Churchill Downs’ New Virginia Casino Targeted in Senate Bill

Article by : Erik Gibbs Jan 27, 2025

• 
• 

The development of a new Rosie’s Gaming Emporium in Henrico County, Virginia, by Churchill Downs, has created debate in the state legislature. A new bill introduced by Senator Schuyler VanValkenburg, SB1223, aims to address the project’s concerns by requiring a public referendum or imposing financial consequences on the company. 

Churchill Downs, a major player in the gaming industry, has invested heavily in Virginia, employing over 2,000 people and contributing significant tax revenue. The proposed facility, named Roseshire, would be located in the Staples Mill Shopping Center and has faced criticism for moving forward without public consultation.

According to Aaron Palmer, the company’s director of government relations, the company adhered to all legal requirements during the project’s development. Palmer stated that Henrico County officials had welcomed the project, confirmed it as a legal “by right” development, and even requested adjustments to its branding and location.

The bill at the center of the controversy does not explicitly force Churchill Downs to hold a public vote. Instead, it seeks to incentivize transparency by reducing the company’s share of wagering revenues from its historical horse racing machines to 3.5%, about half the rate at its other locations in Virginia. 

Additionally, the proposed legislation would impose a 10% tax on these reduced earnings, with proceeds split between Henrico County and the state. Critics of the bill, including Palmer, argue that it unfairly targets the company and could jeopardize its operations in the area.

Local leaders, however, believe the bill addresses a broader issue of accountability. Dan Schmitt, chairman of the Henrico Board of Supervisors, emphasized the importance of public input, criticizing Churchill Downs for using a legal loophole to bypass community involvement. 

Schmitt expressed frustration that the company submitted its plans shortly before new regulations requiring public engagement took effect. He accused the company of prioritizing its profits over the voices of Henrico residents.

Churchill Downs has defended its actions, claiming it complied with all legal standards and acted in good faith throughout the process. Palmer noted that the company adjusted its plans based on county feedback, including relocating the facility to the Staples Mill area and rebranding it in line with local preferences. Despite this, critics argue that legal compliance alone does not justify the lack of public consultation for a project of this scale.

The controversy surrounding Roseshire highlights the ongoing tension between economic development and community engagement in Virginia’s gaming industry. SB1223, which could significantly impact Churchill Downs’ operations in Henrico, is expected to advance to the Senate Finance Committee for further consideration. 

Whether the bill gains traction will likely depend on the balance lawmakers strike between supporting business interests and addressing public concerns.