Petersburg Casino Likely to Affect Other Virginia Gambling Venues

In mid-July, we reported on the City Council’s record-speed vote that set the proposal for a high-profile casino in Petersburg on course for a public vote in the upcoming general election scheduled for November 5.

Last Tuesday’s referendum passed with over 80% of the vote, allowing Petersburg officials to start working on a $1.4 billion casino resort within city limits. 

The Casino Approval, a “Significant Milestone” for the City

This vote marks the city’s approval of its first casino, making it the fifth in Virginia since the General Assembly approved the establishment of gaming facilities in 2020. 

Other permanent and temporary casinos in the state are located in Danville, Norfolk, Portsmouth, and Bristol.

Hard Rock Bristol, which had a hard time finding sufficient staff, is due to open its casino floor on November 14, followed by the hotel’s grand opening on November 17.

Petersburg, historically known for economic struggles, is optimistic about the casino’s potential to bring its infrastructure back to life. 

Mayor Sam Parham sees the vote as a significant step toward long-term growth with the help of local tax revenue. 

“The approval of the destination resort and casino in Petersburg marks a significant milestone for our City,” Parham said. 

“Voter approval follows a three-year journey on this transformative project that will bring positive change to Petersburg for generations.”

The development will include a 400,000-square-foot casino, a 200-room hotel, and a 3,000-seat entertainment venue. 

The casino will offer a variety of dining and hospitality options, featuring several restaurants, 1,600 slot machines, 46 gaming tables, a 15-table poker room, and a dedicated sportsbook area.

Charlie Cuthbert, a lawyer in Petersburg who represents the city’s 4th Ward on the City Council, emphasized that the project is about more than just a casino. 

“I know what our goal is,” he said. “That is to create a resort development anchored by the casino… It’s much more than a gambling hall that we’ve planned for Petersburg.”

“That First Year is Going to Be a Burst of Activity”

Bob McNab, a professor at Old Dominion University who studies casino economics, cautioned that while casino projects often experience an initial surge in activity, their financial benefits tend to level off. 

“That first year is going to be a burst of activity,” McNab said. “And then it transforms into a steady diet of regular local visitors.”

The professor described it as a process of “reallocating entertainment dollars” that could be going to local movie theaters instead, as an example. 

For the Petersburg casino to have a lasting impact, McNab argues, it must attract visitors from out-of-state or establish itself as a destination in its own right. 

“They’re going to get more jobs, more tax revenue,” he added. “But how do you transform this entertainment asset into an economic development asset?”

“Petersburg Is Not Going to Be Las Vegas”

There are also social costs to consider, according to Carolyn Hawley, president of the Virginia Council on Problem Gambling. 

“The vast majority of people gamble and like gambling,” she said. “But what are going to be the social costs of gambling?” 

Hawley points out that while gambling generates tax revenue, these funds are often offset by the need for additional social services to address issues like addiction. 

She also highlighted that Virginia does not allocate public research funding specifically for gambling-related problems.

“At the end of the day in Petersburg, it’s going to be locals gambling, and that means less transfer of wealth,” she said. “They’re maintaining problems within their communities,” she added, further stating “Petersburg is not going to be Las Vegas.”

Norfolk and Portsmouth Casinos Could Suffer

Petersburg’s journey toward a casino began in 2022 when the City Council selected the Cordish Companies, in partnership with co-developer Bruce Smith, to build the Live! Casino Resort on a land covering roughly 100 acres off of Interstate 95.

Zed Smith, Cordish’s chief operating officer, expressed confidence in the project. 

“This community has waited a long time for an economic development project of this size and scale, which will provide a huge boost for the City and the entire region,” he said in a statement.

Construction is set to begin once the vote is certified and all required approvals are received. Developers expect the first phase to open in 2026, potentially creating 7,500 new jobs (gaming, hospitality, administrative staff) and generating $201 million in annual economic benefits.

The Petersburg casino may affect the business of other casinos in Virginia, particularly the upcoming venue in Norfolk and Portsmouth, slapped with $545,000 in fines over alleged breaches in July.

McNab suggests that the Petersburg casino could draw gamblers away from Northern Virginia, potentially affecting the Hampton Roads region.

“The impact of the casino in Petersburg is going to be much more significant on Norfolk and Portsmouth,” McNab said.

As online gambling becomes more popular, experts like Andrew Economopoulos, an economics professor at Ursinus College, warn that brick-and-mortar casinos may face challenges. 

“It seems with the advent of online gambling, there’s less of an interest of going to a gambling site as a destination,” he said. 

Despite these concerns, the Petersburg casino is expected to be a significant economic and social development for the city.