Projections well off the mark
Virginia only legalized casino gaming in 2020. The Pamunkey Indian Tribe, which received federal recognition in 2015, was awarded the title of majority owner of the Norfolk project before construction ever began.
However, the financial picture of the casino is much clearer. The city can expect to receive more than 50 percent less than it had originally projected.
“The Casino revenue is not the safety net it has been portrayed to be at your meeting,” Smigiel wrote in his email.
Uri Clinton, legal counsel for Boyd Gaming, which will develop the casino alongside the Pamunkey Tribe, said that he could not confirm the new tax estimates.
“I'm not in a position to confirm what the projections are going to be, but they were submitted to the city and the Virginia Lottery,” Clinton said.
Jay Smith, spokesperson for the Pamunkey Tribe, also did not confirm the new projections, WHRO reported.
Despite the reduction, Smigiel asserted that the $15 million in annual funding was still significant. That’s especially important, seeing as Norfolk will soon begin the first phase of constructing a flood wall along the shoreline by Harbor Park and redeveloping Maury High School. Plans call for a new four-story design of what is one of the oldest school buildings in Virginia.
No changes in plans
The $33 million tax estimate would constitute about two percent of Norfolk’s annual revenue. Despite the change in projection, Norfolk would still benefit from the new source of revenue, Smigiel claimed.
“There's not a lot of projects that can generate that much cash directly to the city, and I think that's something to remember, even though it's been downgraded with the expected revenue coming in,” Smigiel said. “We still don't have anything in our city that generates that much money annually.”
Norfolk residents voted to approve a local casino back in 2020. The process of vetting and choosing the recipients of the opportunity to build the license took several years, but it was eventually decided that Boyd and the Pamunkey Tribe would lead the effort.
Although locals voted under the assumption that the casino would generate $33 million annually, Norfolk Mayor Kenny Alexander said that he did not believe that should change the feelings surrounding the project.
“The estimates were just estimates, projections, and we don't know the actual revenue until it opens and is fully operational,” he said. “So it's nothing to be disappointed about something that I didn't have in the first place.”
