The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, February 3, 1996             TAG: 9602030338
SECTION: LOCAL                    PAGE: B1   EDITION: FINAL 
SOURCE: BY ROBERT LITTLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   57 lines

GENERAL ASSEMBLY: SENATORS APPROVE NEW RESTRICTIONS ON TWO OFF-TRACK BETTING PARLORS LEGISLATION WOULD FORCE BETTING-PARLOR OPERATOR TO SHARE PROFITS WITH NEW KENT COUNTY TRACK.

The Senate voted Friday to place new restrictions on off-track betting in Virginia, a measure designed to keep Virginia's horse racing industry focused more on horses than gambling.

The Senate voted 35-3 for a bill that would force the operator of proposed off-track betting parlors in Chesapeake and Richmond to channel profits into a proposed thoroughbred track in New Kent County.

The bill now goes before the House of Delegates, where opponents will get another chance to alter or kill it.

Sen. Kenneth W. Stolle, R-Virginia Beach, sponsored the bill to ensure live horse racing in Virginia, not just gambling on televised races. The state, under the bill, could close the off-track parlors if live racing is not in place next year.

Under the proposal, the operator of the two proposed off-track betting parlors must reach an agreement to share profits with horse industry groups. The money would go toward prizes at Colonial Downs, the planned track off Interstate 64 between Richmond and Williamsburg.

Debate has swirled around the gambling parlors, which could produce half a million dollars in annual tax revenue for Chesapeake and Richmond. But senators adopted the measure without debate, largely as a gesture to Stolle.

The Virginia Beach Republican spent much of Friday's Senate session trying to amend a different bill that he feared would harm the Navy and sour its relationship with Virginia. His amendment failed. Afterward, Stolle let the bill pass - with no parliamentary finagling or backroom tactics to kill it.

In less congenial times, a battle might have ensued. But the Senate floor leader responded in kind. Sen. Richard L. Saslaw, a Fairfax Democrat, let Stolle's equally controversial bill come up for a final vote before the weekend.

``A courtesy,'' Saslaw said to his colleagues on the floor.

Also Friday, the Senate voted 38-2 in favor of a bill that would allow the Virginia Beach City Council to take over the financial responsibilities of the School Board.

Offered by Virginia Beach Sen. Edward L. Schrock, the proposal grew from the recent financial problems - including a $12.1 million deficit - under the School Board's watch.

The vote was a victory of sorts for the freshman senator, who considered the bill one of his legislative priorities.

But the House of Delegates snuffed out a similar proposal. And members there show little sign of warming to the Senate's version.

``We'll keep going,'' said Schrock.

KEYWORDS: GENERAL ASSEMBLY OFF-TRACK BETTING BETTING PARLORS by CNB