Virginia could add a Fairfax casino
Senate Bill 756, fresh off its approval from the General Laws Committee, is now on its way to the Appropriations Committee. The bill must still receive approval from the full House, as well as the Senate, since it was amended.
Lawmakers in the Commonwealth have spent the last few years engaged in discussions to legalize a Northern Virginia casino to help increase the state’s tax funding. Tuesday’s vote of approval marks significant progress in the ordeal.
Several major changes were added to the bill to get it over the line. One standout amendment increased the licensing fee by 1,000 percent from $15 million to $150 million. Half of that fee would be allocated to the local area housing the casino via the Virginia Lottery.
The casino company in charge of the project must also agree to fund a public safety project, such as a new police or fire station within the entertainment district.
The Virginia Lottery will also be required to publish documents such as memorandums, incentive agreements, and land purchase deals, without redactions.
Finally, and potentially most significantly, the bill now includes a separate referendum process, giving local voters the final say on the casino. A majority “Yes” vote must be registered in Fairfax county and the magisterial district of the casino for it to be approved.
Follow the money
Additional details of the bill require that half of the 40 percent tax on adjusted gross revenue be funneled back to the local community.
The remaining revenue would go to the state as follows:
- 8 percent to the state’s fund for school construction
- 5 percent to problem gambling treatment and support
- 5 percent to a capital fund for the Washington Metropolitan Area Transit Authority
- 1 percent to the Virginia Indigenous People’s Trust Fund
- 0.8 percent to an Open-Space Lands Preservation Trust Fund
- 0.2 percent to Virginia’s Family and Children’s Trust Fund for child abuse and domestic violence prevention and treatment
The new tax structure was designed to appeal to Fairfax County officials, who last year voted to oppose any casino proposals, regardless of what they contained.
The House already passed a bill from Del. Paul Krizek (D-16) that would establish a Virginia Gaming Commission to help oversee the Fairfax casino.
While locals previously expressed concern with a local casino, Northern Virginia Labor Federation President Virginia Diamond touted the economic benefits, while noting that the state last year failed to fund raises for teachers promised by a collective bargaining agreement.
“We feel strongly that this is an opportunity that is unprecedented and that would be life-changing for thousands and thousands of working families, people that are currently in poverty and would have the opportunity to get jobs in the middle class,” she said.
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