Biloxi insured for casino losses from Katrina

JACKSON, Miss. (AP) — The city of Biloxi, home to a dozen floating casinos smashed by Hurricane Katrina, took a gamble that paid off.

Two months before the storm struck August 29, the coastal town of 50,000 secured an insurance policy against a catastrophic event like a hurricane disrupting its stream of gambling revenue.

At Mayor A.J. Holloway’s suggestion, Biloxi spent $92,000 on a “business interruption” policy that pays out $10 million.

Casino proceeds account for about a third of Biloxi’s budget. The $10 million policy will cover about six months of lost revenue.

Comments