According to new draft regulations, the Virginia Racing Commission may allow up to 3,000 historical racing machines at racetracks and off-track betting parlors throughout the state. Communities and counties with populations of 120,000 or more could apply for up to 700 machines each, including Richmond, Chesapeake, Hampton and Henrico County. Fewer terminals would be placed in smaller communities and counties.
Although opponents said it would be a significant expansion of gambling, Governor Ralph Northam signed a bill to legalize the machines earlier this year, as a way to boost Virginia’s struggling horseracing industry. He told the racing commission to come up with “reasonable limitations” on the machines.
Local governments would have to sign off on any large-scale betting facilities. Without local approval, the number of machines allowed at off-track betting facilities in large localities would be capped at 245, or 35 percent of the maximum limit. Off-track betting sites in smaller localities would also require local government approval before being allowed to have the maximum number of machines.
At Colonial Downs in New Kent, the number of historical racing terminals would be tied to the number of live racing days; for example, 30 days of live racing would be required to operate 3,000 machines. The track owners would have to hold more live races in order to add machines. The regulations require a minimum of 14 live racing days, with at least six races per day. Speaking on behalf of Colonial Downs, communications consultant Mark Hubbard said, “We are reviewing the proposed regulations and assessing our next steps. We appreciate the expeditious work of the administration and look forward to working with the Virginia Racing Commission as the rule-making process continues.”
Chicago-based Revolutionary Racing bought Colonial Downs for $20 million in April, contingent on the legalization of historical racing machines. The venue is scheduled to reopen in 2019. An economic study commissioned by Revolutionary Racing indicated when Colonial Downs reaches full capacity in 2022, it could create 1,400 jobs, have an annual economic impact of almost $350 million and generate $41.6 million per year in state and local tax revenue. Most of that money would come from historical racing machines.
Virginia racing officials said they studied Kentucky’s historical racing machine regulations when drafting theirs. In May, Kentucky had 1,755 machines that collected $98.9 million in total bets and paid out $90.8 million to players, with $6.2 million in commissions for the machine operators and almost $1.5 million in tax revenue.
The regulations also state that Colonial Downs must file an annual report detailing its efforts to identify problem gamblers and direct them to resources to prevent or treat gambling addiction.
Revolutionary Racing also plans to operate 10 off-track betting facilities. The state currently has two in the Richmond area, one in Chesapeake and one in Henry County outside Martinsville.
The racing commission will meet again on July 31.
