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Louisiana Casino Case Heads to Court

20 January 2006

NEW ORLEANS – As reported by the Shreveport Times: "A 10-year-old casino revenue case that could have dire financial implications for Bossier City came to a head Thursday before the state Supreme Court.

"However, the court is not expected to rule for several months.

"…At issue is whether contracts Bossier City signed with Isle of Capri and Horseshoe casinos in 1994 that provide revenues to various government entities are valid. If the court finds in favor of the citizens, it could mean a redistribution of money collected since 1994.

"…In 1994, the state Legislature enabled cities or parishes with casinos to collect an admission fee of up to $2.50 for each person who enters the establishments. Of that, 80 percent would go to Bossier City, 15 percent to the Bossier School Board for its Bossier Education Excellence Fund and 5 percent to Johnny Gray Jones Youth Shelter.

"The same year, Bossier City drew up its own contracts with Horseshoe and Isle of Capri that give the city 3.2 percent of gross receipts or a minimum of $2.5 million a year, $300,000 each to the Bossier Police Jury and School Board, $200,000 to the Bossier Sheriff's Office, $150,000 to the Greater Bossier Economic Foundation and $50,000 to the youth shelter.

"In 1995, state lawmakers added a 50-cent boarding fee from which proceeds are to go to the Police Jury to widen Airline Drive then placed in the parish road fund once that project is complete.

"A group of concerned citizens including current and former School Board members Billy Brooks Hudson, Marguerite Hudson, W.C. Kostelka and Gary Dowden challenged the validity of the contracts and said the formula the Legislature laid out should be applied. Residents think the formula from the contracts does not give the School Board and youth shelter their fair share, Little said Thursday…"

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