RD75 - Virginia Racing Commission 2009 Annual Report


Executive Summary:
The Racing Act, Title 59, Chapter 29, effective on January 1, 1989, vests control of all horse racing with pari-mutuel wagering conducted in the Commonwealth to the Virginia Racing Commission (VRC). The Commission:

• Prescribes regulations and conditions under which racing and wagering is conducted;

• Maintains horse racing in the Commonwealth of the highest quality free of corrupt, incompetent, dishonest or unprincipled practices, and;

• Maintains in such racing complete honesty and integrity.

Horse racing with pari-mutuel wagering is permitted in the Commonwealth for the “promotion, sustenance and growth of the native industry, in a manner consistent with the health, safety and welfare of the people.”

• In 2009 the VRC felt the impact of an economy in recession and witnessed the continued decline, almost 20% from 2008, in wagering at the race track and Satellite Wagering Facilities (SWFs). The only improving segment of wagering in Virginia occurred in Advance Deposit Wagering (ADW or, online wagering) which saw a 5% jump.

• In 2009 the VRC dealt with the fallout from the source-market fee ADW legislation that became effective July 1, 2009. The four Out-of-State ADW providers strongly disapproved of a mandated 10% source market fee going to the racetrack and horsemen. As of the time of the writing of this Annual Report it appears that the parties are close to resolving their differences.

• In September of 2009, Commissioner Trip Ferguson resigned to pursue political interests. His replacement, Stuart C. Siegel was appointed by the Governor in November.

• 2009 saw the VRC settle a long standing dispute with a prior technology provider. At issue, was the upgrade to the VRC’s licensing system. While the dispute has been resolved, the licensing system remains in need of upgrading or replacement.

• The first ever increase in VRC license fees was also approved by the Commission. The new rates went into effect on January 1, 2010.

•The ad hoc committee known as the Virginia Racing Improvement Group (VRIG) was formed and met 6 times. VRIG brings together the interested parties, including the public, to plot a successful potential future for VA horse racing that is sustainable and profitable.