Budget Provision Could Put Yet Another Delay On Richmond Casino Referendum

The budget proposed by a Virginia Senate committee includes provisions that would temporarily prevent a second Richmond casino referendum from taking place.

The recent development adds to the ongoing saga regarding the prospective location for Virginia’s future fifth Las Vegas-style casino.

The budget bill was amended by lawmakers to include a provision that delays the Richmond referendum until an impartial consultant can assess the possible state and local revenues that could arise from a casino establishment in Petersburg.

On Sunday, the budget received unanimous support from the committee with a vote of 15-0. However, it must still undergo voting on the Senate floor and obtain agreement from the House of Delegates. If approved, the budget would delay a subsequent vote in Richmond until at least November 2024.

Recap of the drama around the Richmond casino referendum

The initial years of the gambling expansion process in Virginia witnessed a seamless legislative journey.

In April 2020, legislation was signed by the then-Governor Ralph Northam, which aimed to legalize sports betting. Additionally, citizens residing in five economically depressed cities were granted the opportunity to vote on whether they wanted to introduce casinos in their respective hometowns.

In November 2020, the cities of Bristol, Danville, Portsmouth, Norfolk, and Richmond participated in the voting process. The proposals put forth in these four cities were approved by the voters without any significant challenges.

Contrary to the other cities, Richmond officials made the decision to postpone the vote until the next November. However, voters in Richmond dissented from casino gaming.

The proposed $560 million One Casino + Resort was ultimately rejected by voters, with a narrow margin of just 1,500 votes.

After Richmond rejected the proposal, politicians engaged in a fierce debate regarding the location of the fifth casino, as permitted by the initial legislation.

SB 203 was submitted by Sen. Joe Morrisey, representing Richmond as a Democrat. Although not explicitly naming the city, the bill essentially outlines the conditions for Petersburg, a neighboring city of Richmond with a population of 30,000, to become the designated location for the fifth property.

However, the Richmond City Council took action to provide its citizens with a second chance. In the previous month, the council voted overwhelmingly, with a margin of 8-1, in favor of permitting another round of voting.

Morrisey’s bill was rejected by members of a Virginia Senate committee a few weeks ago. As a result, it appeared likely that a second vote in Richmond would take place before Sunday’s development.

Richmond mayor “disappointed” with budget provision

Mayor Levar Stoney of Richmond unveiled a proposal to lower property taxes by 2% in exchange for residents supporting the introduction of a casino in Virginia’s capital. The intention behind this plan was to influence voters with increased property values to cast their ballots in favor of the casino during the upcoming vote.

The majority of the votes against the proposal were cast by residents from the West End, North Side, East End, and Downtown. These regions are characterized by significantly higher property values compared to the South Richmond area, which was the proposed location for the casino.

Considering the contrasting home values of “yes” and “no” voters, the tax cut appeared to be an ideal strategy. In fact, convincing only 1,500 out of 232,000 city residents seemed like a manageable task.

Despite being displeased by the budget provision, Stoney maintains hope that his city will secure a casino.

In his conversation with the Richmond Times-Dispatch, he stated:

I express my disappointment towards Senate Democrats for including a restriction on the city of Richmond in their budget proposal. However, I maintain a positive outlook that a resolution will be reached between the chambers, enabling Richmond to pursue this transformative opportunity.

Morrisey holds a contrasting viewpoint. He expressed to the same newspaper that he is confident the budget provision will successfully pass through a Senate floor vote and discussions with the lower chamber. The democrat has repeatedly stated that a second vote would be unnecessary and against the principles of democracy.

As Senator Jennifer McClellan, a Democrat representing Richmond, shared with the newspaper, his idea is backed by like-minded party members.

Petersburg is obligated to adhere to the identical procedure that the other five cities followed, which entails undergoing a JLARC review and maintaining the current state of affairs until the completion of said review.

Fifth casino will open well after the first four

It is currently difficult to determine the specific city where the fifth casino will eventually be located. Nonetheless, one certainty is that regardless of its destination, it will be established at a later point in time.

City	Casino	Projected Opening Date
Bristol	Hard Rock Casino and Resort Bristol	Mid-2024 (temporary casino), 2024 (full casino)
Danville	Caesars Casino Resort Danville	Q4, 2024
Norfolk	HeadWaters Resort & Casino	Q4, 2024
Portsmouth	Rivers Portsmouth Casino Resort	Early 2024

The upcoming months will witness the opening of a temporary gaming floor at Bristol’s Hard Rock Hotel & Casino. By the end of the following year, all four properties will be fully operational.

Should the current version of the budget be approved, it is unlikely that any potential landing city will hold a referendum until 2024. Furthermore, the remaining four casinos will commence operations before the selection of a city for the final casino.

Assuming the same 2–3-year timeline as its predecessors, the earliest possible opening for the fifth Virginia casino would be in 2025.

Assuming that lawmakers and citizens decide on a city during the 2024 election, a more reasonable estimate would be an opening in 2026.