2022-24 Strategic Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia Racing Commission [405] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mission, Vision, Values | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mission | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Virginia Racing Commission promotes, sustains, grows and controls the native horse racing industry with pari-mutuel wagering by promulgating regulations and conditions that command and promote excellence, safety, and integrity in racing and wagering. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vision | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
We envision the Virginia Racing Commission (VRC) to be a model to which other racing commissions aspire, with a history of excellence and integrity. Participants will find our processing systems to be one of the most efficient and innovative in the industry. Regulations will be easily understood and applied to enable horseracing and wagering at the highest standard of safety and integrity. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Values | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Agency Background Statement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Virginia Racing Commission (VRC) regulates all forms of pari-mutuel wagering and live horse racing with wagering which occurs in the Commonwealth of Virginia. VRC conducts proceedings for the issuing of licenses to racetracks, satellite wagering facilities, and advanced deposit wagering providers. Additionally, VRC issues permits to all participants of live horse racing with pari-mutuel wagering, employees of racetracks, satellite wagering facilities, and account wagering providers. VRC is also responsible for the oversight of the Virginia Breeders Fund, which provides financial incentives to the breeders and owners of Virginia-bred horses. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency Status (General Information About Ongoing Status of the Agency) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC's future direction is to continue performing the agency's services in an effective and efficient manner. VRC will be adding two full-time positions given the current and expected increase in the amount of racing and wagering activity in the Commonwealth. HB1609 was passed by the General Assembly during the 2018 session which authorizes Historical Horse Racing at the racetrack in New Kent and licensed satellite wagering facilities. This new form of pari-mutuel wagering has had an effect on the overall workload of the agency and more resources will be required and are reflected in the additional approprriation amount approved in FY2023 and FY2024 budget and will be fully funded by the additional tax revenue received from the wagering on Historical Horse Racing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Technology | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC began using a new licensing system developed by the Association of Racing Commissioners International (ARCI) in March of 2013. The ARCI licensing system is provided free of charge for VRC to use as it is one of the benefits of being a member of ARCI. The ARCI licensing system does not use social security numbers and complies with the security standards of the Virginia Information Technologies Agency (VITA). The new licensing system has worked very well and proven to be a great improvement over the VRC's old system. In early February of 2014 VRC switched from a physical server to a virtual server. This transition to a virtual server was successful and provides a significant cost benefit to the agency. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Workforce Development | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC currently has four full-time employees including the agency head. There is minimal opportunity for cross-training and backup. Opportunities for career advancement are negligible given the size of the agency. Also, because of Shenandoah Downs' location in rural Shenandoah County, the labor pool is sparse and there are a limited number of individuals in the Commonwealth who possess any knowledge and/or experience in the regualtion of horse racing with pari-mutuel wagering. Aditionally, there is a nation-wide shortage of Equine Veterinarians, which are very important to fullfilling the agency's mission of providing safety for the horses and participants. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Staffing
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Physical Plant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In September of 2013 VRC moved its main administrative offices to the Ivor Massey Building located near the Richmond International Airport at 5707 Huntsman Road in Richmond, Virginia and has recently exercised an additional five year option on this location. During the live racing seasons VRC utilizes office space located near the stable area on the backside of Colonial Downs in New Kent and at Shenandoah Downs racetrack in Shenandoah County. These areas are dedicated for licensing personnel, veterinarians, and judges and are provided by the licensees, in accordance with VRC regulations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Key Risk Factors | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited Number of Employees: VRC currently is staffed by 4 full-time employees. Some cross-training opportunities do exist; however, career advancement possibilities are limited within the agency given its size. Agency Results Dependent on Performance of Licensee: Difficulty Securing Qualified Veterinarians: It may be difficult for VRC to secure sufficient Associate Commission Veterinarians for future live race seasons. The Equine Medical Director is responsible for recruiting an adequate number of associate veterinarians to work the live race seasons at Colonial Downs, Shenandoah Downs, and the two days of steeplechase racing at the Great Meadow Racecourse. It is difficult for the Equine Medical Director to retain veterinarians with horse experience who are available to work weekends for the brevity of the racing seasons. There is a nation-wide shortage of Equine Veterinarians, which are very important to fullfilling the agency's mission of providing safety for the horses and participants. VRC has been very fortunate the last several years to employ veterinarians currently between other full-time assignments and hopefully we can continue this practice, dispite the current shortage of Equine Veterinarians.
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Finance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Overview | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC’s funding comes from non general funds, which are generated by a tax on all forms of pari-mutuel wagering that take place in Virginia at licensed racetracks and satellite wagering facilities as well as from advanced deposit account wagering (ADW) by Virginia residents, and license fees for racetrack owners/operators, their employees, and ADW providers. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Biennial Budget
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Revenue Summary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC has three sources of revenue. The first source comes from license and permit fees consisting of fees paid by the Colonial Downs Group (CDG), Virginia Equine Alliance (VEA), and the Virginia Gold Cup Association for satellite wagering facility applications as well as annual owner and operator fees, and license renewal application fees paid by Advanced Deposit Wagering (ADW) providers. Fines collected by VRC are transferred to the Literary Fund in accordance with the Code of Virginia. The second and largest revenue source consists of a pari-mutuel wagering tax collected by VRC from CDG and the licensed ADW providers, based on a percentage of all forms of pari-mutuel wagering at the racetracks, satellite wagering facilities, and through ADW. These funds are used to fully support the operating expenses of VRC and any excess revenues are transferred to the General fund at the end of each fiscal year. The General Fund transfer at the end of FY2022 was slightly more than $30 million. The third source of revenue is derived from a percentage on certain forms of pari-mutuel wagering in Virginia collected by VRC on behalf of the Virginia Breeders Fund. These funds are distributed in the form of financial incentives to the breeders and owners of Virginia-bred horses. These funds are restricted and may only be used for this specific purpose and all expenditures must be approved by the Commission on a yearly basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency Statistics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statistics Summary | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following statistics provide additional information of VRC operations and the horse industry in Virginia for the calendar year 2021.
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Statistics Table
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Customers and Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anticipated Changes to Customer Base | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The number of horse breeders and owners in Virginia continues to decrease due to competition from surrounding states. By example, Delaware, West Virginia, Maryland, and Pennsylvania all have much larger breeders funds which enables these states to pay much larger incentives to horse breeders and thereby attracting horses and breeders away from Virginia. The total amount distributed to the horse owners and breeders in Virginia is dependent on the wagering activity at the racetracks, satellite wagering facilities, and from advanced deposit account wagering by Virginia residents. Beginning July 1, 2022, a portion of the wagering from Historical Horse Racing will be contributed to the Virginia Breeders Fund. This change will positively impact the yearly amount that the Virginia Breeders Fund may distribute in awards and incentives and will hopefully increase the number of Virginia-bred horses in the future. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Customer List
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Partners No data |
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Major Products and Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC provides many important services related to horse racing with pari-mutuel wagering in Virginia. First, VRC is responsible for the issuance of licenses to own and operate a racetrack or satellite wagering facility and conducts public hearings, facility inspections, and background investigations of all applicants. Second, VRC monitors deposits to the Breeders Fund and the license tax to the Commonwealth and certain localities to assure compliance with the Code of Virginia. VRC also issues permits to the participants of horse racing with pari-mutuel wagering as well as to the employees of the licensed racetracks and provides Stewards/Judges to officiate the races and enforce the regulations pertaining to horse racing with pari-mutuel wagering. In addition, VRC collects blood and urine samples from selected horses to test for any prohibited or foreign substances that may affect their performance or the outcome of a race. Lastly, VRC provides financial incentives to the owners and breeders of Virginia-bred horses in an effort to increase the horse breeding and agricultural industries in Virginia. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Highlights | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Growing the breeding industry in Virginia is of critical importance to Virginia's horse racing and agricultural industries. Financial incentives to owners and breeders of Virginia-bred horses are paid from the Virginia Breeders Fund to encourage more horse owners and breeders to remain in the Commonwealth. Public protection and safety of horses is a high priority of the agency. Those directly involved in racing that may affect the outcome of a race may be tested for prohibited substances. VRC also collects samples from selected horses for drug testing. The number of tests performed on horses increased in calendar year 2021 because of more live race days than in prior years. The Commonwealth and its localities hosting satellite wagering facilities and racetracks currently share in the tax revenue derived from all forms of pari-mutuel wagering. By growing the industry, more revenue will be available to the Commonwealth and local governments. The cost of each permit issued decresed in fiscal year 2022, primarly because the number of permits issued increased due to more live racing days and the efficiency of the licensing process. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Measures
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Agency Goals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Summary and Alignment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ensuring that pari-mutuel wagering and racing is free of illegal activities is essential to the horseracing industry. This goal directly aligns to VRC’s mission to promulgate regulations and conditions that command and promote excellence, honesty and integrity in racing and wagering. |
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Objectives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public protection and safety of horses is of critical importance. Those directly involved in racing that may affect the outcome of a race may be tested for prohibited substances at any time. Tests are also performed on selected horses that compete in live races with pari-mutuel wagering. |
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Strategies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
• Alcohol tests are performed on individuals directly involved in racing, in addition to individuals that could possibly affect the outcome of a race. Random drug tests on these same individuals may also be performed if warranted. The testing of the horses competing is performed by VRC veterinarians and test barn technicians by collecting blood and urine samples from selected horses. Samples are submitted to the approved laboratory for testing by a chief racing chemist for any prohibited or foreign substances that may affect the performance of a horse and/or the outcome of a race. |
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Measures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
No measures linked to this objective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pari-Mutuel wagering and racing that is conducted free of any illegal activities and/or the perception of illegal activities is critical to the survival of the horse racing industry. Therefore all individuals participating in horse racing and employees associated with racing or wagering must be permitted by VRC. To obtain a permit, a criminal history is obtained for each applicant by submission of fingerprints to the State Police and the Federal Bureau of Investigation. A record of an applicant's prior racing violations in Virginia and other jurisdictions is also obtained from the Association of Racing Commissioners International or the United States Trotting Association. |
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Strategies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
• VRC permitting staff reviews the official track program to confirm that all individuals included to participate as owners, trainers, and jockeys or drivers have a current permit. Staff also reviews a listing of all employees associated with racing or wagering provided by the racetrack licensee to ensure they are permitted as well. |
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Measures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
No measures linked to this objective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Summary and Alignment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
VRC takes all appropriate actions to assist Colonial Downs, the Virginia Equine Alliance, and the Virginia Gold Cup Association in obtaining approvals for racetrack limited licenses to conduct live horseracing and to advance the growth of satellite wagering facilities, in an effort to increase the number of live race days in the Commonwealth. The amount paid in purses to the horse owners and the number of live race days is dependent on wagering revenue from live racing, simulcasting, historical horse racing, and through advanced deposit account wagering. This goal aligns with VRC’s mission to grow the native horse racing industry with pari-mutuel wagering. |
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Objectives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Commonwealth and its localities hosting satellite wagering facilities and racetracks currently share in the tax revenue derived from pari-mutuel wagering. By growing the total wagering and the number of wagering outlets, an increase in revenue will be received by the Commonwealth and local governments. |
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Strategies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
• VRC encourages legal entrepreneurial endeavors related to pari-mutuel wagering. Wagers made on live and historical horse racing at licensed racetracks and satellite wagering facilities, as well as through licensed advanced deposit wagering providers result in increased tax revenue for the Commonwealth and the localities hosting the various wagering facilities. |
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Measures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
No measures linked to this objective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Summary and Alignment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
This goal provides financial incentives to breeders and owners of Virginia-bred horses and is intended to increase the number of racehorses foaled and raised in Virginia, which in turn helps to maintain open space and other ancillary benefits to the agricultural industry of the Commonwealth. This goal aligns with VRC’s mission to grow the native horse racing industry. |
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Objectives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Growing the breeding industry in Virginia is of critical importance to the horse racing industry in Virginia. Financial incentives to owners and breeders of Virginia-bred horses should encourage more horse owners and breeders to locate and remain in the Commonwealth of Virginia. |
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Strategies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
• Ensure the Virginia Thoroughbred Association and the Virginia Harness Horsemen Association meet the obligations of their contracts to promote and market their respective breeds. Also determine that awards distributed from the Breeders Fund are determined fairly and paid promptly in accordance with the Code of Virginia. |
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Measures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
No measures linked to this objective | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supporting Documents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
None | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Program and Service Area Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service Area 53411: Financial Assistance to the Horse Breeding Industry | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
This service area provides financial incentives to the breeders and owners of Virginia-bred horses. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mission Alignment and Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
This service area directly aligns to the Virginia Racing Commission's (VRC) mission to grow the native horse racing industry with pari-mutuel wagering in Virginia.
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Products and Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Major Products and Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner and Breeder Awards – Bonus checks issued to owners and breeders of Virginia-bred horses. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Overview | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Section 59.1-372, Code of Virginia, requires that one percent of all pari-mutuel wagering be deposited into a separate fund to provide awards to breeders and owners of Virginia-bred Thoroughbred and Standardbred horses. These are nongeneral funds generated from pari-mutuel wagering at racetracks, satellite wagering facilities and through advanced deposit account wagering. VRC has fiduciary responsibility of these funds and awards contracts to the Virginia Thoroughbred Association (VTA) and the Virginia Harness Horse Association (VHHA) to administer and promote the funds on its behalf. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Biennial Budget
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Supporting Documents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
None | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service Area 55801: License and Regulate Horse Racing and Pari-mutuel Wagering | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
This service area regulates and oversees all aspects of pari-mutuel wagering and live horse racing. The Virginia Racing Commission (VRC) conducts proceedings for the issuing of licenses to racetracks, satellite wagering facilities, and advanced deposit wagering providers. Additionally, VRC issues permits to all participants of live horse racing, employees at racetracks, satellite wagering facilities, and officers and directors of licensed advanced deposit account wagering providers. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mission Alignment and Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
This service area directly aligns to VRC’s mission to promulgate regulations and conditions that command and promote excellence and honesty and integrity in racing and wagering.
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Products and Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Major Products and Services | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
License Racetracks, Satellite Wagering Facilities, and Advance Deposit Account Wagering Providers – VRC conducts public hearings, facility inspections and background investigations on all license applications to own and operate a pari-mutuel wagering facility or to provide advance deposit account wagering services for Virginia residents. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Financial Overview | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Section 59-1-370.1, Code of Virginia, states that the total costs for the operation and administration of VRC shall be funded from the State Racing Operating Fund from the amounts provided for in the Appropriation Act. All funds are nongeneral and supported by revenue generated from pari-mutuel wagering. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Biennial Budget
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Supporting Documents | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
None |
sp101 Strategic Plan - 06-07-2025 19:08:22