The leading gaming, hospitality and entertainment company, Ceasars Entertainment, started the work on its permanent casino in Danville, Virginia, a few years ago, in 2022. Ahead of the opening of the resort, planned for this December, the cost of the project has significantly increased.
While initially, Ceasars anticipated an investment of approximately $400 million, the construction of the permanent casino has nearly doubled, as suggested by a new report. On Monday, WDBJ confirmed that the cost for Caesars’ Danville casino project has increased to approximately $750 million.
The new sum represents a significant increase of nearly double what was estimated as the initial investment. In light of the increase in capital investment, the company is reportedly collaborating with the city about changes to its development agreement.
The Company Considers Changes to Its Agreement with the City
As a part of the changes, Caesars is anticipating selling between 10 and 20 acres of land to Danville. Provided that this sale is greenlighted by city officials and the land returns to Danville ownership, it is likely going to be used for the development of a new park.
Further changes to the development agreement involve reducing the minimum number of employees for the Danville permanent casino project. While initially, the minimum number of employees was 1,300, Caesars may consider decreasing this number to 900.
Ken Larking, Danville City Manager, who was recently quoted by WDBJ, revealed that over the last couple of years, much has changed. “A lot has changed in the past few years regarding the nature of construction, the nature of the workforce, and some things that come up that we needed to see happen as well,” he explained. Additionally, Larking pointed out: “So, we worked together for the past several months to come up with an agreement we can both be satisfied with.”
Recently, Caesars released its first quarter results, highlighting a decline despite an increase in iGaming win. The company’s quarterly report revealed that its net revenue for the three months ended March 31, 2024, halted at $2.7 billion. A year-over-year comparison showed a slight decrease when compared to the $2.8 billion result in 2023.
The adjustments to the development agreement between Caesars and Danville were recommended for approval by city staff. Still, the final decision is in the hands of the City Council. A vote on the proposed changes is scheduled to take place at the City Council’s meeting on Tuesday.
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