written and last updated by
Sam Smith at
21 Sep 2023
Journalist, Editorial Department
The Virginia Lottery, the regulatory body overseeing lotteries, casinos, and sports betting in Virginia, has reported higher tax revenues from the gambling market than financial analysts had initially projected. These early estimates were made four years ago when the state was considering the legalization of additional forms of gambling.
According to the Virginia Lottery, the state's casino industry, still in its developmental phase, is already exceeding expectations. The fact that some gaming companies are operating in temporary venues while full-scale casinos are under construction has not hindered market growth.
The temporary Hard Rock Casino in Bristol, which opened in July 2022, generated a net revenue of $157 million in its first year of operation. This figure significantly surpassed the state's initial forecast of $130 million. Thanks to the successful performance of Hard Rock, tax revenues reached nearly $26 million, which has been allocated to local governments and the state fund for the renovation and modernization of educational institutions.
Rivers Casino in Portsmouth, which opened in January, is projected to achieve an annual gaming revenue of $167 million. By June, the establishment had already reported a net profit of $120 million, contributing approximately $17.9 million in tax revenues.
Meanwhile, the temporary Caesars Casino in Danville generated $31 million in revenue just for May and June. According to a 2019 forecast, the annual profit for this gaming venue is expected to be $190 million.
Kelly Gee, the former executive director of the Virginia Lottery, recently commented, "It's impossible to know if this growth will continue at this pace, but it's an impressive start by any measure."
Currently, another casino is under construction in Norfolk, and a project in Richmond is still under consideration. Additionally, the sports betting market in the state is thriving. According to regulatory data, taxes on sports wagers more than doubled in the 2023 fiscal year, rising to $67 million.
Notably, the Atlantic City gambling market reported a record $500 million in revenue in August 2023.
