Colonial Downs Racetrack, a significant asset, will be acquired by Churchill Downs Incorporated, a renowned Kentucky brand. The addition of the Virginia-based racetrack was announced on Tuesday.
The track located in New Kent, Virginia, is merely a component of a significantly broader acquisition made by Peninsula Pacific Entertainment (P2E).
Churchill Downs’ inventory will now include six additional Rosie’s Gaming Emporiums and approximately 2,700 historical horse racing (HHR) machines following the purchase.
- Collinsville (37 HHR machines)
- Dumfries (150)
- Hampton (700)
- New Kent (600)
- Richmond (700)
- and Vinton (500).
Additionally, the acquiring company has the opportunity to establish a maximum of five extra HHR entertainment parlors in Virginia. The current proposals aim to introduce approximately 2,300 new HHRs within the state. Furthermore,
- In addition to Dumfries, VA, Churchhill Downs is also set to expand its operations. The initial stage of this expansion is scheduled to commence in 2025, featuring a parlor equipped with a maximum capacity of 1,800 HHR machines.
- There is another project scheduled for completion in Emporia, VA, also targeting the year 2025. This establishment, located near the North Carolina border along 1-95, will house 150 machines in its parlor.
In a significant development, P2E has established a partnership with Urban One to collaborate on the development of ONE Casino + Resort. However, it is important to note that the proposed $565 million destination casino in Richmond is currently in its conceptual phase. Should the developers meet certain requirements, Churchill Downs will assume control of the P2E Urban One bid.
- explore the political landscape of the Virginia General Assembly, with a looming focus on the city of Petersburg.
- Persuade Richmond voters to reconsider their choice in the unsuccessful 2021 casino referendum.
As part of their P2E assets, the company expanded their presence beyond Virginia by including a Hard Rock Casino situated in northwest Iowa and the Del Lago Resort & Casino located in Waterloo, NY.
“The acquisition of P2E marks a significant milestone in the progression of Churchill Downs, as stated by its CEO, Bill Carstanjen.”
HHR Machines will be big for Churchill Downs
In September, Virginia’s six HHR machine parlors generated revenue of nearly $338 million from their 2,606 terminals. Throughout the initial nine months of 2022, customers placed bets amounting to approximately $3 billion at the HHR machines.
The Virginia Racing Commission is responsible for overseeing the monitoring of HHR bets, including live horse races. However, an advisory group is advocating for a shift in this responsibility. They believe that HHR plays would be better managed by the Virginia Lottery.
Why?
This comprehensive on-site article provides a thorough description of the HHR parlor experience. It implies that HHR machines resemble slot machines, with a subtle acknowledgement that casinos and slots are an emerging form of gambling in Virginia.
In case you haven’t visited the PlayVirginia link, here’s a snippet from the piece that I highly recommend you check out. It’s definitely worth your time.
Instead of leaving your outcome purely to chance, the machines utilize replays of thousands of previously run horse races. The players’ funds are combined and follow the same pari-mutuel wagering system employed during the original live races many years ago.
The initial HHR machines had a striking resemblance to genuine horse racing terminals. However, with the rise of automated betting features, they gradually transformed into their present form, bearing no resemblance to slot machines whatsoever.
Since 2019, establishments such as Rosie’s parlors have been utilizing HHR machines. With the recent addition of P2E, it appears that Churchill Downs will also benefit from this venture.
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