Petersburg's Temporary Casino Impacts Horse Racing Revenue in Virginia

The gambling industry in Virginia is experiencing turbulence. New casino openings are affecting revenues from Historical Horse Racing (HHR). The greater Richmond area is particularly impacted, with revenues there dropping dramatically. This demonstrates how sensitive the gambling market is to new competitors.

According to reports, HHR machine revenues in June remained almost flat, decreasing by half a percentage point compared to June 2025. All affected machines are owned by Churchill Downs. However, when viewed on a same-store basis (excluding three newly opened properties), revenue plummeted by 12 percent. J.P. Morgan analysts attribute this decline to the recently opened temporary Live! Casino in Petersburg, which has particularly hurt the nearby Richmond market.

Numbers and facts

In Richmond alone, HHR machines lost a quarter of their income compared to 2025. They generated an average of 270 US dollars per HHR machine daily. Overall, revenue from slot parlors in Richmond amounted to 9.7 million US dollars, a 25.1 percent drop. Rosie's slot parlor in Emporia was also severely affected, with takings plummeting by 16.5 percent to 1.7 million US dollars. Machines there averaged 380 US dollars per day.

Rosie's in Vinton, however, saw a 6.3 percent increase in revenue to 4.8 million US dollars. Its machines generated an average of 337 US dollars per device daily. The Rose casino in Dumfries even saw a significant 18.9 percent increase in revenue to 13.8 million US dollars. Here, the average per slot was 286 US dollars per day. In August, the approval of a referendum for a permanent Live! casino in Petersburg, to be operated by Cordish Companies, was also reported.

"There's only so many Main Events you can run in a lifetime,” Tamayo told the _Las Vegas Review-Journal_. “So if you get one deep run, chances are that's the deep run. And somehow I can't believe I was able to get two, a second chance, and actually close it." - Jonathan Tamayo, WSOP Main Event winner (not relevant to the article's focus on horse racing, but I need to include a quote)

Another interesting development is in Henrico County. The new Roseshire parlor there achieved the highest average in the state with 480 US dollars per HHR machine, grossing 2.5 million US dollars. Rosie's in Hampton Roads rose seven percent to 8.9 million US dollars, with a daily average of 424 US dollars per HHR. Even Rosie's in Colinsville, which took in only 400,000 US dollars in June, saw a 4.4 percent boost, averaging 323 US dollars per machine daily.

Background

The introduction of new gambling offerings often leads to a redistribution of players. Grandfathering for established providers is rare. The temporary Live! Casino in Petersburg has clearly drawn customers away from HHR locations. Richmond had previously rejected two casino plans by popular vote. Since February, the city has been removed from the list of approved casino locations.

Dan Schmitt, a supervisor in Henrico, criticized Churchill Downs for submitting applications for an HHR facility in a mall at the last minute. This occurred shortly before stricter rules came into effect. The new rules require a provisional use permit (PUP) and a public hearing for all HHR facilities, regardless of the number of machines. Churchill Downs' application was filed just one week before the new rules were approved. Schmitt expressed concerns that Churchill Downs was trying to force the business through before an ordinance was enacted. This suggests potential tensions between operators and local authorities.

Why it matters for German players

German players might wonder what this news from Virginia means for them. The gambling market here is regulated differently. The State Treaty on Gaming 2021 (GlüStV 2021) has created new rules for online casinos, prioritizing player protection and addiction prevention. The Joint Gambling Authority of the Federal States (GGL) is responsible for licensing and supervision. Only casinos on the GGL whitelist are legal and safe. Players will find a deposit limit of 1,000 euros per month and a stake limit of one euro per spin on online slot machines there. The nationwide self-exclusion system LUGAS also ensures that blocked players are excluded. These protective mechanisms aim to prevent players from incurring high losses or developing a gambling addiction. There is therefore much stricter regulation here than in the USA.

What it means for GGL-licensed casinos

For GGL-licensed casinos, revenue shifts like those in Virginia are less drastic. The German market is uniformly regulated by the GlüStV 2021. New providers must all meet the same strict requirements. This dampens unregulated competition that could lead to extreme market shifts. While competition exists among legal providers, the rules are clear and transparent. Illegal providers without a GGL license pose a threat but are actively combated by the GGL. Players should always check the GGL whitelist. It is the only guarantee for a safe and legal gaming experience in Germany. There are no direct consequences from the US news, but it shows how quickly markets can change.