Mississippi River water levels, the supply chain and inflation all are impacting Hollywood Casino’s move onto land. The Baton Rouge casino was the first in the region to announce its planned move, back in August 2021. Officials expected construction to be completed earlier this year.
However, the river’s water levels prevented pilings from being sunk into the river bed. Also, Louisiana Gaming Control Board Chairman Ronnie Johns said, “The supply chain, it’s absolutely horrible right now. They’re having a hard time getting steel, they’re having a hard time getting basic supplies.”
Johns added inflation has caused the prices of building materials to increase. For example, the cost of building the land-based casino has soared from $60 million to $100 million. “Look, the price of steel is up 25 percent, inflation alone is at over 9 percent over the last year. And so, everything is just a lot more expensive than it was, say, a year ago,” Johns said.
In addition, he pointed out officials at Hollywood and other casinos are concerned about the potential effect of inflation on customers. Johns said, “We’re already seeing it in some of the gaming markets here in Louisiana. So yes, it’s something that the market is watching very closely. I’ve had conversations with multiple casinos across the state. Everybody’s concerned about it, particularly those that draw from out-of-state.”
Johns noted labor costs, thankfully, have not increased. “Not to my knowledge they’ve not, but the good thing about this project is that they have not had to close the existing riverboat casino, unlike the Horseshoe here in Lake Charles, which was severely damaged by Hurricane Laura two years ago,” Johns said.
He added, “The new projection for when all of this will be ready for you now looks to be the second quarter of 2023. Every day this thing isn’t finished is money they’re missing out on. So, the sooner they get it done, is a win for them and closer to a chance for you to win, too.”
