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12/15/2009
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Disagreement Over Free Gambling Coupons
Staff
Charleston

Audio Included Gambling Coupons: MTR Gaming COO Rob Norton

The state Lottery Commission has renewed the free play coupon program for the state's racetracks for another three months, but the amount is less than Mountaineer Racetrack and Casino in Chester wanted.

Tuesday's decision by the commission will allow the tracks offer free play coupons that represent two percent of their sales from the same time last year.

Mountaineer parent company MTR Gaming asked the coupon level be set at 2.5 percent. Chief Operating Rob Norton offered his objection following Tuesday's vote.

He later told MetroNews his track needs all the help it can get as it competes with Pennsylvania. "The competition for the customer is battled in the mailbox and we're afraid that based on their (Pennsylvania's casinos) track record and the fact that they do not have a cap (on coupons) that they could out price us in the mailbox and win those customers away from us," Norton said.

Mountaineer is getting major competition from a new casino in Pittsburgh and an expanded operation in Washington, Pennsylvania.

The state lottery commission allowed up to three percent in coupons during the first three months of the new program. Norton says it's worked great for Mountaineer. "We saw large increases in customer counts and now we are actually up in new member sign-ups. It's doing the things we said, but it takes time to build," according to Norton.

But state Lottery Director John Musgrave says after evaluating the competition, the commission believes two percent is a fair level for the coupons for the next three months. "We've only done it for one quarter and it will take several quarters to determine whether it's successful," Musgrave said.

Norton is concerned that while West Virginia is trying to find the best place for the coupon level Pennsylvania will gain an advantage. "They continue to be trending upwards and we believe as we go into the busier timeframes, January, February and March, we could find ourselves restricted in being able to compete with them," he said.

State lawmakers approved the free play coupons in legislation passed earlier this year.

 


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