Boyd Gaming Takes Majority Stake in Norfolk Casino Development

Boyd Gaming, one of the nation’s largest casino operators, is stepping up to revitalize the long-stalled Norfolk casino project initially spearheaded by the Pamunkey Indian Tribe. According to documents slated for discussion by the Norfolk City Council, Boyd Gaming is expected to become the majority owner of Golden Eagle Consulting, the company created by gambling mogul Jon Yarbrough to partner with the tribe on this high-profile development.

Boyd Gaming Steps In to Lead Project

With Boyd Gaming taking a majority stake in Golden Eagle Consulting, the company is poised to assume the lead role in developing the casino project. The tribe itself will retain an equity stake of at least 20% in Golden Eagle, ensuring its continued involvement in the venture. While the documents do not clarify how Boyd Gaming will acquire its stake or how Yarbrough’s role will evolve, Boyd’s entry is seen as a pivotal move to breathe new life into the project.

Norfolk Mayor Kenny Alexander expressed optimism about Boyd Gaming’s involvement: “Of course, they were struggling to get the project out of the ground. Bringing in Boyd — someone with the ability and the wherewithal and experience and more importantly the financial strength to build a world-class casino resort hotel — is exactly what we need.”

The Norfolk casino project has faced numerous delays despite being the first of its kind announced in Virginia. Although it played a significant role in driving the state’s decision to legalize commercial casinos, the Pamunkey Tribe’s $500 million resort casino has made little progress. In contrast, Rivers Casino in nearby Portsmouth has been operational for over a year, and additional casinos are set to open in western Virginia later this year.

Reviving a Delayed Vision

Boyd Gaming’s takeover is expected to expedite the development process, with the company managing the financing, construction, and operations of the casino. There is even speculation that the project might be rebranded under a new name as Boyd takes the helm. The partnership between Boyd Gaming and the Pamunkey Tribe aims to fulfill the vision for a world-class casino resort in Norfolk, benefiting not just the tribe but also the city and the state.

Boyd Gaming and the Pamunkey Tribe confirmed their collaboration: “Boyd Gaming has started the process required to help the Tribe bring its vision to fruition, in a way that will deliver meaningful benefits for the Tribe, the City of Norfolk and the Commonwealth of Virginia.”

The revised development agreement, which will go before the city council, includes an updated timeline that targets a construction completion date of September 2027. However, the project faces a critical deadline: if the tribe fails to open at least a temporary casino by November 2025, the state license and the voter referendum authorizing the project will be void. This scenario would force the city to request a new voter referendum from the General Assembly, delaying the project by at least another year and potentially jeopardizing its future.

Historical Context and Ongoing Challenges

The Pamunkey Indian Tribe has been the city’s preferred developer since the project’s inception. The tribe partnered with Jon Yarbrough, a billionaire venture capitalist, in 2017 after gaining federal recognition, which allowed them to pursue casino operations in Virginia. Yarbrough, who made his fortune in video slots, provided significant financial backing through his company, Golden Eagle Consulting. His contributions included a $20 million loan to the tribe and a commitment of hundreds of millions more to finance the casino’s construction.

Despite these initial investments, the project has struggled to gain momentum. Plans presented to the city last year were rejected because they proposed a phased approach — building the casino first and the hotel later. This phased plan was not in line with what Norfolk voters approved in 2020, leading to further delays. In January, the tribe submitted new plans, only to withdraw them shortly afterward. The withdrawn proposal included a 65,000 square-foot casino, several restaurants, a 12-story hotel, and a spa and fitness center, though it notably omitted a marina on the Elizabeth River that had been part of earlier designs.

The continued delays have raised concerns among city leaders and state officials. Norfolk Mayor Kenny Alexander previously expressed worries about the project’s timeline, stating, “It gave us concern that [Golden Eagle was] running out of time to meet their obligation to secure a license. It gave pause and concern that they had not submitted a full set

Source:

”The Pamunkey Tribe will bring in one of the nation’s largest casino operators for Norfolk project”, whro.org, September 03, 2024.