Mississippi revenue could reach $2.2 billion

Tuesday, Jan. 5, 1999 | 11:25 a.m.

With December revenues from the 29 dockside casinos likely to match or exceed November revenues of $178.3 million, experts estimate gross gaming revenue could reach $2.2 billion in 1998.

Through November, Mississippi River counties have taken in about $1.26 billion and Gulf Coast counties have received about $747 million.

The continued growth brought Mississippi a step closer to its potential as a gaming destination, experts said, and growth is expected to continue this year.

"I think it was a solid year. We saw the boosts where the hotel rooms are," said state Gaming Commission Executive Director Chuck Patton. "I think the Coast is growing faster than other parts of the state."

The coast has 11 casinos.

The primary catalyst for gaming growth on the Coast next year will be Mirage Resorts' Beau Rivage, said Tom Graves, a gaming analyst with S&P Equity Group in New York.

"Mississippi has made some progress in becoming a destination market, and the opening of Beau Rivage will sort of keep things moving in that direction," said Graves.

Graves expects Mississippi's gaming market to increase in revenues by 7 percent next year, slightly less than his predicted 9 percent growth for this year.

"There will be some new projects that travelers want to see in Las Vegas next year, such as (Mirage Resorts') Bellagio, so I think it will impact Mississippi somewhat," he said.

Gaming analyst Bruce Turner of Salomon Smith Barney in New York said 1998 marks the fifth consecutive year of steady growth for the state, and he expects it to continue.

"Politicians should be supported from the standpoint they have structured an environment that is business friendly that has resulted in a very keen desire on the part of market participants to enter," Turner said.

He also believes the $600 million Beau Rivage, scheduled to open in March, will be the test to see if the Coast is ready for major developments.

"MGM Grand is watching developments more closely than most. Mississippi probably represents the best market for construction of new projects for the next several years," Turner said. "If (Beau Rivage) does well, I think you will see others follow."

He said expansions in Tunica have helped those gaming operations.

Hollywood Casino, Sam's Town Hotel and Casino and Harrah's united to build an 18-hole golf course, River Bend Links, which will be officially ready for play in April. Harrah's also opened a comedy club, a franchise of The Improv.

"I think it is a huge step for this market," said Harrah's spokeswoman Jennifer Weissman.

Weissman said first-time visitors to Tunica are surprised by the quality of gaming operations they find.

"When you bring people down here, the astonished look is amazing. To think it's all made out of cotton fields is crazy," Weissman said.

Vicksburg City Clerk Paul Rogers said the city's casinos will generate more than $200 million in revenues for the year for the first time.

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