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Temporary Casino Could Yield Millions of Dollars of Unexpected Revenue For VA

Temporary Casino Could Yield Millions of Dollars of Unexpected Revenue For VA

Virginia’s only casino, at least for the moment, located in Bristol, has seen a massive amount of success since it opened on July 8, 2022. 

The temporary facility is currently known as the Bristol Casino but is the future home of Hard Rock Bristol. The casino’s official website notes that it “delivers the legendary vibe of the Hard Rock brand, including gaming, entertainment and great food. With amplified service taking center stage, Bristol Casino provides the entertainment needs of Virginia and beyond.”

According to a recent report from Cardinal News, Bristol’s economic development specialist Mack Chapman is beyond thrilled with initial numbers from Virginia’s first casino – voters approved the construction of retail casinos within state borders on November 3, 2020.

“It’s actually kind of crazy, the numbers it’s pulling,” Chapman said, “If the trend continues unchanged, it will actually exceed what the Joint Legislative Audit forecasted for the fully developed casino in 2025.”

The original projection suggested that Bristol Casino would generate $130 million in net gaming revenue and $35 million in gaming tax revenue in its first year. Per Chapman, however, the popular destination is actually on track to bring in more than $171 million in net revenue during its first 12 months of operation. 

The Virginia Lottery reports that in September alone, Bristol Casino earned $14.3 million in adjusted gross revenue, amounting to $447,000 a day. 

Chapman confirmed that the tax revenue from the Bristol gaming center will be split between 12 counties and two municipalities. Although an official plan has not been cemented, the windfall is expected to go toward supporting education, enhancing public transportation options, and improving public safety for Virginians in the region. 

This unanticipated level of success means that the other cities where casinos are expected to open in the near future – like Danville, Portsmouth, and Norfolk – could receive millions of dollars in unanticipated tax revenue. 

What’s happening with the Danville, VA casino?

The upcoming Danville casino is expected to officially open in 2024, with 500 Nations sharing that Caesars Entertainment and the Eastern Band of Cherokee Indians are building a $650 million casino resort in the municipality. 

The casino will be named Caesars Virginia, and a temporary location will begin operations in mid-2023 ahead of the grand opening the following year. 

The aforementioned Joint Legislate Audit projected that Caesars Virginia will generate $190 million in net gaming revenue and $51 million in gaming tax revenue over the course of its first year. 

Since Bristol is outperforming expectations, however, it is likely that Danville will, as well. 

This could mean an unexpected windfall for the city. Unlike Bristol, Danville will not be sharing proceeds with any surrounding counties or cities. As a result, the area could make major improvements to infrastructure, education, and public amenities. 

At this time, an official plan for the casino tax revenue has not been unveiled by the local authorities. Danville, it is worth noting, operates as an independent city within the Commonwealth of Virginia and is not affiliated with a county.

What do you think about Virginia’s new casino revenue?

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Frank Jenkins Jr

Frank Jenkins Jr

Frank Jenkins Jr. is the managing partner of Adams, Jenkins & Cheatham, a CPA practice based in Midlothian, VA. Frank specializes in Consulting services, tax planning, accounting, audit & assurances. "I genuinely care about our clients because I have a personal connection with them. This job requires me to multi-task and work under tight deadlines. I get great professional satisfaction from balancing firm and client commitments while building a strong team here at AJC."

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