Richmond residents will have an additional option to select on the reverse side of their voting ballot during the upcoming election on November 2, 2022.
The residents of Richmond will be tasked with making a decision on whether or not to permit the establishment and functioning of a resort casino within the boundaries of their city.
Last year, Richmond voters were presented with the opportunity to bring the resort casino to life, but unfortunately, it was narrowly rejected. Nevertheless, the city’s mayor and council have resuscitated the concept, and it will be featured on this fall’s ballot once again.
The proposed name for the resort casino is “ONE Casino,” with the aim of attracting more than 3.7 million visitors every year. It is projected that ONE Casino and Resort would contribute approximately $30 million in annual tax revenue, which would significantly benefit the city of Richmond.
However, the city is uncertain about how to utilize the $30 million at the moment.
The scheduled city council meeting regarding this matter, originally planned for Apr. 25, has been postponed to Jun. 13 without providing any explanation for the change.
ONE Casino revenue proposed to aid taxes and education
Although the specific destination of the funds is still uncertain, there are currently two proposals being considered. This progress signifies that we are making a beginning.
The mayor of Richmond supports a proposal to allocate the funds towards reducing the city’s real estate tax rate. Presently set at $1.20 per $100 of assessed value, the mayor intends to lower it to $1.18 per $100 of assessed value.
According to Mayor Levar Stoney of Richmond, he stated:
“We have witnessed a consistent rise in various aspects lately. From the cost of gas to the price of Oreos, everything seems to be increasing nationwide. Therefore, we believe that the current situation calls for a two-cent tax cut on real estate taxes, as people truly deserve some relief.”
The alternative proposal focuses primarily on financing the city’s education system, ensuring that a minimum of one-third of the casino tax revenue will be allocated to support public schools.
Due to a decline in student enrollment and a significant increase in property value, the public school division of the city is expected to experience a loss of nearly $7 million in state funding for the upcoming year.
The mayor pointed out that his plan takes into consideration the funding for public schools as well.
School funding is naturally included in our plan when discussing it, so I don’t believe both are required.
Comparing casino tax plans to Virginia sports betting
Fortunately for Virginia, they have support in tackling this task.
According to the Virginia Lottery, the amount of bets placed in VA since the introduction of legal sports betting exceeds $3.7 billion.
Although the sports betting market in Virginia has experienced significant growth, its economic impact falls short compared to that of a casino or even Virginia online casinos.
In January, bettors set a new state record by wagering over $485 million.
In January, sportsbooks disbursed a total of $446 million to winners, resulting in a revenue of merely $39 million. It is important to note that a portion of this revenue accounts for tax-exempt promotions and bonuses. Consequently, approximately $18 million remains subject to taxation, with a 15% tax rate applied. As a result, the state received $3 million in tax revenue during the specified period.
Similar to the second plan mentioned earlier, Virginia adopts a comparable approach to generating revenue from sports betting taxes.
To begin with, a portion of 2.5% is allocated to a fund dedicated to assisting individuals with gambling addiction. The remaining funds are directed towards the state’s General Fund, which contributes to various sectors such as education, health services, and public safety.
The future of ONE Casino and Resort
The proposed plans for the ONE Resort Casino comprise a total of 100,000 square feet dedicated to casino gaming, encompassing:
- 1,800+ slot machines
- 100+ table games
- Poker room
- And a sportsbook
The project site is situated at 2001 Walmsley Blvd East, in downtown Richmond, specifically in South Richmond near Philip Morris.
Although the idea is promising, the final decision ultimately lies with the voters. ONE Casino and Resort have been making strong efforts to persuade people to vote in favor, but the truth remains that if the voters reject the proposal for the second consecutive year, the outcome of the Richmond City Council’s decision on Jun. 13 will become inconsequential.
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