HENRICO, Va. (WWBT) – The fight over a new Rosie’s Gaming Emporium in Henrico has made it to the General Assembly.

Henrico Senator Schuyler VanValkenburg (D-16th District) put forth a bill (SB1223) to force Churchill Downs’ hand and require the company to either hold a public referendum over its newest gambling site or give up some of its bottom lines.

The controversy centers around a location in the Staples Mill Shopping Center, which will be named Roseshire.

Director of Government Relations for Churchill Downs Aaron Palmer spoke before the Senate General Laws and Technology Committee’s Gaming Subcommittee on Jan. 20 to voice his opposition to the bill.

“We’ve invested hundreds of millions of dollars in Virginia. We employ over 2,000 members across the Commonwealth. We generate about $54 million in annual state-level tax revenue. We try to be good corporate citizens and partners. We are in the community,” Palmer said.

Churchill Downs is also investing in political pockets, making more than $209,000 in contributions to state lawmaking groups from 2024 to 2025, according to the Virginia Public Access Project. It’s hoping its bets will pay off.

If SB1223 passes, Churchill Downs would have no choice but to put Roseshire’s future to a public vote or accept a revenue loss.

The percentage of total wagering pools the gaming facility could keep would shrink by about half of what their other locations collect in the state, down to 3.5%.

They would have to pay 10% taxes from that smaller revenue stream, which would be split between Henrico and the Commonwealth.

“If enacted, this bill would single out one specific entity, one specific facility, with a punitive tax rate designed to put us out of business,” Palmer said.

“This bill doesn’t mandate the organization to do anything,” Henrico Board of Supervisors Chairman Dan Schmitt said. “It incentivizes them to do it the right way.”

Local leaders are upset that Churchill Downs applied for a license to put a 175-machine historical horse racing facility in the Staples Mill Shopping Center without public input, even though it was not legally required.

“It speaks to their concern about they had a legal avenue to do it. Yes, they did. This bill doesn’t take that away. It allows them to do what they want to do,” Schmitt said. “It affects their bottom line because we know that’s what’s important to them. When they refuse to hear from the Henrico residents, we knew we heard loud and clear that their bottom line was more important to them than the residents they wish to serve.”

Churchill Downs, however, says they did everything by the book.

“The county welcomed us, confirmed that we had a “by right” development opportunity, and even asked us to consider an even larger expansion,” Palmer said. “Throughout this process, we’ve been responsive to the county’s request on matters including location and even branding. The county didn’t want us to develop a facility in Short Pump, so we chose a facility that the county preferred us in, which is Staples Mill-Glenside. We got a building permit in November. The county also asked us for a distinct brand for this facility, so we’re undergoing a rebrand effort based on their recommendation. At every step, we followed the law, the regulations. We got our building permit on Nov. 7 of last year.”

“They used a loophole from a 1998 law. The voters of Henrico never had a say on this type of gambling, this type of slot machine with a horse algorithm behind it,” Schmitt said. “They filed it in legal time, but they did it five days before they knew they would have to hear from the residents. And to me, I just can’t understand how bad of a thing it is to have to hear from the people that you’re intending to serve.”

Sen. VanValkenburg says the bill heads to the Senate Finance Committee next week.

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