The gaming facility planned for a Henrico County shopping center faces a significant hurdle in Virginia’s General Assembly.
The Roseshire, operated by parent company Churchill Downs, will feature up to 175 historical horse racing machines, but state Sen. Schuyler VanValkenburg (D–Henrico) is pushing back against the company’s plan.
VanValkenburg introduced Senate Bill 1223, which could hamper the project’s potential earnings by limiting how much money the company collects on bets, unless the venue’s approved by voters via ballot referendum or had been permitted by the Virginia Racing Commission before Jan. 1, 2024.
The bill, which was discussed by the Senate’s gaming and general laws subcommittees in January, would reduce the percentage of gambling money the facility can keep. Gaming facilities would also have to pay 10% of that amount in taxes to the state and local governments.
Henrico and Churchill Downs have shared a tenuous history since the Kentucky-based operator purchased Colonial Downs Group and Rosie’s Gaming Emporiums in 2022.
As VPM News previously reported, the permit clash stems from the company’s exclusion of a public approval process to build a gambling facility off of Glenside Drive.
Just as Henrico began to amend its local zoning to require additional public input for historic horse betting machines, Churchill Downs submitted a by-right building permit to county offices before the code update would go into effect.
That law OKing horse racing venues in Virginia was originally granted thanks, in part, to legislation passed in 2018 that permits licensing of historic machines through the Virginia Racing Commission. The measure also allows for betting — through terminals similar to slot machines — to place pari-mutuel wagers on replays of horse races that have already occurred.
Repeated efforts to speak directly with Churchill Downs were snubbed, according to county legislative liaison Mike Schnurman, despite Colonial Downs’ willingness to do so before the $2.5 billion-dollar purchase by Churchill Downs.
“We had this arrangement, and for years it worked because our citizens had the input through their elected representatives,” Schnurman told the Senate gaming subcommittee. “These folks are no longer abiding by the arrangement that we had. … Our board, Republicans, Democrats, every single magisterial district said, ‘Please pull your application, resubmit it, go through a public process.’”
According to him, the company's response was “crickets.”
VanValkenburg told the Senate gaming subcommittee in late January that he hopes this bill will make Churchill Downs reconsider its Roseshire plans and seek a public vote.
“We're not trying to punish the licensee who wants to come into the community and who wants to go through a public process,” VanValkenburg said. “This bill is seeking to incentivize going through a public process.”
Faced with potentially losing millions in revenue, Churchill Downs officials argued VanValkenburg’s bill would hurt business.
Aaron Palmer, a Churchill Downs representative, said the company followed all the laws and regulations set before them when obtaining Henrico County permits. Palmer also said the company was not involved in a previous agreement with Henrico officials about where gaming facilities could be located.
“If enacted, this bill would single out one specific entity, one specific facility with a punitive tax rate designed to put us out of business,” Palmer told the subcommittee. “We oppose this bill because we do not believe the General Assembly should single out one company for punishment when we've played by the rules and follow the law.”
Henrico officials have said the planned betting parlor is too close to residential areas and residents should have a say in whether it opens. VanValkenburg said Henrico is not trying to ban gambling, but officials want a public process where the community can vote on whether such a facility should be allowed.