Hitting the mark
Holiday was good for casinos
BILOXI - Beau Rivage packed people in, while the IP more than held its own.
The skyscraper casino resorts on each end of Caillavet Street stayed busy until the early morning hours of Sunday and Monday over the holiday weekend.
The parking lot at Boomtown was full. But on Casino Row, late crowds were sparse at the Grand Casino, the Isle of Capri and the Palace.
With eight casinos now open, Labor Day weekend was a benchmark. Casino executives and analysts are keeping a close watch on the Coast to see how the market shakes out. If history repeats itself, the market will grow instead of cannibalizing itself as new casino resorts come online.
Paul Girvan, a partner with The Innovation Group, which provides feasibility studies and market analysis for casino developers, said he expects the Coast market to surpass its old levels.
“My impression is that this market is going to come back fairly rapidly,” Girvan said. “Obviously moving forward, we’ve got a lot of huge developments coming in, which have the potential to push this market up to the $2 billion level by the end of this decade.”
That would be a 60 percent increase over pre-Katrina revenues.
For now, Beau Rivage and the IP are Biloxi’s big players with the most hotel rooms, slots and table games. The weekend after its opening, the Beau had its first million-dollar winner. A Slidell woman, who opted not to be publicly identified, hit the jackpot after putting $5 in an Aristocrat Penny Millioniser slot machine.
The IP didn’t seem to suffer with the Beau’s opening. Scott King, who teaches casino management for Tulane University, said he expects some settling in the market now that summer is over. Business typically slows until New Year’s Eve.
“Casinos like the IP, they’ve prepared for that settling,” King said. “They’ve buoyed themselves by separating themselves from competitors. I’m not saying bad things about their competitors. I’m saying good things about the IP because they’ve done a good job.”
The IP was the first to reopen and has dominated the market until now. The casino shortened its old name, Imperial Palace, to IP and transformed itself into a swanky new property.
Jon Lucas, IP president and general manager, said he was very happy with the weekend numbers even though the Beau’s reopening did have some impact. With bars, nightclubs and restaurants throughout its hotel and casino, the IP is a late-night spot that offers a multitude of options. Its buffet is even open 24 hours.
He said his property is ready for new competitors.
“History and research tell us that customers will want to go to more than one property when they visit,” Lucas said. “Based on how we repositioned this property, we’re hoping we will get one of those visits.”
In November, the IP has booked a Cirque-style show for 12 days that has played in Atlanta and Foxwoods Casino in Connecticut. Longer term, the casino is looking to add a 1,500-seat entertainment venue and build an elevated, land-based casino.
The Beau is bringing in a series of entertainment heavyweights, beginning with Jay Leno on Saturday. It will open its new Fallen Oak golf course in November and three new restaurants in December.
The three properties on Casino Row, which were the first ones visible to motorists driving in from the east before Katrina destroyed the Biloxi-Ocean Springs Bridge, are now at the end of the road. King said they could still create a cluster of energy to draw gamblers. Harrah’s Entertainment, the parent company of the Grand, is buying the old Casino Magic property and has said it will make an announcement later this year about its plans.
In Hancock County, Hollywood Casino opened on Thursday and had the market there to itself. That will change with the Oct. 31 opening of the Silver Slipper.
In Gulfport, Island View will open on Sept. 18. Treasure Bay in Biloxi is expanding its gambling space this autumn.
The Hard Rock Biloxi, which was derailed by Katrina the week of its opening, has set a July 4 opening date.
By TOM WILEMON
tewilemon@sunherald.com