It is economically feasible to build casinos in both the city of Richmond and the city of Petersburg, according to a study from the Joint Legislative Audit and Review Commission (JLARC). Legislators ordered the study amid lobbying to give Virginia’s last casino license to Petersburg after Richmond voters rejected a casino in 2021.
“Demand is sufficient in the Petersburg market to support a casino,” said bullet points in a JLARC briefing presented Monday. “Petersburg casino would generate $204M in net gaming revenue, $12.2M in local taxes for the city, and $12.3M in net state taxes. Petersburg casino would decrease net gaming revenue from other casinos by $55M. Petersburg casino would decrease HHR gaming revenue by $46M. Demand is sufficient in the Richmond/Petersburg market to support a casino in each city, but impacts on other casinos and HHR [historical horse racing] would be greater with both casinos.”
After the Richmond casino referendum failed, Senator Joe Morrissey (D-Richmond) stopped supporting a Richmond casino and began advocating on behalf of Petersburg to have Virginia’s fifth casino license granted to the economically challenged city. But Richmond officials alleged problems with the referendum and called for another referendum to be held in 2022. Morrissey led legislators in including a budget amendment that blocked the second referendum attempt until 2023, allowing time for the feasibility study in Petersburg to be performed.
According to the briefing, a casino in just Petersburg would significantly reduce net gaming revenues at casinos being developed in Danville, Norfolk, and Portsmouth, but not Bristol. Danville and Portsmouth would see a decrease of $18 million, Norfolk would see a $17 million decrease, and Bristol would see a $2 million decrease. With casinos in both Richmond and Petersburg, that would lead to a $28 million decrease from $256 million for the Danville casino, $29 million from $227 million in Norfolk, $31 million from $199 million in Portsmouth, and $3 million from $147 million in Bristol.
It would also impact local tax revenues for host cities.
The report suggests a potential compromise to the competition between Richmond and Petersburg, since both could have casinos if the Virginia General Assembly authorizes a sixth casino license. However, in that case, the Petersburg casino would likely be smaller: 1,300 slot machines, 55 table games, smaller restaurant capacity, and a 250-room hotel, instead of 1,700 slot machines, 70 table games, restaurants with room for 600 guests, and a 300-room hotel. In either case the casino would have a sportsbook and a 1,500-seat events center.
On The Fighting Joe Morrissey Show Monday, the senator said he’s pushing for one larger “destination resort, Las-Vegas style” in Petersburg instead of a casino in both cities.
“You get a regional casino, you know what a regional casino is, folks? Let me tell you something. It’s heavy on the one-armed bandits, and then you’ve got some gaming tables. Boring, boring. They might have an auditorium that seats 800 for a music venue. You know, that’s not what I’m looking for in Petersburg,” he said.
Petersburg Mayor Sam Parham said in a Morrissey press release, “We are excited about the news that we received today which is that Petersburg meets all of the criteria for a casino host city. We look forward to the next steps as this moves through the legislative process.”
Richmond Mayor Levar Stoney said in a statement, “We’re pleased that the facts presented in the JLARC study reaffirm Richmond as the best choice for a Central Virginia casino. We look forward to further discussion on this important economic development opportunity, which would provide well-paying jobs and much-needed revenue to address priorities.”
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Eric Burk is a reporter at The Virginia Star and The Star News Network. Email tips to [email protected].
2 casinos that close together make absolutely NO sense. The 2 casinos in Norfolk and Portsmouth is an idiotic idea. Only 1 will survive.