Virginia's casino expansion bill divides lawmakers and gaming giants
Virginia lawmakers have passed two gaming expansion bills, including one that could bring a casino to Fairfax County. Governor Abigail Spanberger now has 30 days to decide on Senate Bill 756, which faces strong opposition from major gaming firms like Churchill Downs and MGM Resorts International. The bill's fate remains uncertain as the governor has yet to take a public stance on the measure.
The Fairfax County casino bill sets strict limits on gaming operations. It caps the total number of machines at 35,000, with no more than four per location, and includes other rules that could shrink the potential market. These restrictions have drawn criticism from industry players, particularly Churchill Downs, which has already seen its stock drop by 23.40% this year due to Virginia's gaming legislation.
Analysts have noted mixed signals for Churchill Downs. While the company opposes iGaming—a move seen as beneficial after Virginia deferred related legislation—it also faces challenges from the Fairfax County bill and new skill games laws. Stifel analyst Jordan Bender highlighted these as key headwinds but still called Churchill Downs one of the gaming industry's top growth stories. The company's strong acquisitions and high-return expansion projects have kept investor interest alive. Despite recent stock declines, Bender argued that Churchill Downs' valuation remains justified. The firm's unique growth drivers and asset portfolio set it apart from competitors. Meanwhile, as the Kentucky Derby approaches, the analyst suggested the company's shares could see a boost in the near term.
Governor Spanberger's decision on the Fairfax County casino bill will shape Virginia's gaming landscape. If signed, the law would introduce new restrictions, affecting companies like Churchill Downs. The governor's choice—whether to sign, veto, or amend—will determine the next steps for casino expansion in the state.
