Will they, won’t they?
There could be a casino coming to Petersburg, Virginia. The majority of hurdles to making this a reality have been cleared, and now, the fate of land-based casino gaming is in the hands of the residents. If voters cast in favor in the upcoming referendum it is The Cordish Company that will be laying on the entertainment in the city. Petersburg will be asking voters if they want to approve the project in a ballot that is expected to take place in November.
On April 14th, city residents got the opportunity to see the proposals of all the bidders on April 14th, with companies revealing high-level overviews of their plans. Three days later Petersburg City Council selected Cordish after what has been described as a closed session and little public discussion on the pros and cons of each bid.
A new future for the city?
Ward 5 Councilor Howard Myers, who proposed the motion to go with the Cordish $1.4 billion proposal for the 92-acre site off Wagner Road to the South of the city, is reported as being “ecstatic about the potentially transformative opportunities” arising from their proposal.
In an email to Petersburg’s local paper, The Progress-Index, Myers claimed that the city had been grossly underrated and disenfranchised for decades. He praised Mayor Sarah Parham for leading the drive to accomplish the feat. He said that the city’s Chief Financial Adviser, Davenport and Co, had issued a report urging the council to choose Cordish, but few other details have been revealed as to why they were chosen over Bally’s Corporation, Penn Entertainment, Rush Street Gaming and a partnership of The Warrenton Group and Delaware North.
Will they say yes?
If Petersburg residents say yes, it will make the city the fifth one in Virginia to host a land-based casino, and it will be another step into the state’s foray into the gambling industry. Even if voters decide against the redevelopment in the referendum, there are online gambling opportunities in an increasing number of U.S. states. Online platforms offer sports and event betting, real money and social casino games. There really is something for everyone virtually everywhere these days. A top real money online casino according to Casino.org has exciting games, fast payouts, rewarding methods and rewarding bonuses. Importantly, it is safe and secure, which is essential if players are placing real money bets online. Hopefully, Cordish can offer the same if it comes to in-person gambling.
What is it worth?
States that have legalized gambling both online and in person have seen many benefits and Petersburg will be hoping to follow in their fortunes. According to the American Gaming Industry’s Economic Impact report, the industry generates $329 billion in sales, employs 1.8 million people, pays wages and salaries of £104 billion and contributes $53 billion in tax revenues. These figures do not take into account pari-mutuel gaming, slots and video terminals in bars, lotteries and charitable gaming.
The massive draw for Petersburg is the almost $126 billion generated by spending at land-based and online casinos and sportsbooks; there is another $ 16.1 billion of catalytic spending by patrons on casino trips. This is money spent in the economy but not directly on gambling. If Petersburg can persuade residents to say yes in a referendum, many will see this as a way to regenerate the city’s failing fortunes. High unemployment and a declining population have led to a steady deterioration of Petersburg’s public finances. The town prospered for nearly 300 years on the back of trade, tobacco and textiles, but it now suffers from long-term economic decline and alleged financial mismanagement.
A boost to the economy
The Cordish / BSE casino project could generate billions of economic benefits for a city down on its luck. There is talk of spin-off developments and thousands of jobs being created directly in the casino business and indirectly in the hospitality sector. In addition, there could be a boom in construction jobs. Increased employment opportunities would be welcomed in a city with a long-term average unemployment rate of over 8%.
The company believes the casino complex could lead to Petersburg and Central Virginia becoming a major tourist destination. They claim they would be ready to open their doors within a year of getting the go-ahead. The first phase would include a casino and a 200-room hotel. They would then continue to develop the site and facilities, offering long-term opportunities to benefit the local community. Cordish spoke of a mixed-use gambling and entertainment destination development with $1.4 billion invested over 15 years.
Feedback from residents
As with all such developments, there are two sides to the argument. Many people approached by a local news organization tend to regard it as a good thing and were reported as saying things like,
“I think it will be a good thing here …….I heard about things when it was first announced and approved and kind of every so often since.”
Another resident, when asked if he had been engaged in the process, replied,
“No, not really, but I think it’s a good thing. I think it’ll bring a lot of money here to Petersburg, seems like Petersburg’s been broke for the longest.”
However, there is concern about how the selection process was conducted and people are concerned that this could reflect on the whole business of bringing casino business to the state. A local transparency group called Clean Sweep Petersburg have expressed concern as to whether the city’s leaders could get the project to the finishing line. The latest controversy is that the city will not publish the project proposal as they claim the selection of Cordish does not count as awarding a contract and is, therefore, not subject to Freedom of Information rules.
It is all speculation for the moment, as the whole thing could still fall through if voters opt out of the idea in the referendum. However, in the meantime, the choice of Cordish is stirring up political discontent over a lack of transparency and inadequate due diligence.
