The Connection

Slots, table games, poker, and more — casinos could generate ongoing revenue for state and local governments, provide short-and long-term employment, and drive economic growth. On the other hand, casino gambling can lead to addiction and social costs, including family problems and bankruptcy, crime, and the displacement of small businesses.

The Fairfax County Board of Supervisors discussed the possibility of a casino development in Tysons and the processes toward it during the public-packed Legislative Committee Meeting on Friday, January 26. The proposed Class III casino gaming opportunity for Fairfax County stems from Virginia Senate Bill 675, introduced by David Marsden (D-Fairfax). It was heading toward the state's Economic Development subcommittees.

Chairman Jeff McKay emphasized that the justification for the casino from the start was that Fairfax County needs money. Yet, 70 percent of the revenue goes to the state, with the county keeping 30 percent. “So under this model, the state actually needs money,” McKay said. 

“We get hosed. We are the state’s ATM. The financial model here at a minimum would have to improve dramatically at least before I would consider any referendum or any other thing as a result of this [bill].” McKay said.

“Our starting point is these properties that are on this map are supported by the Silver Line that largely the public paid for,” McKay said. “These are extraordinarily valuable pieces of property that are assets of Fairfax County. Fairfax County … has not substantively been involved in the development of the casino concept envisioned by stakeholders and the patron of this legislation.”

Claudia Arko, the county's legislative representative, gave a historical overview of the processes and best practices for municipalities to open a Virginia gambling facility and the economic impact on tax revenue and job creation as a stimulus. After the Joint Legislative Audit and Review Commission (JLARC) studied casino gambling in 2019, the Virginia General Assembly passed legislation to authorize casinos in five localities if the projects secured local voter approval through required referenda for each location. She described them as locations as “looking for economic development" and wanting "to revitalize their economies."

The locations were Bristol, Danville, Norfolk, Portsmouth, and Richmond. 

But one reason the commonwealth might press forward with a Tysons location for a casino was cited in the JLARC report, although not discussed by supervisors. Authorizing a casino in the Northern Virginia market would dramatically increase state revenue and economic benefits, according to the JLARC report on Gaming in the Commonwealth. 

“A casino in Northern Virginia would increase statewide gaming tax revenue by an estimated additional $155 million (59 percent) and employ an additional 3,200 workers,” according to JLARC. “A Northern Virginia casino is projected to attract substantial revenue from out-of-state customers and retain in-state about $100 million that Virginia residents are currently spending at casinos in other states.” 

In Marsden’s presentation, which Arko said she reviewed, Adam P. Ebbin. (D-39), who chairs the full committee, asked what if Fairfax County wanted a casino in a different location? Arko relayed that Marsden clarified, "That wouldn't be available to them because the location is part of this [SB 675] legislation.”

As for revenue, Arko said the host locality receives 6 percent of the first $200 million in gross receipts, 7 percent of $200 million to $400 million, and 8 percent of $400 million. Arko "That's the formula for everyone," Arko said.

Arko said SB 675 will advance to the Senate Finance Committee and the Senate if it passes the Subcommittee on Economic Development. No companion House bill exists. If the locality gains authority, it can work with a developer to choose a casino operator. The operator needs Virginia Lottery Board approval; otherwise, the state is little involved. Finally, the board could propose a referendum on casino gaming. Then, Fairfax County residents would decide by referendum if a casino would come to Tysons.

According to McKay, a stated rationale for the legislation was that Fairfax County needed “to revitalize Tysons." He rebuked the statement, saying that while the COVID-19 pandemic and subsequent shift to remote hybrid work had impacted Fairfax County's commercial office market, "Tysons, and especially the Class A office space in close proximity to Tysons for Silver Line Metro stations, continues to thrive, is poised for continued success, and will be the economic engine of the Commonwealth for decades to come.”

“Our focus needs to be on at this point in time, reminding folks that we didn't ask for this. This concept was derived in a vacuum. I saw the bill only after the General Assembly had begun their session, and that we need to protect ourselves in the event that this bill could be approved by making sure that we put out there what our concerns are with this,” McKay said.

McKay added the easiest thing to do would be to oppose the bill instead of monitoring it. "We can change our position on this at any time,” McKay said.

Supervisor Daniel G. Storck, Mount Vernon, voiced that the bill’s process is flawed, and the county should be engaged, be part of the conversation, and see where it goes. “Sometimes you start back at the beginning and say, Okay, what's the concept here? What's the objective here? I'm not clear exactly what the bill’s authors are trying to do. I understand the general objective, which is maybe to provide more tax revenue to the state and to Fairfax County, but the formula itself is deeply flawed and not one that I think any of us would really accept as an appropriate way to do it,” Storck said.

Supervisor Jimmy Bierman, Dranesville, said he listened to some of Marsden's comments and had a personal conversation with him. “This bill is actually not, not about bringing more money to Fairfax County. Senator Marsden was very clear that he's concerned that the LCI number [labor cost index] has been going down in Fairfax County.”

Supervisor Walter Alcorn Hunter Mill questioned the next steps leading to a referendum: “Frankly, I'm not sure any of us who are district supervisors would want this in our districts. So, I mean, if that's the case, I'm not sure why we don't just oppose it. I oppose the bill.”

Supervisor Dalia Palchk, Providence, opined that since Friday’s board meeting was the first committee meeting on the matter, “there's still a lot of time in the process. … And my understanding is [it] is only a Senate bill at this moment. There is no House bill... I think continuing to monitor this is the right call right now.”

McKay said Storck’s and Biermann’s messages must be shared. “As others have said, it's a continuation of a mindset in Richmond that when the state needs money, they can just come to Fairfax and get it, and we're at the breaking point."

McKay noted that communities that have sought new casinos, such as Bristol and Danville, "are literally bankrupt ... [with] no taxable value."

Fairfax County’s starting point is that the Silver Line supported properties, and the public primarily paid for them. “They are extraordinarily valuable pieces of property, assets of Fairfax County with public infrastructure,” said McKay, referencing a colored map.

“So the audacity to think that the one-size-fits-all model for those other parts of Virginia is a fair starting point of conversation when it comes to Fairfax County is not fair ... I have repeatedly said to the media, to the public, and to everyone [that] the starting point of that revenue breakout is not only unfair, it's insulting to Fairfax County.”

McKay noted that SB 675 requires Fairfax County to consider a casino gaming establishment within a quarter-mile of a Metro Silver Line station, one-quarter of a mile of a coordinated mixed-use project development, two miles of a regional enclosed mall with a minimum gross building area of 15 million square feet, and outside the 495 Beltway. Tysons is the only place that fits.

The newly introduced bill, with its specific parameters for a location, could lead to a county referendum on casino gambling in Tysons. He added that the county needs to ensure it is part of the state’s conversation and doing everything possible to protect its constituents.