A proposed casino in Tysons – economic benefits vs. social ills

Supporters of a casino in Tysons spoke about the economic benefits from the tax revenue at a forum on Jan. 7 hosted by the Fairfax County NAACP. The lone panelist against a casino argued it would promote crime and other social ills and would not lead to economic growth.

Earlier that day, Virginia Majority Leader Scott Surovell (D-Mount Vernon) introduced legislation in the state Senate to add Fairfax County to the list of localities authorized to host a casino.

While the measure doesn’t mention Tysons, it says sites considered for a casino must be located within a mile of a Metro station on the Silver line and be part of a mixed-use project of at least 1.5 million square feet, within two miles of a large regional mall, and outside the beltway.

A huge project proposed

Comstock Holding Cos. Inc. is proposing a 6 to 8-million square-foot mixed-use development to include a casino, convention center, hotel, performing arts center, and multifamily housing at the Spring Hill Metro station in Tysons.

If Surovell’s bill passes, Fairfax County could hold a public referendum on a casino, although the Board of Supervisors hasn’t taken an official position on whether it will do so.

At the forum, Comstock Vice President for Development John Harrison said Virginians spend about a hundred million dollars at casinos in Maryland.

“Fairfax County needs the tax revenue,” said Terry Clower, director of the Center for Regional Analysis at George Mason University. The commercial tax base is facing slower growth, which means the county will need to raise the tax rate and is likely to impose a meals tax.

According to Clower, the taxes generated by the casino and an entertainment complex could reduce the tax burden on residents.

Most of the gaming revenue would go to the state, but the tax revenue from the other components of the project would benefit Fairfax County.

Union jobs

Lynn Mulston, chair of No Fairfax Casino, a coalition of 27 community associations and HOAs representing over 50,000 voters, said, “a casino in Tysons would be bad for the community fiscally, economically, and socially.”

The project would create an unprecedented opportunity for blue-collar workers to enter the middle class, said Virginia Diamond, president of the Northern Virginia Labor Federation.

NOVA Labor negotiated an agreement with Comstock to allow 5,000 workers on the project to unionize and thus push for higher pay. “This would be transformational,” Diamond said. “It would create a complete change in the fabric of Fairfax County for immigrants and blue-collar workers.”

“We started our relationship with organized labor very early in the process,” said Harrison. “We are committed to be a real game changer for the community.”

Gambling addiction

The economic benefits from a casino would not offset the social costs of crime and gambling addiction, Mulston said. “Every tax dollar gained from a casino is accompanied by three to five dollars in social costs.”

She cited data from the Prince George’s County Police Department showing a 14,641 percent increase in the number of offenses in a three-year period around National Harbor after the MGM casino was built.

If a casino is developed in Tysons, Mulston predicts at least 5 to 10 percent of regular visitors will develop gambling addictions, leading to financial distress for families and broken homes.

She cited the case of a young man who placed a $10,000 bet on the Stanley Cup, lost, and kept on gambling to try to win it back. He ultimately committed suicide.

Mulston also cited problems with traffic and drunk drivers. Casinos are open 24/7 which would put unsuccessful gamblers with road rage on the road in the early morning when kids are heading off to school, she said.

According to Clower, “just 1 to 2 percent of the population are problem or compulsive gamblers.” There are so many other ways to feed the habit, such as sports betting on a phone. “I don’t think we’ll see a shift in gambling problems here; 30 percent of the people at MGM are there for the entertainment, not gambling.”

“In any entertainment venue, it’s not uncommon to have some increase in property crime, like purse snatching,” he said.

“A high-end entertainment resort casino is probably the safest place to gamble,” Harrison added. “A regulated gaming facility has cameras everywhere. Criminals realize that and go somewhere else.”

Related story: Casino bill off the table – at least for 2024

In response to questions about how the county would use revenue from the non-casino components, Clower said, it would be part of the general budget and distributed like any other resources. He recommended against dedicating the funds to a specific use, such as education, as that limits flexibility.

“The proposed tax revenue is miniscule compared to the [$3.7] billion school budget,” Mulston said. Besides, when funds are earmarked for schools, other funds are often shifted away from education.

Clower does not expect Fairfax County to provide tax incentives for the casino. There might be public-private partnership for the convention center, though, Harrison suggested.

“While we are not in dire economic straits, we have more threats and challenges building on the horizon,” Clower said. “We can no longer rely on office development.”

Mulston said, “The county can enjoy good jobs and tax revenue through an entertainment district without a casino.”