West Virginia saw approval of online gaming in the state in March of last year, paving the way for the West Virginia Lottery Commission (WVLC) to begin working on the protocols and procedures for the activity. Initially, the plan was for the framework to be in place by the end of this year or sometime early next year; however, the coronavirus has proven to benefit the state’s online gaming industry. As a result of the global health pandemic, the WVLC has created a set of emergency rules for the sector that, if approved, could bring virtual gambling to the state as early as June or July.
The rules were approved by the WVLC when the group got together on April 29, and are now headed to the state’s Secretary of State for approval. They are expected to be presented within the next week, and the Secretary of State would then be given 42 days to either approve or reject the emergency protocols. If approved, the Commission will be able to issue interim online gaming licenses that would allow companies to conduct their activity for 270 days. During that time, the WVLC would review the applications submitted by each company to make a permanent decision on the status of their license.
The director of the WVLC, John Myers, explained to iGM North America, “Once approved, West Virginia casinos can begin offering [iGaming] under the emergency rules and minimum internal controls. Those rules will be good for 15 months until the permanent legislative rule is adopted by the legislature.” The rules further stipulate that each land-based property would be entitled to control as many as three skins with its license, which will cost $100,000, and each tech company serving the industry would have to pay a fee of $10,000.
The permanent rules may or may not be different from the interim, emergency rules; however, the odds are that they will be more detailed and restrictive. The emergency rules touch upon issues such as customer data, cybersecurity, geofencing and game integrity, but don’t have the administrative controls expected to be found in the permanent rules.
West Virginia is ready to embrace iGaming in ways that other states will most likely be forced to adopt, as well. Live-dealer games, called simulcast games by West Virginia’s gaming rules, will be allowed as long as the operator receives approval from the WVLC. Since the state gaming market is relatively small, and the requirements for hosting live-dealer games are demanding, operators may determine that there isn’t enough income to justify the expense.
However, there is another aspect that could prove to be more lucrative. The rules lay out the possibility to offer multiplayer gaming, which could translate into online poker. This is certainly not a foregone conclusion, and could ultimately be determined by federal regulations, but it’s a step in the right direction. Should online poker be allowed in the state, West Virginia would have to team up with jurisdictions where it is already offered, such as New Jersey and Pennsylvania, in order to make it worthwhile for operators. This will continue to be a factor in how other states implement their own iGaming frameworks, not willing to lose out on revenue that is being attracted by player pooling and revenue-sharing agreements.
