New Orleans in the American South has a long history of gaming. In the 1800s the city was considered the gambling capital of the country and in more modern times has seen plenty of action. After a land-based casino licence in the city was won in a bidding war by Harrah’s, the company faced two bankruptcies mostly due to the excessive gambling taxes it had agreed to. Nowadays it is only during Mardi Gras that New Orleans’ casinos are quiet.

In the Louisiana southwest, Isle of Capri Casinos Inc has nearly 49,000 sq ft of gaming floor on two dockside boats at Lake Charles. The company’s plan to move to a Mississippi River site in Elmwood near the Huey P. Long Bridge in New Orleans has received a setback from the Jefferson Parish Council. A unanimous vote against the proposal has been registered by the council, but Isle of Capri does not intend to give up the fight and will lobby council members.

The vote was non-binding, having no authority in law, and need not influence a future vote, but it does demonstrate considerable opposition to the scheme. Gambling and tourism tax revenues form a ‘discretionary fund’ and the Jefferson Parish Council has also voted to broaden the use of the money from road and drainage projects to include recreational funding.

Isle of Capri operates two of the four gambling boats in Lake Charles but Pinnacle Entertainment is to open the large L’Auberge du Lac casino resort there in the spring. Should Isle of Capri ever gain permission for the move, the company says it would provide employment for around 650 people as well as considerably increase tax revenues for Jefferson Parish. Critics of the plan argue that an additional gambling site would merely reduce revenues from local casinos in Kenner and Harvey. The Isle of Capri President and CEO, Tim Hinkley, disagrees, saying that the market in New Orleans could sustain a fifth casino. The other two casinos in New Orleans are the land-based Harrah’s and Bally’s casino boat.

The Council defended its anti-gambling decision, even though it had previously allowed a Marrero truck stop to install up to 50 video poker machines, saying, “You can’t compare a truck stop to a casino.” Isle of Capri will now meet with council members to evaluate the political climate before they decide whether they should make a public presentation of their proposal, and in the meantime continue with their refurbishment of the Crown in Lake Charles with the aim of making it more competitive. (E-01.13.05)

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