CHARLESTON, W.Va. -- West Virginia's racetracks want the opportunity to send coupons for free slot machine plays without having to pay state taxes on the games, several lobbyists and other track representatives told state Lottery commissioners Wednesday at their regular meeting.

"The key is to allow us to test it," said Ameet Patel with the Charles Town Races & Slots.

He said Pennsylvania slot machine operators have sent about $80 million in coupons to folks in several states. In most cases, the recipient has played the slot machines in both Pennsylvania and West Virginia before, and state track owners want to entice them back to West Virginia.

Lobbyist Wendell Turner believes the commission can let the tracks send the coupons without legislative approval, based on a clause in the 1994 law that could allow the commission to take action to stave off a loss of revenue by West Virginia operations.

But the state collects 60 percent of all slot machine proceeds. To send out the coupons, track operators want the tax removed from the free games so they have a "level playing field."

Penn National merger apparently is off

Also Wednesday, commissioners heard that Penn National Gaming's merger with Centerbridge and Fortress is off, according to Tom Auriemma, a company vice president. Penn National owns the Charles Town track, which does not have casino-style gambling.

"Clearly I think it's fair to say if our balance sheet is not the strongest in the industry it's one of them," Auriemma said.

The firms, backed by two banks that have been weakened in the current recession, had initially offered $67 a share for Penn National. The highest the firm's stock ever rose was $62 just after the offer was made. Monday, the stock closed at $26.

Lottery's TV drawings may go to public station

Commissioners will also consider soon whether to give the lottery's TV drawings broadcast to public television. Currently, WOWK-TV has the contract until October.

CHARLESTON, W.Va. -- West Virginia's racetracks want the opportunity to send coupons for free slot machine plays without having to pay state taxes on the games, several lobbyists and other track representatives told state Lottery commissioners Wednesday at their regular meeting.

"The key is to allow us to test it," said Ameet Patel with the Charles Town Races & Slots.

He said Pennsylvania slot machine operators have sent about $80 million in coupons to folks in several states. In most cases, the recipient has played the slot machines in both Pennsylvania and West Virginia before, and state track owners want to entice them back to West Virginia.

Lobbyist Wendell Turner believes the commission can let the tracks send the coupons without legislative approval, based on a clause in the 1994 law that could allow the commission to take action to stave off a loss of revenue by West Virginia operations.

But the state collects 60 percent of all slot machine proceeds. To send out the coupons, track operators want the tax removed from the free games so they have a "level playing field."

Penn National merger apparently is off

Also Wednesday, commissioners heard that Penn National Gaming's merger with Centerbridge and Fortress is off, according to Tom Auriemma, a company vice president. Penn National owns the Charles Town track, which does not have casino-style gambling.

"Clearly I think it's fair to say if our balance sheet is not the strongest in the industry it's one of them," Auriemma said.

The firms, backed by two banks that have been weakened in the current recession, had initially offered $67 a share for Penn National. The highest the firm's stock ever rose was $62 just after the offer was made. Monday, the stock closed at $26.

Lottery's TV drawings may go to public station

Commissioners will also consider soon whether to give the lottery's TV drawings broadcast to public television. Currently, WOWK-TV has the contract until October.

"It is a considerable savings over what we have been paying in past years," said state Lottery Director John Musgrave.

Local stations will be able to pick it up as they do now, with lottery commercials included in it. Commissioners want a memorandum of understanding with the station before giving it consideration.

Musgrave also announced that the commission's policy on any casino-style gambling in the state is that it is illegal, whether it is for charitable groups or not.

The issue arose last week when West Virginia Broadcasting held a poker event. No one paid to participate in that event, meaning it lacked one of the three elements state courts have said is gambling, and it continued as scheduled.

Musgrave said laws passed allowing casino gambling at the state's four racetracks give the state ownership of any casino-style games.

"We've taken a position that the Legislature has ruled you have to have a license and then pay a $2.5 million fee," Musgrave said.

But he also noted the Lottery Commission has no authority to shut down such events as charity-sponsored casino nights, where people make donations to play and use fake money. It will be up to local and State Police to enforce such a ban.

"They're all for good causes, we have no question about that," he said.

Musgrave also told commissioners he has interviewed architects and hopes to have one on staff soon. That firm will make plans for new Lottery headquarters on the state Capitol campus.

Reach Tom Searls at tomsea...@wvgazette.com or 348-5198.