Petersburg casino House bill still in play

The Cordish Companies unveiled details for a $1.4 billion transformative mixed-use development in Petersburg, VA. Live! Gaming & Entertainment District will set a new standard for development in the Commonwealth, creating a world-class entertainment destination and mixed-use project with gaming that will generate billions of dollars in economic benefits and spinoff development, create thousands of new jobs and benefits to the local community, and become a major new tourist destination.

A referendum for a Petersburg casino development could still be in the cards, as lawmakers recently sent a House bill over to the Senate with a 49-44 vote and one abstention.

Petersburg-area representatives filed casino bills in the fall of 2022. Del. Kim Taylor, R-Petersburg, introduced House Bill 1373 to qualify Petersburg as an eligible city to hold a casino referendum.

Any city within 25 miles with a previously failed referendum cannot hold another one until another eligible host city has “a reasonable opportunity,” according to the bill.

This would mean Richmond, whose referendum failed in 2021, cannot hold another referendum this year until Petersburg has a chance. A referendum is a measure locals vote on during the November general election.

Taylor’s bill passed to the Senate on Feb. 7. Most Richmond-area Democrats voted against it.

“I am excited about the momentum my bill has and am looking forward to working with the various interest groups to make sure the people of Petersburg have a choice in November,” Taylor stated in an email.

Taylor introduced the House version, which is identical to the measure introduced by Sen. Joe Morrissey, D-Richmond, which died on Feb. 2. The senator, who has been embroiled in recent drama with his estranged wife, had half of his proposed bills pass the Senate but not the casino one.

When asked if officials were trying to distance themselves from Morrissey’s bill, Taylor did not respond.

Petersburg does not have enough city residents to qualify for a referendum, but Taylor’s proposal creates qualifying alternatives based on real estate tax exemptions, poverty rate, and annual unemployment.

Cordish Companies would develop the “Live! Casino & Hotel Virginia” within a $1.4 billion development called the “Live! Gaming & Entertainment District,” according to a press release.

“I support Petersburg having a casino because I am a strong believer in economic development,” Taylor stated. “Simply put, the jobs created, investment of capital into infrastructure, schools and tourism generated from the casino will transform the city and region, unlike any industry we’ve seen in 40 years.”

Taylor referenced the Joint Legislative Audit and Review Commission, or JLARC, study on casinos published in October 2022. According to the study, a casino would create a larger tax base, generating more money for the city.

“Petersburg has been in economic decline for over 40 years, which has greatly reduced the tax base,” Taylor stated. “A significant employer such as a casino will raise the average income in Petersburg and help the city become sustainable.”

The study reviewed Virginia’s approach to different forms of gaming, along with a Petersburg-specific study that concluded the city could support a casino. The study also included a scenario where Petersburg and Richmond opened a casino.

JLARC staff selected The Innovation Group — which conducted previous casino research for the commission — from a pool of company experts, stated JLARC associate director Tracey Smith in an email. The firm was contracted to conduct a more limited analysis on the impacts of placing a casino in Petersburg, Smith stated.

The Innovation Group has casino developers as clients, and some criticize the objectivity of the analysis — something JLARC was not concerned about occurring, Smith stated when asked about any potential conflict of interest.

“They seem more like lobbyists than researchers,” said Richmond local Allan-Charles Chipman.

Chipman is a former candidate for the 6th District Richmond City Council election in 2020.

Chipman is the executive director of Initiatives of Change, an organization that examines the economic impact and disparities of slavery and racism.

“How can this be viewed as an objective opinion?” Chipman said.

Chipman is against opening casinos throughout Virginia, he said. According to Chipman, casinos generate revenue for cities by “being a tax on the poor” instead of implementing a more equitable tax across income brackets.

“For it [casinos] to be in Petersburg and the South Side, one of the highest racial disparities in our region, I think we need to hear from more than just people that make their money off of rubber stamping casinos,” Chipman said.

Richmond Mayor Levar Stoney has vocalized support for allowing Richmond to hold another referendum to build a casino.

“Richmond had their referendum, and Richmond rejected the casino in a free and fair election,” Chipman stated in a follow-up text message after the bill advanced in the General Assembly.

Two other bills for casino gaming and eligible host localities, HB 2499 and Senate Bill 1543, were stricken from the docket in committees.

The General Laws and Technology Senate committee will determine the next step for Taylor’s bill.

By Gabriela de Camargo Gonçalves

Capital News Service

Capital News Service is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.