The owner of New Kent County’s Colonial Downs has announced the track will close Nov. 1, a move that will cost hundreds of jobs and, for the time being, end betting on thoroughbred horse racing in Virginia.
The shutdown comes after almost a year of failed negotiations between the track and the Virginia Horsemen’s Benevolent and Protective Association, which represents horse owners and jockeys across the commonwealth. State law prohibits betting on any thoroughbred horse racing in Virginia unless there is a contract in place between the track and a horsemen’s association.
Earlier in October, the owner, Jeffrey P. Jacobs, said he would close the track if the Virginia Racing Commission did not approve a contract between the track and a new horsemen’s association, the Old Dominion Thoroughbred Horsemen’s Association. VHBPA Executive Director Frank Petramalo Jr. said then the new group was a “sham” that had been set up by Colonial Downs to bypass his organization.
At a Thursday VRC meeting, the owner, Jeffrey P. Jacobs, told the commissioners in a statement he understood from private conversations the commission would not support the new horsemen’s group. Prior to the announcement, the commission was slated to consider the request to create the new group.
He then said he was withdrawing his request for approval of the new group to avoid putting the industry through “a painful public hearing which will benefit no one, and will just serve to polarize all the Virginia stakeholders.” As part of the withdrawal, Jacobs surrendered the license that allowed the track to conduct betting on thoroughbred horse racing.
Therefore, all forms of horse racing will end at the track effective Nov. 1. The track maintains eight satellite wagering locations across the state — where bets can be made on races in Virginia and across the nation when a contract is in place — which will also close. Despite the closures, Colonial Downs Spokesman Jay Poole said the Dogwood Classic, a springtime steeplechase race, will still be held.
In January — the last month there was a contract in place — the track employed 177 employees in New Kent County and at the eight satellite wagering locations. All of those jobs will be lost due to the closure, Poole said.
He said Jacobs does not currently intend to sell the track.
In his statement, Jacobs said the “glory days” of horse racing in Virginia have “faded into memory.”
“In recent years, as our purses have become less and less competitive in the Mid-Atlantic and national markets, we have not attracted the same quality of horses,” Jacobs said. “The betting public has voted and the amount wagered on our races has steadily declined.”
Jacobs also said competition from alternate forms of gaming have worsened problems at the track.
Bernard Hettel, VRC’s executive secretary, said the commission is open to receiving a proposal from another group interested in receiving a license to conduct betting on thoroughbred horse racing.
“It’s certainly unfortunate,” Hettel said of the closure. “Colonial Downs has been a good corporate citizen for 17 years of race meets. It’s a sad day for Virginia racing, so we’ll have to see how we can recoup and go on.”
At the heart of the dispute between VHBPA and the track was the racing calendar for 2014. The horsemen wanted a longer race schedule to have more chances to run their horses and win prize money to recoup the costs they have to transport, train and house the animals. The track wanted less race days to concentrate betting and attract higher-quality horses to a smaller but more exclusive series of races.
The track last held thoroughbred horse races in 2013, when there were 25 race days. Since Colonial Downs opened in 1997, has often featured 30 to 45 race days for the thoroughbred season.
During the negotiations between VHBPA and the track, several numbers have been exchanged. In March, Colonial Downs advocated a six-day racing season, while the horsemen wanted 28. By October, the track was willing to have 20 racing days with the new association, had it been approved by the commission.
Four of the wagering locations closed when the last contract expired at the end of January, however the other four remained open.
Related Coverage:
- Colonial Downs Threatens to Close Unless State Regulators Agree to Deal
- Colonial Downs to Take Virginia Racing Commission to Court
- Racing Commission to Colonial Downs: Accept 2015 Schedule by July 1
- Colonial Downs Suspends Negotiations with Horse Owners, Trainers
- Contract Dispute Continues to Pause Betting at Colonial Downs
- Contract Dispute Pauses Off-Track Betting at Colonial Downs
