Harrahs Biloxi
The situation is worse in Biloxi, where management indefinitely postponed a potential $1 billion redevelopment project. I think a big part of the issue there is that Harrah’s Grand Casino Biloxi is located at the eastern tip of Biloxi, at the base of the U.S. 90 bridge. That bridge was obliterated by Hurricane Katrina, leaving the Grand and the neighboring Isle of Capri stranded at a dead end a few miles from the main I-110 entrance to the market, and competing from a difficult position. The Isle of Capri, in fact, has reportedly laid off 200 workers.
The property sitting at the end of I-110 is MGM Mirage’s Beau Rivage — basically a smaller version of Bellagio but without the dancing fountains — which doesn’t help matters. While the U.S. 90 bridge is out, the burden would be on Harrah’s to build a reason to drive past Beau Rivage. And that’s a losing proposition.