The State of Mississippi’s Gambling Industry in 2015

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Wednesday, April 27th, 2016 | Written by Charles Washington

In 1992, Mississippi’s first casinos opened with the state permitting gambling to take place aboard its numerous riverboats. After Hurricane Katrina ravaged the Gulf Coast in 2005, however, the Mississippi State legislature allowed the water-based casinos to be rebuilt on land, finally opening the doors for the Magnolia State to become a major gambling destination for tourists.

2016 Report

In April, an annual report was subsequently issued by the Mississippi Gaming and Hospitality Association detailing the state of Mississippi’s gambling industry in 2015. The report subsequently credited the casino industry for bringing in “hundreds of millions” to the state in the form of tax revenues, and for providing jobs for thousands of Mississippi residents. It also stated that tens of millions of people come to Mississippi every year to play at the casinos. Here are some of the main details from the report:

Revenues

– In 2015, the casinos in Mississippi generated $2.117 billion in actual gaming revenue, with Mississippi’s Gulf Coast casinos bringing in $1.154 billion in gross gaming revenue, and the river boat casinos generating $963.5 million in GGR.

– Overall, casino gambling revenues grew 1.5 percent from 2014 to 2015, with the Gulf Coast casinos experiencing a faster rate of growth of 6 percent during this period. While fewer people visited casinos last year, with an estimated 13 million visits compared to 14 million for the previous year, revenues increased year over year at $1.6 billion for 2015 versus $1.5 billion in 2014.

– In 2015, gambling had a positive economic impact on the state of $4.4 billion, and made $758 million from activities outside of gaming like food and drink sales, and room fees.

– The report said that casino employees donate thousands of hours of volunteer time to their local communities, and that casinos support their local areas through charitable donations and community involvement.

Major Casino Improvements

– A brand new casino, the Scarlet Pearl Casino, opened in D’Iberville. An all-glass hotel tower is the architectural focal point of the facility that consists of 18 floors with 300 rooms. There are also four restaurants, a dining center and a 36-hole miniature golf course located at the resort. The casino itself boasts over 1300 slot machines plus a poker room and 45 gaming tables.

– In May 2015, the Silver Slipper Casino located in Hancock County opened a 129-room hotel to complement its 961 slots and 28 table games offering.

– The Island View Casino was finally able to reopen its beach tower with 405 rooms, meeting spaces and restaurants. The building was damaged by Katrina and cost $60 million to renovate and repair.

– The IP Casino Resort Spa in Biloxi underwent upgrades that cost $70 million for operator Boyd Gaming.

– Boom Town in Biloxi opened a new RV park, allowing people to camp right on the resort property.

Expanding Tourist Attractions

In 2007, Mississippi’s casino market recorded record revenues of $2.891 billion, but has since experienced shrinking revenues as nearby states have built casinos of their own to draw gamblers away from their neighbor. In 2013, the state subsequently generated $2.136 billion in revenues, but business has since contracted over the last two years.

With gambling venues now available in so many places today, the state’s casino market has subsequently had to adapt to changing circumstances by offering more embracing tourist attractions to compliment its gambling products. As Allen Godfrey, executive director of the Mississippi Gaming Commission, explains, the industry is no longer just about gambling anymore, but also about promoting tourism, and offering entertainment and all other related products and services which go with the industry. Consequently, Vicksburg Mayor George Flaggs has been driving home the message for casino operators to expand their offerings, and as he recently explained:

“We’re trying to encourage them to reach out into recreation now. We’re trying to tie it into a more family oriented type thing and that’s another draw.”

Daily Fantasy Sports

Finally, Mississippi has recently enhanced its reputation as a progressive gambling hub by passing a bill permitting daily fantasy sports, with the industry to be overseen and regulated by a Fantasy Contest Task Force. While both the House and Senate approved the bill, it still has to be signed into law by Governor Phil Bryant. Commenting on the development, FanDuel recently stated:

“The bill will allow fantasy players in Mississippi to continue to play — protected by firm consumer regulations all fantasy companies must abide by — while the state continues to study the issue. We are confident after comprehensive review the task force will recommend Mississippi embrace well-regulated fantasy sports for the legions of fans in the state who love to play.”