In the 2026 session of the Virginia General Assembly, the House of Delegates approved House Bill 49, a piece of legislation that modifies the distribution of revenues generated from pari-mutuel wagering on historical horse racing. The bill amends Section 59.1-392 of the Code of Virginia to expand the recipients of the percentage of wagering proceeds retained by horse racing licensees.
According to the bill, two new equine organizations will be added to the list of beneficiaries. These are the Shenandoah County Agricultural Foundation, which is associated with Shenandoah Downs, and the Great Meadow Foundation, the organizer of the Great Meadow Gold Cup. The legislation also directs a larger share of the retained percentage to programs addressing problem gambling.
This adjustment is part of an effort to update the revenue sharing model established under the 2018 Revenue Generation Act. That act permitted the introduction of historical horse racing terminals at racetracks in Virginia, creating a new stream of funds for the state and designated programs.
The bill progressed through several stages in the House. It was considered by the General Laws and Technology Committee and then by the Appropriations Committee, which offered an amendment in the nature of a substitute. On February 12, 2026, the full House voted to pass the bill with a tally of 95 yeas and 3 nays.
The measure then advanced to the Senate. On February 18, 2026, the Senate’s General Laws and Technology Committee voted to report the bill with amendments and to rerefer it to the Finance and Appropriations Committee. A vote of 14 to 0 supported this action. Later, the Finance and Appropriations Committee voted 13 to 2 to continue the bill to the next session.
The inclusion of the Shenandoah County Agricultural Foundation and the Great Meadow Foundation in the distribution is intended to provide financial support to these groups, which contribute to the maintenance and promotion of horse racing and equestrian events in Virginia. Shenandoah Downs and the Great Meadow Gold Cup are notable venues and events that have long been part of the state’s equestrian calendar.
By allocating revenues to these organizations, the bill helps ensure that the economic benefits of historical horse racing extend to the broader equine community, including agricultural foundations that support breeding and racing activities.
The enhanced funding for problem-gambling programs is another important aspect of the bill. These programs provide critical services such as counseling and awareness campaigns to help individuals who may be affected by gambling. Increasing the allocation reflects a recognition of the need to balance the expansion of wagering options with adequate support for those in need.
The percentage retained by licensees from historical horse racing wagers is a key element of the industry. The bill modifies how this retained amount is distributed, directing portions to the new recipients and more to problem-gambling efforts.
This approach allows the revenues from the terminals, which have been in operation since the 2018 changes, to support additional worthy causes without requiring new legislative authorizations for wagering.
Industry presenters, including those who appeared before subcommittees, emphasized the role of these updates in sustaining the health of Virginia’s horse racing sector. The industry relies on such revenue distributions to maintain facilities, host events, and support related agricultural pursuits.
The strong vote in the House indicates that many legislators see value in refining the distribution to include more organizations tied to the horse industry and to bolster problem-gambling resources.
As the bill is continued in the Senate Finance and Appropriations Committee, it will be eligible for consideration in the 2027 legislative session. This continuation provides time for further analysis of the bill’s potential impacts on the distribution of funds and the operations of the affected organizations.
The legislation maintains the core structure of the pari-mutuel wagering system for historical horse racing but makes targeted changes to the beneficiary list and the allocation percentages.
Supporters of the bill point to the positive effects on local economies in areas like Shenandoah County and the regions around Great Meadow, where these foundations operate. The funds can be used for operational support, event organization, and preservation efforts.
The problem-gambling component ensures that a portion of the revenue is used to mitigate any negative effects of the wagering activity, providing a comprehensive policy approach.
Overall, House Bill 49 seeks to optimize the use of historical horse racing revenues by expanding support to additional equine organizations and strengthening problem-gambling initiatives, continuing the legacy of the 2018 framework in an updated manner. The bill does not create new wagering opportunities but refines the existing system to direct more of the retained amounts toward organizations that sustain Virginia’s equestrian traditions and to enhanced support services for gambling concerns.
