Colonial Downs to Immediately Close All Horse Racing Wagering Venues
FOR IMMEDIATE RELEASE
April 7, 2015
New Kent, VA – Citing legislation currently working its way through the 2015 Virginia
Legislative Session which will deny Colonial Downs approximately $2 million of
operating funds annually, Colonial Downs announced today the immediate shutdown of
all its remaining pari-mutuel venues. Senate Bill 1097 will reallocate funds previously
used to offset Colonial Downs live racing expenses towards a newly-created Northern
Virginia horsemen’s coalition. This legislation and the ongoing dispute between Colonial
Downs and the Virginia Horsemen’s Benevolent and Protective Association (VHBPA)
have caused Colonial Downs to take the action of closing all racing and wagering venues
including EZ-Horseplay.
“It looks to me like VHBPA, as well as members of the Virginia Racing Commission and
state legislature have decided to make it a priority to give Virginia horses an opportunity
to run against each other in Northern Virginia,” said Jeff Jacobs, CEO of Jacobs
Entertainment, owner of Colonial Downs. “To a certain extent that makes sense.
However, the 800-pound gorilla in the room is the fact that Virginia’s thoroughbred
horses cannot compete against most horses from other states. That is why they do not
race often in other states, and when they do race it is often at the lowest available purse
level. To me this explains why the VHBPA was so strongly opposed to our efforts to hold
high-end races with nationally competitive horses at Colonial Downs. They can’t
compete at that level. Unfortunately, Virginia’s regulatory and legislative pari-mutuel
framework is about to become oriented to subsidizing these horses. That may quiet the
voices of the VHBPA; however, it is poor public policy and does nothing to grow the
native industry.
Stan Guidroz, Regional Vice President of Jacobs Entertainment added, “We understand
the political desire to accommodate the owners of race horses that reside in Virginia
today, however, we don’t think that it should be at the expense of a world class turf
course run by people who want to bring world class racing to Virginia for decades to
come. We had been hopeful that the Virginia Racing Commission would approve our
request to enter into a long-term contract with an alternative horsemen’s group, who
unlike VHPBA, shares our goal of high-end racing. Unfortunately, the VRC has shown
no willingness to grant such approval. The VHBPA and the Virginia Gold Cup have
secured legislative support moving the focus of Virginia horse racing to Northern
Virginia. That has come at the expense of our 20-year effort to grow thoroughbred racing
in New Kent County. We laid off our remaining employees this week. Previously, we
employed over 600 people, and generated millions of dollars each year for Virginia as
well as for the industry statewide.”
Jeff Jacobs concluded, “20 years ago political and business leaders of Virginia asked the
Jacobs family to make a significant investment in Virginia. We invested over $80 million
in an industry that has gone through a significant transition over that time. At a time
when many race tracks are closing throughout the country we continue to be committed
to running high quality, nationally recognized races at Colonial Downs. We still aspire to
return the Virginia Derby to a nationally televised event, creating a new major league
sporting event in Virginia. All we need is a level regulatory and legislative playing field.
Now that we and the VHBPA have gone our separate ways, there will potentially be two
venues for thoroughbred racing in Virginia. I hope the VRC will not look at the industry
in terms of winners and losers. There is a potential win-win scenario. We need approval
of a contract between Colonial Downs and a group of horsemen who are aligned with our
goal of bringing high-end racing to Virginia. We believe the VRC has the authority to
allow us to enter into such a contract which would allow us to begin a conversation
regarding hosting a 2015 Virginia Derby this fall.”
Information for EZ Horseplay customers
EZ Horseplay customers will need to close their accounts and have 2 choices to withdraw
account balances:
1) Withdraw funds at one of the 75 sites around Virginia that has a kiosk before the end
of April.
2) Contact the business office 1-877-374-7907 to have a check mailed for the balance
of the account.
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