Over Henrico’s objections, Colonial Downs receives approval to open gaming facility

The Virginia Racing Commission voted 5-0 on Monday afternoon to approve a proposed gaming facility in western Henrico County operated by Colonial Downs, regardless of opposition from all ranges of Henrico’s authorities.

The facility, scheduled to open on Sept. 29, known as “Roseshire,” and is being positioned as an upscale model of the Rosie’s amenities that exist on Midlothian Turnpike in Richmond and at Colonial Downs in New Kent County.

It may have 175 historic horse racing machines, which look and function like slot machines, however are tied into the state’s parimutual wagering system and are powered by the outcomes of previous horse races, making them authorized as off-track wagering below a 2018 vote by the General Assembly.

Colonial Downs is opening the Henrico facility by citing a 1992 referendum the place Henrico voters allowed off-track betting. However, Henrico officers famous that the machines are completely different from truly wagering on horse races, and are asking for a brand new referendum earlier than Roseshire is allowed to open.

During a public remark interval, audio system included Henrico Supervisor Dan Schmitt, who mentioned the monitor has “avoided every opportunity to engage with the community” throughout the course of, and state Sen. Schuyler VanValkenburg, D-Henrico, who mentioned voting to permit the machines in 2018 “might be the vote I most regret in my time in the General Assembly.”

“At every turn, Churchill (Downs) has taken steps to avoid engaging with Henrico residents,” he mentioned. “Which has, you know, fueled a lot of cynicism, eroded a lot of trust, and caused what we have here today.”

Churchill Downs is the mother or father firm of Colonial Downs. A spokesperson for the group mentioned none of its representatives on the assembly on Monday could be out there for remark.

A lawyer from Williams Mullen, which is representing Henrico, advised the fee transferring ahead with the ability could be unlawful. After about half-hour of closed-session deliberation, the fee mentioned it was suggested by its personal counsel that it may transfer ahead, and voted 5-0 to permit the ability, with out discussing the matter additional.

Henrico officers vowed to pursue all choices to cease the ability’s opening.

“It ain’t over until it’s over,” mentioned County Manager John Vithoulkas. “We’ll sit down, regroup and see what (the next moves) are going to be.

“If you had a class of kids, and you presented them with this issue and said, ‘OK, what would the outcome be in a democracy?’ This isn’t what the outcome would be. 

“You know, in 1992 those machines never existed. This is just money buying votes.”

The Racing Commission has sometimes drawn scrutiny for its seemingly conflicting missions to advertise the horse racing trade and convey extra money into it, whereas additionally regulating the playing machines that generate that cash. In a 2022 study, state analysts concluded the Racing Commission didn’t have “adequate staffing, expertise or regulations” to successfully oversee machines like those deliberate for Henrico.

The Colonial Downs spokesperson famous that different Rosie’s areas across the state are additionally primarily based on referendums that have been handed in an analogous timeframe, and mentioned Roseshire has already acquired approval of its security plan from Henrico Police.

The 175 machines coming to Henrico are a fraction of the 1,200 on the Richmond location, which generated about $7.4 million in native tax income final yr.

This yr the General Assembly altered the regulation that beforehand distributed that cash 50-50 between New Kent County, the place the monitor is positioned, and the situation of the Rosie’s itself, and Richmond is now positioned to obtain the complete quantity subsequent yr.

The General Assembly additionally voted to require the monitor to carry a referendum in Henrico, however that provision was eliminated by Gov. Glenn Youngkin.

“I think that speaks to legislative intent when we’re talking about that 2018 bill,” VanValkenburg mentioned. “It speaks to the fact that, if we do end up in a court of law, they’re going to be on the wrong side of it.”

Schmitt famous Henrico’s standing as a prime place to do enterprise as he criticized the monitor for not working with the county.

“When Colonial Downs was sold to Churchill Downs, that’s when the conversation ended,” he mentioned. “Their exact words were, ‘We’re going to do what we want.’ And one thing I will say, they’ve been true to their word.”

Churchill Downs officers described Roseshire as an upscale venue, and mentioned it is going to embody a brand new sit-down restaurant referred to as Crimson Kitchen and a music lounge.

They mentioned the Henrico facility wouldn’t take any enterprise from the Richmond metropolis facility, citing the corporate’s analysis that almost all of Richmond metropolis clients come from inside 5 miles of the ability.

Contact Michael Phillips at [email protected]. Graham Moomaw contributed to this report.