Virginia Casino Industry Hits Revenue Highs with Promising Outlook

November brought another top-five highest revenue total for the state’s casinos, a trend predominantly seen in the current fiscal year.

Significant Growth in Virginia Casino Revenue

In November, Virginia’s casino industry surpassed expectations with a total win of $51.1 million. This achievement is not only a rebound from October’s figures, which dipped below $50 million, but it also represents a new top-five monthly revenue high.

It’s crucial to note that November 2022 marked just the fifth month of casino revenue recording by the Virginia Lottery, with Hard Rock Bristol as the sole operational licensee.

A year-over-year comparison shows a slight decline for Hard Rock Bristol, but the addition of Caesars Virginia and Rivers Portsmouth significantly boosted the overall state revenue.

Tax Contributions from Casino Revenue

The combined efforts of Caesars Virginia, Hard Rock Bristol, and Rivers Casino resulted in over $10.2 million in tax revenue for Virginia and the host cities in November 2023. This substantial contribution is indicative of a new standard for Virginia’s gaming revenue going forward.

While the recent months have seen remarkable growth, this period might represent a baseline for Virginia casinos in the near future. With no definitive timeline for new temporary gaming venues in Norfolk or the status of a potential fifth casino, the state’s casino revenue is expected to stabilize.

Richmond voters recently rejected the idea of a casino for the second time, and prospects in Petersburg are still uncertain. Furthermore, permanent casinos in Bristol and Danville may not open until 2024. Therefore, revenue expectations for Virginia casinos should range between $45 million and $55 million, with tax totals hovering around $8 million to $11 million for the time being.

Our Comment on the Article

Virginia’s casino industry’s rapid revenue growth, despite being in the early stages of its brick-and-mortar phase, reflects the burgeoning potential of this sector. The state’s approach to expanding and regulating casino gambling shows a promising trajectory for revenue generation and economic contribution.

As the industry matures and navigates through regulatory and expansion challenges, it will be crucial to maintain this momentum and adapt to new market dynamics. The Virginia casino industry serves as a compelling case study in the growth and stabilization of new gaming markets in the United States.