Caesars Virginia Casino Tax Revenue Provides City Workers Pay Raises
On May 15, 2023, Caesars Virginia unveiled a makeshift pavilion gaming tent. In the first year of operation, Caesars Entertainment has paid over $18.86 million in payments and gaming taxes to the City of Danville, where the casino is located.
Most city employees will receive wage increases as a result of the extra tax income, but first, a number of local initiatives are being funded by city officials. Danville received $18,863,613.22 from the Caesars casino between May 1, 2023, and April 30, 2024, according to a recently released "Casino Revenues and Appropriations" document.
The adoption of a new compensation system for employees of local government cost close to $4.7 million.
“All of our employees provide the services that the people in our community expect to receive,” Danville City Manager Ken Larking told WDBJ, the local media organization that first obtained the casino allocations document through a Freedom of Information Act request.
"Whether it’s in parks and recreation, police, fire, public works, street maintenance, everything that we do requires a hands-on approach to make that happen. In order to provide great, quality services, that costs more now than it used to,” Larking explained.
“We build our workforce through education of our existing people, but also through recruitment of people into Danville, because they see opportunities. Their decision to do that is based on a lot of factors with quality life and education among the highest,” Larking said.
Details of Spending
Pay increases were required, according to Larking, in order to maintain Danville municipal government employment appealing to the best talent the city wants to hire. The city compared its compensation levels to those of other comparable-sized localities in a market analysis, which led to the salary increases.
"There are 43,000 people that live in Danville and I’m sure there are 43,000 different opinions on exactly how we do things,” Larking said. “That’s what democracy is all about.”
The municipal administration, according to Larking, is making "the best we can" to raise everyone's standard of living in Danville. The largest portion of the casino windfall, after wage increases, was placed into a reserve account for potential emergency usage by the city. $3.86 million was received by the fund.
The next-highest amount of casino tax revenue went to K–12 public schools ($2.55 million), with $2.48 million going to economic development.
One million dollars was allocated to assist with the underground relocation of electricity lines along West Main Street, and an additional one million dollars was used to create a splash pad at Third Avenue Park.
$845K was given to the local police to renovate their headquarters, and $800K was allocated to measures aimed at blight. $566,240 went toward tourism-related projects; $361,550 went toward the city's Gang & Violence Prevention Program; and $251,850 went toward the internship program.
Caesars Virginia
Officially known as the Danville Casino, this temporary establishment has surpassed pre-opening income estimates. With 800 slots and 33 table games, the casino made over $222 million in player revenue in its first 11 months of operation (May 2024 is still unknown).
A casino with 1,300 slots, 85 table games, and a Caesars Sportsbook will be housed in the $750 million permanent integrated resort known as Caesars Virginia. The resort will also feature 320 hotel rooms. A full-service spa and pool complex, numerous eateries and bars, a 2,500-seat concert hall, and 50,000 square feet of convention space are just a few of the resort's facilities.
It is planned for the permanent facility to open by the end of the year.
