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In Southwest Virginia, a political battle is brewing over how to split the money from the Hard Rock Bristol casino.
This is causing quite a stir, especially since a recent proposal aims to change the way the revenue is currently divided among the city of Bristol and the surrounding areas.
Right now, Bristol’s share is split among the city and 13 other nearby counties, all benefiting from this casino windfall. However, Bristol wants to change this formula and increase its share of the casino tax from 27% to 50%.
It makes sense, since Virginia’s casino revenue is rolling. On top of that, PBS Appalachia Virginia made history by starting the country’s first TV station inside the Hard Rock Hotel & Casino Bristol.
Hard Rock Bristol Casino’s Current Setup
Here’s a simple breakdown of how the money is currently split:
The Hard Rock Bristol casino’s state gambling tax is divided into 18 portions. Bristol gets 5 of those portions, which equate to about 27% of the share, while each of the surrounding 13 localities gets a smaller piece, collectively making up 72%.
Bristol leaders argue that maintaining the casino isn’t cheap. They claim that the city bears many direct costs, such as police, infrastructure, and other stressors like landfill maintenance. With these costs in mind, they believe it’s only fair for the city to receive a bigger piece of the pie—at least half of the tax revenue, according to their proposal.
In an interview with Virginia Business, former Bristol Mayor Becky Nave said, “We’re excited to have them here, but we just wish we had a bigger piece of that pie.” The new mayor is Jake Holmes, who was appointed on Monday morning.
Holmes takes over for Nave, who remains on the city council.
City officials decided that one year after the casino opens in its permanent location, they will look at costs for things like roads and extra police. After that, they will ask lawmakers to rethink how the gambling tax money is shared
The local share of the casino’s gambling tax is expected to bring in over $16 million each year. With the current setup, Bristol receives around $4.45 million. But if the proposal passes, Bristol’s share would jump significantly.
Why the Surrounding Virginia Counties Disagree
For many surrounding counties, the money they currently receive is extremely important, acting as a lifeline for their budget-strapped areas.
They worry that changing the agreement might open the door for more negotiations and changes. Scott County, for instance, sees its share as crucial, especially if future tax revenues from the casino increase even more.
Scott County, for one, is standing firmly against a new proposal from Bristol. The county’s leaders recently instructed their administrator, Josh Wilson, to tell the Southwest Virginia Regional Improvement Commission (RIC) that they oppose Bristol’s request.
How This Compares to Other Casinos in Virginia
Bristol’s situation is unique in Virginia.
At other casinos, like the Caesars casino in Danville and Portsmouth, the host city gets to keep the entire local share of the state gambling tax. But Bristol’s arrangement was designed with a broader regional benefit in mind, meaning it must share its portion with 13 other communities.
A new casino in Petersburg is also about to open, and a temporary casino just swung open its doors in Norfolk.
But changing the revenue-sharing arrangement isn’t a simple process.
It requires action from the General Assembly, and some regional lawmakers have already voiced their refusal to amend the original agreement. For now, the debate continues as the city of Bristol and its neighbors argue over what they each believe is fair and necessary for their community’s success.
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