Mississippi Gaming: Rebirth of Casinos Lifts Spirits

When three casinos on Mississippi's Gulf Coast reopened in late December, the region's convention and visitors bureau got the post-Hurricane Katrina boost it needed.

The reopening of the devastated Biloxi casinos — the Imperial Palace Biloxi, Palace Casino Resort and the Isle of Capri Casino Resort — represented "a huge step," said Hannah Silkman, manager of media relations for the Mississippi Gulf Coast Convention & Visitors Bureau. "That was just a huge morale booster for our local market."

It also provided a hefty addition to the state's tax coffers. But what it means for the region's once-thriving tradeshow and meetings business is a good question.

The three venues in December brought in $14.5 million in gross gaming revenue, $1.7 million of which went directly to state and local taxes. According to the Mississippi Gaming Commission, the dozen Gulf Coast casinos pre-Katrina were worth $1.2 billion. Their closures have cost the state $500,000 a day in lost tax revenue.

Even though the CVB's 24 staff members continue to operate from a double-wide Federal Emergency Management Agency trailer and random county offices (Katrina completely destroyed their building) and have been forced to scrap their advertising budget to stay afloat, the group remains optimistic, Silkman said — because slowly, but surely, the Mississippi Gulf Coast is being revived.

The rebirth of several other casinos this summer, the introduction of new casinos, and help from eager-to-contribute meeting planners and tourism groups are all factors that the bureau is hoping will put the area back on the map for both tourists and tradeshows.

Grand Casino Gulfport, which Harrah's Entertainment recently agreed to sell to Gulfside Casino Partnership, is expected to open as early as June. Harrah's has yet to announce a reopening date for its Grand Casino Biloxi facility.

Company spokesman Alberto Lopez said Harrah's is planning to return to Biloxi bigger and better. He added, "We have every intention of doing that."

Other casinos soon to reopen are the Treasure Bay Casino Resort (scheduled for June or July), and the Boomtown Biloxi Casino (sometime in the next several months).

MGM Mirage's Beau Rivage Resort & Casino is expected to open Aug. 29, exactly one year after Katrina hit the Gulf Coast.

The Hard Rock Hotel and Casino, which had initially hoped to open for post-Katrina business this summer, has put its plans on hold temporarily. Casino Magic Biloxi will remain closed indefinitely.

And like the Gulf Coast casino offerings, meeting and exhibit space in the region is currently at a minimum, Silkman said.

Although there are several small, non-gaming Gulf Coast venues that have meeting space, at press time, the Imperial Palace was the sole casino resort offering any. The Isle and the Palace were using their meeting space for gaming, and the heavily damaged Mississippi Gulf Coast Coliseum & Convention Center remained closed.

The coliseum is expected to open in May, and already has 10 consumer shows on its schedule. The center will follow in January. Its 250,000 square foot expansion, planned pre-Katrina, was scheduled to have broken ground by now. The expansion is projected to open in late 2008.

Next year is expected to be "as good as usual" for the coliseum and convention center, Silkman said, "dependent on the availability of sleeping rooms." Only 5,000 out of the Gulf Coast's original 18,000 hotel rooms are available now.

The $500 million Bacaran Bay Casino Resort in coming years will offer several hundred rooms and some exhibit space. The venue, the first all-suites hotel and condominium property in the region, might break ground during the first half of this year. It is expected to offer 75,000 sq. ft. of convention and meeting space.

Chris Chapman, meeting and convention manager for the Mississippi Development Authority Division of Tourism, said her office constantly fields calls from meeting planners who are intrigued by the casino rebirths and new developments. The organizers also express a desire to help rebuild the region, she said.

"We haven't slowed down a bit," she said. "We have numerous meeting planners who are calling us. Everyone that we've talked to is dying to get back to their properties that they're used to."

The industry chatter about the Mississippi Gulf Coast may increase, Silkman said, thanks to the March 16–19 Gulf Coast cleanup project by the nonprofit group Tourism Cares for Tomorrow.

Biloxi Mayor A.J. Holloway has helped create a buzz about the region.

At a November Mississippi Gaming Commission meeting, Holloway said, "I think we have potential that we never dreamed of before. People are going to remember Biloxi not so much for how bad the destruction was, but for how great the recovery effort is going to be."