Colonial Downs to Close its ADW Operation
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Although other advance-deposit wagering options in Virginia remain, Colonial Downs announced April 7 that it will immediately shut down its EZ Horseplay ADW site.
The move was not unexpected as state lawmakers are moving on legislation that would reallocate ADW funds that previously were sent to Colonial Downs for its live race meet to the Virginia Equine Alliance, which hopes to conduct live racing in the state this year should Colonial continue to balk. Colonial Downs surrendered its racing license last year after it failed to reach an agreement with horsemen who prefer a longer meet, while track owner Jeff Jacobs has pushed for a shorter meet with bigger purses.
The legislation would shift funding that formerly was sent to Colonial, as the racing license holder, to a "non-profit industry stakeholder organization," which would be the VEA. A fee of 9% of all ADW wagers made within Virginia has been split between horsemen and the racing license holder, which had been Colonial.
The VEA includes the Virginia Thoroughbred Association, the Virginia Horsemen's Benevolent and Protective Association, the Virginia Harness Horse Association, and the Virginia Gold Cup. It was formed in November following the decision by Colonial Downs to surrender its racing license.
Colonial said money from ADW revenues in the state had generated about $2 million annually in operating funds. While EZ Horseplay will be closed, state residents will be able to wager through nationally recognized ADW sites like TVG, TwinSpires.com, and XpressBet.com.
EZ Horseplay customers will need to close their accounts. Through the end of the month, they will be able to withdraw funds at one of the 75 sites around Virginia that has a kiosk. They also can contact EZ Horseplay to complete any withdraws and close their accounts.
Colonial Downs said at one time it employed 600 people but this week it will let go the remainder of its employees.
The Virginia Racing Commission is scheduled to meet Wednesday, April 8, and the Virginia Equine Alliance is on the agenda to comment. Colonial Downs is not listed on the agenda.
On Tuesday, Colonial said it will continue to pursue an agreement with a new horsemen's organization. Currently for a track to receive a racing license, it has to have an agreement in place with a recognized horsemen's group. To this point, the VRC has recognized only the Virginia HBPA but Jacobs believes that could change.
"Twenty 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 racetracks are closing throughout the country we continue to be committed to running high quality, nationally recognized races at Colonial Downs," Jacobs said in a statement. "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."