Virginia Law

An applicant for a license must disclose with regard to its financial plan the financial projections for the development period and for each of the first five racing years, with separate schedules based upon the number of racing days, types of racing, and types of pari-mutuel wagering the applicant requires to break even and the optimum number of racing days and types of wagering the applicant seeks each year. The commission will utilize financial projections in deciding whether to issue licenses.

Neither acceptance of a license application nor issuance of a license shall bind the commission as to matters within its discretion, including, but not limited to, assignment of racing days and approval of types of permissible pari-mutuel pools.

The disclosure must include:

1. The following assumptions and support for them:

a. Average daily attendance;

b. Average daily per capita handle and average bet;

c. Retainage;

d. Admissions to track, including ticket prices and free admissions;

e. Parking volume, fees and revenues;

f. Concessions, gift shop and program sales;

g. Cost of purses;

h. Pari-mutuel expenses;

i. State taxes;

j. Local taxes;

k. Federal taxes;

l. Virginia Breeders Fund;

m. Payroll;

n. Operating supplies and services;

o. Utilities;

p. Repairs and maintenance;

q. Insurance;

r. Travel expenses;

s. Membership expenses;

t. Security expenses;

u. Legal and audit expenses; and

v. Debt service.

2. The following profit and loss elements:

a. Total revenue, including projected revenues from retainage, breakage, uncashed tickets, admissions, parking, and concessions, gift and program operations;

b. Total operating expenses, including anticipated expenses for:

(1) Purses;

(2) Pari-mutuel;

(3) Sales tax;

(4) Local taxes;

(5) Admissions tax;

(6) Virginia Breeders Fund;

(7) Special assessments;

(8) Cost of concession goods, gifts and programs;

(9) Advertising and promotion;

(10) Payroll;

(11) Operating supplies and service;

(12) Maintenance and repairs;

(13) Insurance;

(14) Security;

(15) Legal and audit; and

(16) Federal and state taxes.

c. Nonoperating expenses, including anticipated expenses for debt service, facility depreciation and identification of method used, and equipment depreciation and identification of method used.

3. Projected cash flow, including assessment of:

a. Income, including equity contributions, debt contributions, interest income and operating revenue; and

b. Disbursements, including land, improvements, equipment, debt service, operating expense and organizational expense.

4. Projected balance sheets as of the end of the development period and of each of the first five racing years setting forth:

a. Current, fixed and other noncurrent assets;

b. Current and long-term liabilities; and

c. Capital accounts.

5. The applicant must also disclose an accountant's review report of the financial projections.