In Louisiana, the Riverboat Economic Development and Gaming Task Force is reviewing various changes, including allowing riverboats to move on land, easing gaming-space restrictions and permitting sports betting. Each of these changes would have a positive impact on the Baton Rouge gambling market, said Baton Rouge Area Chamber President and Chief Executive Officer Adam Knapp. He noted the task force hasn’t finalized its recommendations and the BRAC hasn’t taken a position on the changes under consideration.
But, Knapp said, even if those changes aren’t implemented, the Baton Rouge market will remain strong. He said employment at casinos in Baton Rouge peaked in 2013 and has dropped by 381 since then, but forecasts show the industry will stabilize with 1,890 workers, 500 more than in 2011.
Also, Knapp noted, revenue has remained steady in 2017. Since 2012 when L’Auberge Baton Rouge shook the market, adjusted gross revenue from East Baton Rouge Parish casinos grew by $92 million, according to Louisiana Gaming Control Board figures. In 2016, took in $161 million, up from $122 million its first year of operation. L’Auberge has notably impacted Hollywood Casino, where annual revenue fell from $122 million in 2011-2012 to $67.3 million last year—a decline of $54.7 million. Market-wide, revenue is expected to surpass last year’s figures.
Task Force Chair Ronnie Jones, chair of the Gaming Control Board, said the task force probably will recommend some form of land-based gaming, which would encourage investments at the first-generation casinos to make them more competitive with L’Auberge.
Jones noted, “My sense is Baton Rouge can sustain three properties. Obviously the newer property is always going to be a tougher competitive piece for the other two more traditional boats.”
