Norment’s Torment; New hope for Cal-Neva

Virginia state Sen. Tommy Norment (R) hasn’t been paying attention to the performance of MGM National Harbor. Placing a resort casino in northern Virginia would be, he says, “complete folly.” Instead, Old Virginny will have to put its hopes on that traditional cash cow, Richmond. A study conducted in part by The Innovation Group projects $970 million in annual casino revenue and $260 million in taxes from gambling houses placed in Richmond, Norfolk, Portsmouth, Danville and Bristol. Casinos would be taxed at a stiff 27%. Also scrutinized were sports betting, which was predicted to yield $55 million a year for the state (optimistic) and Internet gambling, projected to yield $82 million in taxes.

While the remit of the study was confined to lower Virginia it volunteered that a casino in the northern tier would claw back $100 million in gambling revenues and generate $155 million in taxes. That’s what sent Norment off his rocker, for fear that MGM and Maryland Live would squash the new casino like a bug. The horsey set is umbrageous, too, wanting a shot at the five casino licenses and predicting dire financial consequences for racetracks and “historical racing” parlors (slots in drag, which could lost 45% of their business) if casinos are legalized. “This would send a terrible message to other job creators and capital providers looking to invest in Virginia,” harrumphed mouthpiece Mark Hubbard. Median wages would be a subpar $33,000/year. As Speaker of the House Kirk Cox (R, above) sagely noted, “It is certainly not a panacea.” The casino-revenue model is also predicated upon drawing heavily from out of state.

Throw in the Virginia Lottery and you have quite an anti-casino coalition. The lottery figures it would lose $30 million of its $600 million annual profit and complains that it is also besieged by rampant, black-market slots. The Pamunkey Tribe wants a shot at a Norfolk or Richmond casino. It complained of the study, “The Pamunkey Tribe has been marginalized for centuries and deserve some protections as they seek to gain financial independence and improve the lives of their members. The study recommendations do not sufficiently protect Virginia’s only tribe with federal gaming rights.” Geez, some days you can’t please anybody.

Especially not when the moral-majoritarians get into the act. Family Foundation President Virginia Cobb wailed that legalizing casinos, under the auspices of the Lottery, “would only ensure that state government has a vested interest in promoting harmful and irresponsible gambling in perpetuity … The negative effects of a casino—including higher crime, addictions, sex trafficking, decreasing home values, financial losses, and broken families—will be felt broadly.” Cobb can take a chill pill, as incoming House Majority Leader Charniele Herring (D, pictured) confesses that the Dems have done no in-depth study of the issue, which is hardly a done deal in the Lege. She said, “Other investors are going to look when bringing businesses to Virginia: Are we a state that creates volatility in the market?” Norment gloomily predicts a stalemate. “That’s not a partisan comment, that is based on institutional history,” he forecast, adding “there should not be an assumption that we really had the expertise to know what we were doing.” Duly noted.

* You can’t take the subway to the casino in Cincinnati—but not because the Queen City doesn’t have one. A line was constructed back in 1920 … but never put into use. The two miles of track have been deemed to be in “very good condition.” According to AtlasObscura, “cost overruns, construction errors, property damage, and political finagling had [soon] shut down the Cincinnati subway for good.” Adds University of Cincinnati archivist Kevin Grace, there have been unsuccessful efforts to reposition the tunnels as anything “from storage to civil defense to mushroom farming to movie sets.” “It was a huge loss not to build it,” remarks engineering student Paul Koenig. “When you compare almost any city in Europe to a Midwestern car-centric city there is no comparison in the quality of life.” Mass-transit isn’t out the question for the soon-to-be Hard Rock casino downtown: A streetcar loop is being built in the heart of Cincy. And the news isn’t entirely bad, Cincinnatians: The 11-loss Cincinnati Bengals actually won a game yesterday.

Jottings: Gosh darn it all, it’s hard to grow revenue when you’re actually cracking down on money-laundering in your casino. British Columbia casinos posted flat year-over-year revenues, thanks to new rules that aim to end the reign of the province’s casinos as a “laundromat for organized crime” … Steep markdowns on Las Vegas hotel-room rates were noted, as part of Cyber Monday. Discount leader was Circus Circus, 49% down, while Golden Nugget is waiving resort fees through Jan, 2. Praise be … Ice bars are quite the thing on the Las Vegas Strip. It will get its third at The Linq starting a few days hence … Suffolk OTB won’t take no for an answer. It is striving to open a VLT facility on Long Island, near the town of Medford, which successfully resisted a casino three years ago. Meanwhile, MGM Resorts International is trying to welsh on its agreement not to go to full casino operation at racino New York Empire City Casino before 2023 … The Cal-Neva Lodge & Casino is being mulled as a possible Nobu hotel, which might be just the ticket for the defunct resort. Nobu conversion is already underway, according to movie producer Meir Teper. The Cal-Neva would appeal to a well-heeled clientele that has flocked to the low-tax Lake Tahoe area … Maltese casino owner Yorgen Fenech is a suspect in the car-bombing murder of investigative journalist Daphne Caruana Galizia. Typical of the privileged, he won’t sing unless he receives immunity from prosecution. Fenech was nabbed while trying to flee Malta for Dubai—via yacht.