Gulf Coast Gambling Comes Ashore

The post-Hurricane Katrina recovery continues along the Gulf Coast, and the gaming industry is gaining ground – literally.

Onshore casinos used to be anathema in the Bible Belt state of Mississippi, but Katrina was a catalyst to legislation that has allowed gaming halls to sprout legs. Biloxi officials have recognized them as the city’s key economic engine, according to The Wall Street Journal, and onshore facilities play a significant part in the rebuilding effort.

Biloxi Mayor A.J. Holloway told the WSJ he predicts the number of casinos in the city will double – not only reviving the area but positioning Biloxi as a major tourist destination.

“The storm, in a sense, kind of cleared the slate,” Harrah’s Entertainment CEO Gary Loveman told the paper. His company is preparing to square off with main competitor MGM Mirage as they build luxury casino complexes in the city.

Harrah’s Gulfport casino barge was damaged by Katrina and sold for a reported $55 million. The company struck a deal with Pinnacle Entertainment, which had a damaged casino of its own, and traded Pinnacle’s Casino Magic barge for two of its gambling riverboats in Lake Charles, La., and $25 million, the WSJ said.

MGM Mirage has invested more than $750 million to rebuild the Beau Rivage Resort & Casino to its former splendor, according to The Clarion Ledger, while Harrah’s Entertainment is proposing a $1 billion project on the coast. Premier Entertainment continues rebuilding efforts on the Hard Rock Casino. A proposed joint venture between Trump Properties and Diamondhead Casino Corporation would cover at least 40 acres on the shore near Diamondhead, Miss.

Five casinos are currently open on the Gulf Coast. Casino revenues posted by the Mississippi State Tax Commission for the coastal counties showed more than $65 million in gross gaming revenue in June. There’s still a ways to go to get to pre-Katrina income, which averaged more than $100 million a month.

Holloway told the WSJ Biloxi’s future depends on companies like Harrah’s and MGM. Their investments in the community could make it a destination much like Atlantic City or Las Vegas.

“In five to 10 years, I think we could see 18 to 20 casinos here,” he said.