Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, November 8, 1993                   TAG: 9311080063
SECTION: VIRGINIA                    PAGE: C-2   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium

TRACK DEVELOPERS RETHINK PROFITS

Alexandria and Arlington residents last week voted against allowing the off-track facilities in their cities. Other Northern Virginia localities rejected off-track betting parlors last year.

Seven localities elsewhere in the state have approved off-track betting. However, many horse-track developers considered access to the affluent Washington suburbs crucial to their financial success.

The Virginia Racing Commission plans to award the first pari-mutuel license next spring. The six applicants have until Jan. 3 to amend their proposals.

"Some things will happen before Jan. 3," said Ohio track owner Arnold Stansley, one of the applicants. "There will definitely be some changes."

Churchill Downs Inc. of Louisville, Ky., said the rejection of off-track betting in Northern Virginia will force the racing giant to scale back its plans for a $56 million track in Virginia Beach.

"I expect to have to retool the financing package," said Thomas H. Meeker, president of Churchill Downs. "This is a substantial change in the potential for Virginia racing, at least short term."

Maryland track executive Joe DeFrancis said Northern Virginia bettors are so important that he may change his proposal so that the $55 million track would be built in Loudoun County instead of New Kent County.

The importance of off-track betting can be seen in DeFrancis' application. He figured the Northern Virginia off-track betting parlors would generate $261,900 in bets a day, compared with $126,430 a day in Virginia Beach and $53,570 a day in Hampton.

Some of the developers, such as Covington dentist Jeffrey Taylor, say their numbers don't depend so much on Northern Virginia. And Stansley planned off-track betting parlors for his modest $31 million track only where they had already gotten voter approval.

Others, such as Virginia Racing Associates in Portsmouth, admit their profit margin will shrink until Northern Virginia is reachable through television simulcasting and betting machines.

"It does affect our profit and our rate of return for our investors, but we will not have to scale back our plans," said Carrie Camp, vice president of the Portsmouth group.