What is the cause for concern among North Carolina leaders regarding the construction of a Vegas-style casino in Danville, VA by Caesars Entertainment?
The answer can be summed up easily – money. With its colossal $650 million casino resort, there is a strong likelihood that a large number of North Carolinians will be tempted to venture across the border for gambling purposes. This has raised concerns among the leaders of North Carolina, who fear that their state’s three tribal casinos may struggle to keep up with the competition.
According to a recent study, it has been revealed that the state might face an annual loss of $259 million in gaming revenue to its neighboring northern state.
Caesars Virginia to open temporary casino in Danville next month
Virginia has been lagging behind in the realm of retail casinos, but in 2020, voters gave their approval for the construction of casinos in four cities: Danville, Norfolk, Bristol, and Portsmouth. Among these, Bristol and Portsmouth already have operational casinos. Caesars Virginia is set to open in 2025, along with the casinos in Danville and Norfolk.
Caesars Virginia operators are taking action before 2025.
According to Chris Albrecht, the general manager of Caesars Virginia, a tent will be set up by next month to accommodate temporary operations. The tent will feature 740 gaming machines, 25 casino table games, and eight sports betting kiosks.
We determined that seizing this excellent opportunity would allow us to move ahead, kickstart the operation, generate revenue, and train our team members.
Study shows impact Virginia casinos could have on North Carolina
Southern Virginia, located near the North Carolina border, accommodates all of Virginia’s existing and projected casinos. The upcoming Caesars Virginia in Danville will additionally be conveniently situated only 90 minutes away from The Triangle, an area encompassing three prominent universities in North Carolina.
NC leaders were motivated to request a study regarding the feasibility of constructing casinos in NC as a means to counterbalance the outflow of money to Virginia. According to the analysis conducted by the Spectrum Gaming Group, it was projected that NC gamblers could contribute approximately $259 million in gaming revenue to Virginia casinos on an annual basis.
In this study, all four cities in Virginia with casinos were taken into account, with the greatest potential loss being associated with the Caesars Virginia establishment located in Danville.
- Danville: $236. 5 million
- The combined revenue of Portsmouth and Norfolk amounts to $12.4 million.
- Bristol: $10 million
Adding more NC casinos might be a solution, state senator says
Senate leader Phil Berger has proposed that North Carolina, which currently only has three operating casinos, should explore potential solutions to address the expected financial impact resulting from the presence of casinos near the Virginia border.
According to Berger, the three casinos in North Carolina consist of two situated on the land of the Eastern Band of Cherokee Indians in the western region of the state, while the third one is located on Catawba tribal land near Interstate 85, relatively close to the South Carolina border. However, Berger argues that these casinos are situated at a considerable distance from where the majority of North Carolinians reside.
There is a valid concern about the movement of resources, businesses, and individuals from North Carolina to Virginia, especially when considering the actual population centers located south of Danville in North Carolina. It remains to be seen if there are any feasible actions that can be taken in North Carolina to tackle this issue.
Expanding the number of casinos in the state, particularly in Northern NC, is the most apparent choice.
Berger emphasized the importance of exploring the option of standalone casinos in three northern counties, as indicated by a study that also highlighted Virginia’s potential revenue of $259 million from North Carolina. The study further revealed that these casinos could potentially generate a substantial annual revenue of $1.6 billion.
I believe it’s worth exploring the possibility of gaming being similar to that. Although we haven’t delved into it yet, I’m certain there will be discussions about it.
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