Department of Revenue spokeswoman Heather Raines declined comment, saying the department had not had an opportunity to review the petition, and could not comment on pending litigation.
In 2009, then-Gov. Joe Manchin introduced legislation to create a Gaming Commission to oversee all forms of state-sanctioned gambling, including Lottery, thoroughbred and greyhound racing, and charitable Bingo.
The bill died in the House of Delegates, in part, because of objections from thoroughbred industry lobbyists.
In February, then-Revenue Secretary Charles Lorensen named Musgrave as deputy secretary, with oversight over the Lottery, Racing Commission, Alcohol Beverage Control Administration, and Athletic Commission.
"This is an opportunity to see if things can run a little more efficiently and smoothly," Lorensen said at the time.
The petition filed Monday also argues that the interagency agreement violates state law by allowing Lottery Commission attorneys to serve as legal counsel for the Racing Commission.
By law, the attorney general is the official legal representative for the Racing Commission, the petition contends.
Hammer said Senior Deputy Attorney General Kelli Talbott has competently represented the Racing Commission in legal matters for a number of years.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.