In Virginia, Richmond Circuit Court Judge William R. Marchant suspended his July 25 order allowing a casino referendum in November to give Lodge No. 1 of the Good Lions, which operates charitable bingo games, and the city the chance to file legal arguments about the casino, as reported by WRIC.
The Good Lions and the city had until Friday, August 18, to file legal arguments in the case. Marchant said he would rule on the Lions’ underlying claims by Wednesday, August 23.
Richmond voters rejected the casino proposal by a slim margin in 2021. Later a state budget provision prohibited a second casino referendum. However, in June, the city council approved the proposed $562 million casino project, leading to the request to the courts for a second referendum, which Marchant earlier approved.
The judge said the decision to hear the Good Lions’ and the city’s legal arguments would not affect the November ballot, unless the Good Lions prevail on the merits.
The proposed resort would be built by RVA Entertainment Holdings LLC, essentially the same company selected in 2021 after a competitive bidding process, consisting of Urban One, the existing applicant, but now partnering with Churchill Downs Inc. As a result, in a court filing, the Good Lions said the “presently opaque” ownership structure presents concerns, and also, despite Urban One’s involvement, the project is different from the original 2021 plan.
State Senator Chap Petersen, whose law firm represents the Good Lions, said the group feels Richmond Mayor Levar Stoney and the city council violated state law by moving ahead with the proposed casino without taking bids from other developers.
Per WRIC, he said the city “basically recycled the 2021 choice. The 2023 bid unilaterally accepted by the council without a public bidding process is a different bid, in a different referendum, in a different city and by a fundamentally different corporation.”
However, Richmond Senior Assistant City Attorney Wirt P. Marks argued a bidding process isn’t necessary since the casino would be built on private land. But Petersen said competitive bidding was “inherently part of the process” when a project requires voter approval.
The filing states, “By any interpretation, the actions of the city council are inconsistent with the Constitution’s explicit requirement that a fair and honest, open and accountable bid process be held to establish a franchise like the one at issue.”
The Good Lions also said a casino would cannibalize revenue from the group’s charitable bingo games. A state-sponsored analysis reached a similar conclusion. In its motion to intervene, the group said, “Presently, the only casino gaming permitted in Richmond is charitable gaming and this sole right has helped Good Lions and similar nonprofit organizations use the proceeds from gaming to improve the community. This charitable income will either disappear entirely or be seriously undermined should the referendum move forward and be successful.” The Good Lions operate charitable gaming twice a week at Pop’s Bingo World.
If the casino referendum gets the go-ahead, the city would receive an up-front payment of $26.5 million from the developers. The project would create 1,300 jobs and besides a casino, would feature a luxury hotel, entertainment venues, sportsbook, restaurants and a 55-acre park.
