Currently, three separate state agencies - Lottery Commission, Racing Commission, and a section of the state Tax Division - regulate the various forms of legalized gambling in the state.

On Monday, state Revenue Secretary Virgil Helton told lawmakers that consolidating those agencies into a single Gaming Commission makes sense.

He said that would be particularly true at the state's four racetracks, where the Lottery regulates video lottery and table games, but the Racing Commission governs live horse or dog racing.

That requires a duplication of services, particularly in the security and licensing sections, he said.

In 2007, the Lottery had 120 full-time employees, while the Racing Commission had 40. Also, there are 17 employees in the Tax Division's Charitable Bingo and Raffle section.

Helton told the interim committee that a consolidated commission would be able to operate with fewer employees.

"I don't have a specific plan or number as to how we would cut the workforce," he said. He said any positions would be eliminated through attrition.

As proposed, a seven-member Gaming Commission would oversee all forms of gaming authorized in the state. One member would have to have a background as a veterinarian or in agricultural sciences.

Currently, three separate state agencies - Lottery Commission, Racing Commission, and a section of the state Tax Division - regulate the various forms of legalized gambling in the state.

On Monday, state Revenue Secretary Virgil Helton told lawmakers that consolidating those agencies into a single Gaming Commission makes sense.

He said that would be particularly true at the state's four racetracks, where the Lottery regulates video lottery and table games, but the Racing Commission governs live horse or dog racing.

That requires a duplication of services, particularly in the security and licensing sections, he said.

In 2007, the Lottery had 120 full-time employees, while the Racing Commission had 40. Also, there are 17 employees in the Tax Division's Charitable Bingo and Raffle section.

Helton told the interim committee that a consolidated commission would be able to operate with fewer employees.

"I don't have a specific plan or number as to how we would cut the workforce," he said. He said any positions would be eliminated through attrition.

As proposed, a seven-member Gaming Commission would oversee all forms of gaming authorized in the state. One member would have to have a background as a veterinarian or in agricultural sciences.

However, House Majority Leader Joe DeLong, D-Hancock, questioned whether the proposed commission would have sufficient expertise to rule on issues regarding horse and dog racing.

"It will be seven people without any qualifications," said DeLong, who is a licensed thoroughbred horse trainer.

Meanwhile, Lottery Commission director John Musgrave told a separate interim committee that the first six months of table games at two northern panhandle tracks have exceeded expectations.

Through mid-June, table game revenues at Mountaineer and Wheeling Island racetracks had topped $42 million, about 30 percent above projections.

Musgrave said the introduction of table games also has increased video lottery revenue at the two tracks by 13 percent - better than the 10 percent increase projected.

However, competition from Pennsylvania slots parlors continues to hurt state video lottery revenues overall, he said.

Pennsylvania slots parlors are offering free $10 to $20 coupons to patrons, underwritten by the state waiving the tax revenues it would collect from video play using the coupons - something Musgrave said West Virginia law prohibits.

Reach Phil Kabler at ph...@wvgazette.com or 348-1220.