Virginia Court Rules in Favor of Referendum for Southside Richmond Casino

As things stand, citizens in the Mother of States, Virginia, will be headed to the ballot on November 7th. This is after a Richmond Circuit Court judge signaled the green light on the City of Richmond’s measure to hold another referendum on a proposed southside casino development.

The vote is the second run by the city in its effort to convince the Virginia residents to assent to the proposed casino. The first attempt was launched in 2021 when 51% of the residents voted ‘NO’ to the proposed casino development.

What Transpired in the Legal Battle?

A case against the impending referendum was launched by, Richmond Lodge No. 1 of the Good Lions, Inc., a local non-profit group which sought orders to halt the referendum. This non-profit group runs charitable gaming events at a local bingo parlor. The judge in charge, Judge William R. Merchant, had initially put the referendum plans on hold to give the non-profit group and the City of Richmond time to argue their cases.

The non-profit organization argued that the city council’s quest to have a referendum held once again was unconstitutional and would severely damage their business operations. The unconstitutionality stems from the city planning a referendum without consulting the competitive market, all of whom will be affected in one way or another by the proposed casino.

Following the Judge’s decision to okay plans for the casino development, Mayor Levar Stoney issued a statement that read in part:

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“I am pleased to see Judge Marchant rule in our favor of the City of Richmond. If approved this November, the proposed destination resort and casino will provide 1300 good paying jobs and an estimated $30 million in annual revenue to tackle our community’s greatest needs. On top of adding to Richmond’s record development and growth, this project will change the economic trajectory of the Southside for years to come.”

The Court’s Point of View

Judge Marchant suspended his previous order on the referendum and ruled in favor of the city based on two pivotal arguments. First, the judge noted that the judicial proceeding was not amenable to intervention and, thus, could not be influenced from outside.

Secondly, Judge Marchant pointed out that the non-profit organization in question, Good Lions, lacked the appropriate justification to get involved because it had not provided the proper and acceptable entitlement to link it to this process. Additionally, the judge said the contested government action could not be directly connected to the claimed detriment.

Judge Merchant’s statement, as quoted by ABC8 News, read in part:

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“This judicial proceeding in which Good Lions seeks to intervene is merely the last step in an administrative process for the placing of a referendum on the ballot. It is not an adversary proceeding with adverse parties and issues to be litigated. There are no plaintiffs and defendants, there is no contest of rights, and as such, the court finds that this limited non-adversarial judicial proceeding is not amenable to intervention by a party seeking assertion or protection of claims or rights. Further, the court finds that Good Life has not identified any ‘right’ involved in this limited judicial proceeding.”

An Expected Outcome

While some may have been shocked by the court’s decision, this was an expected outcome for the vast population of observers in the know. It is pretty hard to prove that an incoming casino business would harm Richmond residents, seeing that Richmond currently does not have a casino establishment.

It is no secret that there are other dissenting voices besides the lead non-profit, Good Lions Inc. As we see it, these groups should draw valuable lessons from how this case has turned out. It would be a tall order for anyone to prove that the non-profit has a right to intervene in this process. Similarly, there is indeed no way to prove irrevocable damage that would be caused should the referendum sail through.

The wiser way to counter this would be to employ all the necessary steps to ensure that the public’s voice is as it was two years ago when Richmond residents rejected the casino development. There has been a sigh of relief on the part of the people involved in the proposed casino development, and all eyes will now shift to the voter numbers. So, as we speak, the million-dollar question is whether pro-casino parties have what it takes to finally convince Richmond residents that this casino establishment is beneficial.

Speaking on the ruling, Michael Kelly, the spokeswoman for the proposed casino project, remarked:

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“We’re glad this matter is now resolved. This resort and entertainment complex will be one of the largest private-sector investments in the city of Richmond in decades, creating 1300 good-paying jobs and $30 million in annual tax revenue to invest in a stronger city, all without a single penny of tax breaks, incentives or public funds. We look forward to sharing our vision for the project, and the many citywide benefits it will deliver for all Richmonders.”