Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, September 11, 1994 TAG: 9409100007
SECTION: BUSINESS PAGE: F-1 EDITION: METRO
SOURCE: By LEIGH ANNE LARANCE SPECIAL TO THE ROANOKE TIMES & WORLD-NEWS
DATELINE: LENGTH: Long
But two of the five groups vying for the license to build and run the track also have plans to bring racing and wagering to the region via satellite-fed television, operating an off-track betting parlor.
Putting an off-track betting parlor with television screens and tellers in a restaurant makes sense, said developer James J. Wilson, a Middleburg resident who heads the Virginia Jockey Club. ``You look at the population base ... then you look at a central location to serve that population,'' he said.
Wilson, who has applied to build a track in Prince William County in Northern Virginia, said he wants to put an off-track betting operation in the Roanoke area. Churchill Downs, the Louisville, Ky., operator planning a track in Portsmouth, was not as specific. In its application for a state license to run the track, it listed Southwestern Virginia among the places it wants to put a betting parlor.
Other applicants want to build tracks in Virginia Beach and New Kent County.
Whoever wins the license to build the track probably will have to jump a few fences before those betting parlors are up and running.
``If you look at Virginia, you basically have three major market areas - Northern Virginia, Richmond and the Tidewater area,'' said Donald Price, executive director of the Virginia Racing Commission. Those markets are included in plans for off-track betting parlors, but the state license allows up to six.
``With the ability to have satellite wagering and send a signal to Roanoke, you're able to put your signal in another market area,'' Price said.
A hitch is that local jurisdictions first must hold referendums to let voters have the final say on whether to allow off-track betting in their communities.
Once the state issues the license - which could happen as early as Wednesday - the successful applicant probably would visit potential sites, meet with local officials about getting the issue on the ballot and begin the process of making sure sites meet local ordinances.
The license holder also has to go through another application process with the Virginia Racing Commission for each of the satellite operations. Those must meet the commission's standards for parking, security and compliance with local zoning, among other considerations.
Richmond, Hampton, Chesapeake and Virginia Beach and the counties of Henrico, Brunswick and Greensville have passed referendums allowing off-track betting - another requirement before satellite operations can begin. But other localities named as potential sites - including Roanoke, Portsmouth, Danville, Mecklenburg, Southwest Virginia and Northern Virginia - have not.
Residents from four jurisdictions - Falls Church, Fairfax, Alexandria and Arlington - rejected betting parlors. Voters and elected officials there joined forces against off-track betting, blocking track operators from establishing betting operations in some of the most populated jurisdictions in the state.
In addition to moral opposition to gambling, those fighting the referendum argued it would bring crime, traffic problems and an unwanted image to their neighborhoods.
They also argued that while it is true that some of the money wagered would be returned to the localities with betting parlors in the form of a pari-mutuel tax - about $100,000 per year, according to Price - they said that figure wouldn't offset the negatives.
Communities that have betting parlors, such as The Cracked Claw outside Frederick, Md., have seen increased traffic, particularly with big races, but parlor operators and local police say crime is not a problem.
The Cracked Claw cultivates its image as a secure facility by having five full-time, highly visible security officers on its staff. Owner John Poole also made a point of hiring a 20-year law enforcement veteran, Tim May, to run the off-track betting operations.
``We never really have too many problems down there,'' said Maryland State Trooper M.J. Brady. ``In fact, I haven't been down there in about a year.''
Troopers setting up speed traps on the road that leads from the restaurant to Interstate 270 have stopped more motorists for drunken driving. ``But to be honest, the way we usually get them is it's a 30 mph speed limit,'' he said, adding that that's the type of problem that comes with any high-traffic restaurant. ``We don't really have problems as far as thefts or assaults or anything like that.''
The betting parlors and the ability to simulcast races from other tracks are what make owning the state pari-mutuel license a lucrative proposition.
Annual attendance at the six betting parlors is expected to exceed 1.2 million, while attendance at the track will be about half that. Betting at the off-track operations is expected to be worth more than $165 million annually, compared with $87 million on live races at the track, according to a financial review of the license applications by Deloitte & Touche, a consultant.
Wilson said the larger audience that comes with the off-track betting parlors is key in developing the racing industry. They make it possible for the largest number of people to bet on as many races as possible. Wilson speaks from experience. His family also operates El Comandante race track and off-track betting sites in Puerto Rico.
``In 1989, when we bought it, there were about 60,000 fans in Puerto Rico. Today there are about 180,000 fans,'' he said. The amount wagered went from $130 million a year in 1989 - before the push to simulcast and set up off-track betting - to $280 million today.
``The show is racing,'' he said. ``The way it's paid for is the betting.''
by CNB