Horse racing and pari-mutuel wagering; amends definition of breakage.
HB2166 revises Virginia’s horse racing and pari-mutuel wagering statutes, primarily by updating definitions and redistributing how wagering revenue is retained and allocated. The bill amends the definition of “breakage” so that, for historical horse racing, it means odd cents above the nearest dime, while for other horse racing it means odd cents above the nearest penny. It also updates related definitions for horse racing facilities, satellite facilities, simulcast wagering, and historical horse racing to reflect current industry structure and licensing terminology.
The bill makes detailed changes to the statutory formulas governing the percentage of pari-mutuel pools retained from live racing, simulcast racing, and historical horse racing. It specifies how those retained amounts are divided among the Commonwealth, localities, operators, purses, the Virginia Breeders Fund, veterinary and industry organizations, and the Virginia Thoroughbred Association. It also changes the treatment of “legitimate breakage,” directing a portion to the Problem Gambling Treatment and Support Fund and a Racing Benevolence Fund, while preserving some use for capital improvements. The bill further addresses payment timing, approval of contractual distribution agreements, and allocation rules when a satellite facility spans multiple localities.
HB2166 would amend and reenact sections 59.1-365 and 59.1-392 of the Code of Virginia, affecting the legal framework for horse racing, pari-mutuel wagering, historical horse racing, and simulcast wagering in the Commonwealth. Its practical effect is to revise how wagering proceeds are calculated and distributed among state government, local governments, racetrack operators, horsemen, breeders, and related industry and support organizations. It also expands the statutory role of the Problem Gambling Treatment and Support Fund in the disposition of breakage and historical horse racing proceeds, while preserving existing funding streams for racing and equine-related entities.
The bill appears to have broad support in the House and committee process. It was reported from subcommittee and full committee unanimously, and it passed the House by a wide margin, indicating generally favorable sentiment toward the measure. The available record shows no recorded committee testimony or public debate in the provided materials, so the overall tone appears positive and largely noncontroversial at the voting stage.
The main areas that could generate concern are the redistribution of wagering revenue and the use of breakage, especially the shift of a portion of breakage to the Problem Gambling Treatment and Support Fund rather than exclusively to operator or industry uses. Stakeholders most likely to care about these allocations include racetrack operators, satellite facility operators, horsemen’s groups, breeders, localities, and industry organizations that receive dedicated shares. The bill’s detailed formulas and the adjustment of percentages based on approved retainage levels could also be a point of scrutiny for those focused on revenue predictability, though no explicit opposition is reflected in the available votes or transcripts.