The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Sunday, December 11, 1994              TAG: 9412090314
SECTION: VIRGINIA BEACH BEACON    PAGE: 06   EDITION: FINAL 
                                             LENGTH: Medium:   75 lines

GAMBLING AT DOCKSIDE IS BEACH'S BEST - ONLY? - BET

In the wake of Virginia Beach's loss of the commonwealth's only thoroughbred horse-racing venue, politicians and business leaders have been aggressively lobbying to secure a riverboat gambling berth.

On the surface it appears that riverboat gambling would provide both a complement and stimulus to the Virginia Beach tourism industry; however, a hasty decision to support the legislation that is currently envisioned would be to the detriment of our burgeoning resort industry and tax base for the citizens.

Quite possibly, in fact, it would be in the city of Virginia Beach's best interest to oppose the proposed legislation that would permit riverboat gambling.

Currently, the proposed legislation anticipates several riverboat sites throughout Hampton Roads, all of which would be more conducive than any location in Virginia Beach to smoother passage for larger ships. That would mean more operating days for greater numbers of passengers, translating into more revenue for the proposed riverboat operators.

The only hope that Virginia Beach could possibly have to remain competitive in the gaming industry within Hampton Roads would be if the legislation allowed for a ``dockside provision,'' whereby the riverboat would not be required to sail. The resort guest could visit the ``riverboat'' on days when rough seas would otherwise discourage spending a few hours on the boat eating, drinking and gambling.

Including a dockside provision in the enabling legislation would encourage more qualified riverboat-gambling operators to pursue a Virginia Beach location: They would be assured of both a healthy market in which to attract their clientele and an equal number of days to operate, thereby placing us on a level playing field with the other cities in Hampton Roads.

If the General Assembly enacts the legislation without the dockside provision, the Virginia Beach visitor (whom the city has spent millions of dollars to attract) on a great percentage of the potential operating days would flow along with his tax dollar to our competitive cities. Recognizing this as a reality, the most sought-after riverboat gambling operators and owners would seek first to locate in any market other than Virginia Beach. Consequently, Virginia Beach, even if selected as a riverboat site, would offer a riverboat gambling experience inferior to what would be found in neighboring cities.

The argument many Virginia Beach businessmen continue to deliver is that the ship-building industry has designed riverboat-gambling vessels that are capable of providing safe and comfortable transport across the Atlantic Ocean. Weather and rough seas would not be an impediment to their operation. While certainly the ship's design might accommodate our blustery northeasters, the question would remain: Even if the boat could challenge the ocean, would a prospective client wish to embark upon that voyage as opposed to a more leisurely cruise down the Elizabeth, James or Potomac rivers?

I would also assert that if in fact there are ``riverboats'' that could provide a first-quality experience on the Atlantic Ocean, then Virginia Beach should work aggressively to defeat the riverboat-gambling bill. With the bill's defeat, the city could become the sole proprietor of the riverboat gambling industry in Virginia simply by sailing those ships from Virginia Beach to the very close legal offshore limits in which the gambling industry is now permitted to operate. Offshore gambling flotillas currently exist very successfully in Florida, where gambling legislation was recently defeated.

If an accommodation to the existing legislation cannot be made to allow Virginia Beach to compete fairly with other cities throughout the commonwealth, particularly in Hampton Roads, then I believe the leadership of Virginia Beach should reconsider any affirmative action with respect to supporting the proposed riverboat-gambling legislation.

Bruce L. Thompson

Atlantic Avenue MEMO: Mr. Thompson is president of Hospitality Resources Inc. in Virginia

Beach.

by CNB