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West Virginia Governor Asked to Revoke VLT Licenses

WEST VIRGINIA – As reported by the Charleston Daily Mail: "Gov. Bob Wise has been asked to revoke some video lottery licenses, and deny new ones, to newly created fraternal organizations some lawmakers say are taking advantage of state gambling laws.

"Senate Minority Leader Vic Sprouse, R-Kanawha, sent a letter Wednesday to Wise urging him to sign an executive order preventing new chapters of fraternal organizations — like the recently chartered Order of the Owls in Kanawha City — from getting approval to run video lottery outlets and gambling sites.

"Sprouse asked for an investigation 'into the possibly fraudulent actions taken by video lottery retailers in setting up 'front' fraternal organizations to obtain additional lottery machines.'

"Fraternal organizations such as the Elks Club and Moose Lodge are allowed by state law to have 10 video lottery machines in their social clubs and bars; private clubs and bars are authorized to have five lottery machines.

"…The state Lottery Commission now says new chapters of relatively unknown clubs — like the orders of Orioles and Redmen — are cropping up throughout the state, and almost always the groups use their charters to open a 10-machine lottery club or to increase the number of machines in a private bar or club.

"…Lottery Commission officials say as long as a fraternal organization has proper authorization from the Internal Revenue Service, has obtained a state liquor license and meets all video lottery requirements, it can be authorized to have 10 machines in a lottery parlor…"

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