Can New Tax Cut Help Sell Second Richmond Casino Referendum?

It is highly probable that a second referendum for a casino in Richmond, Virginia, will be available for the voters.

The initiative that was narrowly defeated by the city’s electorate last year with a 51.2% vote against it, has been put back on the ballot for this November after the Richmond City Council voted 8-1 in favor of it on Monday.

On this occasion, Mayor Levar Stoney is providing a motivating reward for voters to approve the initiative.

Tax cuts in exchange for second Richmond casino referendum

Stoney put forth a proposition to reduce the city’s property tax by 2% in anticipation of the city council vote, on the condition that voters alter their opinions.

The implementation of Stoney’s suggested reductions will only occur if the initiative is approved by the public through the polls. Without a second referendum for a Richmond casino, there will be no reduction in real estate prices.

Although it may not appear sufficient to influence voters at first glance, it is crucial to consider the magnitude of the loss and how the vote was divided geographically.

The proposed $560 million One Casino + Resort was ultimately rejected by a mere 1,500 votes in a city boasting over 232,000 residents. Interestingly, the majority of these opposing votes were cast by residents residing in the West End, North Side, East End, and downtown areas.

Given that home values in the proposed casino site of South Richmond area are significantly lower compared to other areas, implementing a tax reduction on property values could serve as an effective incentive to sway opinions.

The proposed location of the casino had garnered overwhelming support from nearly all precincts in its vicinity.

Officials have estimated that the casino would generate 1,300 full-time employment opportunities and yield an immediate revenue of $25.2 million for the city. Stoney reiterated the potential economic benefits the casino would offer to Richmond in a statement made prior to the Richmond City Council vote.

“Our citizens are entitled to tax relief and opportunities for secure employment. They desire enhancements to public infrastructure and increased funding for school capital projects. This project presents an exceptional chance to fulfill these aspirations. I am aware of City Council’s dedication to generating opportunities that elevate and assist all Richmond inhabitants, and I am optimistic that tonight’s vote will confirm this shared commitment.”

Richmond casino would be only black-owned gaming operation in US

The city of Richmond, ranking fifth in Virginia’s population, attracted the attention of various prominent gaming companies. Eventually, Urban One, a media company based in Maryland, was selected to construct the ONE Casino + Resort.

The mother-son duo of Founder and Chairperson Catherine Hughes, along with President and CEO Alfried Liggins, hold a commanding 90% ownership of the company. Their leadership positions make ONE Casino + Resort the sole black-owned casino in the nation.

Because it was the company’s inaugural casino endeavor, it collaborated with Peninsula Pacific Entertainment (PPE), a gaming company, to establish the casino. PPE already had a foothold in Virginia through its ownership of both the Rosie’s Gaming Emporiums and the Colonial Downs racetrack in the state.

Critics argue people have already spoken

Despite having the backing of the Richmond City Council, there remain numerous critics of the proposed casino re-do.

A bill has been recently proposed by Senator Joe Morrisey, a Democrat representing Richmond, which aims to prevent his constituents from participating in a second vote concerning the issue. Moreover, this legislation would also create an opportunity for a casino to be established in Petersburg, a city located merely 25 miles to the south of Richmond.

In an interview with a local media outlet, Morrisey expressed his belief that holding a second referendum in Richmond would lack democratic principles and would serve no purpose due to redundancy.

Similar claims have been made by other critics. One such critic is Allan-Charles Chipman, an organizer for the left-leaning political group Richmond For All, who stated to the Richmond Times-Dispatch that the second vote is often employed as a strategy by unsuccessful casinos.

Casinos often resort to a common strategy when faced with defeat in democratic processes – they attempt to undermine the determination of the people by proposing successive referendums. This is because they firmly believe that, just like in their games, the house always emerges victorious in the voting process as well.

Timeline for VA casinos

Nothing is guaranteed yet as the Richmond City Council is still required to petition the circuit court to have the issue reinstated on the November ballot.

If everything goes according to plan, when might a Richmond casino be able to open?

Danville, Norfolk, Bristol, and Portsmouth voters expressed their support for introducing brick-and-mortar casino gambling to their cities in 2020. The anticipated opening dates for these casinos are as follows:

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

If One Casino + Resort follows the construction timeline of its four Virginia counterparts, there is a possibility of opening in mid-2024. However, the more probable scenario suggests a grand opening in 2025.