Virginia
Racing
Commission
2003 Annual Report
Credits
Photographs in this report have been
provided courtesy of Colonial Downs
and Track Photographer Jeff Coady
Commonwealth Of Virginia
Virginia Racing Commission
10700 Horsemen’s Road
Post Office Box 208
New Kent, Virginia 23124
(804) 966-7400; Fax (804) 966-7418
January 5, 2004
TO: THE HONORABLE MARK R. WARNER, GOVERNOR OF VIRGINIA,
AND THE MEMBERS OF THE GENERAL ASSEMBLY
Pursuant to the provisions of the Code of Virginia Title 59, Chapter 29, Section
59.1-369 relating to horse racing with pari-mutuel wagering, it is my privilege and
pleasure to submit herewith the 2003 Annual Report of the Virginia Racing Commission.
The pari-mutuel horse racing industry in Virginia represents an important segment
of the Commonwealth’s economy not only from the operations of Colonial Downs and its
satellite wagering facilities, but also through the agribusiness activity represented by the
breeding, training and related support activities for race horses throughout the
Commonwealth.
Late in 2003, a new satellite wagering facility was opened in south Richmond. In
November, a referendum was passed in Vinton that will result in a new facility opening in
that area in mid 2004. Additional purse money generated at the two new facilities will
help provide more live racing days in future years at the New Kent racetrack for both
thoroughbred and standardbred (harness) owners and breeders.
The Racing Commission remains committed to insuring the integrity of racing for
its participants and patrons and appreciates the support it has received from the
Administration and the General Assembly.
Respectfully Submitted,
Stanley K. Bowker
Executive Secretary
__________________________________
Virginia Racing Commission
Chairman
Robin Traywick Williams
Crozier
Anne D.W. Poulson
Orange
Alan I. Kirshner
Montpelier
James G. Davis
Middleburg
Peter C. Burnett
Leesburg
Staff
Stanley K. Bowker -- Executive Secretary
William H. Anderson -- Director, Policy & Planning
Nick A. Christner -- Director, Security
Marvin A. Sniegon -- Director, Finance
Kimberly M. Carter -- Office Administrator
Dennis E. West -- Permit Manager
Joseph M. Roney -- Assistant Permit Manager
___________________________________________
Virginia Racing Commission
2003 Annual Report
Contents
Executive Secretary’s Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Commissioners and Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Activities of the Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
About Colonial Downs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Richmond Satellite Facility . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Chesapeake Satellite Facility . . . . . . . . . . . . . . . . . . . . . . . . . 9
Hampton Satellite Facility . . . . . . . . . . . . . . . . . . . . . . . . . 1 0
Brunswick Satellite Facility . . . . . . . . . . . . . . . . . . . . . . . . 1 1
South Richmond Satellite Facility . . . . . . . . . . . . . . . . . . . 1 2
State and Local Pari-mutuel Tax Revenues . . . . . . . . . . . . . . . . . . 1 3
2003 Thoroughbred Meet Statistics . . . . . . . . . . . . . . . . . . . . . . .. 1 4
2003 Harness Meet Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 5
Breeders Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6
Audit Report for Fiscal Year Ended June 30, 2003 . . . . . . . . . . . . 1 7
_______________________________________________
Activities of the Commission
Title 59, Chapter 29, known as “The Racing Act,” became
effective on January 1, 1989. It vested the Virginia Racing Commission
with control of all horse racing with pari-mutuel wagering that is
conducted in the Commonwealth. The Act was approved by Virginia
voters in the 1988 General Election.
Horse racing with pari-mutuel wagering is permitted in the
Commonwealth for the promotion, sustenance and growth of a native
industry, in a manner consistent with the health, safety and welfare of the
people
The Racing Commission is vested with plenary power to prescribe
regulations and conditions under which racing and wagering shall be
conducted, so as to maintain horse racing in the Commonwealth of the
highest quality and free of any corrupt, incompetent, dishonest or
unprincipled practices and to maintain in such racing complete honesty
and integrity.
The Rules Committee was very busy throughout 2003 as it
completed a review of a majority of the Commission’s Regulations and
recommended a number of changes that were approved by the full
Commission.
The 2003 General Assembly enacted a new statute requiring the
Commission to license and regulate advance deposit account wagering
companies that have been operating in Virginia. The new statute went
into effect on July 1, 2003 and on that same day the Rules Committee
recommended approval of proposed emergency regulations to meet the
legislative mandate.
The Commission’s emergency regulations became effective on
August 22, 2003 at which time known account wagering companies were
notified the regulations were in place and the Commission stood ready to
accept applications for licenses.
As of December 31, 2003, four license applications were on file
with the Commission, background reviews were underway and the
Commission is expected to approve the appropriate applications during the
first quarter of 2004.
During 2003, the Commission was also busy with its oversight of
the Commonwealth’s satellite wagering facilities. Four facilities
previously had been opened: Chesapeake and Richmond in 1996,
Hampton and Brunswick in 1997.
In 2003, Colonial Downs applied for and was granted a license to
build a second satellite wagering facility in Richmond. Located at 6550
Hull Street, the new facility serves the south Richmond area.
The Hull Street facility opened on November 12, 2003 and for the
balance of the year, 8,634 people visited the new facility and wagered
$2,000,000.
November provided another important milestone when the
residents of Vinton voted to accept a new satellite wagering facility
in their community. Colonial Downs is exploring possible sites and is
expected to apply for a license in early 2004.
Virginia statutes limit satellite wagering facilities to six (6)
throughout the state and Vinton will become the sixth and final facility
permitted under current law.
Total Pari-Mutuel Handle
Total Total Racing Daily Average Per-Capita
Year Handle Attendance Days* Attendance Wagering
1996 $ 36,952,607 178,570 338 528 $ 206.94
1997 95,094,161 578,831 840 689 164.29
1998 120,717,190 446,859 1,381 324 251.65
1999 121,324,249 544,744 1,351 305 222.72
2000 121,754,800 490,868 1,540 319 248.04
2001 123,879,396 511,856 1,445 354 242.02
2002 124,064,569 523,216 1,441 363 237.12
2003 130,382,875 552,632 1,534 360 235.93
Total $ 874,169,847 3,827,576 9,870 388 $ 228.39
* Includes live racing days and days of operation at satellite wagering facilities
____________________________________________________________
About Colonial Downs
It has been more than seven (7)) years since the owners of Colonial
Downs brought pari-mutuel horse racing to Virginia. Satellite wagering
facilities were opened in Chesapeake and Richmond in 1996.
But it wasn’t until September 1, 1997 that Colonial Downs staged
its first live meet—30 days of thoroughbred racing. Harness racing joined
the schedule in 1998 and since that time both breeds have run annual
meets at the New Kent facility.
As stated in § 59.1-364 of the Code of Virginia, horse racing with
pari-mutuel wagering is permitted in the Commonwealth for the
promotion, sustenance and growth of a native industry. As a result, the
stakeholders in Virginia have worked extremely well together to build the
horse breeding and racing industries. Quality racing has always been the
goal in Virginia as it strives to build the horse industry in the
Commonwealth.
Now owned by Jeffrey and Richard Jacobs’ Jacobs Entertainment,
Colonial Downs has developed a reputation as the thoroughbred turf
racing capital of the nation. Typically more than 80% of the thoroughbred
races run at Colonial Downs are on the 180-foot wide Secretariat Turf
Course, named after Virginia’s famous Triple Crown winner.
The highlight of the thoroughbred season is the $500,000 Virginia
Derby, a race for some of the top three-year-olds in the country. A panel
of experts reviews all stakes races run in the United States and has
awarded the race a Grade 3 status for 2004.
On Virginia Derby Day 2003, a Virginia record pari-mutuel handle
of $2,473,385 was established.
The standardbred (harness) industry has also tried to bring quality
racing to the Commonwealth. Virginia was the host of the 1998 Breeders
Crown races, harness racing’s championship event. It was televised on
ESPN.
Annually, the harness meet features a one-turn mile for most of its
races. As a result, a number of record times have been established in
Virginia.
For Colonial Downs and the horse racing industry in the state,
2003 was a very good year. Among the highlights were:
• The state-wide pari-mutuel handle set a record of $130,382,875;
• A total of 470,590 attended the races at the track and satellite
wagering facilities;
• A fifth satellite facility was opened in south Richmond;
• A referendum was passed in Vinton which allows Colonial
Downs to apply for a sixth satellite wagering facility;
• Pursuant to a new statute passed by the General Assembly,
regulations were adopted that place advance deposit account
wagering in Virginia under the jurisdiction of the Commission.
As a result of the efforts in 2003, the horse racing industry in
Virginia is poised to continue to grow.
Live Thoroughbred Racing
Daily Average Daily Average Daily Average On-Track
On-Track Handle Total Handle Attendance Per Capita
1997 $ 183,594 $ 939,400 3,620 65.71
1998 141,154 881,473 2,263 75.03
1999 107,881 975,854 1,628 87.50
2000 90,589 872,617 1,247 109.81
2001 117,818 1,103,188 1,940 85.48
2002 140,067 1,193,826 2,202 86.95
2003 140,305 1,203,009 2,193 86.30
Live Harness Racing
Daily Average Daily Average Daily Average On-Track
On-Track Handle Total Handle Attendance Per Capita
1998 $ 56,661 $ 172,875 1,379 56.21
1999 41,319 193,175 909 62.31
2000 19,270 147,575 258 148.76
2001 30,912 163,934 486 105.54
2002 30,860 154,869 478 117.01
2003 34,585 148,145 580 101.50
_________________________________________
Richmond Satellite Wagering Facility
4700 West Broad Street
Richmond, VA. 23230
20,000 Sq. Ft.
The Richmond Satellite Wagering Facility is centrally located on Broad Street, which is
one of the main thoroughfares in Richmond. The facility can accommodate up to 500 patrons
with smoking and non-smoking preferences, one central main bar area, and teller lines for up to
23 tellers. The facility also has a VIP room with a full bar and tellers for patrons who prefer more
privacy. The facility has parking capacity for 350 vehicles.
Statistics
Number Daily Daily
of Race Total Average Total Average
Year Days Attendance Attendance Handle Handle
1996 21 17,403 829 $ 3,391,418 $ 161,496
1997 363 206,530 569 51,556,304 142,028
1998 363 178,841 493 50,183,501 138,247
1999 361 173,378 480 51,347,173 142,236
2000 361 162,921 451 49,096,147 136,000
2001 362 164,372 454 50,475,896 139,436
2002 360 159,222 442 49,986,746 138,852
2003 357 156,339 430 47,927,303 134,250
Total 2,548 1,219,006 478 $ 353,964,488 $ 138,919
__________________________________________
Chesapeake Satellite Wagering Facility
3376 South Military Highway
Chesapeake, VA 23323
15,000 Sq. Ft.
The Chesapeake Satellite Wagering Facility is centrally located on South Military
Highway, which is 20 miles form Virginia Beach. The facility can accommodate up to 650
patrons with smoking and non-smoking preferences, one central main bar area, and teller lines for
up to 22 tellers. The facility has parking capacity for 300 vehicles.
Statistics
Number Daily Daily
of Race Total Average Total Average
Year Days Attendance Attendance Handle Handle
1996 317 161,167 508 $ 33,561,189 $ 105,871
1997 363 148,373 409 35,138,043 96,799
1998 363 114,682 316 28,929,078 79,694
1999 360 106,782 297 30,154,358 83,762
2000 362 100,405 277 29,663,510 81,943
2001 362 103,778 287 30,031,322 82,959
2002 361 100,937 280 30,816,019 85,363
2003 359 102,054 284 32,839,851 91,476
Total 2,847 938,178 330 $ 251,133,370 $ 88,210
_______________________________________________________
Hampton Satellite Wagering Facility
1909 Commerce Drive
Hampton, VA 23666
13,500 Sq. Ft.
The Hampton Satellite Wagering Facility is centrally located on Commerce Drive near the
Hampton Coliseum. The facility can accommodate up to 580 patrons with smoking and nonsmoking
preferences, one central main bar area, and teller lines for up to 16 tellers. The facility
has parking capacity for 270 vehicles.
Statistics
Number Daily Daily
of Race Total Average Total Average
Year Days Attendance Attendance Handle Handle
1997 7 1,651 236 $ 327,811 $ 46,830
1998 363 114,679 316 22,765,994 62,716
1999 361 103,945 288 23,298,797 64,540
2000 362 99,618 275 24,999,787 69,060
2001 362 99,718 275 26,083,186 72,053
2002 361 98,362 272 25,058,151 69,413
2003 358 95,064 266 25,947,756 72,480
Total 2,174 613,037 282 $ 148,481,482 $ 68,299
___________________________________________
Brunswick Satellite Wagering Facility
24 Colonial Downs Place
Alberta, VA 23821
20,000 Sq. Ft.
The Brunswick Satellite Wagering Facility is located two miles off Route 1 in Brunswick
County, which is 15 miles from the North Carolina border. The facility can accommodate up to
400 patrons with smoking and non-smoking preferences, one main bar area, and teller lines for
up to 10 tellers. The facility has parking capacity for 500 vehicles.
Statistics
Number Daily Daily
of Race Total Average Total Average
Year Days Attendance Attendance Handle Handle
1997 14 1,460 104 $ 226,146 $ 16,153
1998 292 38,657 132 10,573,166 36,209
1999 269 27,925 104 11,404,545 42,396
2000 279 28,018 100 11,888,170 42,610
2001 265 24,821 94 12,085,136 45,604
2002 259 27,243 105 11,882,404 45,878
2003 292 28,548 98 14,094,878 48,270
Total 1,670 176,672 106 $ 72,154,445 $ 43,206
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South Richmond Satellite Wagering Facility
6550 Hull Street Road
Richmond, VA
11,500 Sq. Ft.
The South Richmond Satellite Wagering Facility opened on November 12, 2003.
The facility can accommodate 300 patrons with seating for 180. Smoking and nonsmoking
areas are provided. The facility employs 45.
Statistics
Number Daily Daily
of Race Total Average Total Average
Year Days Attendance Attendance Handle Handle
2003 48 8,634 180 $ 2,001,182 $ 41,691
Total 48 8,634 180 $ 2,001,182 $ 41,691
______________________________________
About the Breeders’ Funds Breeders’ Funds
Funded by a 1% takeout of all wagering conducted in Virginia,
funds have been established for both thoroughbred and standardbred
horses, their breeders and owners.
For 2003, a record $1,035,181 was generated for the thoroughbred
breeders’ fund bringing the eight-year total to $6,767,905.
Most of the thoroughbred breeders’ fund money is being
distributed during the annual live meet at Colonial Downs, including a
40% bonus for Virginia-breds earning purse money in open competition.
However, Virginia also is the only state in the Mid-Atlantic region to pay
breeders’ awards for home-breds competing in three states—Virginia,
Maryland, and Delaware.
Harness racing, both live and simulcasting, accounts for more than
20% of total wagering in Virginia. As a result, $1,973,072 has been
generated for the standardbred breeders’ fund in the past eight years.
In addition to a viable stakes programs, standardbreds also receive
bonuses for placing in open competition.
The Racing Commission has contracted with the Virginia
Thoroughbred Association to administer the thoroughbred breeders’ fund
program and the Virginia Harness Horse Association to manage the
standardbred breeders’ fund.
Breeders' Funds
Year Thoroughbred Standardbred
1996 $ 263,517 $ 105,288
1997 755,900 195,041
1998 917,484 289,688
1999 915,431 297,811
2000 942,714 274,834
2001 967,123 271,671
2002 970,555 270,091
2003 1,035,181 268,647
Total $ 6,767,905 $ 1,973,072
__________________________________
VIRGINIA RACING COMMISSION
NEW KENT, VIRGINIA
REPORT ON AUDIT
FOR THE YEAR ENDED
JUNE 30, 2003
APA
Auditor of Public Accounts
Commonwealth of Virginia
Virginia Racing Commission
10700 Horsemen’s Road
New Kent, Virginia 23124
(804) 966-7400 • Fax (804) 966-7418
Web Site: www.vrc.state.va.us