Virginia Casino Showdown Intensifies

Richmond, Virginia Mayor Levar Stoney (l.) urged the city’s legislative delegation to block any bill banning a casino there, although voters rejected one in late 2021. But state lawmakers filed measures to do just that and build a casino in Petersburg instead.

In Virginia, the 2023 General Assembly recently convened. One of the issues lawmakers are sure to consider is the Richmond versus Petersburg casino battle. In the latest skirmish, Richmond Mayor Levar Stoney sent a letter to the city’s legislative delegation urging them to block any measure that “constricts the rights of Richmond” to have the casino resort.

In November 2021, Richmond voters narrowly defeated a proposal for a $565 million casino hotel, to be developed by Urban One and in partnership with Churchill Downs, which bought Peninsula Pacific Entertainment last fall. But Stoney said the defeat was due to misinformation about the project and intense opposition from areas outside the district where the casino was proposed.

Soon after the vote, the Richmond city council began its push for a do-over referendum. But state Senator Joe Morrissey, who represents Petersburg, convinced General Assembly budget negotiators to block a second Richmond casino referendum until the completion of a legislative study on the financial viability of Petersburg casino. The Joint Legislative Audit Review Commission indicated although Petersburg would be a good casino host city, having casinos in both Petersburg and Richmond—23 miles apart—would generate even greater economic benefit. That study said a Petersburg casino alone would produce 18 percent of net gambling revenue for the state, but also having a casino in Richmond would increase gaming revenue to 29 percent.

Morrissey and state Del. Kim Taylor have filed bills that would replace Richmond with Petersburg as the fifth and final city to have a casino resort.

Their legislation, Senate Bill 780 and House Bill 1373, also would block Richmond from holding a second referendum until after a referendum is held in Petersburg on a proposed $1.4 billion casino resort proposed by the Baltimore-based Cordish Companies; officials there said if the General Assembly opts for casinos in both cities, the company would pull out of the project. Morrissey’s and Taylor’s measures also would prevent Richmond from developing a casino for at least five years.

Morrissey compared Stoney’s letter to former President Donald Trump’s refusal to concede the 2020 election. He said, “Let me remind the mayor, once again, that he LOST the casino referendum in 2021 when RVA voted ‘NO’ to the casino referendum. So, I would tell the mayor to stop acting like a petulant child, move out of the way and allow the citizens of Petersburg to vote yea or nay on a casino referendum.”

Meanwhile, Stoney said in a statement, “I remain committed to ensuring Richmonders have a fair chance of truly expressing their support for a referendum on this topic in 2023.” But several members of Richmond’s General Assembly delegation said they are focusing on other issues this session. For example, state Del. Jeff Bourne said, “I’ve been trying to focus on the city’s other priorities,” such as affordable housing and increased public school funding.

But state Del. Lamont Bagby, chairman of the Virginia Legislative Black Caucus and a close ally of Stoney, said he supports the mayor and the council’s stance on a Richmond casino. He said, “Personally, I’d like to see the General Assembly do nothing and let the localities figure it out. If they do nothing, Richmond gets another bite at the apple and the people get to speak.”