Colonial Downs files dispute in Richmond Circuit Court

By Andre Jones | July 1, 2014 2:15 pm

Virginia Racing Commission (VRC) mandated Colonial Downs and its representatives to negotiate a contract with Virginia’s Horsemen’s Benevolent and Protective Association (VHBPA) for the 2015 season by a July 1 deadline. But Colonial Downs’ has decided to take the matters and place them into jurisdictional hands.

Colonial Downs filed documents in Richmond Circuit Court on June 30 and will take the matter to be heard and decided through legal proceedings.

According to Richmond Circuit Court documents, the motion specifically targets VRC’s authority to mandate a racing season by the set deadline.

Over the past eight months, mediation between, VRC, VHBPA, and Colonial Downs’ have come to an impasse. Colonial Downs’ stance pushed for a shorter season, with more quality races and higher purses to attract premier horses. VHBPA argued for a longer, seven-week meet, similar to what the organization has been dealing with over the past few years with Colonial Downs.

VRC commissioners mandated Colonial Downs’ and VHBPA work out a deal by July 1 to save the 2015 season. Colonial Downs’ president Ian Stewart argued for “boutique” meets, exclusive high class meets as a sticking point. VHBPA executive director Frank Petramalo Jr. countered, saying those meets would be detrimental to the horseman’s association.

The stalemate among all parties continues to frustrate onlookers and other areas, including impacting New Kent financially. County administrator Rodney Hathaway said the closing of off-track betting facilities (closed by VRC last December) caused a $402,000 shortfall in the FY2014-15 budget. That trickled down to county schools that lost $150,000 of that amount. Local businesses also suffer according to District 4 supervisor Ron Stiers, mentioning feed, supplies, and tourism are taking a significant hit.

VHBPA said it had lost $1.9 million in revenue, while Colonial Downs rebutted with a $2 million loss of profit. VRC has threatened to pull Colonial Downs’ license to operate as a licensee for horse racing in the state of Virginia, but has not pulled the plug yet due to scheduled harness racing in September and October. Harness racing is not affected by the current lawsuit.

VRC commissioners issued a resolution on June 23, saying both parties are to come up with a 24-day meet over an eight-week period for the 2015 thoroughbred season. Under that resolution, three of those days are to be set aside for high quality racing and also requires Colonial Downs to offer stables and training for the horsemen.

Instead of responding to VRC with a signed contract, Colonial Downs opted for a route to allow courts to handle the matter. As of now, neither a date for opening proceedings nor hearing date has been set.