West Virginia Gaming Supplier Regulatory Overview

Introduction

The state of West Virginia has four horse racing tracks and one commercial casino in the state. Video Lottery Terminals (“VLTs”) were introduced into the state’s four horse racetracks in 1994 and table games were introduced at the racetracks in 2007. In 2009, West Virginia approved the issuance of a single license to open one commercial casino location in the state.

Commercial gaming activity is regulated by the West Virginia Lottery Commission (“Commission”). The Commission regulates both electronic VLTs and table games. This analysis will focus solely on table game licensure in the state and will not address video lottery terminals, as these devices are sold solely to the Commission, not directly to gaming locations, and there are a limited number of VLT providers licensed in West Virginia. Please refer to the state of West Virginia’s Lottery website (http://www.wvlottery.com) or contact the Commission for further details regarding VLTs.

In addition to the racinos operated in the state, West Virginia has a single commercial gaming facility offering traditional casino games, the Greenbrier Casino Club in White Sulphur Springs. Patrons, however, may only participate in the gaming activities if they are overnight guests at the Greenbrier hotel, are members of one of Greenbrier’s social or sporting clubs, or are participating in an event located at the resort.

All table games are owned by the Commission and licensed for use by horse racing tracks and licensed commercial casinos.¹

Supplier Licensing Requirements

The Commission requires that all individuals or entities that sell gaming devices and supplies to a licensed facility hold a license issued by the Commission. “Gaming devices and supplies” is defined as “gaming tables for all West Virginia Lottery table games, roulette wheels, wheels of fortune, video lottery terminals, cards, dice, chips, tokens, markers or any other mechanical, electronic or other device, mechanism or equipment or related supplies utilized in the operation of a West Virginia Lottery table game.”²

Duration

A supplier’s license is valid for a period of one year.³

Fees

There is a $100 application fee due at the time of submission of a gaming supplier license application.⁴

Required Documents and Information

Applicants must complete the “Gaming-Related Supplier License” application form. In order to complete the form, the following information is needed:

1. Basic identification information;
2. Description of business;
3. List of investors holding 5% or more interest in the applicant;
4. Description of goods and services provided to the gaming facility;
5. List of ownership interests in other licensees;
6. List of government agencies having jurisdiction over the applicant;
7. Regulatory action history;
8. Debt, insolvency, and bankruptcy history;
9. Tax action history;
10. Criminal history;
11. Prior names and addresses, past five years;
12. Estimated annual volume of business with West Virginia gaming locations;
13. List of financial institutions where business accounts are held;
14. Civil litigation history;
15. Identities of key persons;
16. Description of former business conducted;
17. List of securities and debt offerings; and
18. List of gaming licenses applied for or held.

In addition, the following documents must be submitted with the application:

1. Articles of incorporation;
2. Copy of agreements or letters of intent to do business with West Virginia gaming facilities;
3. Ownership chart;
4. Copies of all gaming licenses;
5. Financial statements, past five years;
6. Annual reports, past five years;
7. Quarterly reports, since most recent annual report;
8. Interim reports, if applicable;
9. Most recent proxy statement;
10. Reports and correspondence with accountants, past five years;
11. Tax returns, past three years; and
12. Certificate of insurance.

Key Persons Licensing Requirements

In connection with a corporate supplier license application, certain key persons employed by the applicant must complete disclosure forms. Individuals required to complete disclosure forms include affiliates, officers, directors, managerial employees, and individuals holding over 1% interest in the applicant (or 5% or more interest if the applicant is a publicly traded entity).⁵

The Commission uses the Multi-Jurisdictional Personal History Disclosure Form for all key person filings and does not currently require a supplemental application to accompany the multi-jurisdictional form.

Required Documents and Information

The Multi-Jurisdictional Personal History Disclosure Form is a lengthy application requiring detailed personal information. Information required to be disclosed includes:

1. Basic identity information;
2. Citizenship and passport;
3. Residence information, past 15 years;
4. Family relationships;
5. Occupation information for family members, including spouses of family members;
6. Military service background;
7. Education;
8. Offices and positions held, including fiduciary, government, and trust relationships;
9. Offices and positions held by spouse, past one year;
10. Employment history, past 20 years;
11. Spouse employment history, past one year;
12. Professional or regulatory licensing;
13. Gaming licenses applied for or held;
14. Business ownership information, 5% threshold;
15. Civil suit and criminal history;
16. Vehicle operation permits and licenses;
17. Financial schedules and bankruptcy history;
18. Net worth statement and schedules including assets and liabilities; and
19. Three references over 18 years old who are not related to the applicant.⁶

In addition to the information requested in the application, the following documents need to be attached in order to complete the application.

1. Photo; and
2. Military records, if applicable.⁷

Reapplying after License Has Been Denied

If a license application is denied, then the applicant must wait one year from the date of the denial before resubmitting an application for licensure.

Gaming Technology Standards

Each game placed in use in a gaming facility must be approved by the Commission prior to use. The Commission, however, has the discretion to accept an analysis and approval from another jurisdiction.⁸

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¹W. Va. Code §29-25-34; see also §29-22C-9.
²W. Va. Code §29-25-2(l); see also §29-22C-6.
³W. Va. Code §29-22C-12(g).
⁴W. Va. Code §29-25-11(g).
⁵'Gaming-Related Supplier License,' West Virginia Lottery Commission, p. 3.
⁶'Multi-Jurisdictional Personal History Disclosure Form.'
⁷Id.
⁸W. Va. Code §29-22C-12(c).