Colonial Downs racetrack in New Kent County, Virginia closed in 2014 due to a financial dispute between the track’s current owner, Colorado-based Jacobs Entertainment, and the Virginia Horsemen’s Benevolent and Protective Association, a nonprofit that represents Thoroughbred horse owners, trainers and breeders. Now Chicago-based Revolutionary Racing With a potential new owner, Chicago-based Revolutionary Racing is negotiating to buy Colonial Downs, but the deal could depend on a single paragraph in outgoing Governor Terry McAuliffe’s final budget proposal, authorizing historical racing.
The paragraph is located in the section of McAuliffe’s budget that deals with the racing commission’s finances. It would redefine “simulcast horse racing” as “live or pre-recorded horse races.” The budget language states the machines would be subject to existing regulations for parimutuel wagering, and the racing commission would have 180 days to add more rules. The budget language does not specify if the terminals would be allowed only at Colonial Downs or if they could be installed at off-track betting locations throughout the state.
Opponents believe historical race terminals actually are a form of slot machines. However, proponents note several other states have approved the games to generate revenue to support their horseracing industries. For example, last June, Kentucky Derby home Churchill Downs announced plans for a $60 million, 85,000 square foot historical racing facility in Louisville. Also, reopening Colonial Downs could bring a $30-$40 million investment in the facility, creating up to 500 jobs, supporters said.
The General Assembly has blocked efforts to expand gambling on several occasions. Senate Majority Leader Thomas K. Norment Jr. and others have attempted to authorize historical racing in Virginia, but the legislation never passed the House.
Key figures in Revolutionary Racing are Larry Lucas and Prentice Salter, Chicago-based business partners who have been involved in online sports gambling ventures, and former Hong Kong Jockey Club Executive Director Bill Nader, who previously worked as senior vice president and chief operating officer of the New York Racing Association. Nader said his group has made “a lot of progress” regarding Colonial Downs, but could not offer a timeline for a final deal. He noted historical horse race wagering would be an important “foundation” to make the track successful. “We want to have something that’s sustainable,” Nader said.
Last year the Virginia Equine Alliance, an umbrella group for the state’s horseracing interests, issued a strategic planning report indicating historical horse racing was a “top priority” for generating new revenue and making Virginia’s industry competitive with other Mid-Atlantic states. Equine Alliance President Debbie Easter said, “Racetracks can’t make it on live racing anymore. We’ve got this wonderful world-class facility down there at Colonial Downs that’s basically sitting there rotting.” The group wants to see Colonial Downs reopen by 2019, otherwise, Easter said, it will search for a new site.
State Delegate Christopher K. Peace said his constituents in New Kent have “resoundingly supported” Colonial Downs and have “never been shy about the gaming that takes place there. Ideologically, more people now are adopting a point of view of personal responsibility, not a nanny state.”
Virginia Racing Commission Chairman D. G. VanClief Jr. said, “With or without a buyer on the horizon, we would like to see this happen. And we think it’s probably going to be fundamental to reopening Colonial Downs.” McAuliffe’s outgoing Secretary of Commerce and Trade Todd Haymore noted, “We believe that if a buyer does acquire Colonial Downs, it represents tremendous new opportunities for what has been a dormant industry for the last few years. And if changes need to be made to the current system of wagering, I’m hopeful that the General Assembly will explore that. Because we need to be thinking about this not so much as wagering, but as jobs, wages and tax dollars.”
