Witnesses urge lower ADW fees, warn South Carolina ADW alone won’t match Virginia’s HHR revenues

Nel. Young, chair of the Senate subcommittee, heard testimony on Senate Bill 344 on advanced-deposit wagering (ADW) and related measures during a subcommittee hearing in which industry representatives and a former Virginia regulator urged changes to the bill’s fee structure and sought more information on South Carolina’s equine industry.

Nelson Clemens, CEO and owner of AmWest Entertainment (AmWager), testified in support of ADW legalization but asked lawmakers to reduce the bill’s proposed statewide takeout and license charges. “I am Nelson Clemens and I am the CEO and the owner of AmWest Entertainment, which operates under our brand name AmWager,” Clemens said. He told the panel that the group he represents prefers lowering the 5 percent annual fee on wagers in the draft legislation to 3.5 percent and reducing the proposed 1 percent license fee to 0.5 percent to leave more margin for market development and player incentives.

The core of Clemens’s argument was economic: ADW operators that serve many states decide where to spend marketing dollars based on expected net revenue after required payments and operating costs. Clemens listed typical ADW…