Why Winchester?

Why would the City of Winchester explore a casino development?

The Winchester EDA's core mission is to facilitate sustainable tax growth and provide residents new opportunities for economic opportunity. To accomplish this, the Winchester EDA takes into account historical, current, and projected economic conditions to ensure stakeholders have all data necessary to make informed decisions to positively impact Winchester's future generations. Exploration of a casino concept is not occurring in a vacuum, but instead in the context of other proactive economic development programs such as the Neighborhood Design Districts (NDDs) and business growth incentives offered through the revamped Enterprise Zone (EZ).

When exploring new developments, the Winchester EDA must take into account both the current conditions but also what the City may look like in 10, 20, even 50 years. 

Winchester is a unique city. Our economy is currently healthy, but the Winchester EDA recognizes the significant, long-term difficulties posed by internal and external factors, including:

Inflation

• The cost of providing high quality goods and services for residents continues to rise. Federal and State policies contribute to an environment of rising costs faced by the City. Additionally, well financed neighboring jurisdictions such as Loudoun and Fairfax Counties directly contribute to rising costs in the region. Exploring alternative tax revenue sources is vital to reduce the individual tax burden faced by citizens.

Change in traditional Winchester-based industries

• Winchester was built on a rich manufacturing heritage with large growth in retail sectors sustaining the City since the 1980s. Nationwide economic trends indicate long-term reductions in the manufacturing and retail sectors as spending habits and economic conditions change. Winchester's commercial backbone will look different in the coming decades. It is important to proactively prepare, not wait until it has already occurred.

Inability to expand beyond current borders

• Winchester is 9.3 square miles. In 1987, the Virginia General Assembly placed a moratorium on city-initiated annexation. The borders of the City of Winchester will not grow beyond their current position. Maximizing the efficient use of the limited land available is necessary to ensure long-term economic health. 

Limited undeveloped land within current borders

• Winchester was founded in 1744. The majority of land within Winchester's current borders have been previously developed for specific uses. Redeveloping purposed-developed land is expensive. For example, the expected private investment to redevelop Ward Plaza, once heralded as the "future of retail" when originally developed in the 1960s, is approximately $180 million with an additional public investment of $30 million. Lack of undeveloped land limits the types of industries able to expand into Winchester. Casino developments in Virginia such as Danville and Bristol redeveloped under-utilized retail sites with relatively small footprints (20 to 90 acres).

Taxpayer cost to subsidize traditional development(s)

• Why not a standalone convention and entertainment center without a gaming component? In the last twenty years, the City of Winchester has initiated three studies to explore the creation of convention and entertainment centers. All three studies indicated significant market need for these types of spaces, but in each instance, the development would require significant subsidization from taxpayers. This would mean either increasing costs on taxpayers or a reduction in services currently provided to accommodate the financial needs of a standalone convention and entertainment center.
  • Economic incentives play a pivotal role in securing new industries in a competitive market environment, only when the long-term benefit of new industry outweighs the short-term costs of subsidizing development. The cost of a standalone convention and entertainment center to taxpayers would outweigh any benefit received. The addition of a regulated gaming component (casino), would eliminate the need to subsidize the development of a convention and entertainment center because casinos are ineligible for economic development incentives by State code. 

Over reliance on property taxes to finance services

• The FY26 operating budget for the City of Winchester totals $120.5 million. General property taxes serve as the primary funding mechanism for the operating budget (48% in FY26). As Winchester's manufacturing and commercial base changes, tourism decreases across the State, and rising costs deter individual consumption, general property taxes will remain the only consistent source of tax generation for the City. This places a strain on Winchester's citizens and negatively impacts cost of living. Developments like casinos provide opportunities for tax revenue generation paid by corporations and individuals who do not live within the City of Winchester while encouraging regional job growth. 

Last updated 12/17/25