Storm hurts business at Southern casinos

Hurricane Georges could "severely impact" casinos along the Gulf Coast and in New Orleans as people take a break from gambling to repair their storm-damaged homes and businesses, says Bear Stearns gaming analyst Jason Ader.

"We believe that a loss of business could continue well beyond the duration of the storm, as residents restore their homes and lives, and as casinos deal with any physical damage they might incur," wrote Ader in a report released Monday. "Based on our estimates ... the initial loss of gaming revenues, assuming one full week of closure by all casinos, could be between $16 million to $17 million on the Gulf Coast, and between $5 million to $6 million in New Orleans."

There are 11 casinos along Mississippi's Gulf Coast, including properties owned by Grand Casinos, Hollywood Park's Boomtown division and Imperial Palace. In New Orleans, Hilton, Boyd Gaming and Boomtown all operate casinos.

All were ordered closed this past weekend, and all remained closed today. Chuck Patton, executive director of the Mississippi Gaming Commission, said it was too early to tell whether any had sustained significant damage.

"You're just a little bit early," said Patton from his Jackson, Miss., office. "We have an assessment team going in today."

Monday, officials from Grand, Imperial Palace and Boomtown told the Sun they didn't believe their properties had sustained major damage, but cautioned that they would have to do more extensive inspections after the storm passes.

In addition to potential harm to existing casinos, Hurricane Georges could have an impact on two casinos that are under construction, Ader said. These include Mirage Resorts' Beau Rivage casino, being built in Biloxi, Miss., and Harrah's casino under construction in downtown New Orleans.

"The planned February opening of the (Beau Rivage) casino could be postponed by storm damage," wrote Ader in a report Monday.

Mirage spokesman Alan Feldman said damage to Beau Rivage does not appear to be significant. However, several construction trailers were damaged by flooding, and it will take time to clean up and resume construction, he said.

"The damage is minimal," said Feldman. "But it will more than likely be less than two weeks," before construction resumes.

While cautioning Monday that Harrah's land-based New Orleans casino could be minimally damaged, Ader noted Tuesday that all New Orleans casinos appear to have escaped any damage.

Casinos in Mississippi are required to float on water. While their connecting hotels are land-based, the barges that house casinos are anchored by specially-built mooring cells designed to withstand high winds and storm surges.

Most floating casinos appear to have escaped the storm undamaged, with the possible exception of the Treasure Bay Casino, in Biloxi, which broke from its docking barge during the storm, Ader wrote. The vessel remained attached to security lines, staying close to the shore, but it is too early to assess damage.

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