Virginia Governor Youngkin blocks referendum, clears path for Churchill Downs' Henrico gaming facility

Virginia Governor Glenn Youngkin vetoed a measure on Monday that would have required a public referendum before a new Rosie’s Gaming Emporium could open in Henrico County, a move that paves the way for the Churchill Downs-owned facility to proceed despite local opposition.  

The veto overrides a provision in the state budget that mandated voter approval for gambling facilities, allowing construction at the Staples Mill Shopping Center site to continue, pending a Virginia Racing Commission (VRC) license. A two-thirds majority in both legislative chambers would be needed to override the veto, an unlikely scenario in Virginia’s General Assembly.  

Youngkin justified his veto by citing fairness to Churchill Downs, arguing that the company followed all regulations and secured necessary permits before opponents sought to change the rules.  

“They received all the permits they needed to start building, they’d invested $5 million in this new site, and then someone came and tried to change the rules on them,” Youngkin said. “I just didn’t think that was appropriate. That is not the way we do business.”  

Local officials and state legislators swiftly criticized the governor, accusing him of undermining voter input and favoring corporate interests.  

Dan Schmitt, Chair of the Henrico Board of Supervisors (R), strongly criticized Youngkin’s decision: "Instead of empowering voters, the governor’s decision rewards Rosie’s and similar companies that are uninterested in healthy, public engagement that is at the heart of a democracy."

Schmitt also took aim at Churchill Downs, accusing the organization of avoiding public scrutiny. "Churchill Downs has an apparent allergy to the public process. They are allergic to the public," he said. "As we’ve seen repeatedly in recent months, Rosie’s has done nothing but hide from Henrico’s voters and skirt meaningful discussion of its potential presence within our community."

Sen. Schuyler VanValkenburg (D-Henrico), who led efforts to require a referendum, criticized Youngkin’s veto as prioritizing corporate interests over public sentiment. “At the end of the day, the governor had their back, not ours,” he said, adding, “This is why people hate politics and hate politicians.”

The veto came nine days after Youngkin attended a Churchill Downs event at the Colonial Downs racetrack, where he was photographed with company officials.  

Churchill Downs defended the gaming project, arguing that the referendum requirement was unfair and could set a negative precedent for businesses in Virginia.  

The company said in a statement: “These measures send a deeply troubling message to every Virginia business that they may face arbitrary punishment even if they adhere to regulations and follow the law.”  

The company also rejected Henrico County’s offer to reimburse its $5 million investment if it relocated to a site that would be subject to public hearings.  

Henrico leaders and state legislators are now exploring legal options and urging colleagues to override the veto. More than 100 residents have filed objections to the facility’s pending Virginia ABC liquor license request.  

Additionally, Henrico officials have questioned whether a 1992 voter-approved referendum on off-track betting should apply to historical horse racing machines, which did not exist at the time.  

Opponents argue that the gaming facility’s location—less than a mile from 2,716 residential units—is inappropriate.