In accordance with Code of Virginia Title 29, Chapter 59.1-369 (9) as related to horse racing with pari-mutuel wagering, I am pleased to present the 2018 Annual Report of the Virginia Racing Commission.

This was a year of transition and growth for horse racing in the Commonwealth. The Virginia Racing Commission has worked diligently with the Virginia Horsemen's Benevolent and Protective Association, the Virginia Harness Horse Association, and the Virginia Equine Alliance to assist each stakeholder by encouraging full and unwavering participation in Virginia. This year saw the passage of House Bill 1609, which allows for pari-mutuel wagering on historical horse racing both at Colonial Downs Racetrack and its Satellite Wagering Facilities. The emergency regulations were drafted by staff with the assistance of the Attorney General's office and approved by the Commission in early October. Licenses were awarded to the Colonial Downs Group, LLC in December allowing historical horse racing to take place at Colonial Downs Racetrack, which is expected to commence operations in late April of 2019.

Funding for the Virginia Racing Commission comes solely from revenue generated by a small percentage of all pari-mutuel wagers made in the Commonwealth. This revenue enables the agency to meet its financial obligations associated with the regulation of horse racing with pari-mutuel wagering.

The Racing Commission remains steadfast in protecting the integrity of racing for those who participate and the loyal customers who enjoy it, in addition to the health and welfare of the equine athletes. As always, we rely on the continued support of the Virginia Equine Industry, from you and your administration, as well as from the General Assembly.

Respectfully Submitted,

/s/ David S. Lermond, Jr.
Executive Secretary