Virginia state Senator Joe Morrissey of Richmond recently told a Senate committee the Baltimore-based Cordish Companies hopes to build a casino resort in south Petersburg, but not if legislators allow a second referendum on a Richmond casino. Richmond voters rejected the $565 million ONE Casino + Hotel by a slim margin last year.
Morrissey said Cordish would not agree to a smaller facility in Petersburg if it had to compete with a South Richmond casino. Two smaller, regional casinos would be “slots in a box,” Morrissey said. “Even though the regional casinos would make millions, that’s not what Cordish is going to do. This is no glitzy box on 20 acres on Wagner Road. It is a destination casino,” he said.
A study by the Joint Legislative Audit and Review Commission indicated Petersburg could support a casino resort under a state law that requires a minimum $350 million investment. The study also showed the region could support two smaller casinos, in Petersburg and in Richmond, but that would result in lower local tax benefits and fewer jobs.
However, the study found that after operating for one full year, a casino only in Petersburg would generate an estimated $204 million in gaming revenue in 2028, and a casino only in Richmond could produce $300 million in gaming revenue.
In addition, a Petersburg-only casino would increase state gaming tax revenue by $25 million, whereas casinos in both cities would generate $49 million. Petersburg would receive $12.2 million in local tax revenue from one casino, but that would drop to $8.4 million if Richmond also had a casino. With two casinos, Richmond would receive $15 million in local tax revenue.
State Senator Ghazala Hashmi noted Norfolk and Portsmouth, only six miles apart, are developing casinos. A 2020 law allows those cities, plus Bristol, Danville and Richmond to develop casinos.
Morrissey, totally opposed to a second casino referendum in Richmond, already filed legislation for the next session allowing Petersburg to have a casino instead of Richmond. The measure would stop a second vote in Richmond until after Petersburg holds a referendum. Last year, Morrissey persuaded legislators to block Richmond’s attempt to hold a second referendum this year, so the JLARC study could determine if Petersburg could support a casino resort.
Before the Senate committee meeting, Morrissey noted Cordish has developed casino resorts under the Live! and Hard Rock brands in Baltimore, Philadelphia, Pittsburgh and cities in Florida.
He added Petersburg is struggling financially and would benefit from a casino more than Richmond. “It changes Petersburg dramatically,” Morrissey said.
