Ceasars Entertainment, a foremost gaming, hospitality, and entertainment firm, commenced its permanent casino project in Danville, Virginia a couple of years ago, specifically in 2022. In anticipation of its proposed resort opening planned for December, the project’s cost has witnessed a substantial increase.
The original financial outlay envisaged by Ceasars was roughly $400 million. However, according to a recent report, this figure has nearly doubled in the course of constructing the permanent casino. This was corroborated on Monday by WDBJ, which reported that the Danville casino project by Ceasars now hovers around an estimated $750 million.
This new amount is nearly twice the estimated initial investment. Given this surge in capital outlay, the company is reportedly engaging with the city to make modifications to its development agreement.
Deliberations on Changes to the Company’s Agreement with the City
In line with the proposed changes, Ceasars is considering the sale of land between 10 and 20 acres to Danville. If approved by the city officials and the land reverts to Danville, it’s probable that the land will be ear-marked for the development of a new park.
Further amendments to the development agreement could entail a decrease in the minimum employee requirement for the Danville permanent casino project. Initially, the minimum number of employees was set at 1,300, but Ceasars may contemplate reducing this number to 900.
Ken Larking, Danville City Manager, quoted recently by WDBJ, shared his observations on the changing landscape over the last few years. He commented on the modifications in construction methods, workforce composition, and other circumstances that necessitated action. He further noted that they have “collaborated over the past several months to arrive at a mutually acceptable agreement.”
In news related to its financial performance, Caesars recently disclosed its Q1 results, which depicted a decline despite an upswing in iGaming revenue. Caesar’s quarterly report confirmed that its net revenue for the quarter up until 31 March 2024, stood at $2.7 billion. This was a slight dip compared to the $2.8 billion reported in 2023.
The proposed changes to the development agreement between Caesars and Danville have been endorsed by city staff for approval. However, the final decision rests with the City Council. A voting session to decide on the suggested modifications is slated for the City Council’s meeting on Tuesday.
