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Casinos: Commercial Casinos - Louisiana

Louisiana has a long gambling history, according to The Rivergate, a documentary on the destruction of the Port of New Orleans Exhibition Center to make way for a Harrah's casino. In 1823, eleven years after Louisiana became a state, its legislature legalized several forms of gambling and licensed six "temples of chance" in the city of New Orleans. Each was to pay $5,000 per year to fund the Charity Hospital and the College of Orleans. The casinos attracted many patrons, including professional gamblers, swindlers, and thieves. In 1835 the legislature repealed the licensing act and passed laws making gambling hall owners subject to prison terms or large fines.

However, casino-type gambling continued and even prospered throughout the southern part of the state. By 1840 New Orleans contained an estimated five hundred gambling halls employing more than four thousand people, but these halls paid no revenue to the city. Riverboat

TABLE 4.3

Mississippi commercial casino statistics, January–March 2004
Quarterly Survey Information: January 1, 2004–March 31, 2004
SOURCE: Adapted from "Quarterly Survey Information: January 1, 2004–March 31, 2004," in Mississippi Gaming Commission—Public Information, Mississippi Gaming Commission, April 23, 2004, http://www.mgc.state.ms.us/pdf/QRpt1Q04-Property.pdf (accessed September 28, 2004)
Coastal Region Number of employees Gaming sq. footage # slot games # table games # poker games Activities in addition to gaming
Beau Rivage - Biloxi 2,459 71,669 2,234 91 12 restaurants, retail promenade, marina, convention center, showroom, spa, and hotel
Boomtown - Biloxi 913 33,632 1,120 21 Motion theater, buffet, restaurant, cabaret, fun center
Casino Magic - Bay St. Louis 1,107 39,500 1,210 30 Golf course, hotel, RV park, restaurants, sporting events, Camp Magic, charter boats, spa
Casino Magic - Biloxi 915 49,260 1,234 30 Eclipse Showroom entertainment, restaurants
Copa Casino - Gulfport 697 43,025 1,143 32 Gift shop and restaurants
Grand Casino - Biloxi 2,109 134,200 2,624 85 21 Restaurants, theatre, hotels, arcade, and Kid's Quest
Grand Casino - Gulfport 1,665 85,000 2,131 72 15 Restaurants, entertainment barge, hotels, Lazy River, arcade, and Kid's Quest
Imperial Palace 486 70,000 1,633 31 Spa, pool, movie theaters, restaurants, shops, and showroom
Isle of Capri - Biloxi 835 32,500 1,127 28 Restaurants and live entertainment
President - Biloxi 271 38,297 843 34 7 Live entertainment, restaurants, arcade, fishing, valet parking and golf
The New Palace - Biloxi 900 58,500 1,333 37 Theater, hotel, gift shop, spa, salon, pool, and restaurants
Treasure Bay - Biloxi 898 41,000 978 41 Arcades, gift shop, restaurants, tanning bed, and travel agency
Region Totals 13,255 696,583 17,610 532 43
North River Region Number of employees Gaming sq. footage # slot games # table games # poker games Activities in addition to gaming
Bally's - Robinsonville 731 40,000 1,311 37 Restaurants, hotel
Fitzgerald's - Robinsonville 936 36,000 1,345 34 Hotel, restaurant, slot and table game tournaments
Gold Strike - Robinsonville 1,350 50,486 1,388 49 14 Restaurants, Millenium theater, arcade, and hotel
Grand Casino - Tunica 2,329 136,000 2,544 82 11 Restaurants, RV park, arcade, golf gourse, Kid's Quest, and clay shooting
Harrah's - Tunica 793 35,000 1,172 23 Live entertainment, restaurants, and golf
Hollywood - Robinsonville 985 54,000 1,626 33 6 Restaurants, RV park, arcade, hotel, and pool
Horseshoe - Robinsonville 2,554 63,000 2,115 76 12 Live entertainment, restaurants, health club, and Blues Museum
Isle of Capri - Lula 763 63,500 1,569 29 Movies, concerts, and dining
Sam's Town - Tunica 1,144 74,210 1,318 42 10 Gift shop, restaurants and hotel
Sheraton - Robinsonville 798 32,800 1,389 37 Restaurants, hotel
Region Totals 12,383 584,996 15,777 442 53
South River Region Number of employees Gaming sq. footage # slot games # table games # poker games Activities in addition to gaming
Ameristar - Vicksburg 938 42,500 1,360 36 Showroom and restaurants
Harrah's - Vicksburg 330 20,000 657 13 4 Restaurants and lodging
Isle of Capri - Vicksburg 535 24,000 788 19 Live entertainment, restaurants, and hotel
Jubilee - Greenville 293 28,500 875 13 Live entertainment and restaurants
Isle of Capri - Natchez 363 15,783 648 11 Live entertainment and restaurants
Lighthouse - Greenville 260 22,000 801 10 Restaurants and live entertainment
Rainbow - Vicksburg 437 25,000 930 12 Restaurants, gift shop, and hotel
Region Totals 3,156 177,783 6,059 114 4
STATE TOTALS 28,794 1,459,362 39,446 1,088 100

FIGURE 4.2

casinos frequented by hundreds of professional gamblers floated up and down the Mississippi River between St. Louis and New Orleans. When the Civil War broke out, the riverboats were pressed into military service. In 1869 the legislature legalized casino gambling once again, requiring each casino to pay the state a $5,000 tax.

In Bad Bet on the Bayou (New York: Farrar, Straus, and Giroux, 2001), author Tyler Bridges credits Louisiana gamblers for popularizing craps and poker in the United States during the nineteenth century. Both were games of chance that had originated in Europe. The Louisiana state lottery began in 1868 but was outlawed in 1892, along with other forms of gambling, after a massive fraud scandal. Casino gambling went underground and continued to flourish well into the 1960s, thanks to mobsters and political corruption. Two of the state's governors, Earl Long and Edwin Edwards, were well-known gamblers. Edwards reportedly hosted high-stakes gambling games at the governor's mansion.

During the early 1990s the state legalized gambling once again, authorizing a lottery, casinos, and the operation of video poker machines in restaurants, bars, and truck stops. In 1991 the legislature authorized operation of up to fifteen riverboat casinos in the state; all but those along the Red River were required to make regularly scheduled cruises. The riverboat casinos were required to be at least 150 feet long and decorated to look like nineteenth-century paddleboats. The first riverboat casino, the Showboat Star, began operating in the fall of 1993.

In 1993 New Orleans received special permission from the legislature to allow a limited number of land-based casinos. In January 1995 Harrah's began construction on one in the heart of the city. By November 1995, the casino had declared bankruptcy. Following years of negotiations with the state and city, it reopened in 1999 but threatened bankruptcy again in 2001, blaming the state's $100 million minimum tax. The legislature cut the tax to $50 million for 2001 and $60 million for subsequent years to help keep the casino in business.

On April 1, 2001, the legislature ended the so-called phantom cruises of the riverboat casinos, ruling that it would actually be illegal for them to leave the docks. All riverboats were allowed to begin dockside gambling. However, their tax rate was increased from 18.5% to 21.5%.

Up to fifteen floating casinos are allowed in Louisiana. According to revenue reports published by the Louisiana Gaming Control Board, the state's riverboat casinos admited

TABLE 4.4

Louisiana casino statistics, fiscal year 2004
Licensees Opening data FYTD admissions FYTD total AGR FYTD fee/state tax
SOURCE: Adapted from "Fiscal Year-to-Date Activity Summary—Land-based for the Period of July 1, 2003–June 30, 2004 and Fiscal Year-to-Date Activity Summary—Riverboats for the Period of July 1, 2003–June 30, 2004 and Fiscal Year-to-Date Activity Summary—Slots at Racetracks for the Period of July 1, 2003–June 30, 2004," in Louisiana Gaming Control Board Revenue Report, Louisiana Gaming Control Board, July 2004, http://web01.dps.louisiana.gov/lgcb.nsf/b4569279468fa0c086256e9b0049dbd8/42f80c95dcb5321886256ed7007287aa/$FILE/June%202004%20Landbased%20Revenues.pdf (accessed September 28, 2004)
Boomtown Bossier 10/4/1996 2,420,594 $107,263,349 $23,061,620
Harrahs Shrev. 4/18/1994 2,989,249 $145,402,026 $31,261,436
Hollywood 12/20/2000 3,911,081 $135,048,412 $29,035,409
Horseshoe 7/9/1994 3,077,665 $253,418,980 $54,485,081
Isle-Bossier 5/20/1994 1,544,626 $112,046,556 $24,090,010
Sam's Town 5/20/2004 387,535 $17,954,565 $3,860,231
Grand Palais 7/12/1996 2,133,894 $137,550,608 $29,573,381
Ilse-LC 7/29/1995 949,816 $34,640,556 $7,447,720
Harrahs Pride 12/8/1993 1,889,679 $101,722,786 $21,870,399
Harrahs Star 10/24/1993 1,024,142 $49,878,501 $10,723,878
Ballys 7/7/1995 1,342,236 $60,565,045 $11,328,563
Boomtown N.O. 8/6/1994 2,337,596 $113,639,322 $24,432,454
Treasure Chest 9/5/1994 1,602,186 $110,715,810 $23,803,899
Argosy 9/30/1994 1,148,023 $82,039,244 $17,638,438
Casino Rouge 12/28/1994 1,508,814 $104,769,736 $22,525,493
Riverboat total 28,267,136 $1,566,655,498 $335,138,011
Harrah's New Orleans 10/26/1999 6,593,077 $300,251,946 $62,354,386
Delta Downs (slots) 2/13/2002 1,597,158 $130,986,745 $19,870,690
Harrahs LA Downs (slots) 5/21/2003 1,726,632 $63,860,519 $9,687,641
Evangeline Downs (slots) 12/19/2003 1,177,956 $37,820,975 $5,737,442
Racetrack total (slots) 4,501,746 $232,668,239 $35,295,773
Casino total 39,361,959 $2,099,575,683 $432,788,170

just over twenty-eight million people during fiscal year 2004 (July 2003–June 2004). (See Table 4.4.) This number is down from thirty-one million people admitted during fiscal year 2002. Total adjusted gross revenue for the river-boats in fiscal year 2004 was $1.57 billion. The state's one land-based casino in New Orleans admitted nearly 6.6 million people and had gross revenue of $300 million. Although attendance was slightly down from previous years, the casino made more money. Its gross revenue increased by 14.5% between 2002 and 2004.

Three racinos grossed nearly $233 million in slots revenue during fiscal year 2004. Slot machines at racetracks are relatively new in Louisiana. The first racino began operating in 2002 and was joined in 2003 by two more establishments.

Total gross casino revenue in Louisiana for fiscal year 2004 was $2.1 billion, up from $1.8 billion during fiscal year 2001 and $1.4 billion during fiscal year 1999. (See Figure 4.3.) The state took in approximately $433 million in taxes from the casinos/racinos during fiscal year 2004. This is up from $400 million collected during fiscal year 2001.

There are four major markets in the state: Shreveport–Bossier City, New Orleans, Lake Charles, and Baton Rouge. The Shreveport market was the tenth-largest casino market in the United States in 2002, according to the AGA. A wide variety of games are allowed at Louisiana casinos, including blackjack, poker, craps, roulette, baccarat, keno, bingo, big six wheel, and slot machines. The state's video gaming division reports that there were 14,296 slot machines at noncasino locations as of June 2004, primarily truck stops, bars, and restaurants.

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