saying that both Wheeling Island and Mountaineer will have to scale back operations.
"We're hoping people will try out the new locations, the new facilities, with all the glitz and glitter, and maybe they'll try them out, and eventually come back," he said.
Also Monday, Musgrave told the Finance Committee:
• The Lottery Commission has no plans to seek legislation to legalize online Lottery gaming.
"We don't have any plans right now to move in that direction," Musgrave said, commenting on legislation passed in New Jersey to allow casinos in that state to operate websites offering video poker and blackjack.
Musgrave said the Lottery is tracking industry trends, but said the commission would probably be more interested in online versions of scratch off games, and to allow purchases of Powerball, MegaMillions and daily lottery drawings via computer or cellphone apps.
• Mardi Gras casino in Nitro has been able to buffer the impact from Ohio competition somewhat better than the Northern Panhandle casinos, thanks to its location off of Interstate 64.
Noting that about 27 percent of the casino's players are from North Carolina, Virginia, and Kentucky, Musgrave said many players from those states stop off at Mardi Gras for lunch or dinner and gaming while traveling.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.