Bankruptcy filing halts Grand Station foreclosureOverall, gambling houses show increase
Published 11:24 am Tuesday, April 24, 2012
Grand Station Casino’s foreclosure is on hold indefinitely pending a bankruptcy filing, court records show, though the Mulberry Street gaming hall’s closure in March didn’t slow an increase in business for Mississippi River casinos compared to a year ago.
The casino’s parent company, Delta Investments & Development LLC, filed for Chapter 11 bankruptcy protection April 4, according to briefs filed in Bally Gaming Inc.’s civil action against the firm to recoup $3 million in funds intended for future improvements. A foreclosure sale advertised the week before had been set for April 17 but didn’t happen. In most cases, bankruptcy filings automatically suspend collection attempts against debtors and debtors’ property.
In Grand Station’s case, the bankruptcy has stopped the foreclosure for now, said Donald Alan Windham, a Jackson attorney and trustee of the deed. The casino closed March 28 and laid off 230 workers.
Revenue rose 3.1 percent in March at 18 casinos along the river, which included five in Vicksburg. The total was $118.8 million, up from $115.2 million in March 2011. A larger uptick was recorded on the Gulf Coast, where the 11 coastal casinos took in $101.6 million, up 4.8 percent from last March and the largest take by Gulf casinos since July 2009.
Overall, Mississippi casinos won $220.4 million, compared with $212.1 million in March 2011. The 3.9 percent jump marked the third time in the past four months that winnings improved at the state’s 29 casinos. Each region also was up since last month — the river casinos by 2.7 percent over February and the Gulf by 3.2 percent.
Tax revenues from gaming to local governments statewide rose 17.4 percent in March compared to February, to $28.2 million. The total is 11.1 percent ahead of March 2011. Revenues for March to the City of Vicksburg and Warren County were not available this morning.
An improving economy appears to be bringing gamblers back, while coast casinos may have been boosted by the Final Four being held in New Orleans.
The figures do not include Choctaw Indian casinos, which are not required to report their winnings to the state.
March is traditionally one of the strongest months for Mississippi casinos.
The state’s gambling halls have struggled to regain momentum after the recession, with revenue sliding for four straight years after hitting a high of $2.89 billion in 2007.
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The Associated Press contributed to this report.