The long-delayed Pamunkey Indian Tribe casino project in Norfolk, Virginia, is finally gaining momentum with the involvement of Boyd Gaming, one of the nation’s largest casino operators. The development, which has seen numerous setbacks since its proposal in 2017, will now benefit from Boyd’s experience and financial strength.
According to documents expected to be presented to Norfolk’s city council in the coming weeks, Boyd Gaming is set to become the majority owner in the tribe’s development partner, Golden Eagle Consulting, marking a significant step forward for the $500 million project.
The Pamunkey Tribe had partnered with billionaire Jon Yarbrough’s company, Golden Eagle Consulting, to develop the casino. However, it appears that Boyd Gaming will take a leading role in the development and operational aspects moving forward. The Pamunkey Tribe will still maintain a 20% stake in the project.
The full details of Yarbrough’s ongoing involvement remain unclear, but Boyd’s role is expected to provide the necessary resources to move the casino project from the drawing board to reality.
Boyd Gaming Steps In
Boyd Gaming is a seasoned operator, managing 28 casinos across 10 states and running tribal casinos such as Sky River Casino in Northern California for the Wilton Rancheria Tribe. The company’s deep experience in casino development and management positions it well to guide the Pamunkey project through its current hurdles.
Boyd’s involvement will include overseeing financing, construction, and operations of the new casino, and the project could potentially undergo a rebranding, according to sources involved in the development.
The project has faced unexplained delays for several years, despite being the first casino proposed in Virginia. While other casino projects in cities like Portsmouth and Danville have moved forward, with some already operational, the Pamunkey Tribe’s Norfolk casino has yet to receive full city approval for its site at Harbor Park. Updated renderings for the project were presented to the Norfolk Architectural Review Board in August 2024, but many of the details still await finalization.
A Race Against Time
The delays have left city leaders concerned. According to the agreement authorized by Norfolk voters in 2020, the tribe must open at least a temporary casino by November 2025 to retain its state gaming license. If this deadline is not met, the authorization granted by the voter referendum will expire, potentially jeopardizing the entire project.
In that event, Norfolk would need to request a new referendum from the state legislature, which could result in further delays or even the cancellation of the casino altogether.
Norfolk Mayor Kenny Alexander acknowledged these concerns, stating that the city was worried that Golden Eagle was running out of time to meet its licensing obligations.
“It gave us concern that [Golden Eagle was]
running out of time to meet their obligation to secure a license”.
He noted that Golden Eagle had failed to submit a full set of building plans for the city to review, further contributing to the project’s delays.
A Long Road Ahead
The Norfolk casino project has been fraught with difficulties since its initial proposal in 2017, shortly after the Pamunkey Tribe gained federal recognition. The tribe’s partnership with Jon Yarbrough, a billionaire venture capitalist who made his fortune in video slots, initially appeared promising. Yarbrough’s Golden Eagle Consulting company pledged $20 million in loans to the tribe, along with hundreds of millions more to finance the casino’s construction.
However, the project lagged behind its competitors. Rivers Casino in nearby Portsmouth has already been operational for over a year, generating $250 million in revenue during its first year and contributing $15 million in taxes to the city. Meanwhile, casino projects in Danville and Bristol are expected to open by the end of 2024.
In contrast, the Pamunkey Tribe’s Norfolk project has yet to break ground. A previous version of the plan, presented in 2023, was rejected because it proposed a phased construction approach, with the casino being built first and the hotel added later. This approach was not aligned with what Norfolk voters had approved in 2020.
With Boyd Gaming now in the driver’s seat, the tribe’s casino project appears to be back on track. The revised development agreement includes a new timeline, with the casino’s completion slated for September 2027. However, the immediate focus will be on meeting the November 2025 deadline for opening a temporary casino to ensure the project’s continued viability.
Source:
“The Pamunkey Tribe will bring in one of the nation’s largest casino operators for Norfolk project” Ryan Murphy, whro.org, September 3, 2024.