BRISTOL, Va. — The city of Bristol Virginia will again realize just a fraction of gaming tax proceeds generated by its casino, compared to Virginia’s other casino host cities.
A gleaming new Hard Rock Hotel & Casino on Gate City Highway opened in mid-November and — combined with its predecessor Bristol Casino — accounted for $222.1 million in adjusted gaming revenue.
That play generated over $36.5 million in Virginia gaming tax revenues with about $13.32 million slated to be returned to the region.
However, the city expects to receive less than $1 million — unofficially $951,939.88.
Danville and Portsmouth, by comparison, are counting on more than $19 million apiece from play during the 12 months of fiscal 2024-25 which concluded June 30. Payments typically arrive in August.
People are also reading…
-
SPEEDWAY CLASSIC: Murray Cook enjoying turning Bristol Motor Speedway into ballpark
-
Despite closures, leaders say downtown Bristol not slowing down
-
Bristol Virginia pressuring ex-VI campus owners to take action
-
SPEEDWAY CLASSIC: Injured Atlanta Braves ace Chris Sale a fan of the marriage between NASCAR, MLB
All figures for this story were gleaned from monthly casino gaming reports issued by the Virginia Lottery and are unofficial pending state review.
The difference for Bristol is a provision in the original 2020 casino enabling legislation spelling out the host city must evenly share gaming tax revenues with 13 other Southwest Virginia localities.
The split was a legislative compromise hammered out in the General Assembly because casino developers Jim McGlothlin and Clyde Stacy wanted to also provide some benefit to the struggling coalfield region.
Funds go to all 14 localities included in the Virginia Department of Transportation’s Bristol district.
It is a stark reality for a city with just 17,000 residents, more than $100 million in long-term bond debt to pay off and a shuttered landfill that has already consumed millions of dollars in environmental remediation projects with many millions more needing to be spent.
Residents questioned city leaders about the discrepancy this spring as the council was preparing to impose an adjusted real estate tax rate that captures a portion of higher assessed property values.
City leaders acknowledged the situation but offered little solace for residents.
“I don’t see that we will be able to change it [share] anytime in the near future,” Mayor Becky Nave said last week in response to a reporter’s question. “The 1/14th is better than nothing but, with the infrastructure the city has had to put in, I do wish we got more than the same piece of the pie that the other localities get — even if it was half.
“I respect the way it was set up and am thankful that we have it [casino] in Bristol, but I do wish we had more of a piece of the pie,” Nave said.
Minus Bristol’s share, the remaining $12.3 million balance will be equally divided among Bland, Buchanan, Dickenson, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington, Wise and Wythe counties, plus the city of Norton.
State legislation requires the funds go to a Regional Improvement Commission and localities can only spend the funds for education, public safety or highway infrastructure.
Portsmouth, a city of 98,000, can expect to receive a check for $19.76 million from the Virginia Lottery for its share of $61.5 million in gaming taxes generated by more than $311 million in AGR — defined by the Virginia Lottery as total wagers minus total winnings — from the Rivers Casino Portsmouth.
Danville has over 42,000 residents and city leaders there are expecting nearly $19.4 million after the Caesars Virginia Casino opened in late December, replacing its temporary facility. Gaming tax revenue there jumped from $24.3 million in the first six months of the fiscal year to $34.7 million in the second six months, after the new facility opened.
Combined play in Danville accounted for $316.59 million in AGR for the casino, generating $58.99 million in state gaming tax.
If the law were different and Bristol got all the local share of gaming tax revenue, Bristol would have netted over $32 million during the past three years. Instead, the city’s three-year total will reach $2.29 million.
With Hard Rock generating additional play, payments to Southwest localities are 33.4% greater this year than last.
In 2024, the city and the 13 others received checks for $713,390 apiece from a total payback of $9.98 million. That was based on $160 million in AGR and $29.4 million in gaming tax revenue.
In its first 12 months of operation, from July 2022 through June 2023, the temporary Bristol Casino reported over $160 million in adjusted gaming revenues, generating $28 million in state gaming taxes with $8.7 million flowing back to this region. Each locality received $625,000.
The gaming tax is the only tax the city is required to share, as Bristol retains all real estate, machinery and tools, meals, lodging and event taxes. It also receives a share of local sales taxes generated by the Hard Rock property, which includes a 303-room hotel, multiple restaurants and the 2,000-seat Hard Rock Live events center.
Other host cities also capture those same types of revenues plus the entire local share of gaming taxes, except Portsmouth’s casino doesn’t yet have a hotel.