Churchill Downs HHR Facility Planned for Virginia’s Henrico County Faces Criticism

Churchill Downs Inc. is moving forward with opening a gaming venue in Virginia’s Henrico County where historical horse racing (HHR) machines will operate. The project has generated criticism from a local county official.

Churchill Downs Henrico Gaming Virginia
A rendering of Henrico Gaming, a planned historical horse racing gaming venue in Virginia from Churchill Downs, Inc. A local official has criticized the Richmond gaming project for seemingly trying to evade a newly implemented zoning ordinance. (Image: Churchill Downs, Inc.)

Kentucky-based Churchill Downs acquired the Colonial Downs Racetrack, six Rosie’s Gaming Emporium HHR facilities, and five additional HHR opportunities across the commonwealth through its 2022 acquisition of Peninsula Pacific Entertainment (P2E). Churchill filed plans on June 18 to renovate a former furniture and mattress store located in the Staples Mill Shopping Center in Richmond into a business called Henrico Gaming.

Henrico Gaming, per the project’s application made with Henrico County, seeks to place 175 HHR machines inside the 25,000-square-foot facility that’s between a Virginia ABC liquor store and a Subway restaurant.

The shopping center, located at Staples Mill Rd. and Glenside Dr., is zoned to allow pari-mutuel wagering, which HHR machines are classified as, but county officials are working to alter the approval process for such gaming by updating zoning rules.

Zoning Ordinance 

The Staples Mill Shopping Center is located within a business district zoned as “B-2.” According to the Henrico County government website, such a business district is intended to provide office space, retail shopping, restaurants, gas stations, and live/work dwellings.

A B-2 zone additionally allows for a company possessing a parimutuel or HHR wagering license to operate such a business. Under Henrico’s current zoning rules, an HHR venue can house up to 175 machines without needing to apply and acquire a provisional-use permit (PUP) from the county.

The Henrico County Board of Supervisors in May initiated proceedings to advance an ordinance that would require a PUP to be obtained for any HHR business within the county regardless of the number of machines. The county supervisors approved the rule change during their June 15 meeting, seven days after Churchill submitted its application for Henrico Gaming.

Supervisor Upset

Following the supervisors’ vote, HHR developments of any number of gaming positions must now underdog a PUP public hearing. However, since the bid was submitted before the ordinance was endorsed by the county supervisors, the Churchill Downs project under county law will be grandfathered from the PUP condition.

Henrico County Supervisor Dan Schmitt, who represents Henrico’s Brookland District where Churchill is planning Henrico Gaming, says the company purposely applied ahead of the zoning change in a move that shows it isn’t committed to being an upstanding community partner. Schmitt said Churchill was trying “to jam this business into the location” before the PUP ordinance was enacted.

These folks of this county weigh in during PUP processes on far less intrusive items, including the hours a store can operate,” Schmitt said during the county supervisors’ meeting earlier this month. “The residents I represent deserve the right to weigh in if there’s going to be a gambling establishment in their neighborhood.”

Schmitt urged Churchill to rescind its application and reapply under the new PUP rules.

“The applicant has the opportunity to show their awareness of what it takes to be a trusted community partner and participate in the public process,” Schmitt declared.

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Gateway Casinos CEO Tony Santo Dead, Gaming Exec Had Planned Retirement Before Pandemic

Gateway Casinos Chief Executive Officer Tony Santo has died at the age of 61, a statement from the Canadian gaming operator confirmed on Friday.

Gateway Casinos Tony Santo Canada
Gateway Casinos CEO Tony Santo has died at the age of 61. Details surrounding his death aren’t known at this time. (Image: Gateway Casinos)

Santo was a casino industry veteran who joined Gateway in 2013 as its president and CEO. He was appointed to the publicly traded company’s board in July 2017.

No details were provided regarding Santo’s death, though the Gateway statement called his passing “untimely.”

It is with great sadness that we announce the passing of Tony Santo,” said Gateway Casinos President Tolek Strukoff.

“His mission was to establish Gateway as Canada’s premier entertainment and gaming company. You could often find Tony visiting sites and staff from dawn to dusk connecting about their work, families, and lives. Tony was an iconic leader in the US and Canada and grew Gateway from a small regional gaming company to one of the largest gaming companies in Canada. However, Tony would say himself he didn’t do it – we did it together,” said Strukoff.

Planned Retirement

Santo obtained his undergraduate degree at the University of Nevada, Las Vegas, where he studied hospitality and gaming. In 2004, the UNLV William F. Harrah College of Hospitality named him the school’s “Alumnus of the Year.”

Santo held numerous executive capacities in Las Vegas and oversaw several Strip properties, including Bally’s Grand (today Horseshoe Las Vegas), Las Vegas Hilton (today the Westgate), and Paris. Santo later oversaw Caesars Entertainment’s mid-south regional properties before becoming senior vice president of the entire company.

Santo then took his talents north to Canada where he led Gateway into becoming one of the largest gaming operators in the country. Gateway operates 14 properties in Ontario, three in British Columbia, and two in Alberta.

Santo announced his retirement on Dec. 30, 2019, but the ensuring coronavirus put those plans on hold. Santo stayed on the job to help navigate the company through the most challenging time.

Gateway employs approximately 7,000 people and operates nearly 14,000 slot machines and 350 table games across its portfolio.

Recent Cyberattack

Gateway Casinos earlier this year was hit with a ransomware attack that resulted in the company temporarily shuttering its 14 casinos in Ontario. In mid-April, Gateway abruptly closed its Ontario gaming floors after its information technology department determined that a cyberattack had successfully infiltrated its network.

The company initially said the incident did not result in employee or customer data being compromised. But more than a month later, the company conceded that such confidential information was likely obtained.

Since April, Gateway has been gradually restoring its IT systems with extensive assistance from external cybersecurity experts, and as the systems are restored, is investigating potential impacts on personal information,” a June letter to employees read. “While our investigation remains ongoing, Gateway understands that the incident likely resulted in the theft of personal information of certain current and prior employees.”

It was only then that Gateway began offering free credit-monitoring services for its Ontario workers.

Gateway’s executives were scolded by employees and the union that represents them for not acting sooner with credit monitoring and other remedial action. Cybersecurity expert Ritesh Kotak added that personal information sold on the dark web “is out there forever.”

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