The recent American Gaming Association and G2E Institute investigation into the state of recovery by the Gulf Coast shows that although many experts consider the economic resilience shown has been better than anticipated, problems with the housing market and affordable insurance remain. The gaming industry is perceived as having made a major contribution to getting the Gulf Coast economy back on its feet.

Harrah’s Entertainment is to build a new casino in Biloxi, Mississippi. The project will be next to the Biloxi Grand Casino and a full announcement is expected next month. In neighbouring Louisiana the company has noted changes to Harrah’s New Orleans Casino operation, the only land-based casino in the state. Business is good but the revenue is now 80% from local residents whereas before the hurricane 60% came from tourists to the area. This suggests that New Orleans at least has yet to recover as a popular tourist destination.

In Mississippi a decision taken following the devastation of Hurricane Katrina to allow casino operators to site their casinos on land is seen as having a significant impact on the growth of the market by attracting more convention business. However, growing competition from other jurisdictions is regarded as a potential challenge. The casino industry is expected to see further expansion on the Gulf Coast in the next 5 to 10 years and in general there is optimism that tourist numbers will be greater than before the hurricanes wrought havoc. (E-04.12.07)

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