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Harrah's New Orleans Still Struggling

"Harrah's New Orleans Casino is taking in only a fraction of the money once touted. Long after pro-gambling bumper stickers proclaimed the hope of 50,000 jobs, the gambling hall employs 2,500.

"…In the meantime, the riverboat casinos in Shreveport-Bossier City and Lake Charles have become the tourist destination points, drawing gamblers from Texas.

"`What we've probably learned is that, if you want to legalize gambling because you want it to be economic development, you're probably making a mistake,' said University of New Orleans economist Tim Ryan. `If you can figure out a way to attract nonresidents to your community to gamble, it can be economic development. If not, it's just another thing for people to spend their money on.'

"…Ten years ago last week, the Legislature passed the land casino bill with no votes to spare, and Gov. Edwin Edwards signed it into law. Riverboat casinos and video poker machines had been legalized during the administration of Gov. Buddy Roemer, but none were yet on line.

"Edwards first touted the casino during the 1980s as a unique tourist attraction that would draw gamblers from all over the country. At that time, casinos were limited largely to Nevada and Las Vegas. By the time the law was passed, riverboat casinos were popping up in other states, and Mississippi had shocked many observers by legalizing dockside gambling.

"…A temporary casino at the city's Municipal Auditorium lasted only six months before the whole project collapsed into bankruptcy court in 1995. The permanent casino finally opened in late 1999, but threatened to close in early 2001 and file for bankruptcy reorganization again.

"To keep the casino open, the Legislature cut the casino's annual minimum tax from $100 million. It was $50 million before going up to $60 million on April 1. The casino also is now allowed to have its own hotel and unlimited restaurant service.

"Control of the casino's ownership company, JCC Holding Co., is now being fought by former bondholders and Harrah's Entertainment, which manages the gambling hall. Harrah's contends that it can develop a casino hotel much quicker…"

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