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Draft rules would allow up to 3,000 horse-race gambling machines in Virginia

Bobby Geiger The new owners of Colonial Downs, bought in April by Chicago-based Revolutionary Racing, are planning to operate 10 off-track betting facilities. The state currently has four off-track betting sites: two in the Richmond area, one in Chesapeake and one in Henry County outside Martinsville. Several other localities — the city of Hampton, Scott and Brunswick counties, and the town of Vinton in Roanoke County — have approved off-track betting but do not have any active betting parlors. The machines are expected to be a major revenue stream for Colonial Downs, Virginia horse groups, and state and local governments. Kentucky, one of a handful of other states that allow historical horse race machines, had 1,755 machines in May. For that month, those machines drew in $98.9 million in total bets, paying out $90.8 million to players, a $6.2 million commission for the machine operators and almost $1.5 million in tax revenue. Virginia racing officials said they looked to Kentucky’s historical horse race regulations as a model when drafting their regulations. An economic study commissioned by Revolutionary Racing said that when the reopened Colonial Downs facility reaches “full capacity” in 2022, it could produce 1,400 jobs and an annual economic impact of almost $350 million and generate $41.6 million per year in state and local tax revenue. Most of that money would come from historical horse racing machines, which were key to the sale and planned 2019 reopening of Colonial Downs. The terminals look and feel like slot machines, a likeness that has led to legal challenges and court scrutiny in other states. But because the payouts are generated from pools of player money, the machines fall under pari-mutuel wagering laws that apply to live horse racing.

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