City officials report casino revenue surge post opening with projected $30M tax boost

The Danville City Council meeting on February 18, 2025, focused on the financial impact of the newly opened Caesars casino and its implications for the city’s budget. City officials reported a significant increase in net gaming revenues since the casino's full opening, with monthly revenues rising from approximately $19 million to over $28 million in December and January. This surge has resulted in an increase in tax revenues for the city, with combined payments from Caesars and the state averaging between $1.5 million and $1.7 million per month.

City Manager discussions highlighted that projections from casino consultants estimated the casino could generate around $32 million in gaming tax revenue annually. Current trends suggest that the city may receive about $30 million based solely on initial revenues, not accounting for additional taxes from lodging, meals, and sales.

Despite the positive revenue outlook, council members expressed concerns about rising expenditures. The city has seen increased costs in labor, materials, and inflation, leading to a projected budget surplus of $2 to $3 million by year-end, which could be allocated to the city's rainy day fund unless otherwise appropriated.

Additionally, the council discussed the funding process for local schools, noting that while the city fronts the necessary funds, these are often reimbursed through state and federal grants. This year, the city is running ahead of budget in this area, but the reimbursement will balance out over time.

Overall, while the casino's opening has brought a financial boost to Danville, city officials emphasized the need for ongoing monitoring of revenue trends and expenditures to ensure long-term fiscal health.