In Virginia, the Pamunkey Indian Tribe has proposed buying a 13.25-acre property near downtown Norfolk for $10 million. It has proposed building a $700 million waterfront casino resort. Under the proposal, the tribe would pay the city 4 percent of annual gaming revenues, or about $33 million, on a projected $824 million from 4,500 slots and 225 table games; the casino would be exempt from property and other standard taxes.
At a minimum, the casino would be required to offer at least 750 slots and 25 table games, which would pay the city $5 million a year. The agreement includes a $3 million payment floor. Outgoing City Manager Doug Smith said, “Market dynamics and political dynamics are going to influence how big this project can be. If we’re the only casino in Virginia, we’re obviously going to have a lot more business than if there’s a casino in Portsmouth and Bristol.” But Smith said he’ll recommend the project even if it opens only with the required minimums. The city is not offering the tribe any incentives, he said.
Lawmakers expressed support for a Pamunkey casino during the latest session. As a commercial operation, the tribe would pay standard taxes on everything from food sales to hotel rooms. Besides a casino, the project would include a 500-room hotel, up to five restaurants, a 750-seat entertainment venue and a spa. It would attract about 6.7 million visitors a year.
The proposed location is more than 80 miles from the Pamunkey reservation in King William County. Under the agreement, the tribe could open a commercial or a tribal casino. Pamunkey officials said they’ll apply to the U.S. Department of Interior to take the land into federal trust.
However, if the legislature approves commercial casinos, a referendum would be required in Norfolk, probably in November 2020. If voters approve, ground could be broken in 2021 and a casino could open in 2022. “If the General Assembly approves the commercial piece, I think you’ll see a pivot because that’s the path of least resistance,” Smith said.
The proposed terms of the deal will be addressed at a public hearing at the council’s meeting on September 24.
Meanwhile, although casino gaming won broad bipartisan support in the legislature, Governor Ralph Northam and state Senate Majority Leader Tommy Norment said they wanted to see the results of a report about the impacts of expanding gaming in Virginia, due in December.
