By the terms of House Joint Resolution No. 8 of 1971, the General Assembly created the Pari-Mutuel Betting Study Commission whose charge was to review the desirability and feasibility of legalizing wagering on horse racing in Virginia. As the Commission was unable to complete its charge beyond making the preliminary recommendation that pari-mutuel wagering on horse racing be authorized, in 1972, House Joint Resolution No. 84 in 1972, continued the Commission for the purpose of finalizing its recommendations by preparing the necessary legislation for implementation. The Commission carried out this charge during the second year of its life with considerable diligence producing what is viewed from many quarters as the most tightly drawn legislation dealing with horse racing yet conceived in the United States.

While the Commission was in the process of preparing legislation for introduction in the General Assembly, the United States House of Representatives created the Select Committee on Crime for the purpose of examining the extent to which sports and sports related activities are influenced by criminal groups. The Select Committee restricted its investigation to the horse racing industry, holding a series of hearings designed to elicit information pertinent to its study. At the time that the legislative proposal of this Commission was under review by the General Assembly the Select Committee had not as yet made its report to the House of Representatives. It was deemed advisable that consideration of legalizing pari-mutuel betting be held in abeyance pending the outcome of the Select Committee's findings. To this end the Pari-Mutuel Betting Study Commission was continued for a second time by House Joint Resolution No. 291 of 1973.

The membership of the Commission remained unchanged and is as follows: Peter K. Babalas of Norfolk; Vincent F. Callahan, Jr. of McLean; William M. Camp, Jr. of Franklin; Walter W. Craigie, Sr. of Richmond; H. Addison Dalton of Richmond; Calvin W. Fowler of Danville; Raymond R. Guest of King George; John W. Hanes, Sr. of the State of New York; Omer L. Hirst of Annandale; George J. Kostel of Clifton Forge; Julien J. Mason of Bowling Green; Charles F. Phillips, Jr. of Lexington; William Ferguson Reid of Richmond; Randolph D. Rouse of Arlington; Alson H. Smith, Jr. of Winchester; Harold Soldinger of Norfolk; T. D. Steele of Salem; Russell I. Townsend, Jr. of Chesapeake; Daniel G. Van Clief of Esmont; Stanley C. Walker of Norfolk; and Lawrence Douglas Wilder of Richmond. Mr. Van Clief continued to serve as Chairman and staff assistance was provided by Raymond D. Vaughan, Deputy Commissioner of Agriculture and Commerce, and Laurens Sartoris and Steven L. Micas of the Division of Legislative Services.

The Commission was unable to commence immediately its activities as the report of the Select Committee was not published until June of 1973. Thereafter the report was thoroughly examined by the Commission members and Congressman Sam Steiger of Arizona, who served as a member of the Select Committee, kindly appeared before the Commission in order to provide additional insight into the activities and findings of the federal study group. A special subcommittee of the Commission was appointed in order to assess the earlier findings and recommendations of the Commission in light of the findings and recommendations of the Select Committee. The membership of this subcommittee was as follows: Omer L. Hirst, Chairman; Walter W. Craigie, Sr.; H. Addison Dalton; Julien J. Mason; and Russell I. Townsend, Jr. This subcommittee reported back to the full Commission that it did not feel that the Select Committee's findings in any way altered the position of the Commission, but rather buttressed the Commission's earlier stated awareness that proper vigilance must be maintained at all times in the conduct of racing activities. Further discussion of the subcommittee's findings will be addressed elsewhere in this report.

The study directive, under which the Commission has operated for the past year, also requested that the Virginia State Crime Commission lend its full aid and support to the Pari-Mutuel Betting Study Commission. The Crime Commission proceeded in an unstinting manner to assist the Commission by retaining the services of three consultants to review the report of the Select Committee and conduct an independent investigation as to the influence of organized criminal elements in the horse racing industry. These consultants made their study and prepared a report which was submitted to the Crime Commission. Thereafter the Crime Commission delivered this report to the Commission which received it gratefully and reviewed its contents with interest. Further discussion of the report follows below.

Based on the findings of the report prepared for the Crime Commission and on its own review of the report of the Select Committee, we now make our final report to the Governor and the General Assembly.