CHARLESTON, W.Va. -- Hundreds of limited video lottery machines in bars and clubs around the state could be out of commission for days -- or even weeks -- after new 10-year video lottery licenses go into effect on July 1, Lottery Commission officials advised Wednesday.
"We can't have everybody up and running on July 1. That is just impossible," Lottery co-counsel Monica Robinson told video lottery retailers and operators during a video lottery machine manufacturers' expo at the Charleston Civic Center Wednesday.
She said it will take at least two weeks to get all the machines up and running after the new licenses go into effect July 1.
Unlike the introduction of limited video lottery in 2001, when licenses were gradually bid out, and new locations phased in, all 7,852 video lottery machines now in operation will shut down at 3 a.m. on July 1.
When the next operating day starts a few hours later, there will be no more than 7,500 machines licensed -- and just where those machines will be located and under what ownership won't be entirely clear until a third and final round of bidding on the 2011-21 licenses is certified in mid-June.
That is likely to cause a logistical nightmare -- with many current locations losing licenses, reducing the number of licensed machines, or replacing machines leased from video lottery operators with machines purchased by the retailers.
Robinson said the Lottery is asking retailers and operators to provide lists by June 17, advising how many machines will need to be activated on July 1, how many are being moved to new locations, and how many are to be disabled, destroyed or moved out-of-state.
"Don't submit your paperwork at 5 p.m. on June 30, and expect to be activated on July 1," she advised. "That's probably not going to happen."
A complicating factor is that the Lottery's central computer system -- which operates all 18,000 racetrack and limited video lottery machines statewide -- cannot activate more than 10 retail locations per day.
CHARLESTON, W.Va. -- Hundreds of limited video lottery machines in bars and clubs around the state could be out of commission for days -- or even weeks -- after new 10-year video lottery licenses go into effect on July 1, Lottery Commission officials advised Wednesday.
"We can't have everybody up and running on July 1. That is just impossible," Lottery co-counsel Monica Robinson told video lottery retailers and operators during a video lottery machine manufacturers' expo at the Charleston Civic Center Wednesday.
She said it will take at least two weeks to get all the machines up and running after the new licenses go into effect July 1.
Unlike the introduction of limited video lottery in 2001, when licenses were gradually bid out, and new locations phased in, all 7,852 video lottery machines now in operation will shut down at 3 a.m. on July 1.
When the next operating day starts a few hours later, there will be no more than 7,500 machines licensed -- and just where those machines will be located and under what ownership won't be entirely clear until a third and final round of bidding on the 2011-21 licenses is certified in mid-June.
That is likely to cause a logistical nightmare -- with many current locations losing licenses, reducing the number of licensed machines, or replacing machines leased from video lottery operators with machines purchased by the retailers.
Robinson said the Lottery is asking retailers and operators to provide lists by June 17, advising how many machines will need to be activated on July 1, how many are being moved to new locations, and how many are to be disabled, destroyed or moved out-of-state.
"Don't submit your paperwork at 5 p.m. on June 30, and expect to be activated on July 1," she advised. "That's probably not going to happen."
A complicating factor is that the Lottery's central computer system -- which operates all 18,000 racetrack and limited video lottery machines statewide -- cannot activate more than 10 retail locations per day.
Currently, there are nearly 1,600 video lottery locations across the state.
Also under state Lottery law, video lottery retailers who are buying their own machines, or having new leased machines installed under the new licenses, cannot have the new machines on-site while current machines are still in operation.
Robinson said some video lottery retailers planning to install new machines effective July 1 are having their current machines removed around June 20.
Considering that video lottery produces about $400 million a year of revenue, or more than $7.5 million a week, the downtime could have a notable impact on Lottery revenues.
Retailers who are simply renewing their current licenses and will keep their current machines should have the least problems with the transition, she said.
As part of Monday's expo, slot machine manufacturers including IGT, WMS, Spielo, and Aristocrat showed off their latest machines.
Aristocrat currently has machines at the state's four racetrack/casinos, but will be making its first venture into the video lottery market beginning July 1.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.
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