CHARLESTON, W.Va. -- Lingering effects of the recession are continuing to take a bite out of state Lottery's revenues, the Lottery Commission learned Wednesday.

Gross revenues for September came in at $110.6 million -- $5 million below projections for the month, and nearly $9 million off September 2008 collections.

"We're seeing the effects of the economy," Lottery Director John Musgrave said after Wednesday's meeting. "We didn't see it early on, but we're seeing it now."

For the first three months of the 2009-10 budget year, gross revenues are at $361 million, down about 6 percent from the same point last year.

The biggest revenue decline has been in video lottery at the state's four racetracks, down about 7.5 percent to $207.8 million for the budget year.

Musgrave blamed the downturn on the weak economy, and on the opening this summer of a 3,000- machine video slots parlor in downtown Pittsburgh.

Table games offered at three of the four tracks have experienced an up-tick in revenue, however, bringing in $8.5 million year-to-date, up 7.8 percent from last year. However, table games at Tri-State Racetrack and Casino in Nitro didn't launch until mid-August 2008.

Still, the state's share of Lottery profits for September came in at $46.1 million, less than $2 million down from the September 2008 figure. Year-to-date, the state's profit is $156.2 million, down about $9 million.

Musgrave said he remains hopeful the Lottery will be able to meet revenue projections for the 2009-10 budget year, despite the slow start.

Also Wednesday:

| Musgrave said he is trying to crack down on charitable and fraternal organizations hosting "Monte Carlo" nights, incorporating poker, blackjack and other table game themes.

CHARLESTON, W.Va. -- Lingering effects of the recession are continuing to take a bite out of state Lottery's revenues, the Lottery Commission learned Wednesday.

Gross revenues for September came in at $110.6 million -- $5 million below projections for the month, and nearly $9 million off September 2008 collections.

"We're seeing the effects of the economy," Lottery Director John Musgrave said after Wednesday's meeting. "We didn't see it early on, but we're seeing it now."

For the first three months of the 2009-10 budget year, gross revenues are at $361 million, down about 6 percent from the same point last year.

The biggest revenue decline has been in video lottery at the state's four racetracks, down about 7.5 percent to $207.8 million for the budget year.

Musgrave blamed the downturn on the weak economy, and on the opening this summer of a 3,000- machine video slots parlor in downtown Pittsburgh.

Table games offered at three of the four tracks have experienced an up-tick in revenue, however, bringing in $8.5 million year-to-date, up 7.8 percent from last year. However, table games at Tri-State Racetrack and Casino in Nitro didn't launch until mid-August 2008.

Still, the state's share of Lottery profits for September came in at $46.1 million, less than $2 million down from the September 2008 figure. Year-to-date, the state's profit is $156.2 million, down about $9 million.

Musgrave said he remains hopeful the Lottery will be able to meet revenue projections for the 2009-10 budget year, despite the slow start.

Also Wednesday:

| Musgrave said he is trying to crack down on charitable and fraternal organizations hosting "Monte Carlo" nights, incorporating poker, blackjack and other table game themes.

Under state law, only licensed racetracks and The Greenbrier resort can legally operate table games.

Musgrave said he's aware of a recent upswing in gaming nights where organizations charge admission fees to provide players with "play money" that they can redeem for cash or prizes.

"Even though they play with play money, they are really illegal forms of gambling," he said.

Musgrave said he wants to crack down now, before bars and clubs start using charitable gaming nights as a front for running illegal gambling operations.

The Lottery Commission is sending letters to limited video lottery retailers in bars, clubs and fraternal organizations around the state, advising that they could have their LVL licenses revoked if they permit other forms of gambling in their establishments.

"Their license could be in jeopardy if they do these other forms of gaming," Musgrave said.

As for charitable organizations, the Lottery has no arrest authority, but will notify the county prosecutor of the illegal gambling, Musgrave said.

| Lottery commissioners were advised that, while the introduction of table games at The Greenbrier has generated lots of publicity, the small 10-table operation isn't generating much revenue.

Dean Patrick, deputy director for table games, said The Greenbrier is producing only about $5,000 a day in gross revenue. That's compared to more than $55,000 a day for Tri-State, the smallest of the racetrack casinos, and more than $130,000 a day at Mountaineer Racetrack and Casino.

Although the temporary facility is open from 11 a.m. to 3 a.m. daily, Patrick said the casino is generally empty until about 5 p.m., and empties again in the early morning hours.

"To be perfectly honest, once alcohol can't be served, everyone exits," he told the commission.

Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.