Virginia’s casino industry continues to thrive, evident from its impressive revenue performance in November. This recent success is particularly noteworthy considering the relatively nascent stage of brick-and-mortar gambling establishments in the state.
Strong Revenue Performance by Virginia Casinos in November
November saw Virginia’s trio of physical casinos – Caesars Virginia in Danville, Hard Rock Bristol, and Rivers Casino in Portsmouth – collectively surpass the $50 million revenue mark. This achievement marked a significant improvement over October’s figures and positioned November as one of the top five revenue-generating months for Virginia casinos.
The revenue for November 2023 saw a substantial 75.3% increase over the same month in the previous year. It’s important to remember, though, that in November 2022, Virginia’s casino industry was just five months old, and Hard Rock Bristol was the sole operational casino. A year-over-year comparison reveals only a slight decrease in revenue for Hard Rock Bristol, but the overall growth is largely attributed to the openings of Caesars Virginia and Rivers Portsmouth.
As a result of this growth, tax contributions to Virginia and its host cities exceeded $10.2 million in November 2023. This revenue boost sets a new expectation for future financial gains in the state’s gaming sector, although predicting substantial future growth remains challenging.
Establishing a New Normal for Virginia’s Casino Revenue
The Virginia gambling sector has shown remarkable progress in recent months. Casino revenues have consistently crossed the $50 million threshold in five of the last six months, with tax revenues surpassing $9 million in each of these months. This trend suggests a new baseline for the state’s casino industry.
Looking ahead, the outlook for immediate substantial growth seems limited. The timeline for the launch of a temporary gaming facility in Norfolk remains uncertain. The situation regarding a potential fifth casino is even more ambiguous, especially after Richmond voters rejected the casino proposal for the second time. Although there’s talk of a similar proposal in Petersburg, it’s far from being a concrete plan.
Moreover, the permanent establishments in Bristol and Danville might not commence operations until 2024. Therefore, for the time being, Virginia’s casino revenue is likely to oscillate between $45 million to $55 million, with tax revenue ranging from $8 million to $11 million, setting a new standard for the industry in the state.
In summary, Virginia’s casino industry is experiencing robust growth, with November’s revenue hitting one of the top five monthly totals. This uptick reflects the expanding landscape of Virginia’s casino market, now bolstered by three operational establishments. However, with potential developments in Norfolk and uncertainty in Petersburg, as well as upcoming permanent venues in Bristol and Danville, the industry’s future growth trajectories remain to be solidified. For now, Virginia’s casinos are setting a new revenue norm, indicating a stable and promising sector.