Casino news from http://www.shreveporttimes.com/
BATON ROUGE -- The Orleans Levee District will ask the Louisiana Gaming Control Board today to strike a clause in Harrah's agreement to sell its two Lake Charles boats to Pinnacle Entertainment.
The sale of the two boats to Pinnacle for $70 million includes a clause that requires Pinnacle to pay an additional $100 million should it attempt to move either boat to Shreveport or New Orleans within the next five years.
The board also will consider Pinnacle's proposal to move one of the Harrah's boats -- The Pride -- from its downtown Lake Charles berth near I-10 to the opposite side of the lake next to Pinnacle's existing L'Aberge du Lac boat.
Both items come up when the gaming control board meets at 10 a.m. today in a State Capitol Building Senate committee room.
Although the Orleans Levee District was not invited to the meeting, district president Michael McCrossen said the board will appear to protest the clause that would cause Pinnacle to pay a premium if it moved a boat to Orleans Parish.
"Our concern is economic discrimination against all the citizens of New Orleans," McCrossen said.
The Orleans Levee District is trying to redevelop the Southshore Harbor on New Orleans' lakefront, where the former Bally's Casino was located. The boat, damaged in the storm, is seeking another berth outside of Orleans. The Levee District hopes to have another boat -- perhaps Harrah's Lake Charles-Star casino, returned to the berth.
Developers have proposed plans for Southshore with price estimates of $250 million to $500 million. "The boat is the lure, the economic engine for the redevelopment of Southshore Harbor," McCrossen said.
The boat would also mean $5 million in annual income to the levee board, which has to pay 35 percent of the costs of Category 5 hurricane protection improvements, he said.
"It is outrageous that anyone would want to stymie the rebirth of a devastated area," McCrossen said.
Harrah's, which negotiated the five-year clause, operates the Canal Street land-based casino in downtown New Orleans. The company is committed to helping rebuild the city, said Anthony Sanfilippo, Harrah's central regional president.
Harrah's New Orleans had minor damage during Hurricane Katrina, but it was closed for more than five months awaiting repairs and finding housing for employees.
"Harrah's Entertainment is a major employer in the city of New Orleans, with over 2,100 team members today," Sanfilippo said. "We are preparing to open our new $160 million hotel in mid-September that will add another 300 team members."
"We are dedicated to the rebirth of New Orleans and will continue looking for opportunities for additional investment in New Orleans," he said.
Harrah's has been negotiating with Pinnacle Entertainment for months over the sale of the Lake Charles boats, both badly damaged in Hurricane Rita.
"We have worked diligently to try to find a solution to a disaster that hit us last year," Sanfilippo said.
State law precludes any more boats from moving to the Shreveport market. State law says no one area can have more than five of the state's 15 riverboat licenses.
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