Mississippi first-quarter casino revenue increases

Sherri Williams

Friday, April 30, 1999 | 10:25 a.m.

JACKSON, Miss. -- Marketing the state's casinos as prime vacation spots contributed to the record revenue they reported in the first quarter of 1999, new figures show.

The Mississippi Gaming Commission reported gross gaming revenues from the first quarter increased 10 percent from $556.1 million in 1998 to $612.2 million this year.

Ernie Stebbins, executive director of the Mississippi Gaming Association, said the increase is due to aggressive marketing and casino improvements.

"Cumulatively, marketing the casinos in Mississippi has gotten better," he said.

Marketing throughout the South and in the Midwest has "put Mississippi on the map as a vacation destination," Stebbins said.

On the Coast, 70 percent of the casino patrons are from out of state and 86 percent of the Tunica and other North Mississippi customers are from outside the state, Stebbins said.

The construction of hotels, golf courses, swimming pools and entertainment have also attracted more people to the state's casinos, he said.

The Gold Strike Casino in Robinsonville, a small casino, added a 900 room, 33-story hotel last year and has seen its profits skyrocket and carry over to the first quarter, Stebbins said.

Casinos with hotels attract out of state customers because they have a place to stay, he said.

"The economy in the country is strong," Stebbins said. "When people have more vacation dollars to spend they will spend them. Mississippi casinos are great vacation destinations now because of the hotels, restaurants and the great entertainment."

Although gambling has been legal in Mississippi since 1992, the industry is reaching its financial pinnacle now because "the perception of Mississippi as a vacation destination has grown," he said.

Casinos along the Mississippi River saw a 9 percent increase in revenue -- $371 million up from $342 million last year.

Ralph Berry, vice president of communications for Harrah's Entertainment in Memphis, Tenn., agrees that the increase in revenues is due to better marketing.

"There has been overall growth in the industry," Berry said. "But Tunica is becoming better known and starting to market itself regionally and not just locally. There is starting to be a greater influx of people coming to the area."

Harrah's Entertainment owns casinos in Tunica and Vicksburg.

Casino revenue on the Gulf Coast was up 14 percent, from $212 million to $241 million.

The opening of the Beau Rivage Resort and Casino in Biloxi may have helped contribute to the gaming revenue increase on the Coast, said Andy Bourland, director of public affairs at Beau Rivage.

"We did contribute to the overall growth on the Coast," Bourland said. "Beau Rivage was open for two weeks in March and the anticipation and excitement of our opening was great. We saw significant activity in our hotels, restaurants, retail and gaming."

The opening of Beau Rivage can't take all the credit for the Coast's gaming revenue increase, Stebbins said.

Beau Rivage opened in the second week in March and the other casinos were already marketing, building hotels and creating other attractions to draw patrons to casinos, Stebbins said.

Bourland said gaming is so successful on the Coast because of the improved casinos, sandy beaches and the historical sites.

"There has been overall growth in the industry, but Tunica is becoming better known and starting to market itself regionally and not just locally."Ralph BerryA HARRAH'S VICE PRESIDENT