Operator News
Five companies involved in relaunch of Petersburg casino tender
By Phil - 10 April 2024
Despite not yet having clear approval to host a casino, five developers have put themselves forward for the Petersburg City Council’s latest Request for Proposal (RFP) for a casino in Petersburg.
Submissions for the tender ended last month, with The Cordish Companies, Penn Entertainment, Bally’s Corporation, Rush Street Gaming, and The Warrenton Group all putting forward proposals.
State lawmakers voted this year to relocate the Richmond casino license around 25 miles south of Petersburg after residents in the capital twice voted against becoming a casino destination. Following years of uncertainty, Governor Glenn Youngkin sent legislation back to the General Assembly legislation with the removal of the re-enactment clause to put Petersburg forward as the fifth casino-host city in Virginia. Its prospects now hinge on the General Assembly passing SB 628 and the Governor signing it into law, only then can the city move forward with the selection process and filing for a referendum
Senator Lashrecse Aird, D-Petersburg, who is sponsoring the latest bill, said: “With the removal of the re-enactment clause, this legislation moves one step closer to final approval to allow Petersburg to obtain the fifth and final license and for the citizens of Petersburg to vote in a referendum. It is especially timely ahead of interested operators presenting their visions publicly at the upcoming town hall as well.”
She will host a public town hall meeting with each of the five companies on April 14.
“In collaboration with the City’s leadership, this town hall continues to uphold the commitment that the selection of a potential casino operator be a transparent and publicly accessible process,” Senator Aird added. “As we move closer to the reality of bringing a referendum to the citizens of Petersburg, we are asking the voters of today to make an economic development decision that will affect the City for decades to come. People deserve to be as informed as possible and therefore it’s a personal priority of mine to ensure the vision of each operator is fully explored and that the public has confidence that their interests are represented.”
The process so far has failed due to public referendums. In 2020, the assembly legalised casino gaming in five cities, subject to voter approval. Voters approved proposed projects in Bristol, Portsmouth, Norfolk and Danville, but a referendum failed in Richmond in 2021 for the ONE Casino + Resort proposed by Urban One and Peninsula Pacific Entertainment next to I-95 at the Bells Road exit in South Richmond.
Richmond sought to revive the project and hold a second voter referendum in 2022, but the General Assembly blocked the vote at the request of Sen. Joe Morrissey, D-Richmond, to allow the Joint Legislative Audit and Review Commission to study the feasibility of a casino resort in Petersburg, either by itself or in addition to a casino in Richmond.
In 2020, the assembly legalised casino gaming in five cities, subject to voter approval. Voters approved proposed projects in Bristol, Portsmouth, Norfolk and Danville, but a referendum failed in Richmond last year for the ONE Casino + Resort proposed by Urban One and Peninsula Pacific Entertainment next to I-95 at the Bells Road exit in South Richmond.
Cordish Companies, who was selected by Petersburg last year in its unsuccessful effort to win the state’s fifth casino licence, is back with a second push. It has partnered with NFL Hall of Famer Bruce Smith, a Norfolk native, who played for the Buffalo Bills and Washington Commanders during his a 19-year career.
He said: “Outsourcing a project of this magnitude to a visiting developer with no ties or interest in uplifting the community will do little to fix the problem. Changing outcomes in historically disenfranchised and underserved populations requires that we must be provided the opportunities to strengthen our communities from within. Although we are in the gaming business, we are also primarily in the economic development business. Our job is to bring more people to Petersburg.”
The first phase of the Cordish project would include a 230,000-square-foot casino, a 200-room hotel, dining and retail businesses and would take around two years to complete. Little is yet known about the other four proposals.
