unarj t1_j69gwhg wrote on January 28, 2023 at 6:35 PM

Reply to comment by groundcontrol3 in Petersburg Casino by SwanOverSunshine

the only purpose of an establishment like a casino is to hoover up money, not dole it out. if it's such an obvious payout why did they have to buy their way to the table?

going by your logic any business is free money for the city.

dalhectar t1_j6aix2s wrote on January 28, 2023 at 11:01 PM

Well, if you're not familiar- most businesses don't have to pay exorbitant licenses to operate. Casinos are alone in that category. Casinos are also taxed at a much higher rate than every other business. If other businesses had to pay 30% of gross revenue (not profit, revenue) to the state/locality, they would never open.

Meanwhile some businesses like Stone Brewery or say the Redskins, the City has to pay them to come here.

End of the day the City voted no, narrowly but still no. And now Petersburg can decide if it wants a predatory business that pays high taxes.

unarj t1_j6aojje wrote on January 28, 2023 at 11:43 PM

> End of the day the City voted no, narrowly but still no.

and yet here we are still talking about and it's still alive in legislature. agreed that Petersburg should do whatever is best for them regardless.

all of those licensing fees go to the state, don't they? Richmond would benefit only marginally. predatory business gobbling millions throwing back a pittance sounds like a great bargain.

dalhectar t1_j6aunh8 wrote on January 29, 2023 at 12:30 AM

No. According to § 58.1-4124 a casino pays 18%-30% gross revenue to the state, which the state then gives 6%-8% gross revenue to the host locality (33%-26% of the collected tax).

A typical restaurant which pays 0.36% gross for it's business license. Casinos pay localities 16%-22x more than other businesses like restaurants.

So not a pittance.

Richmond's not getting it. Getting that 8% is why Petersburg officials want it.

unarj t1_j6dveqm wrote on January 29, 2023 at 5:34 PM

good info, thanks. balanced against what it takes away from the local economy I would still consider it a loss. hopefully we can put this all to bed soon and maybe focus on things that actually help Richmonders (Richmonites? Richmonians?).