State cites 2 businesses for illegal video poker payouts

Tuesday, July 18, 2000 | 10:58 a.m.

"This is kind of a warning," said Don Stemple, commissioner of the Alcohol Beverage Control Administration.

State officials, using undercover agents who allegedly collected payouts, cited Rick's Pub in Hurricane, Putnam County, and Schultzie's in South Charleston.

It was not immediately clear what penalties could be assessed.

Richard Parsons, owner of Rick's Pub, and John Mawyer, owner of Schultzie's, could not be reached for comment.

Stemple said he heard that mini-casinos may be established in West Virginia following the end of video poker in South Carolina July 1.

He said he has information that about 150 machines are in a warehouse, though the location of the warehouse was not immediately available.

"We suspect they'll be moving the machines out in time," Stemple said. "We're keeping an eye on it. "

Video poker machines are legal in West Virginia for entertainment only. Payouts are illegal.

Cabell County sheriffs' deputies last month charged a business owner with illegally paying cash prizes on video poker machine games.

Cabell County and the Barboursville area appear to be "very hot," Stemple said. State liquor officials will focus enforcement efforts in the area, he said.

State officials do not know who owns the machines in the two businesses. The machines were not confiscated.

A hearing has been scheduled in Wheeling for the two businesses July 28.

Video poker machines may become an issue in this year's governor's race.

If the Legislature does not regulate and tax the machines, they should be banned, Democrat Bob Wise says. He says he would ask the Legislature to regulate and tax the machines.

Republican Gov. Cecil Underwood has said he opposes expansion of gambling.

Independent candidate Denise Giardina says sanctioning more gambling will not solve the state's fiscal problems.