Mississippi casino revenue rises in October

Tuesday, Nov. 21, 2000 | 12:01 p.m.

The 12 Coast casinos won $93.9 million for the month, $7.7 million more than the $86.2 million they won in October 1999, according to figures supplied by the Mississippi State Tax Commission.

The 18 casinos along the Mississippi River won $125.7 for the month compared to $120 million in October 1999, the Tax Commission said. The state does not release figures for individual casinos.

The figures do not include revenue from the Silver Star Resort & Casino operated by the Mississippi Band of Choctaw Indians, which is not taxed by the state.

Statewide, the 30 state-regulated casinos won $219.6 million for the month, about $12 million more than the $206.2 million they won last October.

"I would look at those figures with muted enthusiasm," said Daniel Davila, an analyst with Hibernia Southcoast Capital of New Orleans. "I'm sure there's real growth there, but to properly analyze it you're going to need to look beneath the top line growth and see what kind of (profit) margins are there."

Davila and other industry analysts believe the revenue growth is largely being fueled by increased marketing efforts that are cutting into profit margins.

"I'm pretty convinced there's some buying of business down there, which would make the revenue numbers look exaggerated," Davila said.

Gulf Coast Gaming Association President Keith Crosby, general manager of the Palace Casino Resort in Biloxi, said intense competition among local casinos is forcing operators to spend more money on marketing and advertising.

"It may be a good sign. It's optimistic from the standpoint that there is growth," Crosby said. "The question is: At what cost?"

October revenue figures historically have been slightly higher than those in September. They are normally much lower than the spring and summer months.

Brenda Redfern, director of compliance for the Mississippi Gaming Commission, said the 9 percent jump in October revenue on the coast "may very well be the result of marketing activity." She said the monthly revenue figures for the year "have been fairly consistent with what you'd expect."