Virginia Lawmaker Advocates for Casino Revenue Sharing from Live!

In a bid to ensure broader regional benefits from the forthcoming Live! Casino & Hotel Virginia, Del. Mike Cherry, a lawmaker from Colonial Heights, has proposed a new bill aimed at establishing a revenue-sharing model among neighboring communities. The $600 million casino is set to open in Petersburg, Virginia, and local officials believe that the fallout from this project should extend beyond just the host city.

The Proposal for a Tri-Cities Improvement Commission

Cherry’s House Bill 2232, recently filed, calls for the formation of the Tri-Cities Improvement Commission, including representatives from Petersburg, Hopewell, Colonial Heights, Dinwiddie, and Prince George counties. This commission would oversee the distribution of local tax revenue generated by the casino, ensuring that surrounding communities benefit from the economic development spurred by this project.

Virginia legalized casino gambling in 2020, allowing only a select few cities to pursue such projects contingent on local voter approval. Petersburg seized the opportunity to move forward with a casino development after residents supported the proposal by Baltimore-based Cordish Companies during the 2024 elections.

How Casino Revenue is Distributed

Under current gaming statutes, casinos are taxed at various rates depending on their annual revenues, from 18% on up to $200 million to 30% on revenue exceeding $400 million. A portion of these tax revenues is retained by the host city, with specific allocations set aside for local projects benefiting the public. For example, a similar initiative in Bristol provides a modified, region-wide revenue share that Cherry’s proposal aims to replicate.

Opposition from Petersburg Officials

City officials in Petersburg, however, have expressed strong objections to the plan, arguing that the projected economic benefits of the Live! Casino should primarily serve their city. Councillor Marlow Jones stated that the development represents a significant opportunity for Petersburg, stating, “This is our moment.” They believe neighboring areas will naturally benefit from the casino’s success.

Conclusion

Del. Mike Cherry’s push for a revenue-sharing plan associated with the Live! Casino highlights the complexities of balancing local economic interests against the broader regional benefits of such gambling establishments. As discussions progress, the outcome of Cherry’s proposal will shape the socio-economic landscape of Central Virginia.