West Virginia Code
Article 22A. Racetrack Video Lottery
§29-22A-2. Legislative Findings and Declarations

(a) The Legislature finds and declares that the limited video lottery games authorized by this article are "lotteries" as that term is commonly understood and as that term is used in West Virginia Constitution, article VI, section thirty-six, the video lottery games authorized by this article being lottery games which utilize advanced computer technology; and that the Constitution grants to the Legislature the authority to establish, by general law, the manner of regulation, control, ownership and operation of lottery games in the State of West Virginia.
(b) The Legislature further finds and declares that the state can control, own and operate a video lottery by possessing a proprietary interest in the main logic boards, all erasable, programmable read-only memory chips used in any video lottery equipment or games, and software consisting of computer programs, documentation and other related materials necessary for the video lottery system to be operated. The state may acquire a proprietary interest in video lottery game software, for purposes of this article, through outright ownership or through an exclusive product license agreement with a manufacturer whereby the manufacturer retains copyrighted ownership of the software but the license granted to the state is nontransferable and authorizes the state to run the software program, solely for its own use, on the state's central equipment unit and electronic video terminals networked to the central equipment unit.
(c) The Legislature further finds and declares that the state can control and regulate a video lottery if the state limits licensure to a limited number of video lottery facilities located at qualified horse or dog racetracks, extends strict and exclusive state regulation to all persons, locations, practices and associations related to the operation of licensed video lottery facilities, and provides comprehensive law enforcement supervision of video lottery activities.
(d) The Legislature further finds and declares that since the public has an interest in video lottery operations and since lottery operations conducted pursuant to West Virginia Constitution, article VI, section thirty-six, and under this article represent an exception to the general statutory policy of the state concerning wagering for private gain, participation in a video lottery by a licensee or permittee under this article shall be deemed a privilege conditioned upon the proper and continued qualification of the licensee or permittee and upon the discharge of the affirmative responsibility of each licensee to provide to the regulatory and investigatory authorities established by this article any assistance and information necessary to assure that the policies declared by this article are achieved. Consistent with this policy, it is the intent of this article to preclude the creation of any property right in any license or permit issued by the state under this article, the accrual of any value to the privilege of participation in any video lottery operation, or the transfer of any license or permit, and to require that participation in video lottery operations be solely conditioned upon the individual qualifications of persons seeking such privilege.
(e) The purpose of this article is to define and provide specific standards for the operation of video lottery games at pari-mutuel racing facilities licensed by the state Racing Commission pursuant to article twenty-three, chapter nineteen of this code. The Legislature finds and declares that the existing pari-mutuel racing facilities in West Virginia provide a valuable tourism resource for this state and provide significant economic benefits to the citizens of this state through the provision of jobs and the generation of state revenues; that this valuable tourism resource is threatened because of a general decline in the racing industry and because of increasing competition from racing facilities and lottery products offered by neighboring states; and that the survival of West Virginia's pari-mutuel racing industry is in jeopardy unless modern lottery games are authorized at the racetracks.

Structure West Virginia Code

West Virginia Code

Chapter 29. Miscellaneous Boards and Officers

Article 22A. Racetrack Video Lottery

§29-22A-1. Short Title

§29-22A-2. Legislative Findings and Declarations

§29-22A-3. Definitions

§29-22A-4. Video Lottery Games Authorized

§29-22A-5. Video Lottery Terminal Requirements; Application for Approval of a Video Lottery Terminal; Testing of Video Lottery Terminals; Report of Test Results; Modifications to Previously Approved Models; Conformity to Prototype; Seizure and Destru...

§29-22A-6. Video Lottery Terminal Hardware and Software Requirements; Hardware Specifications; Software Requirements for Randomness Testing; Software Requirements for Percentage Payout; Software Requirements for Continuation of Video Lottery Game Aft...

§29-22A-7. License and Permit Qualifications; Individual Qualifications; Applicant Required to Furnish Information; Waiver of Liability; Oath or Affirmation; Duty to Provide Accurate and Material Information

§29-22A-8. Form of Application; Local Option Elections; Issuance of License; Notice of Incomplete Application; Notice of License or Permit Denial, Suspension or Revocation; Procedure for Review of License or Permit Denial, Suspension or Revocation; F...

§29-22A-9. General Duties of All Video Lottery License and Permit Holders; Duties of Permitted Manufacturers; Duties of Permitted Service Technicians; Duties of Permitted Validation Managers; Duties of Floor Attendants; Duties of Licensed Racetracks

§29-22A-10. Accounting and Reporting; Commission to Provide Communications Protocol Data; Distribution of Net Terminal Income; Remittance Through Electronic Transfer of Funds; Establishment of Accounts and Nonpayment Penalties; Commission Control of...

§29-22A-10a. Lottery Commission Income to Be Deposited in State Lottery Fund

§29-22A-10b. Distribution of Excess Net Terminal Income

§29-22A-10c. Surcharge; Capital Reinvestment Fund

§29-22A-10d. Changes in Distribution of Net Terminal Income; Distributions From Excess Lottery Fund

§29-22A-10e. Changes in Distribution of Excess Net Terminal Income; Distributions From Excess Lottery Fund

§29-22A-10f. Changes in Distribution of Surcharge

§29-22A-10g. Redirection of Certain Amounts From Net Terminal Revenue

§29-22A-11. Maintenance of Video Lottery Terminals; Manufacturers Required to Provide Training; Notice of Availability of Training; Reports and Certificates of Training Programs; Terminals to Be Maintained in the Condition Approved; Maintenance Log R...

§29-22A-12. Number and Location of Video Lottery Terminals Security

§29-22A-13. Payment of Credits; No State Liability; Method of Payment; Restrictions on Payment of Credits; Redeemed Tickets Required to Be Defaced; Liability for Video Lottery Terminal Malfunction

§29-22A-14. Transportation and Registration of Video Lottery

§29-22A-15. Hearing and Appeal Procedure; Order Refusing License or Permit or Suspending or Revoking Same; Petition for Hearing; Petition Requirements; Cost of Hearings; Subpoenas and Subpoenas Duces Tecum; No Stay of Suspension or Revocation Order;...

§29-22A-16. Offenses and Penalties

§29-22A-17. Disagreement as to Duties of Racing Commission and Lottery Commission

§29-22A-18. Severability

§29-22A-19. Compulsive Gambling Treatment Fund; Contract Requirements for Compulsive Gamblers Treatment Program