A new A 261-page research study by the Spectrum Gaming Group, commissioned by the Louisiana Department of Economic Development,
recommends relocating two Bossier City riverboat casinos, allowing several riverboat casino operators to move ashore, permitting Harrah’s New Orleans to build a second hotel tower and legalizing sports betting and online gaming.
Louisiana Gaming Control Board Chairman Ronnie Jones said, “I believe the document is thorough and comprehensive. Further, I think it provides policymakers with sound and reasonable recommendations, which, if implemented, will promote further economic development and address competitive disadvantages faced by the industry in Louisiana.”
The report recommended Boomtown Bossier City move to the north shore of Lake Pontchartrain and Diamond Jacks move to northeast Louisiana. The study said Pontchartrain area and northeast region players typically gamble in Mississippi. Also, gambling revenue in the Shreveport-Bossier City has declined 21 percent since 2007 due to competition from Oklahoma tribal casinos that attract customers from Dallas-Fort Worth.
The Spectrum report estimated Boomtown’s revenue could increase from $56.5 million in 2018 to $100 million if it moved, adding more than $9 million in state gaming taxes. Also, if Diamond Jacks moved, its gross revenue would rise by $21.9 million over $38.1 million in 2018, and state taxes would increase by $4.7 million.
Jones said, “The competition is much greater for northwest Louisiana. And, we know there are at least one or two too many casinos in the Shreveport-Bossier area, and the consultants noted that and recommended that two licensees be permitted to leave.” Jones added the gaming control board cannot force the casinos to relocate, despite the report’s recommendations. “That’s a business decision,” Jones said. Margaritaville and Horseshoe are the Bossier City market’s top performers, out of seven casinos operating there.
In a statement, Jeff Morris , vice president at Penn National Gaming, owners of Boomtown, said, “While we have not had a chance to review the study in full, we are proud of our operations at Boomtown Bossier City and have no intention of seeking its relocation. We believe the concept of relocating casino licenses is bad public policy.” Diamond Jacks Casino and Hotel Vice President Paul Hutchens said he “appreciates the state’s opportunity to grow their business.”
The study also addressed moving certain casinos onto land, which the Louisiana legislature allowed last year, changing almost 30 years of gaming law. Eldorado Resorts is among the companies considering moving its Baton Rouge property.
Regarding sports betting, the Spectrum report estimated Louisiana casinos could generate $237-$332 million in annual sports betting revenue. “As both a major commercial-casino state and one exporting gambling dollars to Mississippi–where sports betting is legal– Louisiana would benefit from this rapidly spreading form of gambling. Given the popularity, in particular, of Southeastern Conference football in the region, Louisiana would be forsaking a significant revenue stream were it to prohibit wagers on in-state university-related events.”
The report also supports Caesars Entertainment’s plans to add a second, $350 million hotel tower to its New Orleans property, within walking distance to the French Quarter. The casino’s license will expire in 2024. An analyst stated, “Caesars has already offered a license payment in addition to a $350 million capital investment plan. We believe discussions with the state have been constructive.”
Also, the study estimated Louisiana casinos could begin approximately $1.28 billion in capital improvements next year, which could create 9,000 new jobs and add $1.3 billion in increased business revenue by 2025. “Operators that will be putting their own capital at risk are best positioned to address that question, as well to provide reassurance to Louisiana policymakers that any relief offered by Louisiana will inure to the benefit of Louisiana,” Spectrum analysts said.
