Pari-mutuel wagering; historical horse racing, percentage retained for distribution.
HB2432 amends Virginia’s pari-mutuel wagering statute to revise how wagering pools are divided among the Commonwealth, localities, racetrack operators, horsemen, and several horse-industry-related funds and organizations. The bill covers live horse racing, simulcast racing, and historical horse racing, and it sets different distribution formulas depending on the type of wager and whether the wagering occurs at a racetrack or satellite facility. It also preserves Commission approval over approved retainage percentages, pool commingling for simulcast wagering, and related contractual arrangements.
A major feature of the bill is its treatment of historical horse racing terminals. For the first 3,000 authorized terminals and for the 2,000 terminals authorized under prior 2020 legislation, the bill specifies the percentage retained from pari-mutuel pools and directs portions to local governments, the Problem Gambling Treatment and Support Fund, the Virginia Breeders Fund, veterinary and horse-industry entities, and the Commonwealth’s general fund. The bill also continues to direct breakage and unredeemed ticket proceeds to operators and capital improvements, while creating a Racing Benevolence Fund for counseling and related programs.
The bill would amend and reenact § 59.1-392 of the Code of Virginia, changing the statutory distribution of pari-mutuel wagering revenues across multiple categories of horse racing and historical horse racing. It would affect racetrack operators, satellite facilities, local governments, the Commonwealth’s general fund, the Virginia Breeders Fund, the Virginia-Maryland Regional College of Veterinary Medicine, the Virginia Horse Center Foundation, the Virginia Horse Industry Board, the Virginia Thoroughbred Association, and the Problem Gambling Treatment and Support Fund. It also maintains the Commission’s role in approving retainage percentages and related agreements, and it clarifies that pari-mutuel pools and license taxes are excluded from gross receipts for local business tax purposes.
The bill did not advance and was stricken from the docket by the House General Laws Committee on a 21-0 vote, indicating no recorded opposition in the vote itself but also no committee support to move it forward. Because there were no committee transcripts provided, there is no documented floor or committee debate to show broader public or stakeholder sentiment. The unanimous procedural action suggests the bill was not controversial enough to generate a divided vote, but it also did not receive enough support to remain active.
The main policy issue is how wagering revenue should be allocated among the state, localities, racetrack operators, horsemen, and horse-industry programs, especially for historical horse racing terminals. Potential points of contention include the size of the license tax retained by the Commonwealth versus the share returned to localities and industry funds, the treatment of breakage and unredeemed tickets, and the inclusion of specific entities such as the Shenandoah County Fair Association and Great Meadow Foundation in the historical horse racing distribution formulas. Another likely area of concern is the expansion or restructuring of historical horse racing revenue streams, which can raise questions about gambling policy, local fiscal impacts, and support for problem-gambling services.