Virginia is one of 10 states without casino gambling. Its neighbors Maryland, West Virginia and North Carolina legalized casinos long ago and have been reaping economic benefits. But Virginia’s status could change, as the Pamunkey Indian Tribe, which was federally recognized in 2016, announced it purchased 600 acres in New Kent County where it could build a $700 million casino resort.
Just a few days later, Revolutionary Racing announced it would buy the shuttered Colonia Downs horse racetrack for $20 million, since the state legislature passed and Governor Ralph Northam signed a bill legalizing historic racing machines. A study commissioned by Revolutionary Racing indicated a revitalized Colonial Downs could generate $41.6 million annually in state and local tax revenue. At its height it generated $750,000 in annual revenue. Racing is set to start there next spring.
Republican state Delegate Michael J. Webert sponsored the historical racing machines measure, which passed the House and Senate with bipartisan support. He said he felt this year was the right time to push for it, and that giving Colonial Downs new life would have “a much broader impact than most people believe.” Webert noted, “The makeup of the House is different.” Young Democrats, who could be more open to gambling measures, gained several seats in the House of Delegates last fall.
Webert said the Pamunkey casino could be an excellent neighbor for Colonial Downs. “Now that Maryland has opened their casino, we have gambling in pretty much all the states around Virginia. There are folks who believe the morality side of gambling is bad, but, well, if they could spend that money here and the commonwealth could harness some of that revenue and put it to good use, why not?”
Republican state Delegate Chris Peace, who represents New Kent, added, “I think the mores, the social concerns over that have weakened a bit. New Kent is a very hospitable community and wants progress and would be a good partner.”
Officials at the MGM Grand casino, located across the Potomac River in Maryland, estimate about 40 percent of visitors come from Virginia So far this year, Maryland’s six casinos took in more than $414 million, with nearly $150 million going to state and local governments. In March alone, those casinos generated more than $44 million for education.
Regarding casino gambling, Northam said, “I think there is the potential for it. Obviously, we’re going to take it one step at the time. If that’s something Virginians want to participate in, why not look at doing it here in Virginia, rather than those resources going to other states?”
Pamunkey Chief Robert Gray said his tribe, with fewer than 400 members, “would love to not be reliant on federal programs, to have our own economic drivers funding the programs that we want to provide for our tribal members, like housing, medical, job placement, education. It’d be great if we could just pay for that ourselves.”
The tribe said the casino resort would include a 1,200-room hotel, a spa and multiple restaurants and would create 4,000 jobs. Other sites may still be considered. The venue is still years away, since the land would have to be placed in federal trust, and a state compact would be required to offer Class III gaming. Also, competitors are likely to challenge the project. The backers of the MGM Grand lobbied the federal government against recognizing the Pamunkey during the tribe’s application process.
