THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, January 19, 1996 TAG: 9601190604
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 64 lines
The state's first off-track betting parlor could open in Chesapeake later this month as scheduled under a legislative compromise discussed Thursday.
State Sen. Kenneth W. Stolle, R-Virginia Beach, backed off his insistence that simulcast wagering could not begin until the operator, Colonial Downs, opened a proposed horse track in New Kent County.
In return, Colonial Downs would earmark its share of profits from off-track parlors in Chesapeake and Richmond, scheduled to open in mid-March, to build the track in New Kent.
Stolle said he was trying to avoid a situation where Colonial Downs could make a quick profit from off-track betting parlors without building a track - which would benefit the state's horse industry.
The Senate General Laws Committee will consider the compromise bill next week. If the compromise is approved by the committee, the bill will be sent to the full Senate and then to the House of Delegates.
William Thomas, a lobbyist for Colonial Downs license holder Arnold Stansley of Ohio, said he was unsure if his client could live with the compromise.
Under the proposal, Colonial Downs could offer simulcast wagering for at least 12 months at a restaurant/betting parlor under construction on South Military Highway in the Deep Creek section of Chesapeake.
The facility could remain open longer if, next year, the General Assembly determined Colonial Downs was making sufficient progress on the New Kent track.
Colonial Downs anticipates that bettors in the Chesapeake parlor will wager a total of $47 million a year.
Patrons at the Chesapeake betting parlor will be charged $2 admission at the door. From there, they will head for a lounge, a dining area, a deli or one of two sections with long counters for people who want to go straight to betting.
Two hundred 200 television sets will broadcast live horse races via satellite from around the country.
For Chesapeake, the satellite wagering facility is expected to generate $400,000 a year in tax revenue. ``That's a lot of money. We like that idea,'' said Donald Z. Goldberg, the city's economic development director.
Under Stolle's bill, Colonial Downs would be barred from off-site wagering beyond Chesapeake and the Richmond facility.
Colonial Downs also would have to reach an agreement with horsemen to set aside part of the off-track proceeds to build purses for live racing.
``If Colonial Downs is against this bill, it would be an indication that they have no intention of opening a track in Virginia,'' Stolle said.
The General Assembly appears ready to step into the Colonial Downs issue out of frustration that the Virginia Racing Commission, which oversees parimutuel wagering, has failed to hold Stansley to a definite timetable.
Thomas said his client has been stymied by a lawsuit filed by a disgruntled applicant that had sought the license for the first Virginia track. ILLUSTRATION: Color drawing
KEYWORDS: GAMBLING by CNB