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Ruling clears way again for Richmond casino referendum

A Richmond Circuit Court judge issued another ruling Wednesday clearing the way for a Richmond casino referendum to appear on ballots this November.

Richmond Circuit Court Judge W. Reilly Marchant ruled against the Richmond Lodge No. 1 of the Good Lions Inc., a nonprofit organization that had filed a motion to block the casino vote. The Good Lions’ Richmond lodge, which raises money through charitable bingo games held twice weekly, claimed that the Richmond City Council had not run a competitive bidding process before voting in June to select RVA Entertainment Holdings LLC — a joint venture between Urban One Inc. and Churchill Downs Inc. — as the city’s preferred casino operator. If approved by voters, the two would establish the $562.5 million ONE Casino + Resort in South Richmond.

The group also said that it stands to lose charitable income if the casino is built. Richmond City Council, in turn, argued that the Good Lions “lacks standing because it does not, and cannot, assert any claim or defense that is germane to this proceeding.”

On Aug. 15, Marchant, who had ruled July 25 to place the referendum on ballots, placed an emergency suspension of the earlier order while he considered the Good Lions’ motions to intervene and reconsider. He gave the city and the Good Lions three days to support their positions and said he would rule Wednesday.

In the order, Marchant wrote that the Good Lions does not have standing to intervene. “Arguably, Good Lions’ alleged future loss of gaming revenue might be fairly traceable to the 2019 legislation of the Virginia General Assembly allowing casino gambling, but that government action is not what Good Lions seeks to challenge. … Good Lions’ challenge to the City Council’s no bid/no notice process for selecting an operator of the casino, where Good Lions does not seek to be the operator, is not a challenge of government action fairly traceable to its expected loss of revenue,” he concluded.

Chap Petersen, a Fairfax County state senator and lawyer for the Good Lions, said after the ruling that he was disappointed in the decision and that the judge “took a very narrow view” by basing part of the ruling on the fact that Good Lions wasn’t a “frustrated bidder” for the casino project, which was defeated by 1,200 votes in 2021. Urban One, which previously partnered with Colonial Downs owner Peninsula Pacific Entertainment, was selected earlier in 2021 from a group of casino operator candidates.

Churchill Downs, which owns the Kentucky Derby, purchased Peninsula Pacific in November 2022 and became Urban One’s new partner in the group’s second bid for a Richmond casino — but there was no public call for proposals this time around before the City Council vote in June.

“You have the exact same vendor being put on the ballot without a competitive bidding process. The whole thing is very irregular,” said Petersen, who added that although he could appeal the decision, “time is very short.”

Michael Kelly, spokesman for the proposed casino project, said in a statement Wednesday, “We’re glad this matter is now resolved. This resort and entertainment complex will be one of the largest private sector investments in the City of Richmond in decades, creating 1,300 good-paying jobs and $30 million in annual tax revenue to invest in a stronger city, all without a single penny of tax breaks, incentives or public funds. We look forward to sharing our vision for the project and the many citywide benefits it will deliver for all Richmonders.”

“I am pleased to see Judge Marchant rule in favor of the City of Richmond,” Mayor Levar Stoney, a major proponent of the casino, added in his statement. “If approved this November, the proposed destination resort and casino will provide 1,300 good-paying jobs and an estimated $30 million in annual revenue to tackle our community’s greatest needs. On top of adding to Richmond’s record development and growth, this project will change the economic trajectory of South Side [Richmond] for years to come.”

Richmond is the last of five economically challenged Virginia cities to vote on a casino referendum after the Virginia General Assembly allowed Bristol, Danville, Norfolk, Portsmouth and Richmond to have one commercial casino per locality if approved by local voters. The other four cities passed referendums by large margins in 2020. Portsmouth is the first city to open its permanent casino, and Bristol and Danville have opened temporary casinos while construction of permanent casino resorts take place.

Richmond casino returning to Nov. ballots

It wasn’t exactly a surprise, but the Virginia Lottery and the Richmond Circuit Court have approved Richmond’s do-over casino referendum to appear on ballots this fall.

“I am excited to see the Virginia Lottery and the Richmond Circuit Court approve the referendum for a Richmond destination resort and entertainment venue that will provide 1,300 good-paying jobs and an estimated $30 million in annual revenue to tackle our community’s greatest needs,” Mayor Levar Stoney said in a statement Tuesday. “Richmond is experiencing record development and growth, and, with the addition of a destination resort, we will change the economic trajectory of South Side for years to come.”

In June, Richmond City Council voted to select RVA Entertainment Holdings LLC — a joint venture between Urban One Inc. and Churchill Downs Inc. — as the city’s preferred casino operator for the proposed $562.5 million ONE Casino + Resort that will be built in South Richmond near Interstate 95 if the referendum passes in November.

Council members also voted to execute a host community agreement between the city and RVA Entertainment Holdings, as well as a community support agreement between the city, developer RVA Entertainment Holdings and Richmond VA Management LLC (the entity that would manage the casino). The latter agreement would fulfill a negotiated payout of $25.5 million to the city from the developer if the referendum passes this year, as well as a $1 million bonus payment from the developer to the city upon closing of the resort casino’s financing.

After the council’s actions, the ball was in the court of the Lottery, which oversees the state’s commercial casino administrative processes, and the city’s circuit court, which placed the referendum on the ballot by order Tuesday.

After the General Assembly voted in 2019 to allow casinos in five economically challenged cities statewide, voters in Bristol, Danville, Norfolk and Portsmouth approved casinos in their localities in 2020 referendums. Now, casinos are operating in Bristol, Danville and Portsmouth, with another in development in Norfolk.

However, Richmond voters rejected the proposed ONE Casino + Resort in November 2021 by a 1,200-vote margin.

Casino boosters — including Stoney and most of the Richmond City Council — have said that the casino should get a second chance to win over city voters, and a loophole in state law didn’t bar a second referendum after the first failed. State Sen. Joe Morrissey tried to close that loophole during the General Assembly session this year in an attempt to get a referendum on Petersburg’s ballots and prevent a second vote in Richmond. He was unsuccessful and now is a lame duck, having lost his Democratic primary in June to keep his Senate seat.

Opponents of the mulligan referendum said that voters made their feelings clear two years ago. One City Council member, Katherine Jordan, has voted against the referendum consistently over the past two years.

“We are ready to elevate our 20-year-plus relationship with Richmonders by presenting opportunities for real economic impact,” Alfred Liggins, CEO of Urban One, said in a statement. “We are proud of the service we continue to provide through various community and business partnerships and are talking to local leaders and citizens about the kinds of entertainment options, jobs, and community benefits they want to see included in this project. While this initiative will create 1,300 well-paying jobs and generate $30 million in annual revenue for the city, we are most excited about the investment it allows us to continue to make in the citizens of this great city.”

Most of the particulars of the proposed casino are the same as they were two years ago, although Churchill Downs is now involved after having purchased Peninsula Pacific Entertainment LLC (P2E) for $2.75 billion last fall. P2E was part of the 2021 proposal for the ONE Casino + Resort with Silver Spring, Maryland-based Urban One, a media company that operates 55 radio stations and the TV One cable network. The parent company of Churchill Downs racetrack in Louisville, Kentucky, Churchill Downs also owns the Colonial Downs Racetrack in New Kent County and six Rosie’s Gaming Emporiums in Virginia, as well as several casinos nationwide.

According to Richmond Economic Development Director Leonard Sledge, the ONE Casino + Resort, which would include a 250-room hotel and radio, TV and film production studios and soundstages, would be built on a 97-acre site on the city’s South Side on property owned by Altria Group Inc. off Interstate 95, just as proposed in the 2021 referendum. The city anticipates 1,300 jobs would be directly created by the casino, which would generate $30 million in projected annual local tax revenue, Sledge says.

One difference in this year’s casino push is the absence of the word “casino” in proponents’ recent statements, which are focused more on the project’s entertainment options, community involvement and economic impact, as opposed to gambling.

Churchill Downs and Urban One’s statement Tuesday said they plan to unveil a new design for the resort in coming weeks.

HeadWaters developers scrap temporary casino plans

The developers of the $500 million HeadWaters Resort & Casino in Norfolk have scrapped plans to open a 45,000-square-foot temporary casino, instead focusing all their efforts on building the permanent casino, which will open before construction begins on an associated hotel and other planned amenities.

“We have changed our approach and gone with a first-class experience from the get-go,” says Jay Smith, spokesperson for HeadWaters Resort & Casino, which is being developed in a partnership between the King William-based Pamunkey Indian Tribe and Tennessee billionaire Jon Yarbrough. The developers hope to break ground on the project this year, Smith says.

According to plans filed with the city last week, the permanent HeadWaters resort casino will be built in two phases. The first will include a 45,000 square-foot gaming floor, along with a 180-seat restaurant, a 1,200-space parking garage and a 5,000-square-foot lobby.

While the plan filed with the city doesn’t include details about the project’s second phase, Smith says phase 2 of construction will include a hotel, an outdoor pool, additional restaurants, an entertainment venue and other amenities. Renderings filed with the city last week show an infinity pool overlooking the ballpark, a multistory hotel and multiple bars. One design shows the word “Norfolk” carved into the building in large letters. In a design narrative for the project’s first phase, the developer writes, “The graceful curves of the shipping channels and railroad lines that once traversed the site have been translated into various components of the project. These influences pay homage to the original use of the bustling marine terminal.” 

The developers plan to get the casino built and operational before moving on to the second phase, Smith says. No timeline has been announced for delivering the second phase.

The developers’ plans submitted to the city for a development certificate have to go undergo a review from city staff and must receive approvals from the city Architectural Review Board, the City Planning Commission and City Council, all which could happen in the next few months.

The plans for the casino that were submitted to the city fell short of Mayor Kenneth Cooper Alexander’s expectations. “Although it may be constructed in phases, I was not expecting them to turn [the plan] in phases,” Alexander said. The mayor added that he was concerned by the lack of concrete details in the plan, as well as a lack of communication from developers on the casino’s application status with the Virginia Lottery, the state regulatory body that must approve the casino’s operating license.

“We continue to ask them for the same information over and over again,” Alexander says. “I want all the details to accompany the pretty pictures. Submit the supporting documentation.”  

However, in a March letter sent by the city to the casino developers, the city requested only conceptual details for the future phases of development, while requesting details such as architectural renderings, building elevations and a site layout for the first phase, all of which were provided by the development team. 

Regarding the operating license, Smith says, the HeadWaters project is in the midst of the licensing process and working closely with the lottery, regularly updating the state agency on the casino’s land acquisition and design plans.

The HeadWaters project has gone through multiple iterations since voters approved the project in a November 2020 referendum. At that time, developers pitched a $500-plus million resort casino with a 300-room hotel, restaurants, an entertainment venue, a rooftop pool, thousands of slot machines and as many as 150 table games.

Later, HeadWaters’s developers twice announced plans for a temporary casino, first inside the ballpark, and later as a single-story temporary casino in the Harbor Park parking lot. 

Virginians bet nearly $426M on sports in April

Virginians wagered $425.98 million in April, up 6.6% from the year prior, according to data released June 1 by the Virginia Lottery.

About $422 million in sports betting revenue came from mobile operators, and the remaining $3.5 million came from casino retail activity out of the temporary Hard Rock Hotel & Casino Bristol and the state’s first permanent casino, Rivers Casino Portsmouth. Virginia casino total gaming revenues totaled $35.4 million in April, according to the Virginia Lottery. Virginia’s third casino, the temporary Caesars Virginia resort in Danville, opened May 15.

April’s sports betting revenues decreased almost 16.7% from the $511.6 million reported in March. Virginia sports bettors won $380.86 million in April, down from $456 million in March.

A summer slump in sports betting is normal, according to Dru James, an analyst with Virginia Lottery-approved sports betting vendor BetVirginia.com.

“The industry-dreaded summer of discontent will likely contain persistent short-term drops through the summer and into September, where they should pick back up as professional sports return to the calendar,” James said in a statement. “In the meantime, year-over-year figures will be a much stronger indicator of market health in the state of Virginia and beyond.”

The 16 licensed operators included in April’s reporting were:

  • Betfair Interactive US LLC (FanDuel) in partnership with the Washington Commanders,
  • Crown Virginia Gaming LLC (Draft Kings),
  • BetMGM LLC,
  • Rivers Portsmouth Gaming LLC (Rivers Casino Portsmouth),
  • Caesars Virginia LLC,
  • WSI US LLC,
  • Twin River Management Group LLC,
  • Penn Sports Interactive LLC,
  • Unibet Interactive Inc.,
  • Colonial Downs Group LLC,
  • Digital Gaming Corporation VA LLC,
  • VHL VA LLC,
  • HR Bristol LLC,
  • Hillside (Virginia) LLC,
  • DC Sports Facilities Entertainment LLC,
  • and Betr VA LLC.

Virginia places a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue. With 10 operators reporting net positive adjusted gross revenue for April, the monthly taxes totaled $5.8 million, 97.5% of which will be deposited in the state’s general fund. The remainder, nearly $145,000, will go to the Problem Gambling Treatment and Support Fund, which the Virginia Department of Behavioral Health and Developmental Services administers.

Caesars Virginia casino opens in Danville

On May 15, the first bets were taken at the 40,000-square-foot temporary Caesars Virginia casino in Danville, while a $650 million permanent resort casino is being built next door.

The temporary casino looks like a simple white tent on the outside, but the inside feels “very much like you’re in any casino in the country,” says Chris Albrecht, senior vice president and general manager of Caesars Virginia.

Albrecht has worked at Caesars Entertainment Inc. casinos across the nation for the past 18 years but says it’s the first time he’s opened a temporary casino. It’s a challenge not having the full set of amenities and tools of a permanent casino, he says, but he’s dedicated to making the experience great for customers.

Located at the former Dan River Inc. Schoolfield mill site, the temporary facility features eight sportsbook betting kiosks; 740 slot machines; 25 live table games, including blackjack, roulette and baccarat; 28 electronic table games of blackjack, roulette and craps; and a quick-service restaurant, Three Stacks.

Hiring began in January, and the temporary casino has about 400 workers, about a quarter of whom are table games dealers.

A partnership between Caesars Entertainment and the Eastern Band of Cherokee Indians (EBCI), Caesars Virginia started construction in August 2022 on the permanent casino, which is expected to open in late 2024. Plans call for 500 hotel rooms, a spa, a pool, bars, a 2,500-person entertainment venue and 40,000 square feet of meeting and convention space. It will have at least 1,300 slots, 85 live game tables, 24 electronic table games, a poker room and sportsbook.

Caesars Virginia received the green light to operate on April 26, when the Virginia Lottery Board approved its license, making it the third casino to receive state approval.

Virginia’s first casino, the Hard Rock Hotel & Casino Bristol, opened in July 2022 in a temporary space at the former Bristol Mall after receiving licensing approval less than 90 days earlier. In December 2022, developers began construction nearby on the $400 million permanent Hard Rock casino, which is slated to open in July 2024. The $340 million Rivers Casino Portsmouth, which received its license in November 2022, opened its permanent space in January. The Pamunkey Indian Tribe’s license for the proposed $500 million HeadWaters Resort & Casino on the Elizabeth River in Norfolk is still pending state approval.  

Va. casinos report $35.4M in April revenue

Gaming revenues from Virginia’s two casinos open in April totaled $35.4 million last month, according to data released Monday from the Virginia Lottery.

Rivers Casino Portsmouth, which received its casino license in November 2022 and opened Jan. 23, reported $21.3 million in adjusted gross revenue (wagers minus winnings) in April. Of that, $13.8 million came from its 1,420 slots, and the remaining $7.5 million came from its 81 table games.

The Virginia Lottery Board approved the casino license for the HR Bristol operator in April 2022, and the Hard Rock Hotel & Casino Bristol’s temporary facility opened on July 8, 2022. Its permanent facility is expected to open in July 2024. HR Bristol reaped $14 million in adjusted gross revenue (AGR) in April. The casino reported $11 million in AGR from its 888 slots and $2.7 million from its 29 table games.

Last month, Virginia took in almost $6.37 million in tax revenue from casino gaming activity — $3.8 million from the Portsmouth casino and $2.5 million from the Bristol casino. For Rivers Casino Portsmouth, 6% of its AGR (about $1.28 million) will go to Portsmouth, while 6% of the Hard Rock Bristol’s AGR (about $842,000) will go to the Regional Improvement Commission, which the General Assembly established to distribute Bristol casino tax funds throughout Southwest Virginia.

The Problem Gambling Treatment and Support Fund will receive $30.7 million from Rivers Casino Portsmouth’s taxes and $20.2 million from Bristol casino taxes for a total of $50.9 million. The Family and Children’s Trust Fund will receive about $12,700 from April taxes, of which about $7,700 comes from the Portsmouth casino. The remaining $4.18 million in taxes will stay in the Gaming Proceeds Fund.

Virginia’s third casino, Caesars Virginia’s temporary casino, opened Monday in Danville. The temporary facility has 740 slot machines, 25 live table games and 28 electronic table games.

Caesars Danville opens temporary casino

Virginia’s third casino opened its doors Monday in Danville to hundreds of guests lined up to take a look inside Caesars Virginia’s 40,000-square-foot temporary casino.

While the $650 million permanent resort, which is expected to open in late 2024, is being constructed next door, the temporary facility will offer guests eight sportsbook betting kiosks; 740 slot machines; 25 live table games, including blackjack, roulette and baccarat; 28 electronic table games of blackjack, roulette and craps; and a quick-service restaurant, Three Stacks. Resembling a large white tent on the outside, the temporary facility looks like other casinos inside, with flashing lights and seemingly endless rows of gaming machines.

At Monday’s opening ceremony, Caesars officials said that when they learned it would take longer than planned to open the permanent casino, they started making plans to open the temporary one at the former Dan River Inc. Schoolfield mill site where the permanent casino is also being built.

Barron Fuller, regional president with Caesars Entertainment, said they’ve been talking about opening a casino for five years and said getting the temporary casino open was “easier said than done, but great people came together less than a year ago.”

In August 2022, Caesars announced a partnership with the Eastern Band Cherokee Indians on the project and upped the project’s budget from $400 to $650 million.

“It’s great day for Eastern Band, a great day for Danville,” said EBCI Chairman Richard French. “We’re trying to do everything to help build [Danville] better,” he said. “It’s the citizens of the towns that make the town, it’s not the buildings, it’s the people and we just want to thank you all for taking a chance and giving us an opportunity to help you grow and have this casino here.”

Del. Danny Marshall, R-Danville, talked about the referendum approved by Danville voters in November 2020. “Monday, May 15, 2023, is going to be one of those dates that will be remembered as a turning point in [Danville’s] history,” he said.

The temporary casino will have 400 employees, about a quarter who are table games dealers.

Caesars Virginia received the green light to operate on April 26, when the Virginia Lottery Board approved its license.

The permanent casino is expected to have 500 hotel rooms, a spa, a pool, bars, a 2,500-person entertainment venue and 40,000 square feet of meeting and convention space. It will also feature at least 1,300 slots, 85 live game tables, 24 electronic table games, a poker room and sportsbook.

Virginia’s first casino, the Hard Rock Hotel & Casino Bristol, opened in July 2022 in a temporary space at the former Bristol Mall after receiving licensing approval less than 90 days earlier. In December 2022, developers began construction nearby on the $400 million permanent Hard Rock casino, which is slated to open in July 2024. The $340 million Rivers Casino Portsmouth, which received its license in November 2022, opened its permanent space in January.

Lottery approves Danville Caesars casino’s license

UPDATED: April 26, 4 p.m. 

The Virginia Lottery Board approved the facility operator’s license for Danville’s $650 million Caesars Virginia casino, which is expected to open in a temporary space on May 15. It’s the third casino to receive state approval, following the Hard Rock casino in Bristol and Rivers Casino Portsmouth in Hampton Roads.

“For months, the Lottery’s Gaming Compliance Department and legal team have conducted background investigations and examined every detail of this application,” said Virginia Lottery Executive Director Kelly T. Gee. “Those investigations include not just Caesars Virginia, but all the vendors and employees as well.”

Approved by Danville voters in a November 2020 referendum, the Caesars Virginia casino is a partnership between Caesars Entertainment Inc. and the Eastern Band of Cherokee Indians (EBCI).

A temporary casino is set to open in Danville on May 15 and a permanent one in late 2024. Photo courtesy Caesars

Caesars plans to open a 40,000-square-foot temporary facility at the former Dan River Inc. Schoolfield mill site. It will have eight sportsbook betting kiosks, 740 slot machines, 25 live table games including blackjack, roulette and baccarat; and 28 electronic table games of blackjack, roulette and craps, Caesars said in a news release. A quick service restaurant, Three Stacks, will also serve customers of the temporary casino. The temporary casino will create 400 jobs.

“We’ve received an incredible outpouring of support and cooperation to get us to this day, especially from the Danville community and the surrounding areas,” Chris Albrecht, senior vice president and general manager of Danville Casino and Caesars Virginia, said in a statement. “The opening of the Danville Casino is a monumental step forward for us, and we are excited to begin welcoming guests on May 15.”

Plans for the permanent resort casino call for 500 hotel rooms, a spa, a pool, bars, a 2,500-person entertainment venue and 40,000 square feet of meeting and convention space. The casino, expected to open in late 2024, will have at least 1,300 slots, 85 live game tables, 24 electronic table games, a poker room and sportsbook.

Virginia’s first casino, the Hard Rock Hotel & Casino Bristol, opened in July 2022 in a temporary space at the former Bristol Mall after receiving licensing approval less than 90 days earlier. In December 2022, developers began construction nearby on the $400 million permanent Hard Rock casino, which is slated to open in July 2024. The $340 million Rivers Casino Portsmouth, which received its license in November 2022, opened its permanent space in January. The Pamunkey Indian Tribe’s license for the proposed $500 million HeadWaters Resort & Casino on the Elizabeth River in Norfolk is still pending state approval.

“The Virginia Lottery Board takes very seriously its statutory role overseeing casino gambling in the commonwealth,” said Lottery Board Chairman Ferhan Hamid. “All Virginians, whether or not they use these facilities, need to be aware that they are operated and regulated responsibly.”

Virginia hold ’em

The slot machines are already ringing out in Bristol and Portsmouth, where Virginia’s first commercial casinos opened during the past year.

The state’s first permanent casino, Rivers Casino Portsmouth, opened its doors on Jan. 23. Operated by Chicago-based Rush Street Gaming, the resort has 1,148 slot machines, 57 table games and 24 poker tables, as well as a sportsbook, a Topgolf “swing suite” and multiple restaurants. The casino is expected to generate $16.3 million in annual tax revenue to the city.

However, the Hard Rock Hotel & Casino Bristol was first out of the gate in the race, opening a temporary facility in July 2022. Hard Rock International Inc. broke ground in December 2022 on its $400 million permanent Southwest Virginia casino, expected to open in July 2024.

During its first six weeks, Virginians and guests from 48 other states visited the temporary Hard Rock casino, a 30,000-square-foot space with 900 gaming slots and 20 tables at the former Bristol Mall. The project generated about 600 jobs, and when the permanent casino opens with a 3,200-seat theater and a 20,000-seat outdoor entertainment venue next year, the resort is expected to create 1,500 direct jobs and bring in $21 million in annual tax revenue for Bristol.

Meanwhile, the state’s two other casinos are in the works in Norfolk and Danville.

As of early February, construction had not started on the planned temporary or permanent HeadWaters Resort & Casino on the Elizabeth River. The Pamunkey Indian Tribe-led project hit some roadblocks last year after the city halted plans for a temporary casino inside Harbor Park, the Norfolk Tides’ home stadium. The tribe then announced it would build the temporary casino in the same space in the stadium’s parking lot as the $500 million permanent casino, after the city of Norfolk sold the land to the developer.

According to Jay Smith, spokesman for the casino, construction of the permanent casino and hotel will take 18 months to two years, and both facilities are expected to generate $30 million in annual gaming and sales taxes for Norfolk.

Smith said in February that the tribe hopes to reach agreement on the land sale “in the next few weeks. We look forward to breaking ground as soon as possible.”

In Danville, plans for a temporary Caesars Virginia resort at the former Dan River Inc. mill site are moving forward, with a possible midyear opening, although Caesars Entertainment Inc. officials are keeping their cards close to the vest when it comes to details. Table game dealers were set to start training in late February in preparation for the permanent resort’s opening in late 2024.

Caesars announced a partnership with the Eastern Band of Cherokee Indians (EBCI) in August 2022, with an accompanying increased investment from $400 million to $600 million. The cash influx will mean a larger hotel, growing from 300 to 500 rooms. The project will also have a 2,500-person entertainment venue and 40,000 square feet of meeting and convention space.

“Following COVID-19 pandemic closures, we found that regional gaming markets across the country recovered more quickly than anticipated,” explains Cory Blankenship, EBCI’s treasury secretary. “We are confident that market conditions — regional population, consumer demographics, proximity to other gaming markets and other variables — are favorable to support an expanded scope to the Danville project.” 

The fate of a fifth potential casino — either in Richmond or Petersburg — was still undecided as of this issue’s mid-February deadline. Richmond voters rejected a proposed Urban One Inc.-backed casino in late 2021, but city officials were pursuing a second referendum vote this fall, while Petersburg leaders were trying to bring a referendum to their ballots.

State lawmakers pulled from consideration two bills that would have opened the possibility for a casino in Northern Virginia, but the legislation could return for consideration during the 2024 General Assembly session. 

Second Petersburg casino bill dies in Senate committee

Updated Friday, Feb. 17

Petersburg voters won’t get an opportunity to approve a casino this fall, and Richmond may get a second chance to vote on a casino referendum in 2023, state legislators decided Thursday in a 10-6 vote. However, the matter could come down to last-minute state budget negotiations.

The Virginia State Senate’s Finance and Appropriations Committee killed a House of Delegates bill Thursday that would have placed a referendum on Petersburg ballots in November and prevented a second referendum for Richmond, where voters defeated a casino referendum in 2021. Without a law stopping Richmond from holding another referendum, one could appear on city ballots this year.

In 2022, state lawmakers blocked a second referendum in Richmond and ordered a study by the Joint Legislative Audit and Review Commission (JLARC) that indicated that both Richmond and Petersburg could successfully host casinos.

The Senate Finance committee voted down a similar bill from Sen. Joe Morrissey, D-Richmond, earlier in the month, but the measure from Del. Kim Taylor, R-Dinwiddie, survived multiple votes in the House, including a 49-44 floor vote with one abstention, which allowed the bill to proceed to the Senate for consideration.

Sen. Dick Saslaw made an amendment to the bill requiring that Cordish would pay the prevailing local wage listed by the Bureau of Labor Statistics, a change that was passed by voice vote. Ultimately, though, Sen. Louise Lucas, who has been a longtime supporter of casino legalization, made a motion to pass the bill by indefinitely, which won with 10 “yes” votes.

“When we started down this path, we all agreed that we will be more methodical about the way we go about establishing casinos in the commonwealth of Virginia,” Lucas said.

Lucas twice opposed the twin bills, although Democratic Sen. David Marsden and Republican Sen. Frank M. Ruff Jr. switched their votes, with Marsden voting against the Taylor bill and Ruff voting for it, after taking opposite positions on Morrissey’s bill, which failed 7-8.

Boosters of the bill were mainly Petersburg officials; Petersburg City Council signed a commitment with Baltimore-based commercial real estate company The Cordish Cos. in October 2022 to develop a Live! Casino & Hotel resort, pending passage of Morrissey’s and Taylor’s bills and Petersburg voters’ support of a casino referendum this fall. Cordish officials promised to spend $1.4 billion to build a casino, hotel and parking garage, as well as a multiuse development on the surrounding 90 acres, producing 1,800 direct jobs. The Maryland-based company, which has developed casinos across the mid-Atlantic and Florida, said it was not interested in developing a casino if Petersburg and Richmond both got the green light to build.

However, Cordish was not giving up the fight yet, as the state legislature continues negotiations to reconcile differing budgets from the House and the Senate, leaving some hope for a future referendum in Petersburg, if not this year.

“Our $1.4 billion urban revitalization project would be transformational for Petersburg, with 4,000 new jobs and millions of dollars in additional local and state tax revenue,” Zed Smith, Cordish’s chief operating officer, said in a statement Thursday. “As the General Assembly continues its deliberations, we hope the state’s elected leaders will explore every avenue to help provide this major economic development boost to Petersburg.”

Morrissey said Friday afternoon that “the game … is still in play. I fully expect there will be budget language preventing Richmond from holding a referendum anywhere in the next one to five years.” According to a Richmond Times-Dispatch article, House Appropriations Chairman Barry Knight, R-Virginia Beach, said it’s “absolutely an option” to pause a second Richmond casino referendum. Morrissey confirmed that this is a possibility; Knight was not available for comment Friday afternoon.

What Morrissey suggested could happen is that the House of Delegates’ budget conferees would insert language preventing Richmond from holding a referendum that could be part of a compromise budget between the House and the state Senate. Currently, the two bodies’ budget amendments differ widely, with the Republican-controlled House supporting $1 billion in tax cuts while the Democratic-held Senate seeks school spending in the same amount. The Senate and House money committees will continue to meet next week as the General Assembly session winds down, and the governor can call a special session if necessary to pass an amended budget.

“It’s early in the fourth quarter, and this game is going to be won late in the fourth quarter and possibly in the last two minutes,” Morrissey said. He added that he was “really upset” about Lucas’ vote to pass by Taylor’s bill, saying that she was putting “rich white casino developers” ahead of Black residents of Petersburg, and that she had told him the developers of the Norfolk and Portsmouth casinos in her district didn’t want the competition from Cordish in Petersburg. Lucas’ office did not immediately respond to messages left Friday afternoon.

Richmond officials have been largely opposed to Morrissey’s and Taylor’s bills. Richmond Mayor Levar Stoney and several city councilors have backed a second chance at passing a referendum to allow construction of Urban One Inc.’s proposed $565 million ONE Casino + Resort in the city’s South Side. When the state legalized commercial casinos in 2020, it limited the options for casinos to one facility apiece in five economically disadvantaged cities — Bristol, Danville, Norfolk, Portsmouth and Richmond.

Urban One and Churchill Downs Inc. released a joint statement late Thursday:

“We appreciate the General Assembly’s careful, deliberate process and open mind in considering and addressing this important decision. For us, the process has always been about determining what is best for the commonwealth, and that answer has always been quite clear. Every study conducted has consistently revealed that a casino resort in Richmond will generate the most jobs, revenue, opportunity and economic benefits for the city, Central Virginia and the entire commonwealth.

“Now, we turn our attention to a successful referendum in November. We are eager to share our vision for this project and its many benefits including thousands of quality jobs, millions for schools and tax relief, and revitalization of neighborhoods that have too often been left behind.”