Virginia Governor Ralph Northam recently said he supports reopening the Colonial Downs racetrack in New Kent and offering historical racing machines there and at off-track betting facilities. Northam stated Virginia should be “open-minded” about casino-style gambling. “If this is an opening to more casino gambling in Virginia, that’s something we’re going to have to discuss with legislators and communities, et cetera. But the way I see this moving forward is to reopen that track. And I think that’s a good thing for Virginia.” Legislation allowing historical racing machines passed the House of Delegates 79-21 and cleared the Senate 31-9 in February.
Chicago-based Revolutionary Racing is a potential buyer of the racetrack but wants to install historical racing machines there. Officials said the machines would generate an estimated $161.9 million a year to support the state’s horseracing industry and generate additional tax revenue.
Northam commented, “There’s a tremendous amount of money in Virginia that’s going across state lines, whether it be in West Virginia or Maryland or Delaware. Certainly we don’t want to do something that’s regressive to people or is hurtful to people. But if there are individuals who want to do that and are going to other states, I think we should be open-minded in Virginia.”
The measure calls for 1.25 percent of the revenue from the machines to be set aside for taxes, with 0.75 percent going to the state and 0.5 percent going to New Kent. For off-track facilities, the local percentage would be split between New Kent and the county or city where the satellite facility is located. The racing commission estimated each machine could produce $150 per day. Northam has until April 9 to sign the bill. If he signs it, the Virginia Racing Commission would have 180 days to adopt regulations for the new terminals.
Mark Hubbard, a McGuireWoods communications consultant representing Revolutionary Racing, said the company is “optimistic” the Northam administration will back the proposal. “We look forward to working with the Virginia Racing Commission as guidelines are established in the coming months and sharing with the public our plans to re-open Colonial Downs hopefully before the end of the year,” he said.
Colonial Downs shut down indefinitely in 2014 after its current owner, Jeff Jacobs of Colorado-based Jacobs Entertainment, surrendered the track’s license to the racing commission over a dispute with the state’s traditional horsemen’s group. Since then, various horseracing groups banded together to create the Virginia Equine Alliance which declared historical racing machines are “critical to securing the long-term success of the horseracing industry.”
Conservative organizations oppose the historical racing legislation. Family Foundation of Virginia President Victoria Cobb said, “We’re incredibly disappointed that the General Assembly would pass a massive gambling expansion that is the equivalent of slots under the guise of saving the horseracing industry. This definitely raises the concern that we have now opened the door to casinos.”
