Skip to content

Proposed Body in Virginia Would Allocate Casino Tax Revenue in Petersburg

Lawmaker in Virginia suggests formation of a commission for distributing gaming tax funds within Petersburg.

State Advocates Suggest Formation of Entity for Disbursement of Casino Taxes in Petersburg,...
State Advocates Suggest Formation of Entity for Disbursement of Casino Taxes in Petersburg, Virginia

Proposed Body in Virginia Would Allocate Casino Tax Revenue in Petersburg

Delegate Mike Cherry's proposed casino law, House Bill 2232, has set the stage for a significant development in the Tri-Cities area of Virginia. The bill establishes the Tri-Cities Improvement Commission (T-CIC), a five-member panel consisting of representatives from Petersburg, Hopewell, Colonial Heights, Dinwiddie County, and Prince George County. This commission will determine how the local tax revenue from the proposed casino should be spent.

The casino in question is a $600 million project proposed by The Cordish Companies and Bruce Smith Enterprise. The project, if approved, would see the establishment of a Las Vegas-style resort in Petersburg. This development comes after local voters in 2022 expressed their support for such a venture.

Virginia lawmakers authorized casinos in 2020, with Richmond initially applying for a license. However, local voters rejected the casino plans for Richmond, leading to a casino being considered for Petersburg instead.

The proposed casino would fall under the state's casino taxation structure. Virginia currently takes an 18% cut of the revenue of casinos earning up to $200 million a year. Casinos earning between $200 million and $400 million pay 23% tax, while those earning over $400 million pay 30% tax. Six percent of the taxed sum usually stays in the city hosting the casino.

However, the proposal has not been without controversy. Councilor Marlow Jones has opposed Delegate Mike Cherry's proposal, calling it a "deliberate attempt to keep Petersburg shackled in the shadows of prosperity." Jones proposed a counter bill to rectify the balance created by HB 2232.

Meanwhile, intelligence and defense experts have long opposed the proposed plan for a casino in Tysons, Fairfax County, due to potential threats to national security. This concern has not been raised with the Petersburg casino proposal.

Delegate Kim Taylor, a supporter of Delegate Mike Cherry's proposal, has stated that the casino would be a major revenue driver for the community. As a former army member and active pastor, Delegate Mike Cherry is a key proponent of a casino in the Petersburg area.

Senate Majority Leader Scott Surovell has also shown support for the project, submitting SB 982 to greenlight the Tysons casino's development in Fairfax County. The fate of both casinos now rests with Virginia's lawmakers.

As the T-CIC begins its work, the community eagerly awaits the decision that will shape their future. The proposed casino, if approved, could bring significant economic growth and development to the Tri-Cities area.

Read also:

Latest