A new casino in Virginia will have implications for BYD, CHDN, and CZR

The Virginia casino market will change after the county voters around Petersburg approved the proposed $1.4 billion mixed-used Live! Gaming & Entertainment District. Close to 82% of the local residents approved the casino plan. The casino will be the sixth in the state of Virginia.

The prospective casino development is expected to contain 1,600 slot machines, 61 table games, a 200-room hotel, and a convention center that can fit 3,000 people.

Construction on the Live! Casino Resort will begin after the vote is certified and all required approvals are received, with an anticipated opening date of the initial first phase casino in 2026. Jefferies analyst David Katz expects a temporary casino will open in FY25, with the permanent facility ready for business shortly thereafter.

As far as casino competition, Katz highlighted that the Rosie’s Gaming Emporium in Richmond could be negatively impacted given its proximity (~25 miles). The property is a top performer for Churchill Down’s (NASDAQ:CHDN) historical racing machine venues in Virginia.

Katz said that the increasing competition among full casinos across the state is a noteworthy positive for Boyd Gaming (NYSE:BYD) and Caesars Entertainment (NASDAQ:CZR), but sees Churchill Downs (CHDN) positioned even stronger in the state.

Boyd Gaming (BYD) rallied 3.6% in late morning trading, while Churchill Downs (CHDN) was up 6.6% and Caesar Entertainment (CZR) was up 4.1%.