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- Sep 21, 2020 In Portsmouth, Chicago-based Rush Street Gaming has a spot picked out for a similar sort of hotel-casino complex at 3606 Victory Blvd., near the city’s Tidewater Community College campus.
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It wasn’t long ago that the idea of the state opening up casino gambling seemed far-fetched.
Years and years of efforts to get the General Assembly to agree to allow gambling — including many spearheaded by Portsmouth state Sen. Louise Lucas — had been shot down.
But the federal recognition of the Pamunkey Indian Tribe, which brought with it the ability to host some gambling on tribal land, and the subsequent announcement of the tribe’s intention to open a casino in Norfolk spurred nearly two years of wheeling and dealing in the General Assembly.
Ultimately, the state decided five cities could host casino gambling. But it mandated that any city looking to do so had to get the approval of local voters first.
So now, voters in Norfolk and Portsmouth will decide whether or not they want a casino in their city. The question will be listed on the same ballot where voters will make their picks for president, Congress, Senate and (in Portsmouth) local offices.
The language in each city is identical, except the reference to the specific location of the proposed casino.
In Norfolk, the Pamunkey Tribe has partnered with Tennessee billionaire John Yarborough to build a hotel casino resort along the Elizabeth River, next to Harbor Park.
In Portsmouth, Chicago-based Rush Street Gaming has a spot picked out for a similar sort of hotel-casino complex at 3606 Victory Blvd., near the city’s Tidewater Community College campus.
The question voters will see on their ballots will read: “Shall casino gaming be permitted at a casino gaming establishment in (city) at/on (property location), as may be approved by the Virginia Lottery Board?'
The votes have no bearing on one another: If voters in one city reject the referendum, casinos can still be approved and move forward in the other cities.
How to vote on the question is simple: a “yes” vote means “yes, I want this casino in my city.” A “no” vote means “no, I don’t want this casino in my city.”
The casino operators and advocates point to a litany of potential benefits for the community, including the infusion of hundreds of millions up front to build the casinos, plus millions in ongoing tax revenues and thousands of jobs.
In Norfolk, the Pamunkey tribe has claimed it will build a $500 million casino resort complex, which will include a hotel, dining and entertainment venues. Once up and running, the tribe said it will end up paying more than $26 million a year in city taxes just from gambling revenues and will employ 2,500 people.
In Portsmouth, Rush Street claims the tables and slots at its $300 million development will send $16 million annually to city coffers and will employ 2,000.
Local supporters have rallied behind the efforts, with some speakers at city council meetings extolling the economic benefits and others excited at the idea that they won’t have to drive to another state to visit a casino.
Some opponents have pushed back, including some skeptical that the would-be operators are over-promising on community benefits.
In Norfolk, opponents criticized how the city handled the Pamunkey deal, saying the process was rushed to limit study and public input. A petition effort forced the city to hold a pair of public hearings last year and reconsider the deal struck between the city and the tribe. That deal was altered in December after months of public pressure from citizens and the release of a state report forecasting that a much smaller-than-advertised casino was likely in Norfolk.
Restaurant owners in downtown Norfolk have also worried the proposed casino complex, which is planned to include several restaurants, will draw business away from downtown.
Scholarship on the local impacts of casinos is mixed and a ton of variables can determine whether a casino is a net benefit to the community. One key concept cited by economists that’s yet to be seen: the ability of local casinos to draw visitors from outside the region.
Both of the proposed local operations have marketed themselves as major new tourist draws.
A state report published last year, before the legislation had been passed and the most recent iterations of the casino plans were unveiled by the hopeful operators, expected about 10% of visitors to Portsmouth and Norfolk casinos to come from out of state. Those figures were based on the presumption of smaller casino projects than what is currently proposed.
Ryan Murphy, 757-739-8582, ryan.murphy@pilotonline.com
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Casinos In Portsmouth
PORTSMOUTH, Va. & CHICAGO--(BUSINESS WIRE)--A great new place to work and play is coming to Portsmouth, Virginia. Chicago-based Rush Street Gaming will develop and operate the latest addition to its growing portfolio of gaming and entertainment venues—Rivers Casino Portsmouth.
On Nov. 3, Portsmouth voters greenlighted Rush Street’s $300 million casino project planned for Victory Boulevard. Rivers Casino Portsmouth will bring 1,300 permanent jobs and 1,400 temporary construction jobs to the currently vacant site.
As the anchor of Portsmouth’s up-and-coming Entertainment District, the new Rivers Casino includes plans for a hotel, indoor and outdoor concert venues, conference space, multiple restaurants and more. Rivers Casino’s gaming floor will feature a wide variety of slots, table games, a poker room, and a state-of-the-art BetRivers Sportsbook.
“This is a great day for Portsmouth,” said Portsmouth Mayor John Rowe. “The Portsmouth voters have said yes to a new economic opportunity – an opportunity that will not only create great new jobs, but also generate more than $16 million in new annual tax revenues for our community. With Rush Street Gaming, Portsmouth has secured an excellent developer and operator of world-class destination casinos, with a track record of keeping promises, community support, and job creation. We’ve chosen our partner very well.”
Rivers Casino Portsmouth’s estimated annual payroll will be $62 million with a Portsmouth First commitment to build a diverse workforce and to hire locally. Without exception, all Rush Street casinos have been voted a “Top Workplace” by their Team Members.
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In July 2020, The Virginia Lottery Board pre-certified Rush Street Gaming to operate a casino in Virginia. With the referendum now approved by residents, application for licensing is the next step. Rush Street anticipates opening within two years of receiving a gaming license from the Commonwealth of Virginia.
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“We thank the residents of Portsmouth, the City of Portsmouth, and the Portsmouth Economic Development team for their support,” said Neil Bluhm, chairman of Rush Street Gaming. “We’re eager to get construction underway, so this strong economic engine for the Commonwealth and the local community can start producing benefits.”
Rush Street Gaming is one of the fastest-growing gaming and entertainment companies in America. Through its affiliates, Rush Street owns and operates market-leading casinos in Des Plaines, Illinois (Chicago area); Pittsburgh and Philadelphia, Pennsylvania; and Schenectady, New York. Rush Street and its affiliates also developed the Fallsview Casino & Resort in Niagara Falls, Ontario, in close partnership with the Province; and Riverwalk Casino & Resort in Vicksburg, Mississippi, which was acquired by Churchill Downs in 2012.
Rivers Casino and Rush Street Gaming have a long and proud record of diversity and inclusion throughout all its business operations nationwide. Rivers Casino Portsmouth will utilize minority, women and veteran-owned small businesses in every phase of its construction and operation.
Rivers Casino Portsmouth will solicit local minority participation for 5% of the equity contribution or $5 million, whichever is greater, from minority-owned businesses or private investors who are minorities and, as required by securities laws, are accredited investors.
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To avoid conflicts of interest, public-sector employees, elected officials at any/all levels of government, their spouses, dependents, and immediate family members are ineligible to participate as investors or owners.
Rivers Casino Portsmouth
About Rush Street Gaming: Founded by Neil Bluhm and Greg Carlin, Rush Street Gaming and its affiliates have developed and operate successful casinos in Pittsburgh, Philadelphia, Des Plaines, IL (Chicago area) and Schenectady, NY. By placing an emphasis on superior design and outstanding customer service, Rush Street Gaming has become one of the leading casino developers in the United States. Existing casinos generate over $1 billion in annual gaming revenues, and all Rush Street Gaming casinos have been voted a “Best Place to Work” or “Top Workplace” by their team members.