Norfolk City Council Greenlights $500M Casino

The Norfolk City Council has approved a critical design update for the proposed HeadWaters Resort and Casino. This decision marks a significant step forward for the $500 million waterfront casino project, which has faced delays since 2020. The planned casino will be located near Harbor Park on the Elizabeth River, a prime location for such a large-scale development.

The project, backed by the Pamunkey Indian Tribe and Boyd Gaming Corporation, aims to transform Norfolk's waterfront into a bustling entertainment hub. With this approval, construction plans are set to move forward, though there are several hurdles remaining, including meeting deadlines for a temporary casino to receive state licensing.

Definition: The HeadWaters Resort and Casino project is a partnership between the Pamunkey Indian Tribe and Boyd Gaming Corporation. This large development includes plans for 1,500 slot machines, 50 table games, a 200-room hotel, eight restaurants and bars, a showroom, and several other entertainment and recreational facilities.

Mechanics / Know-Hows: The project has been in the works since 2020, following the approval of local referendums across five Virginia cities, including Norfolk, allowing commercial casinos. However, the Norfolk casino has lagged behind others in the state due to initial disagreements between the Pamunkey Tribe and billionaire Jon Yarbrough, who was originally slated to develop the casino. This led to project delays, but a new partnership with Boyd Gaming has revived progress. Boyd Gaming will own a majority stake in the casino, while the Pamunkey Tribe retains a 20% share through Golden Eagle Consulting II LLC.

A key element to the project's success lies in securing a Virginia State Lottery license. To achieve this, the developers must first complete a temporary casino by November 2025. Construction on the permanent building is expected to start in January 2024, with completion projected for August 2027 and a grand opening the following month.

Norfolk’s approval on Tuesday evening saw a 7-1 vote in favor of the project. The only dissenting voice came from Councilwoman Andria McClellan, who cited concerns about the allowance of indoor smoking within the casino. The vote followed a September decision to replace Jon Yarbrough with Boyd Gaming, effectively settling previous disagreements that had stalled the project.

The 7-1 council vote is a turning point after years of uncertainty. Norfolk’s economy stands to benefit immensely, with the casino projected to generate 3,500 jobs and nearly $230 million in annual wages and sales. The waterfront development is expected to bring a significant influx of visitors, further driving the city’s economic growth. The casino is also a landmark project for the Pamunkey Tribe, marking their entrance into large-scale commercial enterprises in Virginia.

The Players and How It Affects Them The primary stakeholders include:

• The Pamunkey Indian Tribe: They retain a minority stake but will benefit from new economic opportunities, with Boyd Gaming handling the bulk of the development.
• Boyd Gaming Corporation: Now in the driver’s seat, Boyd Gaming has taken over from Jon Yarbrough and holds the majority stake in the casino, promising significant economic returns for the company and the local economy.
• The City of Norfolk: The project is set to inject millions into the local economy, bringing jobs, tourism, and business opportunities. However, concerns about potential negative social impacts, such as the allowance of indoor smoking, remain.
• Virginia State Lottery: For the project to move forward, the developers must meet deadlines for a temporary casino to maintain their eligibility for a gaming license.

Conclusion

The Norfolk City Council's approval of the HeadWaters Resort and Casino project is a significant milestone, clearing the way for construction to begin. While there are still challenges ahead—particularly with tight deadlines for the temporary casino—the development promises to bring substantial economic benefits to Norfolk, the Pamunkey Tribe, and the state of Virginia. After years of delays, Norfolk’s waterfront casino is finally poised to become a reality, marking a new chapter in the city’s economic landscape.