Slot machines at the state's four racetracks could get more generous, if the state Lottery Commission next month approves a proposal discussed Thursday to remove the current 95 percent maximum payout for racetrack video lottery machines.

Currently, state regulations require that racetrack machines be programmed to pay out in winnings no more than 95 percent of total dollars wagered over the lifetime of each machine.

IGT Corp., the leading manufacturer of video lottery machines, wants the Lottery to increase that limit to 99.9 percent, which is the standard in most gaming jurisdictions, including Nevada, New Jersey, and - most recently - Pennsylvania.

"IGT, to make the tracks here competitive with Pennsylvania and other jurisdictions...would like to issue games with payments of up to 99.9 percent," Lottery director John Musgrave told the commission.

West Virginia's lower maximum payout requires manufacturers to design software and produce computer chips specifically for machines at the state tracks.

IGT representatives contend that adds a 12- to 24-month lag time to introduce new games in the state and limits the variety of games available at the tracks.

Currently, that means that by the time new video games reach West Virginia racetracks, they've already been in play for a year or two in Las Vegas, Atlantic City and other gaming destinations.

"We're supportive of this," Musgrave said. "It will increase the product available."

He said the change would not hurt track or state video lottery revenues, since the tracks would still have a mixture of higher- and lower-payout machines.

Overall, the tracks operate at about a 92 percent overall payout, averaged over all machines.

"You're giving them the authority to select between 80 [percent] and 99.9 percent, instead of between 80 [percent] to 95 percent," Musgrave said.

Slot machines at the state's four racetracks could get more generous, if the state Lottery Commission next month approves a proposal discussed Thursday to remove the current 95 percent maximum payout for racetrack video lottery machines.

Currently, state regulations require that racetrack machines be programmed to pay out in winnings no more than 95 percent of total dollars wagered over the lifetime of each machine.

IGT Corp., the leading manufacturer of video lottery machines, wants the Lottery to increase that limit to 99.9 percent, which is the standard in most gaming jurisdictions, including Nevada, New Jersey, and - most recently - Pennsylvania.

"IGT, to make the tracks here competitive with Pennsylvania and other jurisdictions...would like to issue games with payments of up to 99.9 percent," Lottery director John Musgrave told the commission.

West Virginia's lower maximum payout requires manufacturers to design software and produce computer chips specifically for machines at the state tracks.

IGT representatives contend that adds a 12- to 24-month lag time to introduce new games in the state and limits the variety of games available at the tracks.

Currently, that means that by the time new video games reach West Virginia racetracks, they've already been in play for a year or two in Las Vegas, Atlantic City and other gaming destinations.

"We're supportive of this," Musgrave said. "It will increase the product available."

He said the change would not hurt track or state video lottery revenues, since the tracks would still have a mixture of higher- and lower-payout machines.

Overall, the tracks operate at about a 92 percent overall payout, averaged over all machines.

"You're giving them the authority to select between 80 [percent] and 99.9 percent, instead of between 80 [percent] to 95 percent," Musgrave said.

Commissioners discussed but did not vote on the change Thursday, but indicated it will be up to a vote next month.

The regulation change would not affect limited video lottery machines, which have 92 percent maximum payouts.

Also Thursday:

The key contributor to the decline is racetrack video lottery, which has seen a 7 percent year-to-date drop in sales compared to 2006-07, as a result of competing slots facilities opening in Pennsylvania.

Racetrack video lottery has brought in $593 million through February, compared to $639 million in 2006-07. However, that's still 7 percent better than what had been projected with new competition from Pennsylvania, according to Jim Toney, deputy director for finance.

At the same time, revenue from limited video lottery in bars and clubs statewide increased 4 percent, to $269 million year-to-date.

Year-to-date sales of traditional online and scratch-off are roughly flat, compared to 2006-07.

Meanwhile, February racetrack video figures matched February 2007 sales, at nearly $72 million.

To contact staff writer Phil Kabler, use e-mail or call 348-1220.