Casinos bounce back after flood

Published 11:45 am Thursday, July 21, 2011

Mississippi’s 19 casinos on the Mississippi River rebounded strongly in June from the record flood on the river in May — winning more than double from gamblers and, in Vicksburg, kicking in 18 percent more revenue-based taxes to the city and Warren County.

Taxes paid to the city and county totaled $723,184 for the month, up from $590,414 in May. Broken out, the city’s take was $529,071, up 24 percent, and the county’s was $194,114, up about 2.6 percent. A $116,796 chunk of the city’s total came from $150 fees per gaming device paid annually by each casino. Amounts distributed to the Vicksburg Warren School District totaled $52,730 in June, up about 2.6 percent for the month. Totals lag behind June 2010 by about 18 percent for the city and about 22 percent for the county and schools. For the fiscal year, totals lag about 6 percent for the city and 7 percent for the county and schools.

Riverside casinos took in $91.6 million from players last month, up from $41 million when 17 casinos closed because of high water, the Mississippi Department of Revenue reported Wednesday. The Isle of Capri at Natchez was the last to reopen, on June 17.

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The 11 Gulf Coast casinos — none affected by flooding — won $93.9 million last month, down a bit from $96.2 million recorded in May. Winnings for May 2011 totaled $137.2 million. Overall, winnings in June were off 2.1 percent compared to a year ago, when casinos along the river won $102.4 million and the coast casinos won $87 million.

Flood-related closures cost state and local government about $7.2 million in casino taxes, said Allen Godfrey, deputy director of the Mississippi Gaming Commission. In addition, some players may have stayed away in June, believing that the casinos were still closed, he said.

For the first half of 2011, Mississippi casinos won $1.12 billion, down about 8 percent from $1.22 billion for the first six months of 2010.

Hit hard by the deep recession, the casino industry showed similar gains in other states. Nevada casinos won 16.7 percent more in May than in May 2010. New Jersey casinos, which have struggled against gambling halls in Pennsylvania that now offer slot machines and table games, narrowed its year-to-year decline to 3.7 percent in May.

Louisiana casinos were to report June figures today. The state’s 15 boats and one land-based venue won $203.2 million in May, only $400,000 less than in May 2010.

The Mississippi figures do not include Indian reservation casinos, which are not required to report their winnings to the public.

Vicksburg’s five casinos pay a 3.2 percent revenue tax to the state. From there, 10 percent goes to the schools, 25 percent to Warren County and 65 percent to the city. A second revenue tax is a 0.8 percent share of the state’s 8.8 percent revenue tax. It is split based on population proportions between Vicksburg and Warren County.

The Associated Press contributed to this report.