Casino Revenues in Area Fall, but Not as Far

Harrah's casino in New Orleans is a prominent player in the local gambling industry, which is facing declining revenues. (Mylan Cannon/ NYT Institute)
In Louisiana, casinos had $2.58 billion in revenue last year, a decline of less than 1 percent from $2.57 billion in 2007, according to a report by the American Gambling Association. Meanwhile, Mississippi casinos recorded a 5.9 percent drop in revenue, from $2.89 billion in 2007 to $2.72 billion last year. Those figures compare to a nationwide drop of 4.7 percent, to $32.54 billion.
“It’s just that people are spending less,” said Larry Gregory, executive director of the Mississippi Gaming Commission. “They’re being tight with entertainment dollars, are eating less and aren’t staying as long.”
The American Gambling Association and Louisiana Casino Association did not return several calls seeking comment.
Louisiana and Mississippi aren’t the only states that have had revenue drops at casinos. Colorado and Illinois had the largest revenue declines at 12.3 percent and 20.9 percent, respectively, according to the report.
Gregory said Louisiana and Mississippi have been able to avoid deeper revenue drops because of their close driving distance from neighboring states. “We would like to be in the positive numbers, but we’re not going to complain,” he said.
To be sure, Louisiana and Mississippi have some of the nation’s largest casinos in terms of gambling revenue. Mississippi casinos in Tunica/Lula and Biloxi rank No. 6 and 8, respectively. Louisiana casinos in New Orleans and Lake Charles rank 14 and 15, respectively.
Still, the casinos in the two states have suffered as consumers cut back spending during the current recession. According to the American Gaming Association, in Mississippi 1,830 jobs were cut last year, leaving 28,740, while in Louisiana 740 jobs were cut, leaving 17,268.
And plans for new casinos have been delayed. Gregory said that in Mississippi Harrah’s Entertainment Inc.’s Margaritaville Casino has been on hold almost a year. And in Louisiana, Pinnacle Entertainment Inc. has delayed its plans for two riverboat casinos in Baton Rouge and Lake Charles by five months.
“The financing numbers are closed right now,” Gregory said. “Until the markets open up and capital comes in, we’re not seeing any new development. That’s critical for any gaming industry to survive.”