New Orleans’ casino tax break still in the rumor mill

Tuesday, March 28, 2000 | 2:05 a.m.

Rep. Vic Stelly, chairman of the House Appropriations Committee, said he has heard reports that the casino will ask the state to reduce its tax to $60 million a year.

"That's the word that's going around," said Stelly, R-Lake Cahrles.

New Orleans gets $6 million annually from the state to pay for casino support services. Stelly and others said they wanted only a one-year renewal and the committee agreed, sending the amended bill to the House floor.

If the casino owner somehow gets a tax reduction in the next year, then the city's share should also be reduced, Stelly said.

Rep. Warren Triche, D-Thibodaux, another member of the appropriations committee, said a few weeks ago that he had heard the casino owner, JCC Holding Co., would ask for a decrease ranging between $40 million and $60 million.

The casino is not pulling in enough winnings from gamblers to do much more than break even, if that, and the $100 million-a-year minimum annual tax is translating into a monthly levy of more than 50 percent.

JCC Holding is a publicly traded corporation that owns the casino. Harrah's Entertainment Inc. owns about 43 percent of the company and a Harrah's subsidiary runs the casino, which carries the Harrah's trade name.

JCC Holding will not say whether it will seek a tax break.