Third BR casino would take toll, says Casino Rouge

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Message was posted: 08:02 Sep 14th, 2006

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Jon Zimmerman, general manager of Casino Rouge, says if Pinnacle Entertainment decides to put a gambling boat in the Baton Rouge market either his casino or the Belle of Baton Rouge will likely be forced to leave. Zimmerman bases his prediction on research by LSU economist Loren Scott that concludes Baton Rouge isn't a big enough market to support three casinos, even after post-Katrina population growth. "It likely would result in one of the existing boats going out of business," Zimmerman says. "Clearly that's not in the best interests of the city or the state." Scott raised the possibility both existing casinos could be forced to flee, though Zimmerman doubts that would happen. He says Pinnacle's business model uses many non-gaming amenities to draw customers, and speculates the company won't enter the Baton Rouge market unless it's confident it can knock out at least one of the other boats. According to Zimmerman, although Casino Rouge has been undergoing a $9 million renovation it has managed to maintain between a 55% and 57% market share against the Belle of Baton Rouge.

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