A Casino In Tysons, Virginia, Is Closer To Reality

For three years running, Virginia lawmakers have tried to bring a casino to Fairfax County. For three years running, it has failed. This year, the bill made it through.

Senate Bill 756, introduced by Senate Majority Leader Scott Surovell, cleared the Virginia General Assembly on March 14 and is now on Gov. Abigail Spanberger’s desk. The Senate voted 25-13 and the House of Delegates voted 55-41.

If signed, Fairfax County would join Norfolk, Petersburg, Bristol, Portsmouth, and Danville as Virginia localities eligible to host a casino. The final version of the bill effectively puts the casino in Tysons, as it requires a site tied to a mixed-use development of at least 1.5 million square feet within a quarter-mile of an existing Silver Line Metro station.

However, even if the governor signs the bill, a casino in tony Tysons is far from a slam dunk. The Fairfax County Board of Supervisors would first have to agree to hold a voter referendum, and Board of Supervisors Chairman Jeff McKay has said he will not schedule a referendum.

Not so fast

“I am not going to subject my residents to vote on something that we know is a bad deal for them,” McKay told WTOP.

McKay has also rejected the idea that Tysons needs outside help. 

“The idea that Tysons is struggling, therefore the state needs to come up with a gimmick to help it — Tysons is funding the state,” he said during a board meeting this week, according to WTOP. 

Supervisor Dalia Palchik, whose district includes Tysons, said the legislation was “not being put forward in good faith” and called it a mockery of local land-use authority, according to Virginia Business.

In December, the Board of Supervisors voted 5-4 to formally oppose casino legislation. The General Assembly moved forward anyway.

Surovell has argued Tysons needs the investment. He told WTOP that the area has struggled to attract major development, pointing to the Dulles Toll Road corridor pulling developers away. He cited a 20 percent office vacancy rate in Tysons, per a Tysons Community Alliance report, and warned the county risks losing population.

“I have not heard [an] alternative” to grow the county, he told Axios.

The revenue projections vary. A 2019 state-commissioned study projected a Northern Virginia casino would generate $155 million in statewide gaming taxes, more than half of the five other studied localities combined, FFXnow reported. A more recent county-commissioned draft study estimated $29.1 million annually for Fairfax and $53 million for the state.

The revenue split is another point of contention. Under the current formula, roughly 70 percent of gaming-tax revenue goes to the state and 30 percent stays with the local host. McKay has called this a bad financial deal for Fairfax taxpayers.

Numerous changes

The bill went through several changes before reaching Spanberger. Earlier in the session, the language was broadened, so a casino could be placed anywhere in Fairfax County. Then, in a late-session conference committee, a provision was added that would have allowed a temporary casino to operate for up to five years without a voter referendum. The Fairfax County House delegation opposed that provision, and it was removed. The final version closely resembles what Surovell originally introduced in January, per FFXnow.

Local opposition is organized. The No Fairfax Casino Coalition, representing more than 40 local organizations, has called on Spanberger to veto. Resident Chuck Anderson told WUSA 9 that the downsides outweigh any tax benefit. 

“If we lose the battle [with the governor], then we turn to the Board of Supervisors,” Anderson said. “They will have the discretion as to whether or not to hold a referendum.”

On the development side, Reston-based Comstock has released renderings of a casino-anchored resort complex. Caesars Entertainment has said publicly it would be interested in the Tysons opportunity, Axios reported.

Spanberger has not indicated what she plans to do. A spokesperson told 7 News the governor “will review all legislation that comes to her desk.” There has been reporting that she previously signaled willingness to consider a casino bill if Virginia created a dedicated gaming commission. The General Assembly has not done that.

She has until April 13 to sign, veto, or amend.