Virginia HHR and commercial casino revenues up in August

Virginia’s gambling market delivered two sets of results in August, with historical horse racing (HHR) facilities generating $51 million in gross revenue while the state’s three casinos reported $84.8 million, according to separate reports from J.P. Morgan and the Virginia Lottery.

J.P. Morgan analyst Daniel Politzer noted in a September 15 investor report that HHR same-store winnings rose 10% year over year. When Churchill Downs' new The Rose property in Dumfries and the shuttered Little Rose were included, statewide HHR revenue rose 36% compared to August 2024.

Politzer said HHR win per day for the third quarter was tracking just under $1.6 million, which he described as in line with his projections.

The Rose, with 1,650 devices, grossed $13.8 million in August, an average of $269 per machine per day, compared with a third-quarter average of $256. Little Rose, which had 140 devices, produced $600,000 in 20 days before closing on August 20.

Richmond-area slot parlors grossed $14.3 million in August, equivalent to $428 per machine per day, down from July’s $476 per day but 21% higher than the prior year. Churchill Downs increased its Richmond-area device count from 939 to 1,086 in August, with approval from the Virginia Racing Commission. Politzer said that figure is expected to reach 1,200 by the end of 2025 as machines are shifted from lower-yielding properties.

Property-level results for August included $5.2 million at Colonial Downs (down 0.8%), $9.3 million at Rosie’s Hampton (up 6.3%), $2.3 million at Rosie’s Emporia (up 16.4%), and $14.4 million at Rosie’s Richmond locations (up 21.3%). Rosie’s Vinton recorded $5 million, up 0.3%, while Rosie’s Collinsville declined 2.8% to $400,000.

At the end of August, Churchill Downs operated 486 HHR at Colonial Downs, 700 at Hampton, 150 at Emporia, 472 at Vinton, and 37 at Collinsville.

The Virginia Lottery reported that casino revenue for August reached $84.8 million across Hard Rock Bristol, Rivers Casino Portsmouth, and Caesars Virginia.

Casinos are taxed on adjusted gross revenue, defined as wagers minus winnings. In August, $17.6 million was paid in taxes to the state’s Gaming Proceeds Fund.

Under statute, allocations from casino taxes are directed to the Problem Gambling Treatment and Support Fund, the Family and Children’s Trust Fund, and to host cities. For Bristol, the share for the host city is directed to the Regional Improvement Commission. Distribution schedules vary, but all allocations follow the statutory formula.

The Virginia Lottery has overseen casino regulation in the state since 2020. Taxes generated from casinos are distributed to programs and funds identified by the General Assembly.