Roller Coaster Casino Ride

by Jon Baliles

The road to a casino in the General Assembly is on a roller coaster ride that is careening down the hill and likely to jump the tracks at any minute. Last week alone, the bill that would allow a casino referendum in Petersburg and block a second one in Richmond until Petersburg has a chance has taken the following ride:

  • Cleared a Finance General Laws subcommittee on a 7-2 vote on January 26;
  • Cleared a Senate General Laws committee on a 11-4 vote Wednesday;
  • Failed in a Senate Finance committee on a 7-8 vote Thursday evening;
  • Cleared a House of Delegates General Laws subcommittee on a 5-2 vote on Tuesday;
  • Cleared a House of Delegates General Laws committee vote 7-4 on Thursday;
  • Cleared the House of Delegates Appropriations committee 11-9 on Friday afternoon.

So what’s next? Well, there are three possibilities: (1) the bill dies because the House and Senate won’t find a suitable compromise, which means the Petersburg proposal could vanish and Richmond gets another referendum; (2) the Petersburg referendum is inserted into the final budget language (as it was last year) and their referendum will proceed and Richmond’s put on hold; or (3) the zombie apocalypse will commence.

Personally, I’m rooting for the apocalypse.

Michael Martz at the Richmond Times-Dispatch has the details and samplings from some of the legislators: “The Senate Finance vote to reject Morrissey’s bill was a surprise, raising the possibility that the Senate is using the casino proposal as a poker chip in its upcoming negotiations with the House on a budget. But senators said Friday that the vote reflected divided opinion about the wisdom of allowing Petersburg to build a casino resort and blocking Richmond….”

I’m not sure wisdom is at play here, just pure politics and lobbying muscle. For example, as Martz writes, Senate Finance Co-Chair Janet Howell, D-Fairfax, said she and other members are concerned about building a big casino resort near Petersburg that also could hurt the profitability of a casino that has already opened in Portsmouth.” But the legislature seemingly had no qualms about allowing a rival casino just a Tom Brady pass across the Elizabeth River in Norfolk. And if a Petersburg casino would hurt Portsmouth, how would Richmond’s casino also not have a deleterious impact?

We are talking legislation, which means it’s politics now, because it certainly isn’t the same as talking rationally or logically.

Before all the hubbub of the last several days, Senator Bell from Loudon County went on the Pod Virginia podcast earlier this week and offered an analysis that offers a little more context and perspective — and, as it turns out, was a bit prescient.

Bell said the project had to be about more than just a casino and that other phases around it should stimulate economic growth beyond gambling. The proposal he said he saw does that because “gambling halls” (his term) by themselves are not nearly as successful on their own. He pointed to the Beau Rivage casino and resort in Gulfport, Mississippi as an example of such a project and the positive impact it has had in the 20+ years it has been there. While a huge project like the one proposed in Petersburg will also require more services from Petersburg, Bell also said they would have time to plan and provide those services.

Then came the question from the hosts asking about the possibility of both cities having referendums and casinos. Bell said he preferred one or the other (the state only has one available license to award) and he said the Cordish project offered much more than the Richmond project, which was just the casino complex.

Bell said that in the Tuesday subcommittee presentation, Petersburg showed their map/plan and their vision of a project beyond a casino and the Richmond advocates who spoke did not share or show a vision beyond the casino. They just said they wanted another chance for the casino. As Michael Martz pointed out in the Times-Dispatch, Cordish Chief Operating Officer Zed Smith told the subcommittee, “Our core business is not gaming. Our core business is developing transformational projects.”

At the same meeting, Richmond Councilwoman Cynthia Newbille said Richmond’s first referendum failed because “there were a combination of factors that led to the vote, saying it was ‘not sufficiently vetted.’” Her answer to the Senator’s question “Does Richmond deserve another chance?” she replied, “Yes. Did folks have an opp[ortunity]? Yes. Do we get a second to get it? Why not?” (Click here for the video at 1:34:20)

So the fierce lobbying and talking points are flying around this weekend publicly (and the daggers are out privately), and this matter will likely be decided by Tuesday. I think Bell was right in his prediction that this is a tough decision and the vote (or budget wrangling) will be close. But his most ominous prediction was that he believes a referendum to approve a casino in Petersburg would pass, but that there is “no evidence” that another referendum in Richmond would pass.

Evidence? Who needs evidence, Senator? We just didn’t vet it well enough or have absolute clarity….

Republished with permission from RVA 5×5.


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Comments

12 responses to “Roller Coaster Casino Ride”

  1. Kathleen Smith Avatar
    Kathleen Smith

    I am betting on the language in the appropriation act. Who lobbied the senate? I am not for or against as a Petersburg resident. At least give it the same chance at a referendum as Richmond had. Let the people not the politicians speak. It might win, it might not. I know I haven’t decided, but a chance would be nice.

    1. Stephen Haner Avatar
      Stephen Haner

      Nancy mentioned the lottery, and is correct the state is just as bad as these localities in profiting off its lower income residents. And to preserve that stream of sucker bucks, the state is controlling how many brick and mortar gambling emporiums are allowed. A free marketer would say, let ’em all build them and let some of them fall flat.

  2. Kathleen Smith Avatar
    Kathleen Smith

    I am betting on the language in the appropriation act. Who lobbied the senate? I am not for or against as a Petersburg resident. At least give it the same chance at a referendum as Richmond had. Let the people not the politicians speak. It might win, it might not. I know I haven’t decided, but a chance would be nice.

  3. Teddy007 Avatar

    Any politician that wants a casino in their community is an idiot. And putting a casino is a poor community is the dumbest idea.

  4. Stephen Haner Avatar
    Stephen Haner

    A clear sign of the economic bankruptcy of both cities, sadly. This is all they’ve got, their best hope for their future. A way to separate the mathematically challenged from their meager resources, with most of the profits leaving Virginia entirely.

    1. Nancy Naive Avatar
      Nancy Naive

      Economic bankruptcy? What then are we to make of the State and its lotteries?

      The Cities are just asking to pick up scraps that fall from the State lotteries.

      The best way to promote an activity is to call it a vice.

      Now excuse me while I go buy a Powerball ticket. Expected losses are nearly Expected winnings.

  5. I think I’d rather have a zombie apocalypse than a casino…

  6. energyNOW_Fan Avatar
    energyNOW_Fan

    What about overall situation with the new Virginia casinos…Bristol already going?

  7. This is how SB 780 refers to Petersburg, without actually saying “Petersburg” : Any city (i) in which at least 17 percent of the assessed value of all real estate in such city is exempt from local property taxation, according to the Virginia Department of Taxation Annual Report for Fiscal Year 2016; (ii) that had a poverty rate of at least 21 percent in 2019, according to data provided by the U.S. Census Bureau; and (iii) that had an annual unemployment rate of at least 13 percent in 2020, according to data provided by the U.S. Bureau of Labor Statistics.

    I’m always amused at the way they identify a single city/county/city in legislation without actually using its name. The statistical manipulations they go through to make sure one single locality, and only that single locality, fit the description are quite creative.

  8. It would be helpful if those who post articles about proposed legislation included bill numbers. Some of us are crazy enough to want to read the full text of these proposed laws.

  9. This is how SB 780 refers to Petersburg, without actually saying “Petersburg” : Any city (i) in which at least 17 percent of the assessed value of all real estate in such city is exempt from local property taxation, according to the Virginia Department of Taxation Annual Report for Fiscal Year 2016; (ii) that had a poverty rate of at least 21 percent in 2019, according to data provided by the U.S. Census Bureau; and (iii) that had an annual unemployment rate of at least 13 percent in 2020, according to data provided by the U.S. Bureau of Labor Statistics.

    I’m always amused at the way they identify a single city/county/town in legislation without actually using the name of the city/county/town. The statistical manipulations they go through to make sure one single locality, and only that single locality, fit the description can be quite creative.

  10. Richard Smith Avatar
    Richard Smith

    Typical government discrimination picking winners and losers…

    Why do only select cities get to have casinos..

    Shouldn’t small towns and counties have a shot at setting up a casino…

    Reminds me of Certificates of Public Need that limit the number of medical facilities and competition…
    And now with new emphasis on D.I.E. what is Diverse, Inclusive or Equitable about only allowing certain localties to have a casino…..

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