Like
the economy in general, the gaming industry has experienced
a slowdown in recent years. In Mississippi, as in other
gaming locales, growth of new properties has taken a back
seat to mergers and buyouts of existing properties by
the major gaming companies.
All the while, however, gross revenues at Mississippi
casinos have remained steady—beyond that, Mississippi
gaming jurisdictions have gradually evolved from simply
a collection of casinos to true travel destinations, offering
world-class accommodations, dining, entertainment and
other amenities. Now, with signs of general economic turnaround,
there are also strong indications that the Mississippi
gaming industry is rapidly moving into a vibrant new era.
Larry Gregory, executive director of the Mississippi Gaming
Commission, provides insights into the economic impact
of gaming on the state, and particularly the Delta region.
“Tax revenues from gaming make up ten percent of
the state’s total budget,” he points out.
“The industry in the state accounts for over 34,000
direct casino jobs that did not exist before gaming—over
14,000 of those jobs are in the Delta. Tunica has moved
from last in per capita income in the state to the 17th
highest.”
According to Gregory, capital investments in the Tunica
area alone by the casino industry have exceeded $3 billion,
and these investments (in casinos, resort level hotels,
showrooms, and restaurants) have spurred additional investment—such
as over $100 million in highway and road improvements.
“The level of growth in Mississippi has slowed along
with the rest of the nation in the last couple of years,”
he continues, “but new growth is on the horizon—in
the Delta, there are two proposed projects in Greenville
area, and one is being discussed for Vicksburg.”
Andy Bourland, executive director of the Mississippi Gaming
Association, says that it is important for all residents—even
outside the gaming jurisdictions— to understand
fully the benefits the industry has brought to the state.
“The industry generates over a half billion dollars
in tax revenues, and has created many, many jobs, but
the casinos are also very involved in their communities
and civic organizations,” he comments.
One of the most significant facts about Mississippi gaming,
Bourland says, is that the industry in the state was modeled
under a “free-market” system, similar to Nevada
and New Jersey. “Simply put, Mississippi did gaming
correctly,” he states. “The free-market model
means a moderate tax rate and a reasonable regulatory
climate. The result is that it encourages substantial
capital investment and maximum number of employees. In
contrast to this are the gaming locales in other parts
of the country which operate under a limited license approach.
Essentially they pay a franchise fee, and don’t
have nearly as much competition. Those franchise states
offer limited opportunities for investment in other amenities,
and primarily only draw visitors from a local market.”
The Tunica market now generates $1.2 billion in revenue
annually, reports Webster Franklin of the Tunica Convention
& Visitors Bureau, and attracts 12 million visitors
a year (making 38 million visits). “Tunica is now
a world-class resort,” he states. “Gaming
was just the catalyst. Eleven years ago Tunica had a total
of 20 hotel rooms—now the number is over 6,300.
There are entertainment venues, spas, two golf courses,
and other amenities. Tunica has become a more well-rounded
destination in the last few years.”
Two significant projects will soon add to the non-gaming
attractions in Tunica. The Tunica River Park features
a landing, a museum, and nature trails. “The museum
is a unique interpretive facility that highlights the
Mississippi River and its eco-system,” Franklin
comments. “And our new national golf and tennis
facility will be a premier attraction hosting both amateur
and professional events. It will be one of the finest
public golf and tennis facilities in the nation.”
A unique attraction that is part of the Tunica River Park
is the Tunica Queen, a 300-passenger paddlewheeler that
offers sightseeing excursions and dinner cruises. “It’s
Mississippi’s only paddlewheeler,” Franklin
points out. “It gives our visitors the opportunity
to really experience the river, and also provides dining
options outside the casino environment.”
The new Tunica River Park is located next to Fitzgerald’s,
one of the long-established casino/hotel complexes in
the area. General manager Domenic Mezzetta says the new
emphasis on non-gaming attractions can only help the market
as a whole.
“There’s talk that Tunica may get a NASCAR
track, which would be the icing on the cake,” he
comments.
Mezzetta observes that Tunica, like other gaming destinations,
experiences growth plateaus, with additional building
occurring as demand increases. “Until our airport
expansion is complete, we’ll probably see just moderate
growth,” he says. “But when the airport is
able to land jet charters and 727’s, and with the
possibility of regularly-scheduled flights, I think we’ll
see another big growth spurt.”
At Hollywood Casino, general manager John Osborne says
marketing efforts are reaching out to areas farther away
from Tunica. “We’ve found that people even
just a few hundred miles away don’t know that much
about Tunica,” he comments. “So we’re
trying to reach out to people 400 to 500 miles away and
let them know that Tunica now has so much to offer. We’re
also doing more advertising to travel planners.”
Osborne expresses pride in the community involvement of
gaming industry employees. “We have employees who
are deacons at their churches, or who coach kids’
sports teams,” he points out. “And there is
a great deal of corporate involvement in charities and
civic organizations.”
As to gaming trends, he reports a growing popularity of
multi-denominational machines that allow play with anything
from pennies to dollars, and provide greater choices in
types of games played. He forecasts continued acceptance
of cashless slots, and cites several reasons. “Play
is not interrupted as much, players don’t have to
carry around heavy coins to redeem, and it’s easier
with tickets to keep track of just how many coins you
have,” he says.
Curt Follmer with Rainbow Hotel Casino says Vicksburg
is a different type of gaming market—characterizing
it as more of a “locals” market that attracts
the majority of its players from the Jackson area. Addressing
current business levels, he comments, “Economic
conditions have certainly impacted all the casinos. It’s
been something of a roller coaster ride from month to
month.”
Follmer points out that slot machines are continually
changing—while in the past changes occurred every
seven to ten years, on average, that has now dropped to
approximately every three years.
Lynn Foley with the Vicksburg Convention and Visitors
Bureau agrees that Vicksburg is more of a niche gaming
market—although one which draws four million people
to the city annually.
“Gaming is an added attraction here,” she
comments. “We have things like the military park
which draw many people to the area, people who hopefully
spend additional time and experience all the things Vicksburg
has to offer. A lot of our casino visitors are day visitors
who come specifically for the gaming.
“That said, however, our four casinos are very successful
in bringing people in with their promotions,” she
continues. “And they do a great job with the entertainment
events they offer—they help attract visitors here
for more than just gaming.”
Of course, gaming in Mississippi is not limited to the
casinos up and down the river. Other locales in the state
are drawing large numbers of visitors (including Delta
residents), expanding their offerings, facing many of
the challenges of the Delta casinos, and establishing
their own identities as travel destinations.
“The Mississippi Gulf Coast is different, with different
offerings,” comments Mary Cracchiolo, public relations
manager with Biloxi’s Beau Rivage Resort & Casino.
“The coast is more of a resort destination, with
gaming being just one aspect. We are a strong driving
destination, pulling people from places like Fort Lauderdale
and South Florida, Memphis, and New Orleans, for example.”
Cracchiolo says that the Gulf Coast is just coming into
it own—a relatively young gaming locale now beginning
to tap into the national market. She points out, however,
that Mississippi as a whole is already the third largest
gaming destination in the country.
Asked about gaming trends, she comments, “People
are looking for better rewards and more flexibility in
using those rewards. Our MGM Mirage Players Club Card,
for example, let someone play at any of our properties.
Points are tracked in real time, and can be used at any
of our other properties.”
“We market ourselves as a multi-amenity resort with
many exciting opportunities,” says Jay Dorris, president
of Pearl River Resort in Choctaw. “In addition to
two extraordinary hotels and casinos, we have two of the
most acclaimed golf courses in the southeast, a water
park second to none, some of the best restaurants around,
and the world’s first Hard Rock Beach Club.
“With the addition of new amenities over the past
year, we’ve seen growth in our revenues and market
share,” he continues. “The trends we have
seen in Las Vegas are toward increasing non-gaming revenues.
Gaming is our primary driver of revenues, but we certainly
see benefits in offering non-gaming attractions to complement
our casinos.”
Pearl River Resort, a development of the Mississippi Band
of Choctaw Indians, attracts clientele from throughout
the Southeast, but primarily from east central Mississippi,
Alabama, west Georgia, and southeast Tennessee, Dorris
reports.
A rash of casino robberies in the Tunica area in recent
months has made casino security a hot topic and the focus
of much press coverage. Webster Franklin states, “All
of our casinos have taken a proactive approach to ensure
our customers’ safety. Local law enforcement, in
conjunction with hundreds of security agents at Tunica
casinos, is committed to keeping Tunica a safe destination.”
Andy Bourland comments, “Particularly in river region
gaming, security is the most important issue faced this
year. Public safety is paramount to us. It’s important
to say that a number of state and local agencies deserve
credit for increased involvement in additional programs
and security measures in recent months.”
A number of changes have been implemented and more are
currently being put in place, reports Larry Gregory. “All
of the casinos have fortified their cages, security personnel
have been increased on the inside and the outside of casinos,
and surveillance camera coverage has been expanded and
upgraded.
“We believe the recent situation in Tunica is strictly
a problem which that area is experiencing—there
has not been a casino robbery on the Gulf Coast, Vicksburg,
Greenville, or Natchez in years, and this does not appear
to be a problem for other gaming jurisdictions across
the country.”
As Mississippi gaming reaches a level of maturity in the
market, Gregory—like other industry
representatives—forecasts continuing growth. “Gaming
was legalized in Las Vegas in 1931 and in Atlantic City
in 1977, so both areas had a lot of years to grow,”
he comments. “Mississippi has attracted many of
the same resort companies in our first eleven years. Our
casinos see a great future in Mississippi and have been
investing in added attractions and amenities to complement
gaming for several years.
“They’ve built gourmet restaurants and luxury
hotels. They offer spas and a wide variety of entertainment,
and many of our casinos have some of the finest golf courses
in the South. The major resort companies recognize Mississippi
for its potential, and we certainly look forward to their
future investments in our state.” DBJ
