At Least a Third of Mississippi's Casinos Still Shut Down by Katrina

When Hurricane Katrina roared through the coastal towns of Mississippi, it not only destroyed homes, schools, and infrastructure that will take years and billions of dollars to rebuild. It also picked up many of the state's casinos and tossed them ashore, severing a fat revenue stream that had poured into state and local governments, and left thousands of casino employees unemployed.

Twelve casinos had been located on the Gulf Coast in Biloxi and Gulfport. Casino barges were swept hundreds of yards ashore, while windows of the land-based hotels were completely blown out. Now, all coastal casinos are closed and will remain so for an undetermined amount of time. Half will need to be rebuilt, and the rest suffered extensive damage.

The Gulf Coast was home to about a third of Mississippi's 31 casinos. The casinos in Tunica, which is on the Mississippi River in the northwest corner of the state and is the home to nine casinos, survived the storm unharmed. The rest of the casinos, located in towns along the Mississippi River, also went unharmed.

Before Katrina, the casinos generated about half a million dollars in tax revenue each day. According to a report prepared by the Mississippi Development Authority/Tourism Division, Mississippi's gaming industry revenue's hit $2.7 billion in 2004. Of that, $332 million was given to the state as taxes, with $221 million going directly to the state and the rest redistributed to local and county governments. Approximately 78 percent of the tax revenue was generated by tourists.

Casinos have been in Mississippi for the last 15 years, making Mississippi the third-largest gaming area in the country, behind Las Vegas and Atlantic City. Casinos in Mississippi have to be moored on water by law, but the industry is pushing for that to change.

The hurricane also put 14,000 casino employees out of work. Some companies, like Harrah's, Penn National, and MGM Mirage, are keeping their employees on their payrolls until at least November 1, and have established emergency employee funds.

MGM Mirage quickly announced plans to rebuild its Beau Rivage Resort in Biloxi. In fact, it already put some of its employees to work at the site, preparing it to be rebuilt. The company had invested $800 million in the property before the storm.

When the casinos rebuild, they will be able to sink their pylons deep into soil. On Oct. 4, the Mississippi State Senate approved a bill to allow the casinos to rebuild 800 feet from the waters edge. The bill has to be signed by the governor, who said he will.

- Bob Pajich

Most Viewed Articles