Hurricane Katrina forces casino closures

Adam Goldman

Tuesday, Aug. 30, 2005 | 9:21 a.m.

Hurricane Katrina forced Harrah's Entertainment Inc. to close three of its casinos in Mississippi and New Orleans, the company said Monday.

Competitors MGM Mirage Inc. and Boyd Gaming Corp. also each had to close a casino as the powerful storm slammed ashore, spokesmen said.

Harrah's New Orleans, the Grand Casino Gulfport and the Grand Casino Biloxi were expected to reopen when conditions permitted and authorities give the OK.

Gary Loveman, Harrah's chairman and chief executive, said he didn't know when gambling might resume.

"We just don't have an idea," he said. "It's impossible to speculate."

Loveman said damage to the well-protected New Orleans property was modest. Loveman didn't have information about the Mississippi casinos but said he was concerned because the casinos were on barges docked to land facilities.

"They are much more vulnerable," he said.

Harrah's will pay employees while the casinos are shuttered, Loveman said.

MGM Mirage closed its Beau Rivage hotel-casino in Biloxi, a company spokesman said. The property had minor flooding in the parking garage, but the casino was not damaged, the spokesman said.

Boyd Gaming spokesman Rob Stillwell said only one its three properties in Louisiana, the Treasure Chest casino in a New Orleans suburb, had been affected by Hurricane Katrina, though damage information was unavailable.

In an investor's note Monday, Deutsche Bank analyst Marc Falcone wrote that Harrah's could lose $1.8 million to $2.5 million a day in revenue; MGM Mirage from $700,000 to $1.1 million in daily revenue; and Boyd from $200,000 and to $450,000 a day.

JP Morgan gambling analyst Harry Curtis wrote: "Given the severity of the storm, demand could be negatively impacted for two-three weeks."