Mississippi Coast a casino powerhouse
Analysts and industry figures suggest the planned $5 billion of investments to rebuild Mississippi’s coastal casino resorts will again relegate Louisiana’s gambling outlets to second-class status.
Some picture the Mississippi coast, already one of the nation’s top gambling markets before Katrina, ranking behind only Las Vegas and Atlantic City, N.J., in terms of prestige, size and the number of gamblers within a few years.
Nationally, gambling has picked up after a period of slow growth following the 911 terrorist attacks that sharply cut travel. According to the American Gaming Association, state-licensed casinos won $30.3 billion in 2005, up from $28.9 billion in 2004, $27 billion in 2003 and $26.5 billion in 2002.
“The Mississippi Gulf Coast will emerge as the third-best gaming market,” Danna said. “The amount of capital being spent there makes that market comparable with the best markets.”
Already, despite catastrophic damage from Katrina, business in Mississippi has made a stunning rebound.
The three coastal casinos that have reopened since Katrina grossed a total of $246.6 million from January through April, according to the Mississippi Gaming Commission. That’s more than half of what 12 coastal casinos took in during the same period of 2005.
“It’s really amazing,” said Biloxi Mayor A.J. Holloway. “A lot of people say this is FEMA money and insurance money, but I don’t believe that. We’re getting a lot of people from out of town coming here. The casinos tell me their base is coming back.”
Reaction to destruction of the two states’ gambling industries was a huge contrast and, perhaps, a telling sign why many predict profitable days ahead for the Magnolia State.
Within weeks after Katrina, Mississippi Gov. Haley Barbour got the Legislature to allow casinos on shore. Until now, they’ve rested on barges moored along the beach, though hotels and other amenities were built ashore.
In Louisiana, New Orleans Mayor Ray Nagin’s idea of opening up the city’s downtown area to more casinos went nowhere. Gov. Kathleen Blanco has opposed any gambling expansion.
Andy Holtmann, editor of Casino Journal, a Las Vegas-based trade publication, said if New Orleans wished to challenge the Gulf Coast head-on for gambling tourists, it may have missed its chance.
“Unless everyone shifted gears right now and said ‘Let’s open up New Orleans to casinos,’ it probably would be difficult to compete,” Holtmann said.
Source: AP