HD46 - Provisions of the Code of Virginia Relating to Horse Racing and Pari-Mutuel Wagering in the Commonwealth

  • Published: 1991
  • Author: Division of Legislative Services, Joint Subcommittee
  • Enabling Authority: House Joint Resolution 178 (Regular Session, 1990)

Executive Summary:
A. Study Authority and Scope

House Joint Resolution No. 178, agreed to during the 1990 Session of the General Assembly (Appendix A), established a joint subcommittee to study the statutory provisions in the Code of Virginia pertaining to horse racing and pari-mutuel wagering in the Commonwealth and to determine whether any revisions in the Code were desirable. Statutory provisions relating to horse racing and pari-mutuel wagering are found in §§ 59.1-364 through 59.1-405, Chapter 29 of Title 59.1 of the Code of Virginia.

The resolution stated that Chapter 29 was enacted by the 1988 General Assembly to provide for horse racing with pari-mutuel wagering in the Commonwealth for the promotion, sustenance, and growth of a native industry in a manner consistent with the health, safety, and welfare of the people. The chapter became effective on January 1, 1989, after the approval of a referendum on the subject in the general election of November 1988. The Virginia Racing Commission is operative, has hired an Executive Director and staff, and has promulgated regulations.

In addition, the resolution asserted that, in the view of some members in Virginia's horse-breeding industry, the current structure of Chapter 29 may not be conducive to the economic viability of horse racing and pari-mutuel wagering in the Commonwealth.

The subcommittee consisted of six members. The Speaker of the House appointed two members from the House Committee on General Laws and one member from the House of Delegates at-large. The Senate Committee on Privileges and Elections appointed one member from the Senate Committee on General Laws and one member from the Senate at-large. The Chairman of the Virginia Racing Commission was also directed by the resolution to serve on the subcommittee.

B. Background

Chapter 19 of Title 59.1 was passed during the 1978 Session of the General Assembly and made subject to a referendum held November 7, 1978 (Chapter 600 of the 1978 Acts of Assembly). If approved, the legislation authorizing the establishment of horse racing and pari-mutuel wagering in Virginia would have become effective on January 1, 1979. However, the legislation was defeated at the referendum and never went into effect.

There have been no reports or documents of a legislative study regarding horse racing and pari-mutuel wagering conducted in Virginia during the past twenty years. Numerous study subcommittees, however, were established during the 1980's pertaining to horses. They are as follows:

• Horse breeder incentive and recognition programs; SJR 58 (1980)

• Establishment of a horse center, study to be conducted by joint legislative subcommittee; HJR 48 (1980); HD 18 (1981)

• Continuation of the horse center study; HJR 307 (1981); HD 17 (1982); HD 45 (1984)

• Establishment of a horse center, study to be conducted by the Department of Agriculture and Consumer Services; SJR 24 (1982); SD 18 (1984)

• Continuation of the study on the establishment of a Virginia Horse Center study by the legislative subcommittee; HJR 64 (1984).

As noted above, not all of these study subcommittees reported their findings. The Virginia Horse Center was established and is currently located in Lexington, Virginia.

In 1988, legislation was introduced providing for horse racing and pari-mutuel wagering in the Commonwealth. The 1988 legislation was contingent on approval by the voters at the general election. The voters approved the referendum and the election results were certified on November 28, 1988. Chapter 29 of Title 59.1, composed of §§ 59.1-364 through 59.1-405, relating to horse racing and pari-mutuel wagering became effective on January 1, 1989 (Chapter 145 of the 1989 Acts of Assembly).

C. Issues Before The Subcommittee

The two primary issues addressed by the subcommittee were:

(i) Simulcasting -- the ability to wager on major out-of-state races (such as the Kentucky Derby or the Breeders Cup) at a Virginia track as well as the ability to wager on in-state races at one or more Virginia tracks; and

(ii) Satellite wagering (sometimes referred to as off-track betting) -- legal wagering at a location other than the track where races are being held.

Additionally, the subcommittee addressed various housekeeping and policy considerations related to the two primary issues identified above. Because there was a significant degree of interplay between all of the issues that the subcommittee addressed, no specific issue could be, or was, viewed in isolation.