A proposal to build Virginia’s fifth retail casino in Tysons, on the outskirts of Washington, D.C., is getting support from a coalition of the state’s labor unions. The newly formed Fairfax County Jobs Coalition sent several dozen members to rally in front of the Fairfax County Government Center on Tuesday, Oct. 22, during a Board of Supervisors meeting.
In other states, unions have been a persistent obstacle to online gambling expansion. However, they’re traditionally in favor of retail casino development. That’s because brick-and-mortar properties create more jobs. In addition to the actual casino staff, construction workers are needed to build the property, and a large number of hospitality workers are needed to support the attached hotels and restaurants.
The Fairfax County Jobs Coalition comprises five unions active in the state:
- Northern Virginia AFL-CIO
- Fairfax County Federation of Teachers
- Unite Her
- SEIU Local 32BJ
- CASA
Fairfax County was not among the five locations initially selected in 2020 when the Virginia Legislature approved retail casinos. However, that bill called for local voter approval for each casino, and only four of five counties said yes. After Richmond residents rejected the idea for a second time, the search began for an alternative.
Sen. Dave Marsden (D-Burke) has made a few attempts to throw Fairfax’s name in the hat, though without much success so far. In February, the Senate Finance and Appropriations Committee voted to leave his 2024 proposal on the table until the 2025 legislative session. If that bill eventually passes, it would give the Fairfax County Board of Supervisors the power to put a referendum on a ballot.
The Development Promises Thousands of Jobs
According to the coalition, the casino and entertainment district project will create 5,000 jobs, and the developer guarantees “paid family-sustaining wages.” Virginia Diamond, president of the NoVA Labor Federation, AFL-CIO, said:
There are union agreements in place that provide a fair process for thousands of workers to decide on permanent union jobs that would dramatically raise living standards for low-income workers in our community.
In addition to a casino, the 4-million-square-foot proposal by developer Comstock Companies includes a hotel, restaurants, a performing arts venue, retail, and workforce housing. Estimates are that it would bring $140 million in tax revenue. Marsden says the money will help the county as it’s looking to find more revenue options. The area is home to many office buildings but has struggled to maintain its economy in the wake of the COVID-19 pandemic.
Virginia Casinos See Progress Despite Challenges
Even with union support, a Fairfax County casino is a long way from realization, echoing the slow development of Virginia’s broader casino landscape. It has been over four years since the state’s casino bill passed. Only one permanent casino has opened, while two others have begun operating at temporary locations and expect to complete their permanent facilities in the next few months. The fourth—HeadWaters Casino & Resort—might open a temporary facility next year, hopefully leading to a permanent casino by 2027. Meanwhile, the search for an appropriate location for the fifth continues.
At the moment, lawmakers are leaning toward Petersburg, not Tysons. Earlier this year, the Petersburg City Council controversially awarded Cordish Companies the license behind closed doors. Unite Here, which supports the Tysons proposal, now opposes the Petersburg proposal because it has a bad relationship with Cordish. Nonetheless, the proposal will be on the November ballot, leaving the matter for voters to decide.
Even the HeadWaters project hasn’t been a sure thing. Though the Pamunkey Tribe obtained the requisite voter approval and regulatory license for a casino in Norfolk, it hasn’t made much progress on following through. The project appeared to be in limbo for a while, although the tribe recently found a new financial partner in Boyd Gaming. Earlier this month, the Norfolk City Council approved a development certificate for the casino, and the Pamunkey Tribe plans to break ground on October 30.
Currently, Rivers Portsmouth is the only fully operational permanent casino in Virginia. However, two operators with temporary locations plan to open their permanent casinos in the next few months. Caesars Danville expects to open by the end of the year, while Hard Rock Bristol has been pushed back to November 14, 2024.
Don’t Expect Union Support to Extend to iGaming
Virginia has been expanding its gambling options rapidly, but these don’t yet include online casinos. There are no examples of a state authorizing iGaming without first establishing a retail industry, so on one level, these brick-and-mortar developments are a step in the right direction. However, they also introduce new potential opponents to a future online casino bill.
While union advocacy is generally good for retail casinos, it tends to have the opposite impact on the chances of legalizing online casinos. That’s because the biggest concern with iGaming is usually the potential loss of revenue and jobs at existing retail casinos. Promises of jobs for casino workers at in-state live dealer studios don’t do much to assuage the hospitality and construction workers’ unions, and even dealers are skeptical about the quality of the work at the studios.
This concern has been evident in New York, where the Hotel and Gaming Trades Council (HTC) is among the fiercest opponents of legalizing iGaming. While research exists both for and against the idea of “cannibalization,” New York iGaming proponent State Sen. Joseph P. Addabbo Jr. believes online gaming could bring 1,000 jobs to HTC. However, the unions don’t see it that way.
In Maryland, too, union opposition was a major obstacle to passing online gambling legislation earlier this year. Many proponents gave the state a good chance of passing online gambling legislation, but the effort fell short. Representatives by AFL-CIO’s Maryland and D.C. chapter and Unite Here’s Baltimore chapter spoke against iGaming legalization before the February Maryland House of Delegates Ways and Means Committee hearing. Given the Maryland chapters’ stance, the Virginia AFL-CIO and Unite Here would likely oppose a hypothetical Virginia iGaming effort.
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