Harness racing's only one turn oval and the location of the first sub-1:50 trotting mile, Colonial Downs could be dropping Standardbred racing from its menu in 2015.
Earlier this month, Colonial Downs' owner Jeffrey P. Jacobs announced that the track and the associated off-track betting outlets would shutdown on November 1, 2014 unless the Virginia Racing Commission would approve a long-term contract with a newly-formed horsemen's group, the Old Dominion Thoroughbred Horsemen’s Association (ODTHA). The current deal exists with the Virginia Horsemen's Benevolent and Protective Association (VHBPA).
At a meeting of the Virginia Racing Commission of Wednesday, Jacobs returned the thoroughbred and standardbred operating licenses to the VRC and offered the following statement.
Good morning. 17 years ago Colonial Downs initiated live thoroughbred racing in Virginia. Since that time, we have built a national reputation for our turf race course. The track in New Kent, with its doublewide turf course, is a showplace into which we have reinvested millions of dollars. We have put the Virginia Derby on national television. The Virginia Derby and Colonial Turf Cup have attracted over the years the best horses, jockeys and trainers. Horses such as Kitten’s Joy, English Channel and Gio Ponti have raced at our track. Kitten's Joy won the 2004 Secretariat Stakes and had two Grade I wins on his way to Eclipse Award for Outstanding Male Turf Horse. English Channel, trained by Todd Pletcher, won the inaugural Colonial Turf Cup at Colonial Downs and, later that season, the Virginia Derby, the first and second legs of the Jacobs Investments Grand Slam of Grass. He went on to a number of remarkable victories. Gio Ponti became one of the finest American turf horses of all time. As a 3 year old, Gio Ponti won the Grade III Hill Prince Stakes at Belmont, the Grade II Virginia Derby at Colonial Downs, and the Grade III Sir Beaufort Stakes at Santa Anita. By the time he was a three year old he had over $800,000 in career earnings. Unfortunately, this caliber of nationally recognized horse is no longer racing at Colonial Downs.
Our thoroughbred meet employed over 350 seasonal associates. We built a satellite wagering facility network that spanned southern Virginia from Chesapeake to Scott County. We have experimented with mini satellite wagering facilities that have been successful. Our EZ Horseplay kiosk has brought pari-mutuel wagering to over 100 restaurants, private clubs, bowling alleys and other locations resulting in EZ Horseplay being the dominant account wagering company in Virginia. In January of this year, we employed 177 full and part time associates and have been paying over $2 million per year in state and local pari-mutuel taxes.
But the glory days 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. The betting public has voted and the amount wagered on our races has steadily declined. We are well on the path to demise, in part because of the evolution of alternative forms of gaming. America’s race tracks are quickly becoming the case of the haves and have nots. We will not stand by and watch Virginia racing drift to the bottom of the barrel. We aspire to create one of the top thoroughbred racing programs in America. Virginians deserve no less. We will work with those who share our vision; the HBPA does not. A dramatic change is necessary to begin to move Virginia forward.
For 2015, we and the Old Dominion Thoroughbred Horsemen’s Association (ODTHA) have offered the following to reverse this steady decline:
- 20 race days at Colonial Downs starting with the Dogwood Classic on April 4 continuing on Saturdays and Sundays from June 6 through July 26, and including September 5 – September 7, Labor Day weekend. These dates offer multiple racing opportunities for the rank and file Virginia horsemen. Multiple opportunities to race spread out of over the summer are what in recent years these horsemen have requested and Colonial Downs is providing.
- Included in the 20 days are 3 major stakes days which return Colonial Downs to national prominence. These 3 days offer purses that will attract the equivalent of today’s English Channel and Gio Ponti. It is my intent that over time, these 3 days evolve into three weeks of high-end, nationally recognized race meets. These 3 days will be highlighted with three premium races, the first three legs of the Grand Slam of Grass. If any horse owner brings their horse to Virginia and wins all three races during the summer, I will pay them a $1 million bonus. If they win these three as well as the Breeders Cup thoroughbred race in early November, I will instead pay them a $5 million bonus. It is my intent to bring the spotlight of the national media to high quality Virginia racing every summer.
- Support for 6 days of steeplechase racing at sites other than Colonial Downs as a way to support Virginia’s indigenous steeplechase horsemen.
- Allocation of purse money of approximately $6 million 50% to major stakes days, 40% to traditional summer racing and 5% to steeplechase.
- 5% of purse funds allocated to marketing matched by Jacobs Entertainment if the Commonwealth also contributes a like amount.
- Stabling will be available on non-race days for 10 weeks for a fee of $50,000 a week.
- Jacobs Entertainment will contribute $500,000 to the Virginia Breeder’s Fund to help grow the native industry if the Commonwealth contributes an additional $1 million.
- A contract that creates a stable 10 year environment within which to invest and a permanent agreement on purse allocations between high-end and traditional summer racing.
- A mechanism in place to assure that satellite wagering facilities cannot be closed at the end of the 10 year contract term so that Virginia thoroughbred racing never again experiences the shutdown that crippled Colonial Downs this year.
I would like to see quality thoroughbred racing thrive and Colonial Downs move towards its full potential. This is why I put forward this horsemen’s contract. After 17 years, we cannot continue on any other basis. Virginians deserve nothing less. The Virginia HBPA does not share our vision. Therefore, we have signed a contract with the Old Dominion Thoroughbred Horsemen’s Association to provide Colonial Downs with a path to continue traditional summer racing and develop high quality thoroughbred racing in Virginia. This horsemen’s organization is legitimate; it is building membership every day. Over 2,000 Virginians have electronically signed a petition supporting the ODTHA.
Nonetheless, I understand from private conversations that the Commission support is not there for ODTHA and our contract with the ODTHA. Rather than putting our industry through a painful public meeting which will benefit no one, and will just serve to polarize all the Virginia stakeholders, I am now withdrawing Colonial Downs’ thoroughbred and standardbred race day requests and the request for approval of the Old Dominion Horsemen’s contract. I am also at this time turning in Colonial Downs’ unlimited pari-mutuel owners and operators licenses to be effective November 1st so as to be able to complete the current harness meet in an orderly fashion.
I am very proud of all of the Colonial Downs’ associates and proud of what they have accomplished. I am sorry that we have come to this day. Virginia horseracing must change and the change must be dramatic, with all the disruption that dramatic change brings. Colonial Downs, however, cannot effect the change alone and it cannot afford to continue to operate in an environment that offers no possibility for improvement. Candidly the horsemen do not have enough purse money to pay their bills, race a healthy summer meet and grow a high-end nationally recognized boutique meet. The pari-mutuel wagering system in Virginia does not generate enough purse money to the horsemen to satisfy the objectives of maintaining summer racing and building a high-end nationally recognized thoroughbred racing brand. It is a shame that we are where we are. If Virginia’s statewide elected officials who created the pari-mutuel system in the first place could come up with a way for the horsemen to increase their annual purse money, from the current $6 million a year to $15 or $20 million a year, all of the industry objectives could be met. More importantly, Virginia thoroughbred racing would then reach its potential of serving as an important agribusiness outlet while driving hundreds of millions of dollars of growth into Virginia’s agribusiness economy.
I want you to know that in spite of all that has transpired I wish nothing but the best for all in the industry going forward. I thank you for your attention. I will now leave to allow you to continue on with your business. Thank you.