In a closed, 90-minute session, the city council in Petersburg, Virginia unanimously selected the Cordish Companies and Bruce Smith Enterprise to develop a $1.4 billion casino in the city, if local voters pass a referendum on the issue in November.
Other competitors for the casino development were Bally’s Corp., Penn Entertainment, Rush Street Gaming and the partnership of the Warrenton Group and Delaware North.
However, a controversy has erupted over the selection of Cordish, with two competing versions of events. Petersburg Mayor Sam Parham said City Manager John “March” Altman Jr. was coerced by state Senator Laschrece Aird and the legislature into signing a letter on April 17 saying the city would partner with Bally’s to build and operate the casino.
The Virginia Mercury obtained a copy of that letter from another source, and city officials released a version of the letter after the Mercury inquired about it. Parham said Petersburg officials were reportedly forced to choose Bally’s or risk losing Petersburg’s chance for a casino altogether. Council members claim they were told to “reconsider” the choice of Cordish as a condition of its casino bill advancing.
According to the Mercury, Parham said, “We have a council of seven that is unified on the fact that we told the truth,” referring to a resolution he and the council passed on April 24 alleging Altman was coerced into signing the Bally’s letter.
On that date, the city council voted unanimously to select Cordish, which it had chosen in 2022 in a failed attempt to gain a casino. City officials said after the legislature approved a Petersburg casino, they felt they had the local authority to choose the best casino project, and that Bally’s letter was not legally binding; it never was sent to Bally’s.
Aird, who sponsored the legislation lawmakers passed making Petersburg the fifth Virginia city to have a casino, said in a statement, “To have what was an honest collaboration characterized as ‘demands’ and that actions taken by the council were made under ‘duress’ is a blatant and transparent revisionist history aimed at distracting from council’s original intent, as demonstrated in previous years, to christen an operator that met their personal priorities while deprioritizing positive outcomes for the city.”
Aird and other lawmakers said they feel they were tricked into believing Petersburg officials were conducting a fair competitive bidding process, only to see the city abruptly revert to its original plan to choose Cordish once it got casino approval from the legislature.
In a statement, House of Delegates Speaker Don Scott said Aird “took the lead on this project. After relying on all the representations made during committee hearings, my colleagues on both sides of the aisle supported her. She trusted that the Petersburg City Council was operating in good faith, but unfortunately, she now alleges that they misled her.
“As this project moves forward, I trust my colleagues in the General Assembly to do their due diligence to ensure the best outcome for Petersburg and the Commonwealth of Virginia.” Aird still has not offered her own explanation for the Bally’s letter.
State Senator Jeremy McPike, chairman of the state Senate subcommittee on gambling, told the Mercury, “It’s just absolutely crazy that Petersburg officials would turn this whole thing on its head and cancel an RFP process.”
He added he feels Petersburg “failed to follow through on their representations to the Senate committee. The commonwealth deserves answers and the residents of Petersburg deserve answers. I think this thing has been absolutely fraught with peril in how they’ve approached it and how they’ve executed it.”
State Del. Paul Krizek, chair of a House subcommittee on gambling and alcohol, said he plans to introduce a bill requiring a competitive process for any future casino projects in Virginia to ensure selection is based on “neutral, objective criteria” and doesn’t lead to the Petersburg chaos.
Krizek said, “Any casino process needs to be conducted in as public a manner as possible with competition from the industry so that the public gets the best product. That takes care of these problems.”
Meanwhile, the Unite Here Local 25 labor union is threatening to sue the city council over its casino developer selection process. Local 25 Political Director Sam Epps said in a statement, “The city of Petersburg’s actions show a shocking disregard for the law and democratic norms. Petersburg had begun a competitive Request for Proposal process that should have proceeded with transparency and fairness. Instead, the city council apparently abused a closed session to discuss the selection of the casino operator. Residents of Petersburg have the right to open governance, a right the city council doesn’t seem to respect.”
Unite Here is demanding full disclosure of all documents and correspondence regarding the selection of Cordish, which the union claims is anti-union, although employees at some Cordish properties are unionized. If the city council doesn’t provide these items, Unite Here said it will move forward with a lawsuit. Unite Here gave $800,000 to Aird’s campaign and the Local 25 chapter reportedly supported Bally’s which is considered more union-friendly.
Petersburg will officially become eligible to host a casino when the bill takes effect July 1. If approved by voters, the casino and related commercial development would be located on 90 acres at Interstate 95 and Wagner Road. Besides gaming, the project would include a 200-room hotel, entertainment venue, retail and restaurants. Cordish and Petersburg officials said an initial first phase of the casino could open by summer 2025.
