Supporters of legal gambling in Virginia were celebrating a fortnight ago when state legislature approved the building of five large casinos in the state. This was meant to provide Virginia with an economic boost, providing jobs and tourism money on the economy.
But the coronavirus pandemic have crushed those hopes because the US gambling companies are in turmoil with casinos everywhere in lockdown mode.
Casinos have immediately belong to the scanner as public gatherings are already discouraged throughout the United States. State governments including Nevada have closed down their casino industries over concerns of COVID-19. The shutdown is responsible for a serious hit for the US economy with all the hospitality, tourism, and gambling industry being the toughest hit.
Major casino operators have experienced drops in share prices. This has put in doubt whether any of them could finance and operate any new planned casinos in Virginia. They might have problems paying the 15 billion dollar license fee how the state is asking. Casino operators who have been earlier desperate to type in the state might have to delay or pull out should they not have the finances a result of the COVID-19 fallout.
Supporters of the casino legislation in Virginia continue to be hopeful though. They are confident the industry has lots of time to rebound through the economic hit before any action is taken. This is because Virginia voters will still have to vote in a referendum in November as well as a state vetting process has to happen before licenses are awarded.
This gives operators sufficient time to get their finances taken care of, assuming things get back to normal soon. One good thing is some in the casinos proposed for opening in Virginia possess the backing of personal investors who may have entry to funds that would not be hit by the downturn of gambling share prices.
There are some casino operators who still remain tolerant of the Virginia market. Caesars Entertainment has announced that they may continue with their goal to get a Virginia gaming license and building a casino inside the area.
Introduce A Competitive Bidding Process
Though the state lawmakers have put their stamp of approval around the casinos, Gov. Ralph Northam continues to have the chance make amendments. If he does, lawmakers should vote in it in April. One possible amendment Gov. Northam could pursue should be to add a competitive bidding process for that licenses.
Currently, funds some agreements set up for three from the five cities that will be in a position to have casinos. Opening up to competitive bidding can potentially widen the field making the method fairer.