Following up on the May 23 QoD, can you give us the background of the rule in some states that casinos must be over water? Also, I seem to remember the repeal of that requirement in Mississippi, after Hurricane Katrina destroyed many of the Gulf Coast casinos. Can you tell us about that?
On August 29, 2005, Hurricane Katrina’s fury fell on the Mississippi Gulf Coast, with Biloxi bearing the brunt of it. Most of the Gulf Coast’s 13 riverboat casinos were either sunk at their moorings or flung ashore, some hurled as much as 600 feet inland, crushing everything in their path.
Then-MGM Mirage’s land-based Beau Rivage survived the destruction. “He builds fortresses,” gaming analyst Marvin Roffman said of Steve Wynn’s construction job at the time.
What were casinos doing floating on the water, vulnerable to Mother Nature’s wrath? It was a 1990 Mississippi compromise between tax-hungry politicians and social conservatives. Similar situations led to “riverboat” casinos — many of them platforms surrounded by moats — in Iowa, Illinois, Louisiana and Missouri.
The consequences of this were quick and economically devastating. Biloxi’s land-based casinos were swept from the board, as were Casino Magic in nearby Bay St. Louis and Grand Casino in Gulfport.
Then-Gov. Haley Barbour stepped in, backing a bill to allow casinos to come ashore. It was speedily passed by the Mississippi Legislature, a done deal within a month of Katrina.
Now, casinos in Mississippi that aren't on tribal reservations continue to operate on riverboats or out of moats. Unfortunately, Barbour’s clout on behalf of casinos didn’t extend to those in Tunica County; Gulf Coast casinos still have to be no more than 800 feet from water. Luckily so far, there hasn’t been another Katrina to make them think twice about that.
In Louisiana prior to 2018, only Harrah’s (now Caesars) New Orleans enjoined special dispensation to operate on land. That was done in 1992, although the casino didn’t open for another seven years. Casinos are now permitted to move as much as 1,200 feet away from water, but only four have done so. Ten continue the riverboat practice. Also, riverboat casinos in the Pelican State were initially — and continue to be — required to mimic the appearance of paddlewheel steamers.
Tomorrow: Riverboat casinos north of the Mason-Dixon Line and their status
