Harrah’s helps boost number of visitors to New Orleans

Alan Sayre

Wednesday, March 22, 2000 | 10:32 a.m.

NEW ORLEANS -- Harrah's New Orleans Casino won $20.4 million from gamblers in February, while Louisiana's 13 riverboat casinos took in $124.3 million, state police reported Tuesday.

According to the official state police tally, the casino won $20.9 million in January. However, the casino downgraded the figure to $19.25 million because money won on New Year's Eve was not officially reported to the state until later because of fears of Y2K computer problems.

Using the casino's figures, the revenue rose by 6 percent and represented the third full consecutive month of increased winnings from gamblers since the casino opened in late October.

"While we have much work ahead of us, we credit this increase to marketing programs beginning to take effect and the high-quality experience being presented to our patrons," said Fred Burford, president of JCC Holding Co., the casino's owner.

Las Vegas-based Harrah's Entertainment Inc. owns about 43 percent of JCC Holding. The casino carries the Harrah's name.

Because of the casino's $100 million annual minimum tax to the state, some industry analysts have said the gambling hall needs monthly revenue from $25 million to $31 million for long-term success.

Last month, Harrah's Entertainment took over the required daily tax payments to the state, which JCC Holding said would allow it extra capital to continue improving the casino.

The New Orleans-area riverboat market, which typically won $25 million to $27 million a month before the arrival of Harrah's, continued showing a gradual rebound with $23.2 million in winnings.

Industry observer Larry Pearson, publisher of the Riverboat Gaming Report, said the figures of the entire New Orleans-area market indicated that Harrah's was bringing in tourists and those attending conventions.

"This increase is not coming from locals," Pearson said.

For example, the Boomtown Casino in Harvey and the Treasure Chest in Kenner have recovered most of their lost business from Harrah's opening. Both typically cater to a suburban crowd. But Bally's, the only riverboat in the city of New Orleans, has dropped from $8.1 million in winnings in February 1999 to $5.7 million last month.

As usual, the four dockside casinos in Shreveport-Bossier City, which cater heavily to Texas, took in the most among the gambling markets with $59.3 million.

The pair of two-boat complexes in Lake Charles won $27.6 million, while the two floating casinos in Baton Rouge won $14.2 million. Lake Charles also markets to Texas, but faces stiff competition from a casino at the Coushatta Indian reservation, which does not have to publicly report its revenue figures.