Petersburg Hopes To Host Virginia’s Fifth Casino

Article by : Erik Gibbs Dec 14, 2023

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Rejoining the competition to host Virginia’s fifth casino, Petersburg rekindles its aspirations after Richmond voters rejected a recent referendum. This legal motion would have allowed for the development of an entertainment and gaming complex.

City officials have taken the step of petitioning the General Assembly´s authorization to conduct a voter referendum after the first unsuccessful attempt.

In the context of a persistent rivalry between Petersburg and Richmond, both competing for the sought-after role of hosting a casino, this recent move by Petersburg unfolds.

Petersburg officials joined the casino competition in 2020, seizing the opportunity after Richmond residents narrowly rejected the $565 million ONE Casino + Resort project with a slim margin of 51% to 49%.

Capitalizing on the proceedings of the state’s budget, State Sen. Joe Morrissey, D-Richmond, and Del. Kim Taylor, R-Dinwiddie, strategically orchestrated a delay in Richmond’s subsequent vote.

This tactical maneuver opened the door for Petersburg as a potential site for a casino development to be considered.

The Joint Legislative Audit and Review Commission, in October 2022, concluded that Petersburg could sustain a casino. This was a motion that supported Petersburg to have a casino independently and with no concern if it were not competing with other sites.

However, this endorsement comes with conditions. The presence of two competing casinos within a 25-mile radius would result in a notable reduction in size and benefits, as reported by various sources.

The Cordish Companies, in collaboration with Petersburg, made their position clear. They expressed hesitation in progressing with a casino project under the condition that Richmond is granted a second referendum.

Their concern lies in the potential market cannibalization, which they believe would undermine the overall viability of the casino venture.

In September, legislators opted against including the legal language in the budget to prevent Richmond from holding a second casino referendum following a 58-41 rejection by voters. The initial referendum focused on the Richmond Grand Resort and Casino project.

Subsequently, Petersburg City Council unanimously backed a legislative agenda for a casino referendum by November 2025, requesting General Assembly approval for a casino in a city with less than 200,000 residents.

Highlighting job creation potential, the proposal underscores the casino’s ability to surpass the city’s average household earnings of $44,000 yearly.

It advocates for approximately 1,800 jobs and 1,000 construction jobs. A state commission study estimates a proposed Petersburg casino could generate $204 million in annual net gaming revenue, with the city receiving 6%, equivalent to around $12,240,000.

Former casino advocate Sen. Morrissey was succeeded by Senator-elect Lashrecse Aird in the General Assembly. Mayor Sam Parham indicated Aird’s support for Petersburg’s Legislative Agenda, as reported in meeting minutes from November 21.