UPDATE: New Kent officials hopeful horse racing revenue can be restored
Bills bearing similar language that New Kent County officials hope will save horse racing at Colonial Downs are sailing through the General Assembly with one week to go in this year’s legislative session.
House Bill 1826 and Senate Bill 1097 have passed their respective bodies and have crossed over. The House bill passed 81-19 on Feb. 10 while the Senate version passed 31-7 that same day.
Last Thursday (Feb. 19) following crossover and being favorably reported out of committees in both bodies, the bills passed by overwhelming votes of 81-18 in the House and 31-7 in the Senate. Odds appear to favor a compromise or single bill eventually reaching Gov. Terry McAuliffe’s desk.
“The New Kent Board of Supervisors wants to support any bill that maximizes the use of Colonial Downs,” county attorney Michele Gowdy said on Wednesday.
“We hope with this bill, Colonial Downs continues to have live racing,” Gowdy said, adding she is confident McAuliffe will sign any bill that emerges.
Of keen interest to New Kent is revenue. The county began to benefit back when the track opened in 1997, watching revenue rise annually over the next 10 years. Dollars for the county, however, peaked in 2007 at just over $793,000 and have been steadily on the decline thereafter. The amount bottomed out at $260,706 in 2014, a figure $23,000 less than what the county received in 1997.
When the racetrack closed last fall and owner Jeff Jacobs surrendered the facility’s license to operate the racetrack and nine off-track betting sites, the county lost revenue it was counting on for the current fiscal year.
“Right now with no live racing season announced, [the loss] is $402,000,” county administrator Rodney Hathaway said Wednesday.
But provided a revised horse racing law goes into effect, New Kent could see an upward trend in figures once again. Included in both bill versions and new to current state law are provisions for “advance deposit account wagering.” The language allows an individual to establish an account with any Virginia Racing Commission-licensed entity for placing pari-mutuel wagers in person or electronically.
“This has never happened before,” Gowdy said, adding that if the measure wins approval New Kent stands to receive .0035 percent of those bets. The figure is capped at $400,000.
“The money goes solely to New Kent the first five years, but after that it goes to any locality that has live racing. The bill allows racing all over the state,” she said.
The specter of competition for New Kent looms, but both bill versions contain definitions for a horse racing facility. Any such facility must be approved by local referendum and have a one-mile dirt track for flat racing, a seven-eighths mile turf course for flat or jump racing, covered seating for a minimum 500 spectators, and permanent horse barns with at least 400 stalls.
“With more racing you’ll have more advance deposit wagering so it’s an added potential to get more revenue,” Gowdy said.
“The theory is if they continue to race at Colonial Downs and if successful, New Kent benefits because of the number of races,” she said.