Despite VRC mandate, Colonial Downs ends talks with VHBPA

Virginia Racing Commission (VRC) has placed a deadline for Colonial Downs and Virginia Horsemen’s Benevolent and Protective Association (VHBPA) to sign an agreement for a 25-day thoroughbred race season. Commissioners ordered that both parties reach an agreement by a May 19 deadline during their May 7 meeting.

But Colonial Downs officials have elected to go another route after talks once again broke down, this time resulting in Colonial Downs terminating all relationships with the VHBPA.

Through a May 13 press release, Colonial Downs announced that it will seek a new horsemen’s group to hold thoroughbred racing for the 2014 season.

In the release, Colonial Downs claims they offered two proposals for 2014 thoroughbred racing. Colonial Downs affirmed its support for the 25-day, five week meet, if the VHBPA would reimburse Colonial Downs for revenues lost during the shutdown of thoroughbred wagering. The parties would be returned to the status quo of the Racing Commission’s original order. The release also states that VHBPA rejected the offer and failed to make a productive counteroffer.

Colonial Downs has elected to move forward in finding another horsemen’s association to hold the races for the summer season. Colonial Downs has offered a $2 million interest-free loan to a new, to-be-formed group in an effort to maintain live racing as desired by the VRC.

At issue is the stalemate between VHBPA and Colonial Downs over the length of the thoroughbred season. While Colonial Downs pushed for fewer races with bigger purse money averaging $500,000, VHBPA lobbied for a longer season with more races and purses in the $200,000 range.

Negotiations between the parties began last September, but yielded minimum progress. On April 15, Colonial Downs’ president Ian Stewart issue a press release, saying both parties have terminated talks and track officials plan to look for a new horseman’s group to conduct thoroughbred races in the fall. Stewart also said in the release that a longer season will affect revenue for Colonial Downs, as they would not be able to hold a season of that length. The possibility of not having a thoroughbred season also loomed, according to Stewart.

VRC commissioners ordered the two groups to meet again and to come up with a solution by next Monday’s (May 19) meeting. Colonial Downs, however, chose to forego the route and look for services elsewhere.

“In light of the damage done by the VHBPA’s decision to shut down wagering, Colonial Downs is unable to bring about a high-end meet this fall,” said Colonial Downs owner Jeffrey Jacobs in the press release. “This loan will facilitate 25 days of thoroughbred races with one day devoted to the Virginia Derby and other nationally graded stakes races.”

Currently, off-site betting facilities are closed due to the dispute between Colonial Downs and VHBPA.

Revenue loss from the facilities is playing a major role in New Kent County’s budget.

With an estimated $402,000 projected revenue shortfall stemming from the Colonial Downs/VHBPA situation, other areas in the county’s $64.8 million budget are assuming the financial burden. Included is New Kent schools, that at first expected to receive $200,000 less than the original proposed funds (see related story on the website).