Caesars Virginia Surpasses $35M Revenue Forecast; Danville Eyes $2M Surplus Spend
Key Highlights:
- Revenue Windfall: Casino receipts are significantly outpacing the city’s $35 million forecast.
- Strategic Reinvestment: Surplus funds may be used for a major, undisclosed local redevelopment project.
- Legislative Risk: Potential online gambling laws could divert revenue from physical locations.
Danville has hit the jackpot with Caesars Virginia, which is on pace to beat projected tax revenue figures by several million dollars.
According to the Cardinal News, city leaders will consider directing a portion of the surplus toward a yet-to-be-identified redevelopment initiative.
City officials budgeted $35 million in gaming tax revenue from Caesars Virginia for the current fiscal year, which began in June. According to a staff report included in the agenda for Tuesday’s City Council meeting, receipts are now trending well above that projection.
At its 7 p.m. session, council members will review an amendment that would allocate roughly $2 million of the additional revenue to the Danville Industrial Development Authority to support an economic development project.
The documentation does not name the project, referring to it only as a “strategic redevelopment effort” that requires backstop funding for pre-development costs.
Gambling Tax Surplus Allocated For Strategic Redevelopment
Backstop funding acts as a secondary financial safeguard, ensuring that early-stage expenses can be covered if primary funding sources fall short.
City staff emphasized that casino tax receipts remain “highly contingent on the state of the economy” and should therefore be treated as a one-time funding source rather than an ongoing revenue stream.
The council will hear the proposal for the first time on Tuesday and won’t vote on it until a later meeting. City staff recommends approval, noting that the additional casino revenue can be used without affecting the city’s long-term budget plans.
How Virginia’s Casino Tax Works
Virginia’s casino market is still in its early chapters, but Danville’s experience highlights the new reality for host cities: gaming revenue can arrive faster and in larger waves than forecasts predict.
According to the Code of Virginia, the state’s casino tax is levied on a graduated scale tied to Adjusted Gross Receipts (AGR). Operators pay 18% on the first $200 million, 23% on revenue between $200 million and $400 million, and 30% on revenue exceeding $400 million, with payments remitted monthly.
A portion of those taxes is returned to host cities, giving municipalities like Danville a direct stake in casino performance, in addition to any locally authorized fees or ancillary taxes tied to the property.
This revenue-sharing model ensures that as a casino prospers, the local community benefits proportionally. Specifically, the state returns a significant share of the collections to the host locality through a tiered allocation:
- 6% tax on the first $200 million of AGR
- 7% on receipts between $200M and $400M
- 8% on receipts exceeding $400M
Virginia Online Casino Bill Could Alter Future Growth
Virginia’s casino revenue has been steadily rising, reaching just under $400 million in 2025.
The strong early returns arrive as lawmakers and industry stakeholders debate whether Virginia should legalize online casinos. Introduced in January, House Bill 161 would allow residents to play online casino games right from their laptop or mobile device, which could hurt future growth at brick-and-mortar locations like Caesars Virginia.
For host cities like Danville, the stakes are significant. Online expansion could broaden the taxable market and stabilize revenue year-round, but it could also shift spending outside the city limits.
How any future legislation balances revenue sharing, licensing tied to existing operators, and local impact protections would directly shape the next phase of Caesars Virginia’s growth.
Tags/Keywords
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
