They're expanding and upgrading their properties. They're reporting higher revenue than before the hurricane — sometimes with fewer customers — as weary construction and relief workers flock here seeking a diversion. Movie theaters, bars and malls remain closed, which have also contributed to the boom in casinos' business.
The casinos' strong performance bodes well for the city because of the thousands of workers employed and the millions of tax dollars generated each year. Their return to this region has also bolstered ongoing recovery efforts, as restaurants and hotels have reopened to feed and house the workers.
UPDATE: the Biloxi Casino Building Boom Article - USA Today Nov 2007
"There's no doubt that (casinos) are the engine driving this train," says Biloxi Mayor A.J. Holloway. "The income coming in has helped us to recover at a quicker pace."
Of the 13 casinos that were severely damaged or destroyed by Katrina on the Mississippi coast, 11 have returned. Holloway expects the number of casinos in Biloxi to more than double in the next 10 years, in part because of a post-Katrina rule that allows them to rebuild 800 feet ashore. Before the storm, Mississippi casinos were required to be on floating barges, which limited their size.
"I want (the region) to be the Las Vegas of the south," says Rick Carter, whose Copa Casino barge was destroyed by the storm. "The better the casinos, the better the economy."
Carter, and his partner, Terry Green, have taken advantage of the state's new rules to build a 100,000-square-foot, land-based casino — the Island View Casino Resort — in Gulfport, directly west of Biloxi.
In New Orleans, casino business has also been brisk, a bright spot in a city where about 60% of the population has returned, and overgrown weeds claim vacant land. Harrah's, the only land-based casino in the city, is on pace to bring in record revenue this year. A handful of riverboat casinos in the area are still benefiting from a post-Katrina boom caused by the closure of other entertainment venues.
Riverboats such as Treasure Chest, docked outside New Orleans, have no hotel and rely primarily on local clients. But Harrah's, which opened a 450-room hotel in fall 2006, is counting on the return of national and international tourists to boost business.
Before the storm, up to 70% of the casino's business came from outside the local area; now, it's 45% to 50%, says John Payne, president of Harrah's central division, a region that includes Mississippi, Louisiana and southern Indiana. While business is strong at the casino, "the reality is that if we want to continue to grow, and the city wants to continue to grow, we need to have more people coming to town," says Payne.
Yet, the resurgence of the gaming industry in the Katrina-affected region could come with a price: higher potential for gambling-related problems in an area where many have yet to recover from the emotional devastation of losing their homes, family members or friends.
Colleen Leonard, program director of the Louisiana Problem Gamblers Helpline, says calls to the hotline are "much more serious than three years ago. Basically, what we're seeing is a lot of people going to the casino to do more escape-type gambling, or to the racetracks," says Leonard. "We have people who called us, and said they have received money" from the Federal Emergency Management Agency, and they lost it gambling.
Wendy Bailey, of the Mississippi Department of Mental Health, says the agency has not seen "a noticeable rise in addiction problems for our citizens" as casinos have rebuilt and expanded.
Still, Dan Ireland, founder of the National Coalition Against Legalized Gambling, believes that "the more gambling you have, the more gambling problems you have, and the more carnage (the state) is going to have to pick up."
Katie Dillon, 53, of Bogalusa, La., goes to Harrah's casino in New Orleans a few times a year. She believes area casinos are helping the city recover after Katrina. But she worries about pick-pocketing around these venues, because people may carry large sums of money.
"It does bring crime — it's not OK," says Dillon.
As more casinos open up along the Mississippi coast, they're also expected to draw clients from New Orleans. Mississippi's casino row — which stretches along Beach Boulevard from Biloxi to Gulfport — is only an hour-and-a-half's drive from the Big Easy.
Wade Duty, executive director of the Casino Association of Louisiana, says that "it's tougher for Louisiana to hang on" because Mississippi now allows its casinos to open on shore. Louisiana casinos can't do the same. Harrah's is the only casino in New Orleans allowed to be on land, as part of an agreement negotiated with the state.
"The future can't be good if (Louisiana casinos are) locked into a model that's not as competitive," says Duty. The casinos are "limited in space, number, stuck on the water."
Corporate investment in Louisiana is also taking a hit. A September 2006 report from Louisiana Attorney General Charles Foti Jr.'s office noted that large gaming companies are selling casinos in the state and investing in Biloxi, possibly so they can develop "bigger, resort style projects."
Brian Sanderson, president of the Gulf Coast Business Council, projects that the Mississippi coast will one day overtake Atlantic City as the number two gaming market in the USA, behind Las Vegas.
In 2006, the Biloxi-Gulfport area ranked 11th among casino markets, bringing in $845.2 million in gaming revenue. New Orleans, meanwhile, ranked 14th, with $696.5 million in revenue.
Area casinos are competing for habitual gamblers such as Pat Harris, 67, of Long Beach, Calif. "Some people like to bake, some people to knit — I gamble," says Harris, a retired teacher who plays slot machines three or four times a month at casinos across the USA.
She has an emotional tie to the Mississippi coast, though, because she lived there in the early 1960s. "When I go back and see the devastation, the only thing I think will bring it back is the casinos," says Harris. For the region, she adds, "casinos in certain areas are an advantage."
It was a record-breaking year for the Coast casinos, when Hard Rock Casino opened two years later than expected, Jimmy Buffett brought Margaritaville to Biloxi, Emeril kicked it up a notch in Gulfport and new projects were measured "with a B."
Billions have been invested in Coast casinos since the storm. The goal for this year's state gross gaming revenue is $3 billion, and a billion-dollar casino is proposed in Biloxi that will test the 800-foot rule for onshore gambling.
At the Southern Gaming Summit in May, Gov. Haley Barbour said he doesn't want gambling to expand beyond the current seven counties. That statement didn't stop opponents of a proposed Choctaw casino in Jackson County from worrying when Beasley Denson was elected the new Choctaw chief in July. Denson said he would look to the will of the tribe rather than this November's non-binding referendum in Jackson County to determine if the Choctaws will pursue a Coast casino.
When the Isle of Capri celebrated the 15th anniversary of casinos in August, Biloxi Mayor A.J. Holloway said the state far surpassed the original projections of six casino boats and $10 million in revenue for the state.
"We don't have paddlewheelers. Nor do we have casinos. We have casino resorts. We have a multibillion-dollar industry."
Casinos contributed more than $800 million in tax revenue to the state and cities in 15 years and Holloway said, "I hate to think where we would be today in this post-Katrina world were it not for the revenue and jobs created by this industry."
Larry Gregory, executive director of the Mississippi Gaming Commission for the past 12 years, thinks of the casinos as children he has watched grow. The state has evolved to one of the top 10 gambling markets in the country, and he's expecting more casinos to come.
Biloxi growth
Casinos have driven the Coast's post-Katrina economy, especially in Biloxi. Every casino in the city expanded or updated, and Hard Rock Casino, two days from opening when Katrina hit, finally got its debut.
Competition was keen for celebrity partnerships, promotions and expansions, yet cooperation among the casinos brought people back to work and moved the Coast to recovery. Players rewarded the casinos with record earnings.
Harrah's Entertainment and singer Jimmy Buffett are partnering to build Margaritaville, with construction to begin in August. Bacaran Bay plans to break ground before the end of 2007 and summer 2008 is the target for groundbreaking at Bayview Casino Resort next to Boomtown on the Back Bay. The Broadwater property has more than 200 acres to develop and spokesman Mark Calvert said they are looking for the right joint venture or sale. A $1 billion casino is proposed on the site of the old Tivoli Hotel, but that location faces rezoning by the Biloxi City Council and having the property declared a suitable site by the Mississippi Gaming Commission.
John Ed Ainsworth is managing partner of Old Bayview, one of the developers of the Bayview Casino, and he's excited about the possibilities in East Biloxi. Once Bayview and Bacaran Bay are built, the development on the Back Bay will equal that on Front Beach and he sees both locations doing well.
Boomtown Casino Biloxi, "the lone rider without any infrastructure," said Gregory, was successful in having the property the company purchased after the storm rezoned to waterfront. That opens the possibilities for an onshore casino rather than the current barge and lodging, although Gregory said it doesn't necessarily have to be a hotel.
Penn National, parent company of Boomtown Biloxi and Hollywood Casino Bay St. Louis, and Harrah's Entertainment are both being sold to private investment groups. What changes that might mean to expansion projects isn't clear, although it hasn't stopped the plans for Margaritaville.
The national press took notice of the record revenue posted each month by the casinos and the celebrities coming to the Coast. Hard Rock Casino and Beau Rivage brought major stars to town and IP Casino teamed with the Mississippi Coast Coliseum to host a Roy Jones boxing match and other events.
The casinos used Katrina as an opportunity to rebuild bigger and better, with signature golf courses, fine restaurants, elegant spas and updated decor. Palace Casino opened a bakery and cafe among its many renovations and Treasure Bay expects to have their hotel tower and CQ restaurant open in September. Isle of Capri moved its corporate headquarters out of Biloxi and away from hurricanes, yet invested millions in the Biloxi casino.
D'Iberville
Site work is beginning at two casinos on the north side of the Bay and residents report that Harrah's is buying property in D'Iberville.
At Royal D'Iberville Casino, Mark Seymour Sr. said, "I've got all the approvals ready to go."
The West D'Iberville Casino being developed by former Las Vegas casino executive Peter Simon is expected to come before the planning commission shortly with site plans, according to D'Iberville City Manager Richard Rose. The casinos will be closer to Interstate 10 than the Biloxi casinos and Rose said the casinos are raising property values and residents are eagerly awaiting the change "on the northwest side of D'Iberville Bay Bridge."
Gulfport
Emeril Lagasse opened his very popular Emeril's Gulf Coast Fish House as part of the Phase II of Island View Casino's project. A third phase is coming south of U.S. 90 in Gulfport with plans for a hotel, more parking, perhaps a boardwalk and other development.
Isle of Capri intends to expand to western Harrison County with a $250 million Pine Hills Casino and development. "We continue to view that as a very attractive property," said Allan Solomon, executive vice president, especially with Go-Zone tax credits and the site's proximity to Interstate 10.
Although Long Beach voters approved casino development in the city, Mayor Billy Skellie said, "No one's been in my office making proposals" on property near the harbor. That is the only site he believes is legal, although there was a developer looking at another site the mayor doesn't believe will meet Gaming Commission approval.
Hancock County
Hardest hit by Hurricane Katrina, Hancock County bounced back with the help of its two casinos.
"It's been a fantastic 12 months," said Bob Davidge, particularly because 900 people were able to go back to work as Hollywood Casino Bay St. Louis reopened.
While plans are being drawn for a hotel and meeting space at Silver Slipper Casino, the resort will have its first on-site accommodations when an RV park opens at the end of August.
The value of casino development was evident when Diamondhead Casino stockholders turned down an offer for
$100 million for its site directly off Interstate 10. Jets continue to fly into the area with major developers aboard who are interested in investing in Mississippi Coast casinos.
Virginia McDowell flew to the Coast for a quick look within days of becoming the new president of Isle of Capri Casinos. "We're working hard," she said, "and we're looking forward."
Mississippi casinos
Here is a statistical breakdown of legalized gambling in Mississippi for the calendar year 2006:
Operating casinos: |
27
|
Casino employees |
26,010 |
| Gross gaming revenue |
$301.6 million |
| Visitor Volume |
35.65 million |
Gross gaming revenue: |
$301.62 million |
|
|
