The casino project in Norfolk, Virginia, by the Pamunkey Indian Tribe and the Cordish Companies, has cleared a major legal hurdle after a federal appeals court upheld the dismissal of a lawsuit filed by a rival developer.
Lawsuit Challenged the Casino Selection Process
The lawsuit was filed by B&B Amusement of Illinois, which had proposed a casino project in Norfolk with the Golden Nugget brand. B&B Amusement claimed that the city of Norfolk had violated its own procurement rules and the state law by selecting the Pamunkey-Cordish project without a competitive bidding process. B&B Amusement also alleged that the city had engaged in fraud, conspiracy, and breach of contract.
The lawsuit sought to invalidate the city’s agreement with the Pamunkey-Cordish project and to award damages to B&B Amusement. The lawsuit also named the Pamunkey Indian Tribe, the Cordish Companies, and the Virginia Lottery Board as defendants.
District Court Dismissed the Lawsuit in 2023
In September 2023, U.S. District Judge Arenda Wright Allen dismissed the lawsuit, ruling that B&B Amusement lacked standing to sue and that the city had acted within its authority to select the casino project. Judge Allen also found that B&B Amusement had failed to state a plausible claim for relief.
B&B Amusement appealed the decision to the U.S. Court of Appeals for the Fourth Circuit, arguing that the district court had erred in its analysis and that the lawsuit had merit.
Appeals Court Affirmed the Dismissal in 2024
On March 4, 2024, a three-judge panel of the Fourth Circuit affirmed the dismissal of the lawsuit, agreeing with the district court that B&B Amusement had no standing to sue and that the city had not violated any law or contract. The appeals court also rejected B&B Amusement’s arguments that the district court had overlooked or misinterpreted certain facts and evidence.
The appeals court concluded that B&B Amusement had not shown any injury or harm caused by the city’s selection of the Pamunkey-Cordish project and that the city had followed a lawful and transparent process to approve the casino project.
Casino Project Can Proceed After Court Ruling
The court ruling means that the Pamunkey-Cordish project can proceed without any further legal challenges from B&B Amusement. The project, which is expected to cost $500 million and create 2,500 jobs, has already received the approval of the Norfolk City Council, the Virginia Lottery Board, and the voters of Norfolk in a referendum held in November 2023.
The project, which will be branded as Live! Casino & Hotel Norfolk, will feature a 300-room hotel, a 3,000-seat entertainment venue, a sportsbook, a spa, and a variety of dining and retail options. The casino will offer 2,000 slot machines, 120 table games, and 30 poker tables.
The project will also benefit the Pamunkey Indian Tribe, which is the only federally recognized tribe in Virginia and has ancestral ties to the Norfolk area. The tribe will own the casino and receive a portion of the gaming revenue, which will help fund its social and economic programs.
The project is expected to break ground in late 2024 and open in 2026.
