Virginia’s Casino Dream: A Step Closer to Reality

Petersburg, Virginia, is on the verge of a development, as the city inches closer to establishing a casino following a critical approval from the Virginia Lottery. This approval, detailed in a July 9 letter to City Manager March Altman and City Attorney Tony Williams, sets the stage for a local referendum that could significantly alter the economic landscape of the region.

The Virginia Lottery's letter, cited by The Progress-Index, indicates the formal go-ahead for the city to proceed to a public vote. The letter states: “In reliance upon the information contained in the Petersburg Submission, which will be formally investigated by the Department in coordination with state and federal law enforcement and regulatory agencies should PPE subsequently apply for a casino operator’s license in the Commonwealth, the Department hereby certifies approval for the City of Petersburg to proceed to the local referendum required by Virginia Code § 58.1- 4123.”

• Approval and Referendum: Petersburg, Virginia, has received approval from the Virginia Lottery to move forward with a casino project, pending a local referendum in November. The project’s fate now hinges on a majority vote by Petersburg residents.
• Economic Impact: The proposed Live! Casino & Hotel Virginia, to be developed by PPE Casino Resorts Petersburg, LLC, is expected to create approximately 7,500 jobs with average compensation exceeding $70,000 annually. The project is projected to have an annual economic impact of over $200 million for the city.
• Development Plan and Funding: The casino development will occur in two phases, beginning with a $142 million temporary casino and followed by a $454.2 million permanent complex. PPE Casino Resorts will finance the entire project independently, securing part of the funds through a loan from M&T Bank and covering the rest with its own capital.

Next Steps: Court Approval and Public Vote

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City officials are set to request court approval to add the casino referendum to the November ballot. Should the court greenlight the referendum and a majority of Petersburg residents vote in favor, the Live! Casino & Hotel Virginia project will advance to the licensing phase. This phase involves rigorous background checks by state lottery officials to ensure that key operators meet the stringent criteria for gaming licenses.

In April, the Petersburg City Council made a strategic decision by unanimously selecting Baltimore-based Cordish Companies and Virginia developer Bruce Smith Enterprise as the preferred partners for the casino project. These companies have formed PPE Casino Resorts Petersburg, LLC, to spearhead the development.

The Virginia Lottery's letter further affirmed Petersburg’s status as an eligible host city for a casino, as defined by the updated Virginia Code. PPE Casino Resorts aims to construct a vast entertainment complex valued at $597 million on a 92-acre site near Brassfield Parkway, adjacent to Wagner Road and Interstate 95 in southern Petersburg.

The ambitious project will unfold in two phases. The first phase involves a $142 million temporary casino, expected to be operational within a year if the referendum passes. The second phase, a more extensive development, will see the construction of a permanent casino complex costing $454.2 million. This complex will feature a luxurious five-star hotel, a variety of restaurants, and a dedicated entertainment venue.

The proposed casino is projected to bring substantial economic benefits to Petersburg. PPE estimates that the resort will employ approximately 7,500 people, with an average compensation package exceeding $70,000 annually, including benefits and tips. The developers also project an annual economic impact of over $200 million for the city, underscoring the potential transformative effect of the project.

Self-Funding and Future Investments

PPE Casino Resorts plans to finance the entire casino project independently, with no financial input from the city of Petersburg. The developers have outlined a financial strategy that includes securing a loan for up to half of the construction costs from M&T Bank, a Buffalo-based financial institution, with the remaining funds coming from PPE's own capital.

Looking ahead, PPE has ambitious plans for continuous development over the next 15 years. These plans include an additional $803 million investment to expand the complex further, incorporating residential units, office space, another hotel, and retail stores.

This development in Petersburg comes amid a broader wave of casino openings, legislative changes regarding skill games, and the expansion of online sports betting across Virginia. While online casinos are not currently a priority in the state, Virginia continues to offer sweepstakes and social casinos online.

As Petersburg gears up for the referendum, the city stands on the threshold of a potentially game-changing opportunity. If residents vote in favor, the Live! Casino & Hotel Virginia project promises to usher in a new era of economic growth and development for the historic city.