STATESIDE


Stateside Sharon Harris smiles with the mouth of the ocean T


…everyone dreads long term physical damage to the shoreline and economic hardship


he Mississippi Gulf Coast may again pay a heavy price, thanks to a stunning example of big government and corporate failure. Unlike when Hurricane Katrina hit in 2005, the British Petroleum (BP) oil spill in


the Gulf of Mexico is a man-made catastrophe. Tragically, the region was enjoying a recovery after five years when disaster struck once more. In April, a BP oil rig explosion off the Louisiana


coastline killed 11 workers and blew open an oil leak. The subsequent spill has spewed oil nonstop for months, and all attempts to permanently seal the well have failed so far. The earliest estimates for closure may be August. Finger pointing at the BP executives, government


regulators and the White House response lays blame on them all. The world has watched horrific videos of spreading oil, contaminated water and suffering wildlife while Gulf Coast states Louisiana, Mississippi, Alabama and Florida also fear for their economic futures. The region is beautiful. I wrote a detailed


destination report for Casino International in 1999. I spent three wonderful days along the Mississippi Gulf Coast, enjoying the southern hospitality and tourist attractions. Post-Katrina, 11 casinos now operate in Mississippi’s


Gulf Coast counties. These jurisdictions have rebuilt from the ground up, giving city planners new vision for their communities. Gaming benefitted from the immediate changing of the law to move the gaming floors directly off the water and onto the land. Legalized 20 years ago, gaming forever changed


Mississippi’s fortunes. Overcoming decades of crippling poverty, gaming has brought billions to the state. Now, everyone dreads long term physical damage to the shoreline and economic hardship. The American Gaming Association’s 2010 State of


the States report reveals that in 2009, 25,739 people worked in Mississippi’s 30 casinos. Gross gaming income hit almost $2.5 billion, and tax revenues to the state reached almost $300 million. Casino employee wages, including tips and benefits, were $855 million. Although not exact, we can calculate the 11 Gulf


Coast properties account for at least one-third of the revenues. Without those contributions, statewide unemployment rates will skyrocket, while assistance to multiple social and educational public services will plummet. May’s Gulf Coast casino revenues dropped $2.3 million from 2009. Some of that may be attributed


10 JULY/AUGUST 2010


to local and out-of-town visitor concerns about the oil spill. As Director of Public Relations for MGM Resorts


International Mississippi Operations, Mary Cracciolo manages public relations for the Beau Rivage in Biloxi and the Gold Strike in Tunica, six hours north. In late June, Mary told me all was fine and that


Beau Rivage is determined to offer their usual high quality experience to guests. “We have been blessed not to have oil coming our way at this point, but we are totally prepared and planning ahead,” she said. The region’s experts are fully engaged. She


stated, “We receive daily weather reports, and are taking all necessary actions to protect the property.” However, as we went to press it has been confirmed that oil has finally reached the Mississippi coastline. Local and state officials meet regularly, so each city


in the three Gulf Coast counties has a contingency plan. Boats to fight the oil movement are positioned close to the shore and also further out in the Gulf. As a barrier, thousands of feet of special preventative boom will hopefully collect the oil. BP has awarded Mississippi, Louisiana and Alabama


$15 million each for tourist marketing; Florida has received $30 million. Mary reports that Mississippi has already used $4 million. The remaining $11 million must be spent by year’s end. Television commercials, touting clean beaches along almost 900 miles of Florida coastline, are running hundreds of miles away. In neighboring Louisiana, 18 statewide casinos


earned close to $2.5 billion in 2009. As the area hit worst by the oil spill so far, May casino revenues decreased just over nine percent from 2009. Only a few sites are geographically affected by the spill. However, their tax revenues help fund projects in New Orleans. Many of the state’s 17,610 gaming employees may find themselves out of work, or working fewer hours. The Gulf Coast region is home to numerous


casinos that bear the names of America’s largest gaming corporations, including MGM, Harrah’s, Hard Rock and Isle of Capri. In 2005, industry members and casino corporate offices pitched in to ease the financial burdens of our southern friends. Although gaming’s economics are tougher now, if the financial consequences of this oil spill are massive layoffs and closures within the casinos, let’s hope we again come through for them.


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