Virginia Denies Colonial a Limited License
Blood-Horse
Citing Colonial Downs’ recent history of giving up its racing license, the Virginia Racing Commission on Nov. 17 denied an application from Colonial to conduct a limited race meet.
VRC executive director Bernie Hettel said the commission denied the application based on Colonial giving up its racing license in 2014. In giving up that racing license last year, Colonial also would eventually surrender licenses to operate advance-deposit wagering and off-track betting outlets in the state.
“Largely it was based on previous surrenders of multiple licenses that Colonial had owned and operated,” Hettel said. “The recent history of those surrenders and withdrawals prompted the actions of the racing commission not to grant.”
Colonial surrendered its racing license last year when track owner Jacobs Entertainment and the Virginia Horsemen’s Benevolent and Protective Association failed to come to an agreement on race dates. The track, which because of the disagreement has not offered live racing since 2013, would prefer a shorter meet with larger purses while horsemen would prefer those purses be spread over a longer meet.
In its request Tuesday, Colonial had hoped to offer one day of racing this year followed by 20 dates next season. Jacobs Entertainment chief executive officer Jeff Jacobs expressed frustration with the VRC’s decision.
“As a businessman who has invested over $100 million dollars, blood, sweat, and tears to move Virginia horseracing to major league status, I must say I have never been faced with such a hostile regulatory environment as this one,” Jacobs said. “The members of the VRC are too close to the HBPA to allow them to look at Colonial Downs in a fair and impartial way.”
The VRC has recognized the Virginia HBPA as the official horsemen’s group in the state. Colonial has put forward that it has an agreement with an alternative horsemen’s group, the Old Dominion Thoroughbred Horsemen’s Association, for its limited race meet; but the VRC has not recognized that horsemen’s group.
Colonial also has taken action through the courts. On Nov. 13 Colonial filed a complaint for declaratory and injunctive relief against the Virginia Racing Commission in federal court in Richmond, Va. The filing seeks clarity on what Colonial says are conflicting federal and state laws that have interfered with the VRC granting the track a limited license to conduct Thoroughbred racing.
Colonial also had requested licenses to operate a pair of off-track betting sites but Hettel said that without a racing license, Colonial could not be approved for those licenses. The VRC denied both requests.
Also at Tuesday’s meeting, the license for TwinSpires.com was discussed. Hettel said the Churchill Downs Inc.-owned advance deposit wagering site has not been paying the Virginia Equine Alliance as required. Hettel said later this month he’ll meet with representatives from TwinSpires and the VEA, which counts the Virginia HBPA, the Virginia Harness Horsemen’s Association, Virginia Thoroughbred Association, and Virginia Gold Cup as members; to resolve the issue. On Tuesday the commission took no action against TwinSpires.com, which will be allowed to continue to operate in the state.
“They need to collectively talk and figure out some way of a satisfactory payment plan from money generated through the advance-deposit wagering,” Hettel said.
When Colonial turned in its license to operate its EZ Horseplay ADW site in April, state lawmakers passed legislation allocating ADW funds that were previously sent to Colonial to the VEA, which has taken the lead in scheduling live racing in the state. A fee of 9% of all ADW wagers made within Virginia is split between horsemen and the racing license holder, currently the VEA.
