Virginia Senate budget would block Richmond from 2nd casino vote before Petersburg site study

A new provision in the Senate budget for Virginia would block Richmond from conducting a second vote on a casino project until the state completes a study of an alternative site in Petersburg.

The provision of the budget the Senate Finance & Appropriations Committee adopted on Sunday directs the Joint Legislative Audit and Review Commission to engage an independent consultant “for a limited review of the potential state and local revenues that may be generated from a casino located in the city of Petersburg,” reports Richmond Times-Dispatch.

While the review is underway, which would also include any potential negative revenue impact on casinos located in other authorized host cities, Richmond would not be allowed to conduct a second referendum until November 2023.

The original casino referendum was narrowly voted down in 2021. While voters in other chosen cities in Virginia, including Bristol, Danville, Portsmouth and Norfolk, passed referendums in 2020 allowing gambling developments, Richmond, the fifth city originally chosen, rejected the Urban ONE Casino + Resort proposition.

Since then, Richmond launched efforts to pursue the casino project once again, with the support of the local council, Urban ONE CEO Alfred Liggins, and some members of the community. At the same time, Petersburg tried to advance the economic opportunity through legislation, while also seeking to stop Richmond from holding another election on the subject.

Richmond Mayor Levar Stoney lamented the provision seeking to block Richmond from conducting a second referendum. “I am disappointed in Senate Democrats for inserting a prohibition on the city of Richmond in their budget proposal,” he said on Tuesday. 

However, the Richmond Mayor said he remained “optimistic” that an agreement will be worked out between the chambers, allowing for his city to pursue the “game-changing opportunity” again. The Richmond City Council voted in January to seek a second vote.

Meanwhile, Sen. Joe Morrissey, who is seeking to bring a referendum to Petersburg, said he is “guardedly optimistic” that the budget provision will survive a vote by the Senate on Thursday and negotiations with the House of Delegates on a final budget, reports the cited source.

Sen. Joe Morrissey

Earlier this month, the Senate Finance committee killed legislation introduced by Morrissey which sought to include Petersburg to the list of five cities authorized to conduct a referendum for a casino resort, while prohibiting Richmond from having a second attempt. The Senator says he still “doesn’t know” why his proposal was rejected.

The study to be conducted under the budget provision is an extension of a review the Joint Legislative Audit and Review Commission did in 2019 to measure the profitability of casinos in the original five cities the General Assembly picked to host gambling.

The lack of a similar JLARC study on revenues for Petersburg was a sticking point for Senate Finance to kill Morrissey’s proposal, The Progress-Index reports. The committee voted 9-7 against the measure.

Morrissey revealed that he approached members of the Senate Democratic Caucus about supporting a budget amendment calling for the JLARC study in Petersburg. Given Democrats control the Senate, the caucus’ blessing is likely to ensure the provision passes.

Richmond is now unlikely to go ahead with the November referendum: according to Morrissey, they risk being sued by the state should they proceed. “It’s only fair that the JLARC report be completed and that Richmond be stopped from going forward with a referendum until that appears,” he added.

The Senator further said on Tuesday he is confident the JLARC study will show that Petersburg meets all of the parameters and metrics of a host city. “In fact, I believe it will show it’s the most deserving of the now six possible host cities,” he claimed.