Chicago-based Revolutionary Racing said Wednesday the company closed on the purchase of the shuttered Colonial Downs for more than $20 million in a move toward bringing back horse racing to New Kent County.
“The return of horse racing to Virginia will mean the creation of new good paying jobs, the generation of much needed tax revenue for the state and localities, and a significant economic impact statewide,” Revolutionary Racing CEO Prentice Salter said in a news release. “In a race, only one horse can come in first; but with the reopening of Colonial Downs, the entire commonwealth will win.”
Revolutionary Racing partnered with Los Angeles-based Peninsula Pacific to buy Colonial Downs from developer and longtime owner Jacobs Entertainment Inc., but did not reveal an exact purchase price in the release. JNB Gaming in Iowa also will be involved in the operations.
Revolutionary Racing chairman Larry Lucas credited recent legislation signed by Gov. Ralph Northam, specifically House Bill 1609 that takes effect July 1, for the purchase decision. The bill allows for betting on historical horse racing through electronic machines. Revolutionary Racing spokesman Mark Hubbard said by phone Wednesday the purchase includes Colonial Downs’ existing off-track betting facilities.
“Gov. Northam is pleased that the legislation he signed recently has helped create an opportunity to revitalize Colonial Downs and Virginia’s horse racing industry,” said spokesman Brian Coy by phone.
Colonial Downs, the state’s only thoroughbred racing venue along Interstate 64 between Richmond and Williamsburg, has been closed since 2014. Hubbard said the venture’s intent is to bring back horse racing in 2019, but the facility may open sooner. He said the owners also will need to wait for historical racing regulations from the Virginia Racing Commission.
“Hopefully, it will increase employment and tourism in New Kent and King William,” said Senate Majority Leader Thomas K. “Tommy” Norment Jr., R-James City County, whose district includes the site.
Over the past two decades, thoroughbred horse racing dropped from 2,300 races to 333 races by 2014, said Debbie Easter, president of the Virginia Equine Alliance and executive director of the Virginia Thoroughbred Association, in the release.
“Our horses are having to race out of state, and they are taking the money, the jobs and the opportunities with them,” Easter said. “Now, with this purchase, made possible by HB 1609, our industry has hope again. Horse racing is coming back to Virginia. And we could not be more excited.”
The announcement cited a study by Richmond-based Chmura Economics and Analytics — and paid for by Revolutionary Racing — that found the reopening of Colonial Downs, along with revenue from historical horse racing, could lead to the creation of more than 1,400 jobs with an annual economic impact of $349.1 million.
According to the Daily Press archives, the loss of the track and thoroughbred season cost New Kent County about 290 jobs, and then county administrator Rodney Hathaway said the county had lost an estimated $400,000 in tax revenue.
The track closed in 2014 following disputes between the owner and the Virginia Horsemen’s Benevolent and Protective Association, which was a nonprofit organization made up of 1,300 thoroughbred owners and trainers who raced at Colonial Downs and awarded purses, according to the archive. When in operation, the track hosted a summer thoroughbred season, including the high-purse Virginia Derby in July.
Hubbard said more details about racing dates and facility upgrades will be released in the coming months.
Staff writer Dave Ress and the Daily Press Media Group archives contributed to this report. Tara Bozick can be reached by phone at 757-247-4741. Sign up for a free weekday business news email at TidewaterBiz.com or follow @TidewaterBiz.
