Casino news source: Clarion Ledger = http://www.clarionledger.com/
Casinos may hit $3B mark
- 2006 termed OK despite Katrina
By Kevin Richardson
krichardson@clarionledger.com
Mississippi's rebounding gaming industry is expected to top $3 billion in revenues in 2007, setting a new record for the state, gaming experts said Friday.
With several record-setting months, Mississippi's casinos are on pace to top last year's annual revenue of $2.47 billion.
"We should be at $2.6 billion by the end of December," said Larry Gregory, executive director of the state Gaming Commission.
The best year was $2.77 billion in 2004.
Mississippi's casinos took in $221 million in November, setting a record for the month.
The previous high was $217.9 million in November 2004.
Properties along the Mississippi River, which include Tunica and Vicksburg, earned $125.27 million last month compared to $125.35 million in October.
Coast casinos saw an increase in November, earning $95.82 million last month compared to $92.16 million in October.
The numbers are being achieved with fewer casinos than before Hurricane Katrina shut down the industry on the Mississippi Gulf Coast on Aug. 29, 2005, Gregory said.
Ten properties are open on the Coast compared to the 12 that were operating when Katrina hit. Gregory also said 40 percent of Coast hotel rooms are not being used.
"This trend of record-breaking earnings appears to be consistent. I think we are really going to see the numbers increase in the first quarter of 2007," he said.
Denise von Herrmann, who chairs political science at the University of Southern Mississippi, said she expects gaming revenue to top $3 billion next year and three to four new properties to open on the Coast.
Gregory said 2007 will be a year of evaluation and 2008 a year of construction.
"I have had more developers in my office showing me blueprints for what they want to do." he said.
Mississippi could surpass Atlantic City as the second-largest gaming market, but it will be a challenge, von Herrmann said.
"One of the things New Jersey has is the proximity to large urban areas like Philadelphia and New York," she said.
Tunica draws from Memphis, but no other major cities are close to gaming facilities.
Developing stronger air traffic will be essential for growth of Tunica and the Gulf Coast, Herrmann said.
Webster Franklin, executive director of the Tunica Convention and Visitors Bureau, said the group is in talks with major carriers to bring flights into the local airport.
A short-lived program of direct flights to Atlanta ended when Pan-Am ceased operations in Atlanta.
Franklin said 90 percent of visitors to Tunica are from outside the state.
Von Herrmann said expansion will depend on whether casinos can develop a loyal customer base.
"Customers who have been since Hurricane Katrina (must) come back," she said.
Gregory said Tunica and the Coast are going to have to capitalize on the convention market and air traffic.
Franklin said the Tunica market recently held several large conventions, including the Southern Gaming Conference and that of the Mississippi Municipal League.
Von Herrmann said if neighboring states - Alabama, Florida or Texas - approve casino-style gaming, it could derail Mississippi's efforts, especially on the Coast.
And there is one more potential problem: "Another storm," she said. |
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