Mississippi Senate Addresses Casino Approval Process

Responding to the Mississippi Gaming Commission’s controversial casino site approval to a Biloxi developer without state permission, Senators are reviewing a bill to overhaul the casino approval process and require a lease from the Secretary of State.

Mississippi Senate Addresses Casino Approval Process

In Mississippi, the Senate introduced Senate Bill 2780 regarding new casino approvals on the Gulf Coast at Biloxi and other coastal locations. The measure states any company planning to use Public Trust Tidelands for a casino project must be granted a tidelands lease from the Secretary of State rather than from a city, county or municipality.

The bill resulted from the Mississippi Gaming Commission’s controversial site approval last December of RW Development’s casino project on U.S. 90 and Veterans Avenue in Biloxi. Three previous Gaming Commissions had denied site approval, citing RW Development owner Ray Wooldridge did not have control of the property up to the water’s edge, as required. Wooldridge owns the Big Play Entertainment Center near where the pier will be built. He has long pursued state approval plans to replace that venue with a casino resort.

In response to the commission’s denials, RW Development sought and received a lease from the city of Biloxi and approval from Harrison County to construct a $3 million pier with a connection to the waterfront. Mississippi Attorney General Lynn Fitch sued Biloxi and Harrison County for issuing the pier contract without state approval. The state Supreme Court ruled against Fitch, declaring a Tidelands lease from the state was not required to build the pier.

Senate Bill 2780, sponsored by Senate Gaming Committee Chairman David Blount and several Coast senators, would overhaul the casino development process, mandating that all applicants must first obtain a Tidelands lease from the Secretary of State and be required to pay annual rent.

Additionally, the bill would require new casinos to include a minimum of 300 hotel rooms, a 40,000-square foot casino space and an amenity “unique to the licensee’s market to encourage economic development and promote tourism.”

Blount told the Sun-Herald, “I am working with the Secretary of State’s office and every Coast casino operator on the bill. Now more than ever, we need to restore a consistent regulatory environment to preserve and sand beach and encourage further investment and improvements in the Coast casino market.” The bill has been referred to the Senate Gaming, Ports, and Marine Resources committees for further consideration.

Soon after the Gaming Commission granted site approval, Secretary of State Michael Watson suggested that decision may have been more political than legal. He asked the legislature to reaffirm the state’s ownership and control of Public Trust Tidelands, including the public sand beach in Harrison County.