Virginia: Petersburg aiming for casino referendum with new bill introduced at legislature, renewed political support

Petersburg is aiming for a casino referendum in 2024 and, unlike previous attempts, the Virginia city seemingly has strong support. While Senate Bill 628 does not specifically state that Petersburg would replace Richmond as the fifth Virginia casino host city, it amends requirements for the host city that would fit Petersburg.

The legislation removes a minimum 200,000-population stipulation and drops the rate floor for tax-exempted real-estate property in 2017 and the poverty rate in 2019. It also requires that the host city had an unemployment rate of at least 13% in 2020, reports Petersburg Progress-Index. In 2020, Petersburg’s unemployment rate was 21.1%. 

The bill's chief sponsors in the Senate are Sen. Lashrecse Aird (D-Petersburg), and Louise Lucas (D-Portsmouth), chair of the powerful Senate Finance & Appropriations Committee. Lucas' district includes Rivers Casino in Portsmouth. 

Lucas, a major political player, had been a key opponent of a Petersburg casino the last two years when the measure went before Senate F&A. She later admitted to The Progress-Index that her opposition was due in part to the way Sen. Joe Morrissey, whom Aird beat in last June’s Democratic primary, pushed for the city’s inclusion.

Senate Bill 628 will first be heard by the Senate General Laws & Technology Committee, of which Aird is a member; and then Senate F&A. The Aird-Lucas proposal deletes language that would provide “preferred consideration” to Native American tribes in Virginia. The Pamunkey tribe backs Norfolk’s proposed HeadWaters Casino. 

Five years ago, the General Assembly approved the cities of Bristol, Danville, Norfolk, Portsmouth, and Richmond as possible host cities for casinos. Each city held a referendum on the issue, and Richmond was the only one where voters turned it down twice. Following Richmond's first defeat in 2021, Petersburg entered the game.

The 2022 and 2023 legislative sessions saw Morrissey and Del. Kim Taylor (R-Dinwiddie County) push unsuccessfully for Petersburg’s casino referendum. Taylor, who won re-election to the House last November, will not introduce House companion legislation, opting to support the Senate measure should it make it through that chamber. 

In the last two legislative sessions, Petersburg’s casino chances were shadowed by Richmond’s efforts to get a do-over on the failed 2021 referendum. For two years, the two cities clashed over who would land the fifth-host spot. Richmond claimed the 1,500-vote margin by which the casino failed in 2021 was due to miscommunication and a lack of understanding among city voters over what they were being asked to support. 

Richmond eventually prevailed in the Assembly but failed at the ballot box. The narrow defeat in 2021 was replaced by a 61% “no” vote last November, prompting that city to abandon any hopes for now. 

However, Sen. Bryce Reeves (R-Spotsylvania County), introduced a bill prohibiting any potential host city where a casino referendum has failed from voting on it again for three years after the unsuccessful referendum. Del. Betsy Carr (D-Richmond) has also submitted legislation that closely mirrors the amendments made in the Aird-Lucas bill.