Kentucky-based Churchill Downs Inc. (CDI) is buying Colonial Downs, Virginia’s only thoroughbred racing venue, and six Rosie’s historical horseracing locations, for $2.4 billion. The purchase is part of the deal for CDI’s purchase of Peninsula Pacific Entertainment (P2E), the owners of the track and the HHR locations.
Following a recent visit to the New Kent County racetrack, Churchill Downs CEO Bill Carstanjen said, “We really loved what we saw in Virginia, which is the rebirth of the equine business here. It was historically an important part of the U.S. scene, but in the last number of decades it hasn’t been.”
He noted, “Virginia really hasn’t had a company with the focus and passion for horseracing that we have. We view the horseracing piece as a big opportunity, and we think that’s good for everybody. Because the Thoroughbred racetrack is really just the tip of the iceberg. Below that surface, there’s all kinds of farm infrastructure, veterinarians, feed operations, just a plethora of activity that goes into getting a horse ready to go to a racetrack.”
Carstanjen said he hopes to offer up to 50 racing days per season, up from the current 22 days. He also wants the track to host qualifiers for the Kentucky Derby and other significant races.
Like Churchill Downs, Rosie’s locations also offer historical horseracing machines, which Carstanjen said makes the acquisition a logical move.
Currently Rosie’s is only using six of its allowed 10 licenses, so Carstanjen said the immediate focus will be to expand to the maximum number allowed.
He noted, “We have a lot of confidence in our product. We have a lot of confidence in our business model, which is very similar to Rosie’s business model. So we think there’s a niche for us that we’ve demonstrated in Kentucky, and think we will demonstrate in Virginia, even though there’ll be more competition than there is currently.”
Churchill Downs also is building a $400 million Rosie’s in Dumfries, the location closest to the Washington, D.C. metropolitan area, scheduled to open in late 2023.
The purchase deal also includes an interest in the proposed Richmond casino, a partnership between media company Urban One and Peninsula Pacific Entertainment. Richmond voters narrowly rejected the project last November and now a Richmond re-vote could be authorized or Petersburg voters could be given the opportunity. Carstanjen said it’s too soon for his company to take a stand on the issue.
Carstanjen, however, was most enthusiastic about horseracing.
“I’m the first to acknowledge that I’m biased, because I really enjoy it personally, and participate in it as a fan. As a business and as an activity that has a place in U.S. society, I think it has a really bright future. But it does have challenges that have to be dealt with. It’s really important that the races are conducted with integrity, that the horses are safe, that they do not have inappropriate medications or substances in their body. All of those things have to be addressed appropriately and with transparency. If those things are done in that manner, I think there’s a great future for the sport,” he said.
