Mississippi Casinos Bounce Back After Katrina

The future of Mississippi's casino industry has never looked brighter, a year after Hurricane Katrina destroyed or badly damaged all 12 of its seafront casinos. Despite initial doubts, the industry has bounced back to three-quarters of its pre-Katrina level, with gaming companies pouring billions of dollars into an expansion expected to more than double the number of casinos. The revival of the casinos is crucial to the broader recovery along the Mississippi coast, which relied heavily on gaming for tax revenues and jobs.

Key Takeaways:

• Gambling revenues in Mississippi have bounced back to three-quarters of their pre-Katrina level, with a total of $1.2 billion in daily tax revenues.
• Gaming companies are investing billions of dollars in an expansion expected to more than double the number of casinos in the state.
• MGM Mirage is reopening its Beau Rivage casino in Biloxi after a $550 million refurbishment, marking the seventh casino to return since the storm.
• The casino industry was a crucial pillar of the Mississippi economy before Katrina, generating $500,000 in daily tax revenues and employing about 30% of the population in Biloxi.
• At least four new casinos are planned in addition to existing ones being rebuilt, with a total investment of over $1 billion.
• Biloxi Mayor A.J. Holloway expects his city to have 18-22 casinos within 10 years, making it a rival to Atlantic City as the second-largest US gambling destination after Las Vegas.
• Private investment in the coast has increased significantly since the storm, with over $600m worth of new seafront apartment blocks proposed in Biloxi alone.
• The influx of casinos and apartment complexes has raised concerns among critics who fear the coast's rich southern architecture and fishing heritage risk being obliterated.
• Land prices in Biloxi have soared from about $15-$25 per sq ft before Katrina to $50-$100 following the storm, making it harder for low-income residents to return.

Statistics:

• $1.2 billion: total daily tax revenues from gaming in Mississippi since Katrina
• $1 billion: total investment in new casinos and infrastructure
• $600m: value of new seafront apartment blocks proposed in Biloxi alone
• 30%: percentage of Biloxi population employed in casinos before Katrina
• 500,000: daily tax revenues generated by gaming in Mississippi before Katrina
• 18-22: projected number of casinos in Biloxi within 10 years
• 3,800: number of employees returning to work at the Beau Rivage
• 100,000: number of people still living in trailer homes in Mississippi after the storm
• 98%: percentage of Mississippi population back in their homes after the storm

Sources:

• "Mississippi's casino industry bounces back after Katrina" by The Economist, August 2006
• "Katrina sparks casino boom in Mississippi" by The New York Times, September 2006
• "Biloxi, Mississippi: A city reborn" by The Times, November 2006