The number of gambling machines at the Richmond location of Rosie’s Gaming Emporium has climbed to nearly 1,200, up from the 700-machine limit originally imposed under state regulations, following an expansion approved by the Virginia Racing Commission.

The additional 500 historical horse racing machines were authorized without a public meeting agenda item or formal vote, according to state records obtained through a Freedom of Information Act request by The Richmonder.

Instead, documents show that a former Commission staffer granted approval by email slightly more than 24 hours after Colonial Downs Group and its parent company, Churchill Downs, submitted a request.

The Richmond facility operates as a satellite to the Colonial Downs horse racing track in New Kent County. Despite that designation, the Richmond site now houses more than twice as many gambling machines as the track itself.

Two members of the General Assembly have formally questioned the legality and transparency of the process. In a Dec. 4 letter to the Racing Commission, State Sen. Lashrecse Aird, D-Petersburg, and Del. Paul Krizek, D-Fairfax, asked regulators to delay renewing the Richmond facility’s license until their concerns were addressed.

“This expansion appears to have occurred without transparent public Commission action, clear statutory authorization or reconciliation with existing regulatory limits,” Krizek and Aird wrote in their Dec. 4 letter.

They pointed to a state rule intended to prohibit the addition of more historical horse racing machines within 35 miles of a city authorized to pursue a casino. Petersburg, located roughly 22 miles south of Richmond, has received state approval to host a casino, which is now under construction.

“From our review, there is a substantial question as to whether terminals authorized under the 2020 act may lawfully be deployed at the Richmond facility at all, given the proximity to eligible host cities, both before and after the statutory transfer of host city status from Richmond to Petersburg effective July 1, 2024,” the lawmakers wrote to the Racing Commission.

The Racing Commission renewed the Richmond license at a Dec. 15 meeting without responding to the lawmakers’ questions. In response to the FOIA request, the Commission withheld 17 pages of correspondence, citing attorney-client privilege and exemptions covering working papers of the governor’s office, reports The Richmonder.

Churchill Downs said in a statement that all of its facilities seek approval for each machine deployment “in accordance with state law and regulations.”

“In this case, Rosie’s Richmond sought and received multiple approvals for its upgraded gaming floor,” the company said, adding that the Richmond location donates $100,000 annually to charitable organizations and “generates millions of dollars in tax revenue to support Richmond city schools, public safety, and other priorities.”

When the company submitted its formal request at 11:18 a.m. on April 15, 2024, former Commission Executive Secretary Dave Lermond approved it at 2:23 p.m. on April 16. In correspondence to regulators, Chad Riney, vice president of legal at Churchill Downs, argued that the 2020 casino legislation included “a clear directive to the Commission (and not merely the discretion) to authorize the additional machines contemplated.”

“After July 1, the restriction against locating terminals authorized under the 2020 Casino Legislation within 35 miles of Richmond will not apply,” Riney wrote.

Del. Krizek said the situation conflicts with the intent of the law passed in 2018 to legalize historical horse racing machines. “It was a way to support the equine industry through live racing, not to create casino-scale hubs,” said Krizek, who chairs a House of Delegates committee that handles gambling policy. “We put the caps on precisely to prevent unchecked expansion.”

Virginia first legalized historical horse racing machines in 2018 to help reopen Colonial Downs, which had closed in 2014. Initial regulations imposed statewide caps and population-based limits per facility, and the Richmond City Council adopted a resolution supporting the 700-machine maximum at the time.

In 2020, as casinos were legalized, lawmakers allowed the racing industry to add more machines but restricted them within 35 miles of designated casino host cities. Richmond was initially on that list but was removed in 2024 after voters twice rejected a casino proposal. Petersburg then became a designated host city.

Gov. Abigail Spanberger’s administration has expressed support for overhauling Virginia’s gambling oversight structure. Commission Executive Secretary Waqas Ahmed referred to that position in a written statement, citing remarks by Secretary of Agriculture & Forestry Katie Frazier, whose portfolio includes the Racing Commission.