The Richmond Times-Dispatch Editorial Board recommends that Virginia's capital should give in to the casino plans.
The Richmond Times-Dispatch editorial team recommends that the Virginia capital city should relinquish its state-assigned casino chance and permit nearby Petersburg to mull over a gaming project instead.
Richmond was one of five cities to qualify for considering a real-money casino through a state law passed in 2020 and signed by then-Governor Ralph Northam (D). This law was meant to give these five impoverished cities a financial boost via a resort.
Richmond voters had a close call over a suggested casino named One Casino + Resort. The $565 million strategy was pitched by Urban One and Peninsula Pacific Entertainment (P2E). Only a few thousand votes thwarted this endeavor from succeeding.
2020's gaming legislation allows the five cities to conduct more than one local referendum on the issue. Richmond was the exception among the chosen towns, as citizens in Norfolk, Portsmouth, Bristol, and Danville opted for their proposed casino.
'Economic Displacement'
According to Richmond Times-Dispatch's editorial board, the city's government shouldn't conduct another gaming referendum in November. Senior staff at Virginia's second-largest daily newspaper feel that legislation should assist Petersburg in becoming the sixth casino host location by eliminating Richmond's obstruction.
The editorial board also has uncertainties about the supposed financial gains that a casino could bring. Virginia's Joint Legislative Audit & Review Commission (JLARC) anticipated a yearly gaming revenue of almost $300 million for a Richmond casino.
The tax income on such revenue would be approximately $80 million annually. JLARC further estimated that just 4% to 10% of the casino's revenue would originate from non-locals.
"People don't suddenly double their spending on entertainment when a new casino opens. If you spend $200 on dinner and poker one Saturday night, that's money you're not spending elsewhere — for instance, at the movies, a baseball game, or a concert," the article explained.
"All that new gaming revenue would likely cost existing restaurants and neighboring entertainment-centric businesses. This phenomenon is known as economic displacement or the substitution effect," the piece concluded.
Richmond Authorized for Revote
The Virginia General Assembly adjourned in February concluding the "skinny" budget that ensured necessary funding for the state. Discussions over less concerning expenditure resumed last week, with House and Senate-appointed negotiators involved.
During the previous session in 2023, unprofitable initiatives attempted by State Senator Joe Morrissey (D-Richmond, Petersburg) to prevent Richmond from conducting a casino referendum during the scheduled November elections were made by him.
Morrissey attempted to slip a rider into the budget that halted Richmond's ability to conduct another casino referendum until at least 2024. Morrissey has likewise advocated for the possibility of allowing Petersburg to take a look at a casino as an alternative to Richmond.
Petersburg authorities have teamed up with Maryland-based Cordish Companies on a project dubbed Live! Casino & Hotel Virginia. At the moment, Petersburg has no legal authority to present this resort project to its voters through a referendum.
Urban One maintains its interest in Richmond, but its venture partner and potential casino operator has changed from Peninsula Pacific Entertainment to Churchill Downs, Inc., following the latter's acquisition of P2E for nearly $2.5 billion last year.
As long as the budget negotiators decide against adding a rider that prevents Richmond from executing a second casino referendum, which appears improbable at this point, only the Richmond City Council would have legal authority to decide this matter in November.
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