In Louisiana and Mississippi recently released figures show that both these states devastated by Hurricane Katrina are seeing a revival of fortunes. Casinos may remain closed and gaming revenue hit, but in Louisiana the year 2005 saw a 3% growth in overall gaming win to US$2.23 billion, and Mississippi’s three reopened casinos produced US$14.5 million GGR in their first ten days of business. The result in Louisiana is impressive because for four months the state’s largest and only land-based casino, Harrah’s New Orleans, was closed. It is hoped that the casino will reopen in February in time for Mardi Gras. Pinnacle Entertainment seems to have profited most in the state, picking up the majority of gamblers unable to play at their regular casinos.

Mississippi is also seeing an influx of gamblers returning to the newly opened Gulf Coast casinos. Maybe some are visitors from other states, coming to see for themselves the destruction wrought by Katrina, but many are just the regular players happy to see gaming return. Construction workers in the area are also finding their way into the casinos.

It is estimated that the three casinos in Biloxi that are now up and running have provided work for about 3,000 gaming employees. Before the hurricane struck the Gulf Coast casino industry employed around17,000. The IP Casino barge was reopened on 22 December and the Isle of Capri Casino and Palace Casino, both presently operating smaller casinos in their hotels, opened 26 December and 30 December respectively. Boom Town Casino should open around June, Beau Rivage in August and Treasure Bay by September.

Yesterday the Mississippi Gaming Commission dropped a proposal to allow casinos to include road and sewage systems in infrastructure requirements. It was felt that small neighbourhood lounge casinos could be created if the requirement, to match each dollar spent on a casino with a dollar spent on other leisure amenities, were relaxed to include costs for roads and sewage systems. Mississippi seeks to create more amenities, although the Commission has not ruled out a future change in the infrastructure regulation.

Before the storm daily tax revenues from Gulf Coast casinos amounted to US$500,000. There is a way to go before that sort of figure returns, or market trends can be assessed, but the US$170,000 from taxes generated by the three Biloxi casinos over the first 10 days of business certainly points towards a promising future. (E-01.19.06)

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