Petersburg’s Casino Bid: A High-Stakes Game in the Virginia Legislature

• Daniel Horvat
• January 16, 2024

In the bustling city of Petersburg, Virginia, a casino referendum is currently under consideration in the state legislature. This comes on the heels of a similar proposal in Richmond, another potential host city, which was turned down by voters.

Five years ago, the Virginia General Assembly gave the green light to five cities – Bristol, Danville, Norfolk, Portsmouth, and Richmond – as potential hosts for casinos. Each city held a referendum, and Richmond was the only one where the proposal was rejected, not once, but twice. Petersburg seized this opportunity and threw its hat in the ring immediately after Richmond’s first defeat in 2021. Despite two years of relentless efforts, the city’s attempts to secure a casino still fall short.

The 2024 Regular Session of the Virginia General Assembly began on January 7, 2024 and it’s scheduled to adjourn on Saturday, 9 March 2024.

The Petersburg casino referendum bill has already been voted on by the Virginia House of Delegates. The House of Delegates voted 49-44 to send the legislation to the state Senate. The bill was then approved by the House Appropriations Committee by two votes.

If the bill passes the state Senate, it will need to be signed by Governor Glenn Youngkin to become official. However, the bill only paves the way for a casino vote; it does not legalize a Petersburg casino.

If the bill makes it through the legislature, Petersburg residents will have the opportunity to vote on the casino referendum. The Petersburg City Council has also approved a legislative agenda that includes a provision for a casino referendum in Petersburg by November 2025. So, the exact date of the referendum will depend on the progress of the bill and the decision of the Petersburg City Council.

The Petersburg casino referendum is now being deliberated in the legislature. Senate Bill 628, although not explicitly stating that Petersburg would replace Richmond as the fifth casino host city, amends the requirements for the host city in a way that would suit Petersburg. The bill is chiefly sponsored by Sen. Lashrecse Aird, D-Petersburg, and Senate Finance & Appropriations Committee chair Louise Lucas, D-Portsmouth.

The Future

The Cordish Companies, a Maryland-based urban-planning company, has proposed a $1.4 billion project for a casino in Petersburg. The project, dubbed ‘Live! Casino & Hotel Virginia,’ would include a hotel, casino, resort pool, and an event center capable of hosting live music. However, the city of Petersburg has yet to receive state permission to open a VA casino. This issue is likely to be revisited in the General Assembly’s next session in January.

The Cordish Companies is a family-owned real estate development company known for its extensive expertise in almost every discipline of commercial real estate. They have a global reach and are recognized as a leading international developer of large-scale, urban revitalization projects and entertainment districts, often branded as “Live!” districts.

What are the benefits of having a casino in Petersburg?

A casino in Petersburg could bring significant economic benefits. The Cordish Companies’ proposed $1.4 billion multi-use development could create as many as 4,000 new jobs for Petersburg. Additionally, a 2022 study by the Joint Legislative Audit and Review Commission found that a casino in Petersburg would generate $12 million in gaming revenue annually for the city.

How does Virginia regulate casinos?

Casino gaming in Virginia is regulated under Chapter 41 of the Virginia Code. The Virginia Lottery Board is responsible for overseeing the operation of casinos in the state. The code defines various terms related to casino gaming and outlines the requirements for hosting a casino, obtaining an operator’s license, and conducting casino gaming.

What is the public opinion on the casino?

Public opinion on the casino in Petersburg is mixed. Some residents, like Rondell Harris, believe that the casino would be a great idea and would bring more job opportunities. However, others, like Tina Richardson, have expressed concerns about potential public safety issues and believe that the city should focus on other issues, such as reducing crime and providing services for children.

What impact will the casino have on local businesses?

The impact of casinos on local communities is multifaceted and highly context-dependent. While some studies indicate positive economic contributions and minimal effects on crime, others highlight concerns about social issues and housing market dynamics. It is estimated that as many as 1,800 direct jobs could be created annually, along with up to 1,000 construction jobs.

What measures are being taken to address potential issues related to problem gambling?

Virginia has implemented several measures to encourage responsible gaming. One of the main steps in place to curb problem gambling in Virginia is the self-exclusion program. The Virginia Lottery, which regulates the gambling market, will allow gamblers to place their name on a list that will ban them from gambling activity for a designated time frame. The Problem Gambling Treatment and Support Fund was established in 2020 when the Virginia General Assembly passed legislation to regulate casino gaming. The state mandates 0.8% of casino gambling tax revenue goes directly to that fund.

The Casino Landscape in Virginia

As of now, Virginia is home to two types of casinos. The first type is traditional Class III casinos, akin to those found in Las Vegas or Atlantic City. Two of these have already opened: The first one opened in July 2022. The second one, Rivers Casino Portsmouth, launched on January 23, 2023.

Two more Class III casinos are expected to open soon: one in Danville, operated by Caesars Entertainment, and the other in Norfolk, operated by the Pamunkey Tribe.

The other type of casino in Virginia is not what you would traditionally call a casino. These casinos only offer gaming machines where players are betting on past horse races, and the slot machine reels are just for “entertainment purposes”. All of these historical horse racing casinos in Virginia are owned by The Colonial Downs Group. The first facility with historic horse racing machines, Rosie’s Gaming Emporium, opened at Colonial Downs racetrack in April 2019. There are no live table games, slots, or gaming machines offered at any of the historical horse racing casinos in Virginia. The state has limited them to a total of 10 locations with a maximum of 3,000 machines at all of the locations combined.