SEARCH NEWS:

 

Experts: Mississippi Casinos Industry Will Continue Slump

"Casino executives won't say it, but they also won't deny it: A sad Christmas will make for a very unhappy new year for casino employees whose jobs already are on the line as the economy sags, pulling down casino earnings to the low single digits.

"…It's worth noting that ice storms early in the month last year were followed by severe cold through the holidays, curbing casino trade more than the terrorists attacks have done so far.

"The Coast did better than the rest of the state in December 2000. Casinos along the Mississippi River saw a 7.7 percent decline in business over the same month a year earlier.

"…State economist Phil Pepper says that 1 percent growth is more likely for 2001. Don't expect short-sighted investors to take that news well.

"…Economists, including Pepper, are projecting a turnaround at midyear in 2002.

"Analysts for Hibernia National Bank say it's a buyer's market for those who want to visit a casino during the holidays.

"As the number of visitors lag, casinos are marketing heavily, cutting hotel room rates and dishing out other hefty discounts to bring in `a customer who is largely ignored when times are relatively good,' said Daniel Davila, Hibernia Southcoast senior leisure/entertainment analyst.

"…Industry analysts at Deutsche Bank note in its latest publication that higher taxation on casinos is a real possibility in the coming year.

"…Indeed, legislators are trying to add 4.3 percent, roughly $140 million, to the state budget for next year. Their pockets, however, are relatively empty, as a passel of hungry agencies and state employees tug at their coat tails for more funding…'

< Gaming News