Mississippi’s plight and other Case Bets

At the risk of sounding apocalyptic, the best years of the Mississippi casino industry may be behind it. This year’s revenue is projected to top out at $2.15 million, well below 2007’s all-time peak of $2.9 million. Admissions were 3.7 million fewer in the 2Q13 than in 2Q07. Rival attractions in Arkansas, Louisiana and even as distant as Oklahoma are draining off business. Casinos that go downhill, like the DiamondJacks riverboat in Vicksburg, can’t count on buyers to rescue them from their troubles. (The DiamondJacks fleet lost a potential buyer after the facilities were deemed “woeful.) So now there’s Vegas-like talk about diversifying the amenities on offer, in hopes of bringing back customers. Gaming’s been around in that part of the country for a couple of decades and customers may need new reasons to spend, aside from gambling. If Mississippi casinos need ideas, they could look to tribal casinos for inspiration.

Case bets … Casino detractors are always pooh-poohing the effects of casino revenue but in Detroit it’s propping up the city. Tax revenues from Motown’s three casinos will help securitize a $350 million loan. Writes The Associated Press: “About $230 million in financing from Barclays would be used to fully pay off a complicated pension debt deal involving two major creditors. The rest would be used to improve basic city services and city government technology infrastructure.” … Everybody connected with Howard Bulloch‘s SkyVue project (henceforth Bulloch’s Folly) is heading for the tall grass. I think we can safely call this project dead. By the time it gets up and running, Caesars Entertainment‘s rival Ferris wheel will have spinning for a year and a half. … Attorney Bob Faiss literally wrote the book on Nevada gaming regulation. The Grant Sawyer protege is also one of the nicest men you’d ever have the pleasure to meet. So it was with distress that I read he’s battling cancer. Here’s hoping he beats the Big Casino and lives another 79 years.