Virginia Law

For any satellite facility that offers pari-mutuel wagering on historical horse racing, the following conditions shall apply:

1. A licensee may not reduce, limit, or otherwise alter the nature or extent of its simulcast operations if it offers pari-mutuel wagering on historical horse racing without commission approval.

2. Any licensee must provide the following minimum simulcast offerings:

a. An average daily simulcast schedule of not less than 14 racetracks, unless otherwise approved by the commission for a specific facility;

b. At least two tellers dedicated to simulcast wagering, or one teller for every 200 historical horse racing terminals at the satellite facility, whichever number is greater; and

c. At least 20 self-service tote machines dedicated to simulcast wagering at each satellite facility, unless otherwise approved by the commission for a specific facility.

3. The licensee must promote simulcast wagering inside its satellite facility and make available televisions broadcasting simulcast signal, tote machines, and tellers in a prominent location for use by patrons.

4. The commission may authorize a licensee to provide historical racing terminals at a satellite facility located in a jurisdiction with valid and unexpired referenda on pari-mutuel wagering in accordance with the following limits on the total number of historical racing terminals located in such jurisdiction:

a. Up to 700 terminals in a jurisdiction with a population of 120,000 or greater;

b. Up to 300 terminals in a jurisdiction with a population between 60,000 and 120,000; and

c. Up to 150 terminals in a jurisdiction with a population of 60,000 or less.

The population of a jurisdiction shall be determined based upon the most recent University of Virginia Weldon Cooper Center population estimates.

5. Any such satellite facility must receive all appropriate local government authorizations.

6. In no circumstance shall the total number of historical racing terminals located in a jurisdiction set forth in subdivision 4 of this section exceed 25% of the total limit for such jurisdiction absent formal approval by the relevant city or town council or county board of supervisors of the jurisdiction.

7. In no circumstance shall the combined statewide total number of historical racing terminals located at satellite facilities and significant infrastructure facilities exceed 3,000.

8. The commission shall authorize an additional 600 historical racing terminals each time a local referendum required by § 58.1-4123 of the Code of Virginia is approved, provided that the total number of additional machines authorized pursuant to this section shall not exceed 2,000 statewide.

a. This increase in historical racing terminals shall not apply with respect to any city where a significant infrastructure limited licensee, as defined in § 59.1-365 of the Code of Virginia, or the affiliate of such licensee, is awarded a casino operator's license.

b. Notwithstanding the other provisions of this section and subject to the local referendum requirements of § 59.1-391 of the Code of Virginia, for the terminals specifically authorized in this section, the commission shall authorize up to 1,650 terminals in a satellite facility in a metropolitan area with a population in excess of 2.5 million located in a jurisdiction that has passed a referendum pursuant to the requirements of § 59.1-391 of the Code of Virginia prior to January 1, 2020, and 500 terminals in a metropolitan area with a population in excess of 300,000, provided that no additional terminals authorized pursuant to this subsection shall be located within 35 miles of an eligible host city as described in § 58.1-4107 of the Code of Virginia.

(1) No satellite facility shall be authorized in any locality that is included in the Regional Improvement Commission established in the fifth enactment clause of Chapter 1197 of the 2020 Acts of Assembly.

(2) Population determinations for purposes of this subsection shall be based on the 2018 population estimates from the Weldon Cooper Center for Public Service of the University of Virginia.

9. The tax rate for any terminal added pursuant to subdivision 8 of this section shall be calculated so that the licensee shall retain 1.6% of such pool to be distributed as follows:

a. 0.96% to the Commonwealth as a license tax; and

b. If generated (i) at a racetrack, 0.64% to the locality in which the racetrack is located or (ii) at a satellite facility, 0.32% to the locality in which the satellite facility is located and 0.32% to the Virginia locality in which the racetrack is located.

10. For any local referendum passed pursuant to § 59.1-391 after July 1, 2020, the commission shall not authorize any additional satellite facilities as defined in § 59.1-365 of the Code of Virginia, or additional simulcast wagering terminals pursuant to this section, during a period of two years after July 1, 2020.