Virginia: Youngkin blocks budget condition that threatened Churchill Downs' Roseshire Gaming Parlor

Virginia Governor Glenn Youngkin has vetoed a budget provision that could have delayed the opening of a new historical horse racing (HHR) facility in Henrico County, clearing the path for Churchill Downs Incorporated to proceed with its Roseshire Gaming Parlor project.

CDI is transforming a former retail space at the Staples Mill Shopping Center into a gaming venue featuring HHR machines, a wine bar, and live entertainment. The company has already invested more than $5 million into the site and received the necessary local permits for construction.

Governor Youngkin criticized the now-vetoed budget amendment, which would have required a local referendum before the facility could open. “That was a site that they had agreed with the county. They received all the permits they needed to start building. They had invested $5 million in this new site, and then someone came and tried to change the rules on them,” he said.

In a statement following the veto, Churchill Downs stated that Henrico County had verified the legality of the project multiple times. “Henrico County has repeatedly confirmed that this project complies with all laws, regulations, and requirements,” the company said.

“The vetoed budget language would have sent a very negative message to Virginia businesses that laws and regulations can change without warning even after projects have been approved, permits have been issued, and contracts have been signed,” added CDI.

Churchill Downs plans to open the Roseshire Gaming Parlor later this year. Opposition to the project has emerged from some state and local officials, including Sen. Schuyler VanValkenburg (D-Henrico), who argued that the facility goes beyond what voters originally authorized.

“A referendum in Henrico 33 years ago approved only live horseracing and off-track betting — not slot machines,” he said. “In other words, the county’s residents approved restaurants with hamburgers and big screen televisions broadcasting live horse races, but now residents are faced with what amounts to be a mini-casino.”

Henrico Supervisor Dan Schmitt also opposed the governor’s move, saying that Youngkin “cast aside Henrico voters’ voices.”

The attempt to require a local referendum was tied to an effort by the Henrico County Board of Supervisors to regulate new parimutuel wagering venues. However, Virginia’s status as a Dillon’s Rule state limits local governments’ authority in areas governed by state legislation.

Since the state authorized historical horse racing in 2018, any county that had previously approved parimutuel wagering via referendum could host HHR gaming. Henrico voters approved parimutuel betting in 1992.

The 2018 law was designed to revive live horse racing at Colonial Downs Racetrack in New Kent County. It allowed HHR machines to support racing operations, following an agreement with Peninsula Pacific Entertainment (P2E), which acquired the racetrack. Churchill Downs later purchased P2E and its assets in 2022 for $2.8 billion, including Colonial Downs and its off-track betting network.

Churchill now operates seven Rosie’s Gaming Emporium locations throughout Virginia, as well as The Rose Gaming Resort in Dumfries, which features 1,650 HHR machines and a hotel. To overturn Governor Youngkin’s veto, Virginia’s General Assembly would need a two-thirds majority vote in both chambers.