VRC orders contract to be signed by Colonial Downs, VHBPA by May 19

By Andre Jones | May 7, 2014 2:06 pm

Virginia Racing Commission (VRC) has placed a deadline for Colonial Downs and Virginia Horseman’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 meeting today (May 7).

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 planned 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 also not having a thoroughbred season also loomed, according to Stewart.

The impact has also been felt in New Kent’s 2014-15 budget. With an estimated $402,000 projected revenue shortfall stemming from the Colonial Downs/VHBPA situation, other areas in the county’s $65.2 million budget are assuming the financial burden. Included is New Kent schools, that at first expected to receive $48,000 less than requested, but now are facing a loss of $146,783.

With both sides continuing to butt heads, VRC stepped in and ordered a mandate for both sides to reach an agreement within 10 business days. Currently, off-site betting facilities have been closed to thoroughbred wagering due to the disagreement between VHBPA and Colonial Downs.

When contacted, a representative of VHBPA public relations’ office said while VRC’s terms aren’t what the association wanted, they are willing to “work with it for the best possible outcome.”

Calls and emails to Colonial Downs representatives had not been returned at the time of the release of this story.