A high-stakes competition is currently taking place for the establishment of a new casino in Virginia along the Eastern Seaboard.
Both Richmond and nearby Petersburg have the potential to hold the high card in the future.
However, there is a plethora of things to stay updated on. The Virginia General Assembly could potentially be manipulating the situation. Additionally, voters in either city have the power to cancel the entire game.
How politics may decide a new Virginia casino city
The outcome is ultimately determined by the extent of state Sen. Joe Morrissey’s ability to leverage political favors.
- When the state preapproved casinos for specific locations, the influential Democrat advocated for Richmond to be designated as Virginia’s fifth casino city.
- Cities meeting specific economic criteria would be eligible to establish casinos, contingent on the approval of gambling by the respective city’s electorate.
In November 2020, the cities of Bristol, Danville, Norfolk, and Portsmouth overwhelmingly showed their support for mega-businesses, with a ratio of 2-to-1. Consequently, casino developers have commenced construction activities and organized job fairs in every one of these cities.
Richmond didn’t experience that in 2021. At present, the ground remains cold there.
New Virginia casino study asks: Why not both?
The 77-page report submitted to Virginia’s Joint Legislative Audit and Review Commission considers the potential inclusion of casinos in both neighboring cities.
The report was prepared by the Innovation Group of New Orleans, who guided commission members through the subsequent scenarios.
- Richmond and Petersburg will not have a casino, resulting in a projected net gaming revenue of $828 million by the conclusion of the 2028 budget year. Additionally, markets in Bristol, Danville, Norfolk, and Portsmouth will also be established by then.
- Assuming the Live! Casino opens in 2027, the introduction of a casino exclusive to Petersburg in Virginia would result in an 18% increase in net gaming revenue for the state by 2028, amounting to a gain of $977 million.
- Richmond presents a stronger case regarding gaming revenue, as the addition of One Casino (or a new partner) would result in approximately a 29% growth in net gaming revenue for the state, reaching around $1.1 billion.
- The state experiences its highest economic growth from the casinos in both cities. The implementation of twin casinos is expected to significantly increase casino revenue by 36%, resulting in a substantial gain of $1.13 billion.
Richmond missed its first shot
The construction of the Urban One Resort + Casino in Richmond fell just shy of the required majority, despite a proposal worth $565 million.
Morrissey’s concern lies in the significance of the “no” vote in 2021, which holds implications for him as he recently witnessed a modification in his senate boundaries due to the newly unveiled 2020 census figures.
Morrissey’s stance on a new Virginia casino in Richmond shifted along with the relocation of his senate district. Now, to secure his position in office, he requires the support of voters in Petersburg.
According to Michael Martz of the Richmond Times-Dispatch, Morrissey has already taken action by introducing a bill to delay the implementation of plans in Richmond. This bill proposes that Petersburg, instead of Richmond, be designated as the fifth location eligible for a casino in the state.
The city of Richmond, which had a partnership with Urban One, the biggest Black-owned media company in the nation, received unfortunate news. Urban One had expressed interest in expanding its portfolio by including a casino, but it seems that plan has now fallen through.
Morrissey, utilizing his influence, successfully paved the way for Petersburg by proposing amendments to the Virginia budget, despite certain Resort + Casino supporters aiming to secure a vote in Richmond for the upcoming 2022 ballot.
- Adding Petersburg to the state’s approved casino cities list in the first attempt proved unsuccessful.
- However, Morrissey successfully passed a second amendment that grants the state the authority to halt a 2022 Richmond vote in order to conduct a study for Petersburg.
The city of Richmond’s agreement with Urban One has expired, and they may consider revisiting the possibility of a new partnership.
Morrisssey’s interference continues to pose a challenge for Richmond’s plan to include a casino vote on the 2025 ballot.
Live! Casino & Hotel might come to Petersburg
Martz of the Times-Dispatch has excellently covered the progress of the casino developments. He highlights that Cordish Companies was one of the top contenders for the Richmond project but ultimately, Urban One was chosen by the city.
Cordish is currently the top contender for the Petersburg casino project after the Petersburg City Council gave the green light to explore a collaboration with the Live! Casino group on Tuesday night (Oct. 18).
However, on Tuesday, October 25th, Cordish and the city will finally disclose the scale and location of the Petersburg project.
A meeting will be held at the Petersburg Public Library at 4 p.m. to provide residents with more information about the project.
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