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Re-Opening Colonial Downs in 2019

harness racing at Colonial Downs was unaffected by the 2014 license dispute, but after the 2014 races it too became just a memory

The Colonial Downs race track in New Kent County closed in 2014. Owners of the track were unable to convince the horse owners and the state to reduce the number of days of racing and expand opportunities to earn revenue from gambling not associated with live racing at the track. Closure of Colonial Downs impacted owners of Thoroughbred racehorses in Virginia, and reduced jobs and tax revenues in New Kent County in particular. Even before the track closed, there were numerous proposals to replace and/or re-open Colonial Downs.

Colonial Downs was the only track that offered pari-mutuel betting in Virginia year-round at OTB parlors, but Virginia law already authorized the Virginia Racing Commission to issue a limited license to a non-profit organization for up to 14 days of gambling at other tracks. Legal betting on horse races had occurred at Oak Ridge Estates and Morven Park before Colonial Downs opened, and those venues became the obvious alternatives once Colonial Downs closed in 2014.

After the negotiations between the Colonial Downs track and the VHBPA collapsed in 2015, the governor and the General Assembly agreed to new legislation that authorized 10 off-track gambling parlors that would not be controlled by Colonial Downs. Opening the OTB parlors would re-start the flow of gambling revenue to the horse industry, and help subsidize races at sites other than Colonial Downs.¹

in 2015, with the track at Colonial Downs closed, there was only a 15% dip in revenues from Advance Deposit Wagering (betting via internet/phone)
Source: Virginia Racing Commission, 2018 Annual Report

In October 2015, after closure of Colonial Downs, the Virginia Equine Alliance arranged for four days of harness races with pari-mutuel betting at Oak Ridge Estates. The Virginia Racing Commission has issued a limited license for three weekends of harness races there in 2001. That site suffered from the same handicaps as Morven Park, which had offered Virginia's first licensed pari-mutuel betting in 1991-92. Oak Ridge Estates was too far away, and the customer base was too small. Not enough Standardbred horse owners were willing to travel to a short meet in Nelson County.

Oak Ridge Estates attracted more interest in 2005, when it announced plans to apply for an unlimited pari-mutuel license. The plan was to offer steeplechase races prior to the start of the Colonial Downs Thoroughbred races in June, but the proposal was dropped. Another decade passed before harness racing, with legal betting, returned to Nelson County in 2015.²

While Colonial Downs was still operating, one county fair continued to offer harness racing. Racing has been a tradition at the Shenandoah County Fair since 1917; the $1,000 purses attract horses from as far away as New York and South Carolina. A Wine and Trotter festival started in 2013 to offer an opportunity for racing in the Spring. Until 2016, the races during the Shenandoah County Fair and the Wine and Trotter festival did not offer legal pari-mutuel betting.³

Though Colonial Downs had an exclusive license to offer year-round racing with legalized betting, it was still threatened by potential competition. A developer in Stafford County had drafted another proposal in 2002 to build a second racetrack and get a second license to offer year-round racing with legalized betting, but that proposal never resulted in a formal request for approval by the Virginia Racing Commission.

No track in Virginia was ever been awarded a second unlimited license. Colonial Downs retained its monopoly on OTB facilities between 1996-2014, because the state feared competition would undercut the economic viability of the track in New Kent County.⁴

In 2013, the Virginia Racing Commission authorized short-term betting at the long-running Virginia Gold Cup steeplechase. That event has been held in Fauquier County since 1922. After two years of racing initially at the Oakwood estate, the Gold Cup was moved to Broadview Farm. It was run there until suburban sprawl encroached.

Starting in 1985, the race has been held at Great Meadow. That site is in northern Fauquier County near I-66, on a parcel that was once planned to be developed for housing.⁵

the Gold Cup steeplechase race in Fauquier County dates back to 1922, and got a limited license to offer pari-mutuel betting starting in 2013
Source: Library of Congress, Looking at the gold cup. Horse races at Warrenton, Virginia (1941)

The May, 2013 Gold Cup's wagering was processed in tents with betting machines, using staff brought in from Lexington, Kentucky. The trained clerks were available because the Kentucky Derby was held on the same day in Louisville, Kentucky. A race in nearby Lexington could not compete with that event, but the clerks could find work at the Gold Cup in Fauquier County.

To minimize the time waiting in line for the October, 2013 meet, the Gold Cup used online betting via smart phones. To make that possible, $80,000 was invested to expand the Wi-Fi capabilities at the track.⁶

the Great Meadow steeplechase racetrack (home of the Gold Cup) is near I-66 and convenient for the Northern Virginia population, while the Colonial Downs thoroughbred/harness racetrack was located on I-64 to attract customers from Richmond/Hampton Roads
Source: ESRI, ArcGIS Online

After Colonial Downs closed in 2014, owners of Virginia Thoroughbreds raced their horses in Maryland and other states. In 2015, the Virginia Racing Commission authorized Laurel Race Track in Maryland to host officially three 'graded' Thoroughbred races that had previously been held at Colonial Downs - the Virginia Derby, Colonial Turf Cup, and Virginia Oaks.

The Virginia Equine Alliance endorsed the change, and the Virginia Horsemen's Benevolent and Protective Association committed $800,000 in total purse money. However, Colonial Downs objected to the transfer of races to Maryland. The track claimed it had invested in promoting those races, and had intellectual property rights for their names.

Two Grade II races, the Virginia Derby and the Colonial Turf Cup, were renamed the Commonwealth Derby and the Commonwealth Turf Cup. The Grade III Virginia Oaks race was renamed the Commonwealth Oaks. (Top-graded races, with the best Thoroughbreds racing for the best money, are classified as Grade I.)

Horse races have reputations, like horses, trainers, owners, and race tracks. The American Graded Stakes Committee of the Thoroughbred Owners and Breeders Association grades races, assigns grades based on the amount money awarded to the winners (purse value) and other criteria. Races of a similar grade attract horses of similar talent, creating a competitive setting that spurs betting and generates income for the industry.

Races must be run for at least two years under similar conditions to earn a grade. Failure to host a race for two years results in the grade being withdrawn. The Virginia Racing Commission, with funding from the Virginia Horsemen's Benevolent and Protective Association, preserved the status of three Thoroughbred races by holding them in Maryland.

The Virginia-themed Commonwealth Derby, Commonwealth Turf Cup, and Commonwealth Oaks races have been held at Laurel Park since their inaugural runs in 2015. The Commonwealth Turf Cup was renamed the Baltimore/Washington International Turf Cup in 2017, when all three races were run on 'Commonwealth Day' - in Maryland. After the closure of Colonial Downs, Maryland racing expanded. The primary role of the horse industry in Virginia shifted to breeding and training, rather than racing within the state.

The state racing agency and the Virginia horsemen chose to abandon the All Along Stakes and found no site for it in 2015. That Grade III race had been run since 1998 until Colonial Downs closed. To regain a grade in the future would require two years of offering that race without a grade, making it harder to attract horses, before asking the Thoroughbred Owners and Breeders Association to classify the All Along Stakes again.

Instead, Laurel renamed the Lady Baltimore States as the All Along Stakes race starting in 2017. It was not run on Commonwealth Day. The race once run at Colonial Downs was listed on Laurel's card for Maryland Million Day, 'Maryland's Day at the Races,' three weeks later.⁷

in 2015, three of Virginia's Thoroughbred races moved to Laurel Race Track in Maryland in order to maintain their graded status, before shifting to Morven Park in 2016
Source: ESRI, ArcGIS Online

After Colonial Downs finally closed, the track owner still sought to establish the Old Dominion Thoroughbred Horsemen's Association as an alternative to the Virginia Equine Alliance. The track requested authorization from the Virginia Racing Commission to hold one day of Thoroughbred racing after Thanksgiving in 2015, and 20 days in 2016. It offered a $2,000 incentive for horse owners to join the Old Dominion Thoroughbred Horsemen's Association sponsored by Colonial Downs, in hopes of undercutting the Virginia Equine Alliance.

The application for one day of racing after Thanksgiving in 2015 also blocked the Virginia Racing Commission from granting authorization to the Virginia Equine Alliance to open its own off-track betting facilities.

That maneuver by Colonial Downs put financial pressure on the horsemen's association in 2015. Under the regulations of the state commission, the alliance would be allowed to keep 4% of bets made online to finance purses for races and to cover operational costs. That funding had gone to Colonial Downs, until the track stopped offering Thoroughbred races.⁸

Colonial Downs then filed suit in Federal court claiming that the Virginia Racing Commission's recognition of the Virginia Equine Alliance as the 'majority horsemen's group' violated the Interstate Horseracing Act of 1978.

Once the suit was filed, the track abandoned its proposal to offer one day of racing after Thanksgiving, 2015. Instead, it applied to the Virginia Racing Commission for a license to run four days of Thoroughbred races in the summer of 2016, while postponing plans to offer 20 days of racing until 2017.

The application for 2016 races included working through the track's Old Dominion Thoroughbred Horsemen's Association, not the state-recognized Virginia Equine Alliance, to hold the Virginia Derby and the Colonial Turf Cup. The Virginia Racing Commission quickly rejected that proposal. The state agency insisted that Virginia racing requires relying upon just one horsemen's association, and that the group sponsored by Colonial Downs did not represent the Thoroughbred community in Virginia.

The dispute between Colonial Downs, horse owners, and state officials involved strong personality disagreements and also substantial financial assets. Colonial Downs claims it has invested $60 million to build the track in New Kent County, plus another $8 million to build the OTB parlors. Without a horseracing license, those facilities were closed and generated almost no revenue for the private corporation. The six buildings that housed the former OTB parlors were put up for sale by Colonial Downs in January, 2016, a clear acknowledgement that the racetrack would not be re-opened.

After rejection of the application to hold races in 2016, a representative of Colonial Downs indicated the site of the racetrack in New Kent County held 'significant promise as a golf course development.' The governor's response was not to cater to Colonial Downs, but to endorse moving the authorized racetrack to the northern part of the state:⁹

Virginia should be a home of horse racing... Maybe we should look at it in Middleburg and other areas of the state where it is very prominent.

Legal pari-mutuel betting at horse races in Virginia did not stop with the closure of Colonial Downs. In 2015, the Virginia Harness Horse Association and the Virginia Racing Commission arranged for a harness race meet with pari-mutuel betting at Oak Ridge Estates in Nelson County.

The Virginia Equine Alliance and the Virginia Racing Commission also arranged for Thoroughbred races in 2015 at Great Meadow, after considering the State Fair site in Caroline County. Great Meadow was established as a steeplechase track, but it had a grass surface for flat turf races up to one and a half miles in length.¹⁰

the Great Meadow racetrack near I-66 in northern Fauquier County hosts the Gold Cup steeplechase races
Source: US Geological Survey, Marshall 7.5x7.5 topographic map

For 2016, the Virginia Equine Alliance arranged for Thoroughbreds to race again in two events at Great Meadow in The Plains. The Virginia Racing Commission continued to license pari-mutuel betting at the Virginia Gold Cup and the International Gold Cup, and Virginia Thoroughbreds had dedicated race days in Maryland.

'Mid Atlantic Day' at the Pimlico Race Course in Baltimore featured Virginia-bred horses racing in the morning and Maryland-bred horses in the afternoon. Laurel Park held a separate 'Virginia-Bred Day' race, which it had initiated in 2014.

Laurel Race Course advertises racing days based on horses bred in Virginia, so Maryland received most gambling revenues from Virginia Thoroughbreds
Source: Virginia Thoroughbred Association

The governor's comments to 'look at it in Middleburg' were based on plans to build a Thoroughbred racing track at Morven Park near Leesburg, a 1,000-acre site with the historic home of former governor Westmoreland Davis. The Virginia Equine Alliance made a five-year commitment. Morven Park agreed to convert its turf steepletrack course, unused for steepletrack racing since 2010, into a flat, one-mile turf course for Thoroughbreds. The plan was to offer 'country racing - racing on grass' without a large grandstand.

Colonial Downs had used a dirt track for its major Thoroughbred races. The upgrade to a grass track was expected to help Morven Park compete for the right to host the World Equestrian Games in 2022 or 2026.

The plans for a Northern Virginia racetrack with pari-mutuel betting were abandoned in 2017, in a mutual agreement between the Virginia Equine Association and Morven Park. Costs would have been too high to flatten the steeplechase course and make it suitable for Thoroughbred racing, there were concerns about adequate water supply and runoff pollution in the karst topography, and there were constraints on construction due to potential sinkholes in the limestone bedrock.

In addition, Thoroughbred races at Morven Park could have detracted from other programming at the Morven Park Equestrian Center including horse shows, activities of Loudoun Therapeutic Riding, polo, and training for the Olympics. Instead of converting the steeplechase track into a flat Thoroughbred racetrack, Morven Park chose to support a restart of the steeplechase races in 2018.¹¹

The racetrack at Colonial Downs had capacity for 35,000 visitors. A report on the decision in The Racing Biz included comments from the chair of the Virginia Equine Association that highlighted the difficulty in financing an alternative track to Colonial Downs:¹²

'...we don't generate the kind of revenue you need to build a Colonial Downs-type place... Those are $40 and $50 million facilities, and we just don't have that type of money.'

But if a Colonial-type facility is out of the question, and Morven Park is out of the question, then what?

Unfortunately, in Virginia, we just don't have a someplace else right now...'

the Virginia Equine Alliance chose Morven Park in 2015 to replace Colonial Downs as the site for a two-week Thoroughbred racing meet, but dropped that plan two years later
Source: ESRI, ArcGIS Online

After dropping plans for Morven Park, Powhatan Farm in King George County was considered for the site of a new Thoroughbred racetrack. The 1,000-acre farm has been developed for breeding and training horses since 1952. The Virginia Equine Alliance also searched for a buyer willing to purchase and re-open Colonial Downs in New Kent County.¹³

a racetrack at Powhatan Farm, east of Fredericksburg, would be within a 30-minute drive from I-95
Source: Google Maps

The Virginia Racing Commission re-started off-track betting in 2016, when it authorized the Virginia Equine Alliance to open a Satellite Wagering Facility parlor in the Richmond area. The license was granted for a sports bar in Henrico County on Broad Street (Route 250), six miles west of the previous OTB parlor operated by Colonial Downs. Voters in both Richmond and Henrico previously had approved betting on horse races, and the former Colonial Downs facility was located just inside the Richmond boundary line.¹⁴

the OTB parlor operated by Colonial Downs at 4700 West Broad Street in Richmond was next to the city-county boundary, but voters in both Henrico County and the City of Richmond had approved pari-mutuel betting
Source: ESRI, ArcGIS Online

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Pari-mutuel wagering on harness races in Virginia moved in 2016 to Shenandoah County Fairgrounds. The Virginia Equine Alliance and the Virginia Harness Horseman's Association signed a 20-year contract to hold the Shenandoah Downs meet, to be held each Fall on weekends after the fair concludes.

The Virginia Equine Alliance invested $800,000 to upgrade the half-mile track for harness racing. The first races demonstrated the modified track offered more visibility for customers to see the horses run, in comparison to Colonial Downs where 'spectators watched the races through binoculars or a video screen.' The larger purses, based on revenue from pari-mutuel bets, were intended to attract higher-quality Standardbred horses to the Shenandoah Downs meet after the fair.¹⁵

The Virginia Equine Alliance chose the Shenandoah County site in part because the fairgrounds had fewer scheduling conflicts than Oak Ridge Estates. The fairgrounds is physically closer to the population centers in Northern Virginia and the District of Columbia, so it also had greater potential to attract bettors in person.

In 2017, the second season of pari-mutuel harness racing at the track, was the 100th anniversary of horse racing at Woodstock. It was also the first year bettors could go to an Off-Track Betting parlor in Virginia to lay a wager on the harness races at the Shenandoah County Fairgrounds.¹⁶

the Shenandoah Valley Fairgrounds site is next to I-81's Exit 283, providing easy access for those living in the DC-area who want to gamble on harness races
Source: ESRI, ArcGIS Online

After rejected the proposal of Colonial Downs to establish a separate horsemen's association and return to racing, the Virginia Racing Commission granted the Virginia Equine Alliance authority to open Off-Track Betting parlors. The first two were located in Richmond at Ponies & Pints in Shockoe Slip (downtown Richmond), and at the Breakers Sports Grille in the West End.

Initial plans were to add the next parlor in Hampton, but two other locations were approved first.

In 2017, an Off-Track Betting parlor opened at Buckets Bar and Grill in Great Bridge. Residents in Virginia Beach, Norfolk, Chesapeake, and Suffolk could drive there easily (except at rush hour), while vacationers needing a break on their trip to or back home from the Outer Banks could choose to stop there as well.¹⁷

Buckets Bar and Grill in Great Bridge could attract customers from South Hampton Roads, plus travelers going to and from the Outer Banks
Source: Google Maps

Also in 2017, Virginia Racing Commission and Henry County officials authorized Off-Track Betting at a hotel in Collinsville, seven miles north of the site of the parlor that opened in 2005 and closed in 2014.

the Virginia Equine Alliance highlighted the opening of an Off-Track Betting facilty in Collinsville
Source: Virginia Equine Alliance, Virginia Horse Racing

Perhaps more importantly, the site was less than a 30-minute drive from the North Carolina border on the main road between Greensboro and Roanoke (US 220). Since North Carolina does not permit Off-Track Betting, a parlor near the border could draw customers across the state line.¹⁸

the second Off-Track Betting parlor in Henry County, at the Dutch Inn, was only 12 minutes further away from the North Carolina border compared to the parlor that closed in 2014
Source: Google Maps

In 2018, Revolutionary Racing purchased the Colonial Downs racetrack from Jacobs Entertainment for over $20 million. To sweeten the benefits of the potential deal, Gov. Terry McAuliffe proposed in his last budget to authorize slots-like gaming machines at the track by redefining 'simulcast horse racing.'

The 'historical horse race terminals' would enable gamblers to bet on horse races completed in the past. Some terminals incorporate digitized videos of 60,000 previous races, but gamblers do not know the exact race on which they are betting. They get enough information about the horses to choose the top three finishers. Only after making the bet does a gambler get to see who is racing, then watch a clip or all of the race.

Because the payout based on pari-mutuel odds, the General Assembly does not consider it to be casino gambling. As described in the Richmond Times-Dispatch:¹⁹

The terminals hide the names of the horses and the location and date of the race until the user locks in a wager by predicting how the horses will finish. The machines can display the horses' odds at the time the race was run, injecting an element of skill that makes the game slightly different from the pure luck of slots.

The head of the Equine Alliance supported the proposal, saying:

Race tracks can't make it on live racing anymore... We've got this wonderful world-class facility down there at Colonial Downs that's basically sitting there rotting.

The General Assembly ended up debating the bill separately from the budget. That process made even more clear that a large majority of the legislators approved adding slots-like betting machines to the Colonial Downs site in 2018, facilitating the sale to Revolutionary Racing. The vote in the House of Delegates on HB 1609 was 71-29. The key vote in the State Senate was 23-17, blocking a one-year delay, before final approval by a 31-9 vote.

Advocates for the horse-raising industry in Virginia, together with lobbyists for Revolutionary Racing, made the case successfully that:

- commercial horse farming in Virginia (beyond wealthy homeowners raising a few horses for recreational use) required creating a commercial opportunity for horse racing

- a viable horse racing business required loosing the restrictions on gambling

Opponents to what they called a 'massive gambling expansion' lost the argument. The General Assembly has committed to subsidizing horse farming in Virginia through gambling, including legalizing historical horse racing terminals, satellite wagering facilities (Off-Track Betting parlors), advanced deposit wagering (betting from home over the internet), and live races at Colonial Downs.

Legislators concurred that expanding gambling options was essential to get Colonial Downs restarted. Otherwise, Virginia's horse-raising businesses would relocate near the horse-racing tracks in Pennsylvania, Kentucky and Maryland. After Colonial Downs closed in 2014, Maryland added 30 days to its racing calendar. That filled the summertime space when horse operations in Maryland used to migrate to New Kent County.

the logo for New Kent County includes a horse head, in recognition of the Colonial Down track
Source: New Kent County

Revolutionary Racing anticipated it would invest $50 million to restart live horse racing at Colonial Downs and open a Rosie's 'gaming emporium' there. Total revenue from gambling would, after five years, was projected to exceed $200 million. Only $7 million would come from 25 Thoroughbred race days at Colonial Downs, plus an additional $1-2 million from three days of steeplechase racing.

the General Assembly approved historical horse race terminals in 2018, so that revenue would incentivize Revolutionary Racing to re-open Colonial Downs
Source: Revolutionary Racing, The Economic Impact of Colonial Downs in Virginia (p.5)

Off-Track Betting terminals would generate $30 million and advanced deposit wagering would generate $5 million. Historical horse race terminals, in a facility operating 24 hours/day and 7 days/week at Colonial Downs and in Off-Track Betting parlors, could generate $160 million in total revenue. That included $26 million in annual tax revenue, plus $18 million for the horse industry. The $18 million would be distributed according to a formula in state law among the Virginia Breeders Fund, Virginia-Maryland Regional College of Veterinary Medicine, Virginia Horse Center Foundation, Virginia Horse Industry Board, and Virginia Thoroughbred Association ' to sustain and promote the growth of a native industry.'

Gamblers were expected to bet $12,000/day on each machine, with 96% of the bets returned as winnings. Revolutionary Racing will keep 2.75%.

The 1.25% state share was projected to generate $150 daily per machine. The state will keep 0.75% of its 1.25% tax.

The other 0.5% of the state's share goes to New Kent County for machines at Colonial Downs. For machines at Off-Track Betting facilities, the local share will be divided. New Kent County will get 0.25%, and the other 0.25% will go to the jurisdiction in which the Off-Track Betting facility is located. As many as 1,400 jobs could be associated with the re-opened horse track.

The state will split its 0.75% share with the Virginia Equine Alliance. For the first $60 million in revenue, the state will transfer 6% to the group. Above $60 million, the Virginia Equine Alliance will get 7% of the state's share.

When Revolutionary Racing entered the market, eight localities had already authorized Off Track Betting parlors: the cities of Richmond, Hampton and Chesapeake; the counties of Henrico, Henry, Brunswick and Scott; and the town of Vinton in Roanoke County. The Virginia Equine Alliance was operating just four parlors. All were in sports bars: Breakers Sports Grille in Henrico County east of Short Pump, Ponies & Pints in Richmond's Shockoe Bottom, Buckets Bar and Grill in Chesapeake, and The Windmill at the Dutch Inn motel in Henry County (Collinsville).

in 2018, eight localities had authorized Off Track Betting parlors but only four (blue) had one in operation
Source: Wikipedia, Map of Virginia's counties and cities

Revolutionary Racing agreed to purchase those facilities from the Virginia Equine Alliance for $10 million. The new racetrack owner projected that it would generate 80% of its anticipated $200 million in annual revenue by 2022 from historical horse racing terminals. That could affect the atmosphere in the neighborhoods that had hosted the Off Track Betting parlors. As one observer noted:²⁰

They're going to be surprised when they wake up one day and there's 300 slot machines around the corner.

The Virginia Racing Commission regulations determined how many historical horse racing terminals could be installed at each Rosie's Gaming Emporium. It authorized up to 3,000 total machines, far more than the 1,755 historical horse racing machines that Kentucky had permitted..

A total of 600 machines are allowed at the track in New Kent County and 700 machines at OTB parlors in jurisdictions with at least 120,000 people. If Revolutionary Racing offered less than 15 days of live racing, with at least six races each day, then the cap would be 100 machines per day of racing. The Virginia Racing Commission built a clear incentive into its proposed regulations to offer at least 15 days of live racing; if there were only 14 days, then the number of authorized terminals would drop from 3,000 to 1,400. Revolutionary Racing may not make much profit from hosting extra days of live racing at Colonial Downs, but the Virginia horse industry will benefit.

Like Colonial Downs, the OTB parlors in Richmond, Henrico County, and Chesapeake were allowed to install 700 terminals. Communities with 60,000 to 120,000 people could have 300 machines. Those with less than 60,000 people were limited to 150 machines, except New Kent County could have more because it was the home of the Colonial Downs track.

Only 150 machines are authorized in Henry County/Martinsville and at Vinton, because they have less than 60,000 people. Revolutionary Racing complained that the number was too low because a Rosie's Gaming Emporium there would serve a regional customer base rather than just local residents. The website for Colonial Downs headlined its story on the approval of regulations 'Virginia Horse Racing Officials Adopt Rules That Limit Expansion Of Slots-Like Gambling Machines.'

Rosies Gaming Emporium in Vinton

The historical horse race terminals blurred the boundary between skills-based selection of a winning horse and simply pulling the arm/pressing the button of a slot machine. Skills-based machines not associated with horse race are available in nearly every jurisdiction now, located in places with licenses to sell alcohol. Though they closely resemble slot machines, they offer an opportunity for the user to make a decision before pressing the button again. That creates the legal loophole which defines the machines not as gambling instruments, but as skills-based instruments because some results are not based 100% on chance.

The distinction is not obvious to a first-time user. When showing off the first historical horse racing machines delivered to Colonial Downs in 2019, the chief operating officer of the Colonial Downs Group commented:²¹

If you don't understand horse racing or you don't consider yourself a handicapper, just by hitting the spin button you can automatically pick the top three horses ... without having to do any work at all

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Rosie's Gaming Emporium includes a restaurant, bar, and video-based gambling terminals
Source: Colonial Downs

Revolutionary Racing is allowed to open a total of 10 OTB parlors. The constraint had been obtaining voter approval, and small localities such as Scott County and the Town of Vinton had approved betting. The Virginia Racing Commission incentivized locating more parlors in larger jurisdictions, by authorizing more machines in places with a larger population. Revolutionary Racing could make more profits by installing more machines in just a few locations, but expansion into larger cities or suburban counties would require more voter approval campaigns.

After the initial regulations were adopted by the Virginia Racing Commission, Revolutionary Racing planned to open Rosie's betting parlors with historical horse racing machines at the track in New Kent, Richmond, Hampton, Vinton, and Chesapeake. The Hampton facility was projected to have 1,000,000 people come through the door in the first year to bet on horses. Many would be repeat customers, and 80% were expected to come from outside of Hampton's city limits. The projection suggested than Hampton would see a net increase in economic activity, not just a shifting of local spending from purchasing different services to gambling.²²

The new Rosie's Gaming Emporium in Vinton hired over 100 people. Half were responsible for gaming operations, including technicians to maintain the historical horse racing machines, security staff, and tellers. The other 50% were typical hires for a restaurant. Colonial Downs, fundamentally a gambling operation, highlighted in its hiring advertisements that it offered wholesome entertainment:²³

We are family, friends and neighbors taking care of and serving family, friends and neighbors.

In South Richmond, the new Rosie's Gaming Emporium with 700 historical horse racing terminals, a restaurant, and a bar replaced a closed K-Mart. Revolutionary Racing eased local concerns by committing to contribute $500,000 to the nearest elementary school, Miles Jones Elementary School.²⁴

Rosie's Gaming Emporium facilities opened first in New Kent and Vinton
Source: Colonial Downs, Locations + Hours (as of May 31, 2019)

Martinsville was not on the initial list. An earlier editorial in the Daily Press, urging restraint in the expansion of gambling, had noted how the local economic potential drove smaller communities to ask for more machines beyond the limit of 150:²⁵

The money generated from historical horse racing alone is enough to make any struggling locality see the color of cash.

Revolutionary Racing sponsored voter referenda in 2019 to get local approval to open a Rosie's Gaming Emporium in Danville and Dumfries. Dumfries had 5,000 residents, well below the 60,000 person threshold for hosting more than 150 terminals. Getting the issue on the ballot in Dumfries required only 137 signatures, 5% of the town's 2,724 registered voters.²⁶

Danville has only 40,000 residents, so it too could host only 150 machines. To get a referendum on pari-mutuel wagering in 2019, Revolutionary Racing easily collected the 5% of signatures needed from the city's 28,054 registered voters. The company hired 25 signature collectors who went to events around Danville, including the minor league baseball park and breweries. In 1987, when Virginia voters approved a referendum authorizing pari-mutuel betting on horse racing, people in Danville had voted against it by 52% to 48%.²⁷

In the 2019 general election, 60% of voters in Dumfries approved opening a local Rosie's Gaming Emporium. In Danville, the ratio flipped compared to 1987 and 52% of the voters were in favor of gambling. Colonial Downs planned for the two new facilities to offer pari-mutuel betting on historical horse races and satellite betting on live races at tracks across the United States.²⁸

Revolutionary Racing could have chosen a location in Pittsylvania County and placed 300 machines in Pittsylvania County. The potential for getting voter approval was lower in that county, and there was a risk that the population of Pittsylvania County would drop below 60,000. In 2018, the Weldon Cooper Center estimated there were 61,640 people in the county, a decline of 2.9% since 2010. If the Pittsylvania County population continued to drop, the Virginia Racing Commission might impose a 150 machine limit in a Rosie's Gaming Emporium.²⁹

To support a 2019 re-opening, the Virginia Racing Commission chose not to run two graded stakes races in Maryland in 2018. Funding for the purses of the Commonwealth Derby for three-year-olds and the Commonwealth Oaks for three-year-old fillies was retained, and could be used to increase the stakes for 2019 races.

The final license required 15 racing days for Thoroughbreds in 2019, and 30 racing days in 2020.³⁰

The Equine Alliance supported expanding gambling options, anticipating that the new historical horse race terminal revenue would be directed to the horse industry to stimulate breeding, training, and other operations on Virginia farms. The president of the Equine Alliance noted bluntly:³¹

Race tracks can't make it on live racing anymore.

At the same time the General Assembly authorized historical horse racing terminals, the Virginia Department of Alcoholic Beverage Control approved the use of new video gaming machines in establishments with a liquor license.

The state agency has determined that so long as a game is based predominantly on skill and not chance, it is legal. Machines that require a customer to use hand-eye coordination or memory in order to win a prize are not gambling machines. A bar with a liquor license can provide skills-based games for customer entertainment, without risking a loss of the liquor license.

a game that requires skill is, by definition, not a game of chance
Source: Queen of Virginia Skill and Entertainment, Compliance and Legal

The manufacturer of 'Queen of Virginia' advertised that it was Virginia's only legal skill game, citing the ruling from the Virginia Department of Alcoholic Beverage Control.³²

bars can include Queen of Virginia games without the risk of losing their liquor license
Source: Queen of Virginia Skill and Entertainment, Compliance and Legal

The potential economic benefits for New Kent County and the state altered expectations that Virginia would never authorize casino gambling.

Federal recognition of the Pamunkey tribe in 2015, through the administrative process of the Bureau of Indian Affairs, created the potential for the tribe to develop gaming operations. The Indian Gaming Regulatory Act defines the procedures required for creating a compact with the state, which would be required to offer games of chance (such as slot machines) in addition to games of skill (such as betting on a historical horse race).

'Skills-based' machines in bars may divert a few gamblers away from a trip to Colonial Downs, but could also spur gamblers to start betting on horse raises. In contrast, the Pamunkey tribe could emerge as a major competitor to the horse racing business.

In April, 2018, the Pamunkey revealed that an Illinois-based video gaming company had purchased 610 acres on I-64, ten miles west of Colonial Downs at the Route 205 interchange. It could be developed into a $700 million casino and resort, employing as many as 4,000 people. At the end of 2018, after receiving a cool reception from New Kent County officials, the tribe announced it was considering a site in Norfolk next to Harbor Park and the Amtrak station.³³

two gambling centers were proposed on I-64 east of Richmond, one by the Pamunkey tribe and one at the former Colonial Downs racetrack - and then Norfolk became an option in 2018
Source: ESRI, ArcGIS Online

On April 23, 2019, the first Rosie's Emporium opened at the Colonial Downs racetrack in New Kent County. The horses would not return to the track until August, but for the first time in Virginia customers could gamble legally on the historical horse racing machines at the track. The Rosie's Emporium in Vinton was next to open, on May 9. Richmond, Hampton, and Chesapeake were scheduled to open later.

Each historical horseracing machine at the racetrack was expected to generate $150-$160 in revenue daily. New Kent County anticipated receiving $17 million in new tax revenue, and using it to build a new elementary school and fire station.³⁴

The plans to open in Chesapeake hit a snag in 2020. Colonial Downs planned to open a Rosie's in the closed Sears store at Greenbrier Mall. It was part of a redevelopment project, The Zone at Greenbrier Mall, including a new hotel, bowling alley, and restaurants. Local officials calculated that the developer's proffer of $15 million to offset traffic impacts would not be sufficient, and questioned if the project would attract new visitors from outside the City of Chesapeake. The applicant withdrew the proposal before city council voted on it, and Colonial Downs announced it would look for an alternative location in town.³⁵

Actual horse racing at Colonial Downs restarted on August 8, 2019, a rare revitalization of a horse track in the United States. In the track's first 15-day session, 85% of the bets came from outside Virginia. Betters wagered $17.5 million, and the track was able to offer $7.4 million in purses for horses that ended up in the win/place/show categories.³⁶

gambling re-started at the Colonial Downs racetrack on April 23, 2019
Source: Colonial Downs

The opening of the track at Colonial Downs and the Rosie's Gaming Emporium facilities had a negative impact on some businesses. Bingo had been the only legal gambling in Virginia, and non-profits such as volunteer fire departments regularly hosted bingo nights, but the number of bingo licenses issued by the Charitable Gaming Board dropped from 382 in 2011 to 240 in 2019.

Attendance dropped due to three factors. The new horseracing options drew customers away from bingo games. Thousands of unregulated slot-like 'skill games' were installed in retail stores, restaurants, and bars across the state. Law enforcement officials debated their legality, but the Virginia Alcoholic Beverage Control Authority ruled that places would not lose their liquor license if they installed them. In addition, the Virginia Lottery increased its advertising and betting options 9including games on smartphones) in order to compete.

Topless clubs catering to men in Richmond reported their business had dropped by 50% after Colonial Downs reopened. A business owner commented:³⁷

I would argue that in South Richmond, people don't have a lot of disposable income... You get $200 a week in play money, people are deciding, do they want to play the slot machines or go to the strip club? There's only so much to go around.

The re-opened track drew 36,000 visitors in 2019, when there were 15 days of racing. There were 18 days of racing scheduled in 2020 on Mondays, Tuesdays, and Wednesdays, but then the COVID-19 pandemic threatened to close Colonial Downs again. The Rosie's Gaming Emporiums were closed from March 15-July 1, reducing the revenue available for daily purses.

revenue for daily purses was cut after Rosie's Gaming Emporiums were closed from March 15-July 1, 2020 due to the COVID-19 pandemic
Source: Colonial Downs

The track held races, but there were no fans in the stands. A maximum of just 200 people were allowed in the on-site Rosie's and the Jockey Club area. Purses were reduced from a planned $500,000/day to $340,000/day. Jockeys could not ride at another track during the meet, since a 14-day quarantine would be required to return to Colonial Downs.

The track attracted twice the number of horses as in 2020, but racing had to be cancelled halfway through the planned six-week season. A jockey tested positive for COVID-19, and subsequent testing revealed multiple other cases.³⁸

Horse Racing and Gambling in Virginia

Native American Gaming and Casino Gambling in Virginia

Opening - and Closing - Colonial Downs

Slot Machines (and Casino Gambling?) on the Maryland-Virginia Waterfront

only half the planned 2020 races were offered at the track before positive COVID-19 tests forced closure
Source: Colonial Downs

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36. 'Live horse racing returns to New Kent's Colonial Downs,' The Virginia Gazette, August 8, 2019, https://www.vagazette.com/news/va-vg-colonial-downs-opens-virginia-0809-story.html; 'Colonial Downs says 2019 races outperformed track's final year under previous owner,' Richmond Times-Dispatch, September 11, 2019, https://www.richmond.com/news/virginia/government-politics/colonial-downs-says-races-outperformed-track-s-final-year-under/article_703a9deb-3ffe-5bc9-bda8-080af282f195.html (last checked September 11, 2019)
37. 'As Virginia gears up for gambling debate, thousands of slot-like games have already slipped in the back door,' The Virginia Mercury, December 20, 2018, https://www.virginiamercury.com/2018/12/20/as-virginia-gears-up-for-gambling-debate-thousands-of-slot-like-games-have-already-slipped-in-the-back-door/; 'Amid a surge of slots, bingo's last gasps in Virginia,' Virginia Mercury, September 20, 2019, https://www.virginiamercury.com/2019/09/20/amid-a-surge-of-slots-bingos-last-gasps-in-virginia/; 'Another potential loser to expanded gambling in Virginia: Strip clubs?,' The Virginia Mercury, September 24, 2019, https://www.virginiamercury.com/blog-va/another-potential-loser-to-expanded-gambling-in-virginia-strip-clubs/ (last checked September 25, 2019)
38. 'Horse racing returns to Colonial Downs, but purses are down due to pandemic closure of Rosie's,' Richmond Times-Dispatch, July 30, 2020, https://richmond.com/sports/local/horse-racing-returns-to-colonial-downs-but-purses-are-down-due-to-pandemic-closure-of/article_25dec278-dcbd-5f56-b809-00941891a7a6.html; 'Colonial Downs Adjusts To 'Spectator-Free' Racing,' Colonial Downs, https://www.colonialdowns.com/colonial-downs-adjusts-to-spectator-free-racing/; 'COVID-19 Update,' Colonial Downs, https://www.colonialdowns.com/covid-19-update/; 'Colonial Downs cancels remainder of 2020 races due to positive COVID-19 tests,' Richmond Times-Dispatch, August 15, 2020, https://richmond.com/sports/local/colonial-downs-cancels-remainder-of-2020-races-due-to-positive-covid-19-tests/article_47643273-2488-5afa-b15e-b12215b4116a.html (last checked August 15, 2020)

Horses in Virginia
Virginia PlacesFind out what slot machines actually returned to the public. Just clickbelow to see slot machine payback statistics for casinos in all U.S. states.

Alabama	Arizona	Arkansas	California
Colorado	Connecticut	Delaware	Florida
Georgia	Idaho	Illinois	Indiana
Iowa	Kansas	Louisiana	Maine
Maryland	Massachusetts	Michigan	Minnesota
Mississippi	Missouri	Montana	Nebraska
Nevada	New Jersey	New Mexico	New York
North Carolina	North Dakota	Ohio	Oklahoma
Oregon	Pennsylvania	Rhode Island	South Carolina
South Dakota	Texas	Washington	West Virginia
Wisconsin	Wyoming

ALABAMA SLOT MACHINE PAYBACK STATISTICS

Alabama has three Indian casinos that offer Class II video gaming machines. They are not required to release payback statistics about their machines.

ARIZONA SLOT MACHINE PAYBACK STATISTICS

In mid-1993 Arizona’s Governor Symington signed a compact with the state’s tribes that allowed them to offer slot machines on their reservations.

The compact originally didn’t allow for any table games but in early 2003 blackjack was added as a permissible table game.

Arizona tribes aren’t required to release information on their slot machine percentage paybacks, however, according to the Arizona Department of Gaming, the terms of the compact require eachtribes’ machines to return the following minimum and maximum paybacks: video poker and video blackjack - 83% to 100%, slot machines - 80% to 100%, keno - 75% to 100%. Each tribe is free to setits machines to pay back anywhere within those limits.

ARKANSAS SLOT MACHINE PAYBACK STATISTICS

Arkansas has two pari-mutuel facilities featuring “electronic games of skill,” which are defined as “games played through any electronic device or machine that affords an opportunity for theexercise of skill or judgment where the outcome is not completely controlled by chance alone.”

The games offered are video poker, video blackjack, and “skill” slots where you have two opportunities to spin the reels. The “skill” factor comes into play because after seeing the results ofyour first spin you then have to decide whether to keep none, one, two, or all three of the symbols on each reel before you spin them again. Gaming regulations require that all of theelectronic games of skill must return a minimum of 83%.

For the one year period from July 1, 2018, through June 30, 2019, the average gaming machine’s return at Oaklawn was 92.81% and at Southland, it was 92.72%

CALIFORNIA SLOT MACHINE PAYBACK STATISTICS

California’s Indian casinos are legally allowed to offer electronic gaming machines, blackjack, and other house-banked card games. The games of craps and roulette are not permitted. However,some casinos do offer modified versions of craps and roulette that are played with cards rather than dice or roulette wheels.

Most California card rooms also offer some form of player-banked blackjack, but because they are prohibited by law from playing blackjack, the game is usually played to 22 rather than 21.Additionally, players must pay a commission to the house on every hand they play. The amount will vary depending on the rules of the house but, generally, it’s about two to five percent of thetotal amount bet. There are about 90 card rooms in California and you can see a listing of them on the Internet at http://www.cgcc.ca.gov

California’s tribes aren’t required to release information on their slot machine percentage paybacks and the state of California does not require any minimum returns.

COLORADO SLOT MACHINE PAYBACK STATISTICS

Here’s information, as supplied by Colorado’s Division of Gaming, showing the slot machine payback percentages for each city’s casinos for the one-year period from July 1, 2018, through June30, 2019:

Black Hawk	Central City	Cripple Creek
1¢ Slots	89.80%	90.43%	91.89%
5¢ Slots	92.85%	93.93%	93.50%
25¢ Slots	92.30%	94.06%	95.45%
$1 Slots	93.69%	94.82%	94.83%
$5 Slots	93.69%	93.76%	95.03%
All	92.35%	92.30%	93.53%

These numbers reflect the percentage of money returned on each denomination of machine and encompass all electronic machines including video poker and video keno. The best returns for eachcategory are highlighted in bold print.

CONNECTICUT SLOT MACHINE PAYBACK STATISTICS

The following information is from Connecticut’s Division of Special Revenue regarding Foxwoods’ slot payback percentages:

Denomination	Payback %
1¢	90.09
2¢	91.38
5¢	90.73
25¢	91.34
50¢	90.77
$1.00	92.99
$5.00	93.67
$10.00	94.29
$25.00	96.51
$100.00	94.14
Average	91.95

These figures reflect the total percentages returned by each denomination of slot machine from July 1, 2018, through June 30, 2019.

Here's information from Connecticut's Division of Special Revenue regarding Mohegan Sun's slot payback percentages:

Denomination	Payback %
1/4¢	86.30
1/2¢	85.91
1¢	88.86
2¢	86.65
5¢	92.08
25¢	91.01
50¢	91.73
$1.00	92.94
$5.00	94.41
$10.00	97.41
$25.00	95.50
$100.00	94.55
Average	91.90

These figures reflect the total percentages returned by each denomination of slot machine from July 1, 2018, through June 30, 2019.

DELAWARE SLOT MACHINE PAYBACK STATISTICS

Delaware’s three pari-mutuel facilities all feature slot machines. Technically, the machines are video lottery terminals (VLT’s) because they are operated in conjunction with the DelawareLottery. Unlike VLT’s in other states, however, Delaware’s machines payout in cash. The VLT’s also play other games including video poker, video keno, and video blackjack.

By law, all video lottery games must return between 87% and 95% of all wagers on an annual basis. Games can return above 95% but only with the Lottery Director’s approval.

According to figures from the Delaware Lottery for the twelve-month period from July 1, 2018, through June 30, 2019, the average VLT return at Dover Downs was 92.59%, at Delaware Park itwas 92.12%, and at Harrington Raceway it was 92.03%.

In mid-2018 a U.S. Supreme Court decision legalized sports betting at all U.S. casinos. Delaware was one of the first states to act on the ruling and all three of the state’s casinos offersportsbooks.

In January 2010 the Delaware legislature approved the addition of table games for the state’s casinos.

FLORIDA SLOT MACHINE PAYBACK STATISTICS

Florida has three forms of casino gambling: casino boats, Indian casinos and gaming machines at pari-mutuels in two south Florida counties.

The casino boats offer gamblers the opportunity to board ships that cruise offshore where casino gambling is legal. From the East Coast, the boats sail three miles out into the Atlantic Oceanand from the west coast the boats travel nine miles out into the Gulf of Mexico. Since the casino boats travel in international waters they are free from regulations and the machines can be setto pay back whatever the operator wants without regard to a minimum payback percentage.

Florida has eight Indian gaming locations. The Seminole Tribe has seven and the eighth is on the Miccosukee Tribe’s reservation.

The Seminoles signed a compact with the state that allows them to offer both Class II and traditional Class III gaming machines. As part of their compact, five Seminole casinos are also allowedto offer the following:

blackjack
baccarat
mini-baccarat
three-card poker
let it ride
pai gow poker

The Miccosukee Tribe has not signed a compact and they only offer Class II gaming machines at their casino.

Class II video gaming devices look like slot machines but are actually bingo games and the spinning reels are for “entertainment purposes only.” No public information is available concerningthe payback percentages on any gaming machines in Florida’s Indian casinos.

The other games allowed in all Indian casinos include

high-stakes bingo
video pull tabs
poker

All of the casinos are open 24 hours (except Big Cypress) and all offer bingo except for both Seminole Hard Rock Casinos and the Seminole Casino Coconut Creek. The minimum gambling age is18 at all Indian casinos for bingo or poker and 21 for electronic gaming machines.

Broward County (home county of Fort Lauderdale) and Miami-Dade County both have four pari-mutuel facilities that each offer electronic gaming machines, but no table games.

Florida gaming regulations require a minimum payback of 85% on all gaming machines. From July 1, 2018, through June 30, 2019, the gaming machines at Magic City returned 93.43%, CasinoMiami returned 92.34%, Hialeah Park returned 93.55%, Gulfstream Park returned 92.16%, Dania Casino returned 92.68%, Big Easy returned 91.50%, Calder returned 91.32%, and The Isle returned90.22%.

GEORGIA SLOT MACHINE PAYBACK STATISTICS

There are two casino boats in Georgia which both sail three miles out into international waters where casino gambling is permitted.

Since the casino boats travel in international waters they are free from regulations and the machines can be set to pay back whatever the operator wants without regard to a minimum paybackpercentage.

IDAHO SLOT MACHINE PAYBACK STATISTICS

Idaho has six Indian casinos that offer electronic pull-tab machines and other video games. The machines don't pay out in cash. Instead they print out a receipt which must be cashed by a floorattendant or taken to the cashier’s cage. Some casinos also offer bingo (BG) and off-track betting (OTB).

The terms of the compact between the tribes and the state do not require any minimum payback percentage that the gaming machines must return to the public.

ILLINOIS SLOT MACHINE PAYBACK STATISTICS

Here’s information from the Illinois Gaming Board showing each casino’s average slot payback percentage for the one-year period from July 1, 2017 through June 30, 2018:

CASINO	PAYBACK %
Casino Queen	92.05
Harrah's Joliet	91.98
Hollywood Joliet	91.18
Argosy Alton	90.83
Par-A-Dice	91.02
Grand Victoria	91.02
Hollywood - Aurora	90.42
Jumer's	89.94
Rivers Casino	90.35
Harrah's Metropolis	89.39

These figures reflect the total percentages returned by each casino for all of their electronic machines. As you can see, the Casino Queen returned the most to its slot machine players, whileHarrah's in Metropolis returned the least.

INDIANA SLOT MACHINE PAYBACK STATISTICS

Following is information from the Indiana Gaming Commission regarding average slot payout percentages for the one-year period from July 1, 2018, through June 30, 2019:

CASINO	PAYBACK %
Hoosier Park	90.05
French Lick	91.55
Rising Star	91.38
Indiana Grand	90.88
Blue Chip	91.40
Belterra	90.76
Majestic Star	90.25
Hollywood	89.96
Horseshoe Casino SI	90.09
Majestic Star II	89.88
Horseshoe Hammond	90.07
Ameristar	89.92
Tropicana	89.61

These figures reflect the average percentage returned by each casino for all of their electronic machines including slot machines, video poker, video keno, etc.

IOWA SLOT MACHINE PAYBACK STATISTICS

Here’s information, as supplied by the Iowa Racing and Gaming Commission, showing the electronic gaming machine payback percentages for all non-Indian locations for the one-year period fromJuly 1, 2018, through June 30, 2019.

LOCATION	PAYBACK %
Prairie Meadows	91.67
Wild Rose- Emmetsburg	90.61
Wild Rose- Clinton	90.56
Wild Rose- Jefferson	90.52
Q Casino	90.63
Diamond Jo Worth	90.52
Catfish Bend	90.42
Riverside	90.40
Diamond Jo Dubuque	90.49
Grand Falls	90.36
Casino Queen Marquette	90.19
Ameristar	90.05
Rhythm City	90.26
Hard Rock	90.29
Isle Bettendorf	90.04
Harrah's	89.77
Isle Waterloo	89.73
Horseshoe Council Bluffs	89.66
Lakeside Casino	88.91

These figures reflect the total percentages returned by each riverboat casino or pari-mutuel facility for all of its electronic machines including: slots, video poker, video keno, etc.

KANSAS SLOT MACHINE PAYBACK STATISTICS

In April 2007 the Kansas legislature authorized local referendums to allow state-run casinos in four counties.

The Kansas Racing & Gaming Commission does not release information about the payback percentages on electronic gaming machines in Kansas. However, gaming regulations require that allmachines return no less than 87%.

There are also five Indian casinos in Kansas and they are not required to release information on their slot machine payback percentages. However, according to officials at the Kansas StateGaming Agency, which is responsible for overseeing the tribal-state compacts, 'the minimum payback percentage for electronic gaming devices is 80%.'

LOUISIANA SLOT MACHINE PAYBACK STATISTICS

Gaming regulations require that gaming machines in casinos be programmed to pay back no less than 80% and no more than 99.9%. For video gaming machines at locations other than casinos, the lawrequires a minimum return of 80% and a maximum return of 94%.

Louisiana gaming statistics are not broken down by individual properties. Rather, they are classified by region: Baton Rouge (BR), Lake Charles (LC), New Orleans (NO) and Shreveport/BossierCity (SB).

The Baton Rouge casinos consist of the Belle of Baton Rouge, Hollywood Casino, L'Auberge and Evangeline Downs. The Lake Charles casinos include Isle of Capri, L’Auberge du Lac and Delta Downs.New Orleans area casinos are Amelia Belle, Boomtown, Harrah’s (landbased), Treasure Chest and Fairgrounds Raceway. The Shreveport/Bossier city casinos include Boomtown, Diamond Jack’s, Sam’sTown, Eldorado, Horseshoe, and Harrah’s Louisiana Downs.

Here’s information, as supplied by the Louisiana State Police-Riverboat Gaming Section, showing the average electronic machine payback percentages for each area’s casinos for the 12-monthperiod from June 1, 2018, through May 30, 2019:

BR	LC	NO	SB
1¢	88.70%	88.57%	88.96%	89.01%
5¢	91.69%	94.31%	93.31%	93.12%
25¢	92.30%	93.08%	92.43%	90.73%
$1	93.56%	92.33%	92.72%	93.03%
$5	94.49%	92.99%	92.93%	92.70%
All	90.50%	90.63%	90.23%	90.43%

MAINE SLOT MACHINE PAYBACK STATISTICS

Maine has two racetrack casinos (racinos) that offer electronic gaming machines, as well as live table games.

State gaming regulations require a minimum return of 89% on all machines and during the one-year period from July 1, 2018, through June 30, 2019, the average return on gaming machines atHollywood Casino was 90.15% and at Oxford Casino, it was 90.01%.

MARYLAND SLOT MACHINE PAYBACK STATISTICS

Maryland has five casinos that are allowed to offer electronic gaming machines, as well as live table games. However, Ocean Downs has no table games.

No public information is available about the actual payback percentages on gaming machines in Maryland. However, gaming regulations require a minimum payback of 87% on any one machine and allmachines within a casino must have an average payback of 90% to 95%.

MASSACHUSETTS SLOT MACHINE PAYBACK STATISTICS

Massachusetts Governor Deval Patrick signed a bill in late 2011 that legalized casinos. The law allows three casinos, in three different geographic regions, plus one slot parlor.

Are Electronic Slot Machines Allowed In Newport News Virginia County

The slot parlor, Plainridge Park Casino, a harness racing track located about 40 miles southwest of Boston, opened June 24, 2015.

The first resort-casino license in Region B (Western Massachusetts) was awarded to MGM Resorts and their $1.3 billion casino, MGM Springfield, opened August 24, 2018.

The second license for Region A (Eastern Massachusetts) was awarded to Wynn Resorts and their $2 billion, Encore Everett, is expected to open in mid-2019. The final license for Region C(Southeastern Massachusetts) had not yet been awarded as of late 2018.

Additionally, the Mashpee Wampanoag Tribe is planning to build a destination resort casino near Taunton. That facility, First Light Casino, was expected to open by late 2019. However, theproject has been hampered by lawsuits that might stop it from being completed.

Massachusetts gaming regulations require a minimum payback of 80% on all gaming machines. From July 1, 2018, through June 30, 2019, the gaming machines at Plainridge Park returned 92.03%,91.39% at MGM Springfield* and 91.49% at Encore.**

* Stats for MGM Springfield began August 23, 2018, when it opened

** Stats for Encore are June 23- July 31, 2019.

MICHIGAN SLOT MACHINE PAYBACK STATISTICS

There are 17 Indian casinos in Michigan and the tribes are not required to release information on their slot machine payback percentages. However, according to officials at the Michigan GamingControl Board, which is responsible for overseeing the tribal-state compacts, 'the machines must meet the minimum standards for machines in Nevada or New Jersey.' In Nevada, the minimum returnis 75% and in New Jersey, it's 83%. Therefore, Michigan's Indian casinos must return at least 75% in order to comply with the law.

There are also three privately owned casinos in Detroit, but their slot payback information is not made available to the public.

MINNESOTA SLOT MACHINE PAYBACK STATISTICS

All Minnesota casinos are located on Indian reservations and under a compact reached with the state the only table games permitted are card games such as blackjack and poker. Additionally, theonly kind of slot machines allowed are electronic video slot machines. Therefore, you will not find any mechanical slots that have traditional reels - only video screens

According to the terms of the compact between the state and the tribes, however, the minimum and maximum payouts are regulated as follows: video poker and video blackjack - 83% to 98%, slotmachines - 80% to 95%, keno - 75% to 95%. Each tribe is free to set its machines to pay back anywhere within those limits and the tribes do not release any information regarding their slotmachine percentage paybacks.

MISSISSIPPI SLOT MACHINE PAYBACK STATISTICS

The Mississippi Gaming Commission does not break down its slot statistics by individual properties. Rather, they are classified by region.

The Coastal region includes Biloxi, Gulfport, and Bay Saint Louis.

The North region includes Tunica, Greenville, and Lula.

The Central region includes Vicksburg and Natchez.

Are Electronic Slot Machines Allowed In Newport News Virginia Today

With that in mind here’s information, as supplied by the Mississippi Gaming Commission, showing the machine payback percentages for each area’s casinos for the one-year period from July 1,2018, through June 30, 2019:

Coastal	North	Central
1¢ Slots	91.99%	91.95%	91.73%
5¢ Slots	94.78%	94.96%	95.73%
25¢ Slots	93.91%	92.41%	93.78%
$1 Slots	93.28%	93.51%	94.10%
$5 Slots	93.78%	95.16%	95.52%
All	92.18%	91.87%	92.32%

MISSOURI SLOT MACHINE PAYBACK STATISTICS

Here's information from the Missouri Gaming Commission regarding the payback percentages for each casino's electronic machines for the 12-month period from July 1, 2018, through June 30, 2019:

CASINO	PAYBACK %
Ameristar- St. Charles	91.0
River City	90.6
Hollywood	90.6
Ameristar- K.C.	90.4
Harrah’s - N.K.C	90.1
Lumiere Place	90.0
Isle of Capri - Booneville	90.1
Argosy	89.9
Isle of Capri - Cape Girardeau	89.7
Lady Luck	89.3
Isle of Capri - K.C.	88.9
St. Jo Frontier	88.9
Mark Twain	88.7

These figures reflect the total percentages returned by each casino for all of their electronic machines including slot machines, video poker, video keno, etc.

MONTANA SLOT MACHINE PAYBACK STATISTICS

Montana law permits bars and taverns to have up to 20 video gaming devices that play video poker, video keno, or video bingo. These machines are operated in partnership with the state and arenot permitted to pay out in cash; instead, they print out a receipt which must be taken to a cashier. The maximum bet on these machines is $2 and the maximum payout is limited to $800. Montanagaming regulations require these machines to return a minimum of 80%.

There are seven Indian casinos offering video gaming machines that also print out a receipt. The maximum bet on these machines is $5 and the maximum payout is capped at $1,500. According toMontana's Gambling Control Division, there are no minimum payback percentages required for gaming machines on Indian reservations.

NEBRASKA SLOT MACHINE PAYBACK STATISTICS

No public information is available concerning the payback percentages on gaming machines in Nebraska.

NEVADA SLOT MACHINE PAYBACK STATISTICS

NEVADA - Lake Tahoe

Here’s information, as supplied by Nevada’s State Gaming Control Board, showing the slot machine payback percentages for all of the south shore casinos for the fiscal year beginning July 1,2017 and ending June 30, 2018:

Denomination	Payback %
1¢ Slots	88.94
25¢ Slots	91.24
$1 Slots	92.55
All Slots	93.33

And here's that same information for the north shore casinos:

Denomination	Payback %
1¢ Slots	92.81
25¢ Slots	91.40
$1 Slots	91.52
All Slots	94.29

Are electronic slot machines allowed in newport news virginia today

These numbers reflect the percentage of money returned to the players on each denomination of machine. All electronic machines including slots, video poker and video keno are included in thesenumbers.

NEVADA - Las Vegas

Unlike New Jersey, the Nevada Gaming Control Board does not break down its slot statistics by individual properties. Rather, they are classified by area.

The annual gaming revenue report breaks the Las Vegas market down into two major tourist areas: the Strip and downtown. There is also a very large locals market in Las Vegas and those casinosare shown in the gaming revenue report as the Boulder Strip and North Las Vegas areas.

When choosing where to do your slot gambling, you may want to keep in mind the following slot payback percentages for Nevada's fiscal year beginning July 1, 2018, and ending June 30, 2019:

1¢ Slot Machines
The Strip - 88.33%
Downtown - 88.96%
Boulder Strip - 90.53%
N. Las Vegas - 90.79%

5¢ Slot Machines
The Strip - 91.96%
Downtown - 93.32%
Boulder Strip - 96.30%
N. Las Vegas - 95.24%

25¢ Slot Machines
The Strip - 89.34%
Downtown - 93.91%
Boulder Strip - 95.77%
N. Las Vegas - 96.27%

$1 Slot Machines
The Strip - 92.34%
Downtown - 94.12%
Boulder Strip - 95.49%
N. Las Vegas - 95.62%

$1 Megabucks Machines
The Strip - 87.31%
Downtown - 86.40%
Boulder Strip - 87.61%
N. Las Vegas - 86.98%

All Slot Machines
The Strip - 91.84%
Downtown - 92.22%
Boulder Strip - 94.26%
N. Las Vegas - 93.34%

These numbers reflect the percentage of money returned to the players on each denomination of machine. All electronic machines including slots, video poker, and video keno are included in thesenumbers and the highest-paying returns are shown in bold print. As you can see, the machines in downtown Las Vegas pay out slightly more than those located on the Las Vegas Strip.

Returns even better than the downtown casinos can be found at some of the other local casinos along Boulder Highway, such as Boulder Station and Sam's Town and also in the North Las Vegasarea which would include the Fiesta, Santa Fe and Texas Station casinos. Not only are those numbers among the best returns in the Las Vegas area, but they are also among the best paybackpercentages for anywhere in the United States.

NEVADA - Laughlin

Here’s information, as supplied by Nevada’s State Gaming Control Board, showing the slot machine payback percentages for all of Laughlin’s casinos for the fiscal year beginning July 1,2018, and ending June 30, 2019:

Denomination	Payback %
1¢ Slots	89.11
5¢ Slots	92.59
25¢ Slots	93.44
$1 Slots	94.92
$1 Megabucks	88.27
$5 Slots	94.33
All Slots	92.15

NEVADA - Reno

Here’s information, as supplied by Nevada’s State Gaming Control Board, showing the slot machine payback percentages for all of the Reno area casinos for the fiscal year beginning July 1, 2017and ending June 30, 2018:

Denomination	Payback %
1¢ Slots	92.69
5¢ Slots	95.10
25¢ Slots	92.16
$1 Slots	95.38
$1 Megabucks	87.40
$5 Slots	95.06
All Slots	94.56

These numbers reflect the percentage of money returned on each denomination of machine and encompass all electronic machines including slots, video poker, and video keno.

NEVADA - Sparks

Here’s information, as supplied by Nevada’s State Gaming Control Board, showing the slot machine payback percentages for all of the Sparks area casinos for the fiscal year beginning July 1,2018, and ending June 30, 2019:

Denomination	Payback %
1¢ Slots	92.98
5¢ Slots	97.19
25¢ Slots	95.43
$1 Slots	96.17
$5 Slots	97.32
All Slots	94.55

These numbers reflect the percentage of money returned on each denomination of machine and encompass all electronic machines including slots, video poker, and video keno.

NEVADA - Wendover

Here’s information, as supplied by Nevada’s State Gaming Control Board, showing the slot machine payback percentages for all of the Wendover area casinos for the fiscal year beginning July 1,2018 and ending June 30, 2019:

Denomination	Payback %
1¢ Slots	93.41
5¢ Slots	96.80
25¢ Slots	93.34
$1 Slots	95.86
$5 Slots	96.39
All Slot	94.32

These numbers reflect the percentage of money returned on each denomination of machine and encompass all electronic machines including slots, video poker and video keno.

NEW JERSEY SLOT MACHINE PAYBACK STATISTICS

Following is information from the New Jersey Casino Control Commission regarding average slot payout percentages for the 12-month period from July 1, 2018, through June 30, 2019:

CASINO	PAYBACK
Harrah’s	91.79
Borgata	91.66
Hard Rock	91.41
Caesars	91.03
Bally's A.C.	90.76
Golden Nugget	90.57
Resorts	90.78
Tropicana	90.35
Ocean Resort	90.49

These figures reflect the total percentages returned by each casino for all of their electronic machines which includes slot machines, video poker, etc.

NEW MEXICO SLOT MACHINE PAYBACK STATISTICS

New Mexico's Indian casinos offer an assortment of table games and electronic gaming machines. Additionally, slot machines are allowed at the state's racetracks as well as at about 40 variousfraternal and veterans clubs.

New Mexico gaming regulations require that electronic machines at racetracks and fraternal/veterans organizations return a minimum of 80%.

New Mexico's Indian tribes do not make their slot machine payback percentages a matter of public record but the terms of the compact between the state and the tribes require all electronicgaming machines to also return a minimum of 80%.

NEW YORK SLOT MACHINE PAYBACK STATISTICS

There are several Indian casinos located in upstate New York which offer traditional Class III casino gambling.

The terms of the compact between the tribes and the state allow table games and slot machines, including video keno and video poker. These machines do not pay out in cash. Instead, they printout a receipt which must be exchanged for cash.

There are also some Indian casinos that offer Class II gambling which consist of electronic gaming machines which look like slot machines, but are actually games of bingo and the spinning videoreels are for 'entertainment purposes only.' No public information is available concerning the payback percentages on gaming machines at Indian casinos.

Here’s information, as supplied by the New York Gaming Commission, showing the slot machine payback percentages for all of the casinos for the fiscal year from April 1, 2018, through March31, 2019:

LOCATION	PAYBACK %
Tioga Downs	91.62
Resort's World Catskills	91.40
Del Lago	90.94
Rivers	90.50

In October 2001, legislation was passed to allow for the introduction of slot machine-type video lottery machines at New York racetracks. Officially referred to as Video Gaming Machines(VGM’s), they are regulated by the New York State Lottery Division.

All VGM's offer standard slot machine-type games, plus keno in denominations from five cents to $10. The machines all accept cash but do not pay out in cash. They print a receipt which must betaken to a cashier.

The legislation authorizing the VGM’s states, “the specifications for video lottery gaming shall be designed in such a manner as to pay prizes that average no less than ninety percent ofsales.”

Here's information, as supplied by the New York Lottery, showing the video gaming machine payback percentages for each of the state's racetracks for the fiscal year from April 1,2018, through March 31, 2019:

LOCATION	PAYBACK %
Resorts World	94.16
Jake's 58	93.73
Empire City	93.06
Monticello	92.40
Saratoga	92.35
Finger Lakes	92.12
Batavia Downs	91.66
Fairgrounds	91.66
Vernon Downs	91.74

NORTH CAROLINA SLOT MACHINE PAYBACK STATISTICS

North Carolina has two Indian casinos and both are affiliated with the state's Eastern Band of Cherokee Indians which signed a compact with the state. According to the terms of thecompact, the video gaming machines are required to return a minimum of 83% and a maximum of 98%.

NORTH DAKOTA SLOT MACHINE PAYBACK STATISTICS

North Dakota has more than 800 sites throughout the state that offer blackjack, with betting limits of $1-$25, for the benefit of charities.

There are also six Indian casinos which are limited by law to the following maximum bet limits: blackjack-$100 (two tables in a casino may have limits up to $250), craps-$60, roulette-$50,slots/video poker-$25 and poker-$50 per bet, per round with a maximum of three rounds.

The terms of the state's compact with the tribes require gaming machines to return a minimum of 80% and a maximum of 100%. However, if a machine is affected by skill, such as video poker orvideo blackjack, the machines must return a minimum of 83%.

OHIO SLOT MACHINE PAYBACK STATISTICS

Ohio voters passed a statewide referendum in November 2009 to allow one casino to open in each of four major cities: Cleveland, Cincinnati, Columbus, and Toledo. There are also seven racetracksthat offer video lottery terminals.

Here’s information from the Ohio Casino Control Commission regarding the payback percentages for each racino and casino’s electronic machines for the twelve-month period from July 1,2018, through June 30, 2019:

CASINO	PAYBACK %
JACK Cleveland
Hollywood Columbus	92.09
JACK Cincinnati
Miami Valley	90.73
Belterra Park
MGM Northfield	91.09
Eldorado Gaming
Hollywood Toledo	90.73
JACK Thistledown
Hollywood Dayton	90.27
Mahoning Valley

OKLAHOMA SLOT MACHINE PAYBACK STATISTICS

All Oklahoma Indian casinos are allowed to offer both Class II and Class III gaming machines.

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Most casinos offer only Class II machines which look like slot machines, but are actually games of bingo and the spinning video reels are for 'entertainment purposes only.' Some casinos alsooffer traditional Class III slots.

In either case, the gaming machines are not allowed to accept or payout in coins. All payouts must be done by a printed receipt or via an electronic debit card. No public information isavailable concerning the payback percentages on gaming machines in Oklahoma.

OREGON SLOT MACHINE PAYBACK STATISTICS

Oregon law permits bars and taverns to have up to six video lottery terminals that offer various versions of video poker. Racetracks are allowed to have no more than 10 machines. The maximumbet allowed is $2.50 and the maximum single payout on any machine is capped at $600.

These machines are the same as regular video gaming devices but are called lottery terminals because they are regulated by the state’s lottery commission which receives a share of eachmachine’s revenue. The machines accept cash but do not pay out in cash; instead, they print out a receipt which must be taken to a cashier.

According to figures from the Oregon Lottery, during its fiscal year from June 28, 2018, through June 25, 2019, the VLT’s had an approximate return of 92.34%.

There are nine Indian casinos in operation in Oregon. According to the governor’s office which regulates the Tribe’s compacts, 'there is no minimum payback percentage required on the Tribe’smachines. Each Tribe is free to set their own limits on their machines.'

PENNSYLVANIA SLOT MACHINE PAYBACK STATISTICS

Pennsylvania gaming regulations require that gaming machines return a minimum of 85%.

The following is information from the Pennsylvania Gaming Control Board regarding average slot payout percentages for the one-year period from July 1, 2018, through June 30, 2019:

CASINO	PAYBACK %
Parx Casino	90.70
Valley Forge	90.68
The Meadows	90.14
Mount Airy	90.31
Sugar House	90.03
Wind Creek Bethlehem	90.09
Mohegan Sun at Pocono Downs	89.90
Harrah's Philadelphia	89.82
The Rivers	89.87
Lady Luck Nemacolin	89.34
Hollywood Casino at Penn National	89.38
Presque Isle	89.31

RHODE ISLAND SLOT MACHINE PAYBACK STATISTICS

Rhode Island has two pari-mutuel facilities which both feature video lottery terminals (VLT’s). These machines are the same as regular video gaming devices but are called lottery terminalsbecause they are regulated by the state’s lottery commission which receives a share of each machine’s revenue. The machines accept cash but don’t pay out in cash; instead, they print out areceipt which must be taken to a cashier.

All VLT’s are programmed to play at least six different games: blackjack, keno, slots and three versions of poker (jacks or better, joker poker and deuces wild).

According to figures from the Rhode Island Lottery for the one-year period from July 1, 2018, through June 30, 2019, the average VLT return at Twin River was 92.10% and at Tiverton, it was91.63%.

SOUTH CAROLINA SLOT MACHINE PAYBACK STATISTICS

South Carolina has two gambling cruise ships which sail three miles out into international waters where casino gambling is permitted. Since the casino boats travel in international waters theyare free from regulations and the machines can be set to pay back whatever the operators want without regard to a minimum payback percentage.

SOUTH DAKOTA SLOT MACHINE PAYBACK STATISTICS

Here are statistics from the South Dakota Commission on Gaming for the payback percentages on all of Deadwood’s slot machines for the one-year period from July 1, 2018, through June 30,2019:

Denomination	Payback %
1¢ Slots	90.73
5¢ Slots	93.56
25¢ Slots	91.18
$1 Slots	92.58
$5 Slots	92.51
Average	91.05

In addition to the Deadwood casinos, there are also nine Indian casinos in South Dakota. No information is available on the payback percentages of the video gaming machines.

TEXAS SLOT MACHINE PAYBACK STATISTICS

Texas has one Indian casino which offers gaming machines based on bingo. It also offers pull tab machines, bingo, poker and a player-banked blackjack game where each player must pay acommission to the house for each bet that is made. The commission is 50¢ for $3-$50 bets and $1 for bets over $50. The minimum gambling age is 21 and the casino is open 24 hours daily.

Class II video gaming devices look like slot machines, but are actually bingo games and the spinning reels are for “entertainment purposes only.” No public information is available concerningthe payback percentages on any gaming machines in Texas’ Indian casino.

WASHINGTON SLOT MACHINE PAYBACK STATISTICS

There are 28 Indian casinos operating in Washington and they all have compacts with the state allowing them to offer table games, as well as electronic ‘scratch’ ticket games which use a finitenumber of tickets with a predetermined number of winners and losers.

All of the state’s Tribes are not required to release information on their slot machine percentage paybacks. However, according to the terms of the compact between the Tribes and the state, theminimum prize payout for electronic ‘scratch’ ticket games is 75%.

WEST VIRGINIA SLOT MACHINE PAYBACK STATISTICS

West Virginia has four pari-mutuel facilities and one resort hotel that feature video lottery terminals. The VLT’s are the same as regular video gaming devices but are called lottery terminalsbecause they are regulated by the state’s lottery commission which receives a share of each machine’s revenue.

West Virginia law requires that VLT’s return a minimum of 80% to a maximum of 95%. VLT games include slots, blackjack, keno and numerous versions of poker. The minimum gambling age is 21.

For the one-year period from July 1, 2018, through June 30, 2019, the average return on VLT’s was: 88.97% at Mountaineer Park, 90.81% at Mardi Gras, 89.46% at Wheeling Island, 89.53%at Charles Town Races.

WISCONSIN SLOT MACHINE PAYBACK STATISTICS

All Wisconsin casinos are located on Indian reservations and the Indian tribes are not required to release information on their slot machine percentage paybacks. However, according to the termsof the compact between the state and the tribes 'for games not affected by player skill, such as slot machines, the machine is required to return a minimum of 80% and a maximum of 100% of theamount wagered.'

WYOMING SLOT MACHINE PAYBACK STATISTICS

Wyoming has Indian casinos that offer Class II bingo-type gaming machines, plus traditional Class III slot machines.

The machines don't pay out in cash. Instead they print out a receipt which must be cashed by a floor attendant or taken to the cashier's cage. You can also make bets via a cashless systemwhereby you get a 'smart' card and deposit money to that card's account. The machines will then deducts losses from, or credit wins to, your account.

No public information is available regarding the payback percentages on Wyoming's gaming machines.

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