Forces combine to shrink casino revenue
BILOXI -- The numbers released by the state Tax Commission on Monday confirm hurricanes and the economy were a double blow to Mississippi's gross casino revenue in September.
For the first time since February 2006 the total state revenue fell below $200 million, with combined winnings of $193.3 million from the state's internet casino.
The 11 Coast casinos won $85.6 million in September, down about 23 percent from $112.1 million in August 2008 and $111.4 million in September 2007.
Earnings at the Coast casinos were expected to be much lower because they were closed for four days for Hurricane Gustav. The Silver Slipper free casino was closed for about a week for Gustav and again for Hurricane Ike. However, the river casinos were also down 14.5 percent compared with September 2007.
"The interesting thing about hurricanes, even the threat for one like Ike, is that a lot of drive-in visitors will avoid the Coast in the days preceding and following a storm," said Scott King, director of research at the Gulf Coast Business Council."In the case of this year, the Coast literally experienced a three-week period where potential visitors were spooked by the 'possibility' of Gustav and Ike making landfall here."
Casino revenue historically has decreased in September on the Coast as the summer tourism season ends. This year it was compounded by national economic woes; Coast casinos have been forced to lay off staff.
Legal issues, not the economy, threaten the jobs of about25 dealers who left Hard Rock Casino Biloxi to take jobs at the Seminole Tribe's Hard Rock casinos in Florida. The Seminoles put the expansion of table games on hold while the legality of the compact between Gov. Charlie Crist and the tribe is worked out.
McKenzie said the last of the dealers who were hired for Florida finished working in Biloxi this weekend and none has asked to have his or her resignation rescinded.
The latest figures available from the Mississippi Gaming Commission show there was one more casino, but 263 fewer employees, at Coast casinos in June 2008 compared with June 2007.
Tuesday, Oct. 21, 2008
meperez@sunherald.com
