State budget requires referendum on Staples Mill gaming facility

Roseshire operates under the Rosie’s Gaming Emporium umbrella, owned by parent company Churchill Downs. Plans would bring up to 175 historical horse racing machines, plus a restaurant and bar, to a building near the intersection of Staples Mill Road and Glenside Avenue.

Historical horse racing uses slot machine-like terminals for patrons to bet on undisclosed, previously run horse races.

The Roseshire plan has sparked debate and drawn criticism from Dan Schmitt, chair of the Henrico Board of Supervisors, and Sen. Schuyler VanValkenburg, D-Henrico, who petitioned the General Assembly to pass legislation.

Both the Virginia House and Senate approved a budget Saturday that added new language regulating off-track betting — or pari-mutuel wagering — on historical horse racing.

New wording would prohibit the Virginia Racing Commission from awarding a license to gambling facilities in counties that did not pass a referendum on pari-mutuel wagering on or after July 1, 2018, or a county where no pari-mutuel facility was authorized before Jan. 1, 2025.

Both requirements have not been met in Henrico and would require approval by residents via a referendum.

VanValkenburg submitted the language as a bill, SB 1223. It passed the Senate Finance and Appropriations subcommittee 13-1 before it was incorporated into the Senate’s budget. It was later included in the House budget and passed by both chambers. Gov. Glenn Youngkin now has to approve it.

“I’m glad that the General Assembly simply agreed that Henrico citizens should have a voice,” said VanValkenburg, who admits he isn’t a fan of gambling in the first place. “But that’s not the posture of everybody, and it should be left up to the citizens of Henrico to be able to make that choice.”

Churchill Downs, chamber opposed bill

In a statement, Churchill Downs said the legislature’s inclusion of the language sends a “troubling” message to Virginia businesses that they could be “arbitrarily” punished even while adhering to laws and regulations.

“Virginia’s reputation as a business-friendly state is based on the belief that the Commonwealth keeps its word and governs in a thoughtful, transparent manner,” the company wrote. “These provisions seriously undermine any businesses’ ability to make long term investment and hiring decisions knowing that the rules could change on a whim.”

Churchill Downs has already been granted building permits by Henrico and says it has spent $4.5 million renovating the vacant space at Staples Mill Shopping Center.

The Virginia Chamber of Commerce responded along similar lines, saying that “predictability and fairness” are an important reason behind Virginia being “the best state for business and a great place to conduct business.”

“We are extremely concerned about the message that the amended budget sends to companies looking to invest in Virginia when rules, regulations and laws are changed in unpredictable ways, especially when businesses are being good corporate citizens and following the law,” said Barry DuVal, president and CEO of the Virginia Chamber of Commerce.

Del. Michael Jones, D-Richmond, a former Richmond City Council member, has presided over the area where Rosie’s opened off Midlothian Turnpike. That Rosie’s was similarly built as a by-right development through business zoning, without the requirement for city input.

“I support the right for the locality to decide,” he said. “In Richmond, we didn’t have that right ... I know how that feels to not have a say, but that’s not Churchill’s fault.”

The Richmond Rosie’s was brought by a different group, P2E.

Jones says, however, that the Rosie’s has been a good partner since it was built. It has purchased and renovated a property, pledged half a million dollars over five years to a nearby elementary school and honored the city’s desires on safety features like cameras and lighting, all without being required in writing.

“They didn’t have to do that, but they did, and I appreciate the fact that they did that,” Jones said.

‘Bad for business’

Henrico has been clear throughout the entire fight that Churchill Downs did not violate any laws while pushing Roseshire forward. Rather, lawmakers say they are upset that Churchill Downs filed building permits just days before Henrico passed a law that would require any gambling site be approved by the Board of Supervisors.

By filing those permits before the Henrico board cast its final vote in a monthslong process, the company had every right to build up to 175 historical horse racing machines. VanValkenburg and Schmitt said it was disingenuous and a purposeful circumvention of the incoming law.

“For decades, businesses have come before the public,” Schmitt said. “Dentist offices, gas stations, you name it — they have brought their case before the public.”

“I think it’s bad for business to do whatever you want to do in Henrico County, or any county, and intentionally avoid hearing from the public.”

At a town hall in December that drew over 100 people, Schmitt said Rosie’s previously approached Henrico for a similar project when it was then owned by Colonial Downs. After one site proved unfeasible, the county said it was unsupportive of further projects, and it was abandoned.

Rosie’s revived interest in the project in 2023 under the new ownership of Churchill Downs.

1992 referendum

The company said during a subcommittee hearing that the county “discouraged” it from building in Short Pump and “preferred” the location at Staples Mill, while asking it to create a distinct brand for the gaming site.

County Manger John Vithoulkas said that as soon as Henrico found out Churchill Downs wanted a site on Staples Mill, the company was asked to reconsider, saying that it could have a detrimental impact on the area given its lower socioeconomic population.

Henrico voters previously approved pari-mutuel betting via a 1992 referendum. At the time, the referendum was targeting off-track betting for live horse races in satellite jurisdictions around the state, rather than allowing betting solely at the racetrack.

Virginia approved historical horse racing machines through the General Assembly in 2018. The Virginia Racing Commission advised that such machines could be grandfathered into legality through Henrico’s 1992 referendum.

VanValkenburg and Schmitt say the 1992 referendum asked voters to approve a completely different type of off-track betting than the current historical horse racing terminals, which they equate to slot machines.