Mississippi Commissioners Approve, Deny Casinos

The Mississippi Gaming Commission recently approved the Scarlet Pearl Casino in D'Iberville, after developers at last received financing for the $250 million project, according to CEO George Toth (l.). Commissioners rejected Jacobs Entertainment's proposed Diamondhead casino due to concerns from residents and the state Department of Marine Resources.

It was one yes, one no at the recent meeting of the Mississippi Gaming Commission, as members considered two proposed Gulf Coast casinos. In the end, the three commissioners unanimously approved the Scarlet Pearl Casino in D’Iberville, but rejected Jacobs Entertainment’s proposed casino in Diamondhead.

Scarlet Pearl Chief Executive Officer George Toth told commissioners, “It’s been a long, winding road, but we’re glad to be here.” In March, Scarlet Pearl missed the deadline to obtain financing. However, Toth said he has arranged bank loans for the $250 million development, which will offer a 60,000 square foot casino, 300-room hotel tower, events center and an elaborate 36-hole miniature golf course. The plans meet the upgraded development qualifications now required by the gaming commission. The company will start driving piles at the site on July 7, and hopefully be open in early 2016, Toth said. The project will create 1,500 new jobs.

Spokesman Randy Fine said the Scarlet Pearl’s hotel is sure to attract new gamblers who have difficulty finding accommodations in the area. “In this market, hotel rooms grow the market,” Fine said. He added Scarlet Pearl’s location on Interstate 110, connecting I-10 to nine Biloxi casinos, also will bring in gamblers.

Scarlet Pearl will be the 13th casino in Harrison and Hancock counties and the first new one to open since the $62 million Margaritaville Casino & Restaurant debuted in Biloxi in 2012.

The news was not so good for Jacobs Entertainment, after commissioners sided with staff recommendations to deny the proposed casino site in Diamondhead. One reason for the denial was that opponents claimed a casino would ruin a residential area. Nicole Boisdore with the anti-casino group Operation Veritas said, “There’s a large group of us that live on the south side and/or own property on the south side that don’t want a casino literally in our backyard, right in the middle of the neighborhood.

In addition, the Department of Marine Resources also found the site is beyond the required 800 feet from St. Louis Bay and is located on a man-made canal that eventually connects to the bay. However, experts for Jacobs argued since the tide rises and falls in the marsh, it’s part of the bay, and that the state erred in interpreting the law to require a casino to be within 800 feet of open water. Henry Sewell of Thompson Engineering said, “This site is on the Bay of St. Louis, without question. There is no doubt that the potential site is eligible.”

Commissioner Wally Carter said he might be willing to approve the casino if Jacobs can produce letters from other government agencies contradicting Marine Resources’ position. Jacobs lawyer Dan McDaniel said, “Our experts are going to go out and try to meet their requirements.”