Board begins studying three proposals for final casino license

BATON ROUGE, La. - Louisiana gambling regulators heard presentations Wednesday from three competing companies wanting the state's 15th and final riverboat casino license. One proposal was put together by former Gov. Dave Treen.

The Louisiana Gaming Control Board did not indicate how long it will take to decide where the gambling boat will go: Shreveport, Lake Charles or the Morgan City area. However, board chairman Hillary Crain said licensing background checks have not been completed yet.

The Isle of Capri, which operates two boats in Lake Charles and another in Bossier City, originally proposed a gambling project for the New Orleans suburb of Chalmette. Last week, Isle of Capri agreed to become a minority partner with Louisiana Horizons, which is seeking the license for Morgan City.

The Morgan City area does not have a riverboat, although an Indian reservation casino at Charenton is a strong draw.

Louisiana Horizons officials said a riverboat in St. Mary Parish would not drastically affect any other riverboat market. The company is proposing a $45 million project that would include a land pavilion, restaurants and a community meeting center that would not be gambling-oriented.

At the same time, a casino would be an economic boost to an area with an unemployment rate that typically averages about 11 percent, backers said. The casino will create at least 670 permanent jobs, the board was told, and Louisiana Horizons plans to donate 10 percent of its net income to local charities.

"St. Mary Parish has missed out on economic development that other part of the state have enjoyed," said James Barkate, managing partner of Louisiana Horizons.

In an interview, Barkate said the investors in Louisiana Horizons, which also include shipbuilding magnate Donald Bollinger, a friend of Gov. Mike Foster, were brought together by Treen, who was anti-gambling during his one term in office.

Barkate said Treen had no financial stake in the casino and was working as an unpaid consultant. The former governor was concerned that if the license was going to be granted, that it go to a high-integrity group, Barkate said.

"It's strictly for the image of the state," Barkate said of Treen. "No pay at all."

Officials with Pinnacle Entertainment, which also owns Casino Magic and Boomtown casinos, are pushing a $220 million casino resort project that would include a 20-story hotel and a championship golf course. The resort would be located on 225 acres owned by the Port of Lake Charles and would employ 1,500.

Pinnacle officials also said another casino in a Texas border market would increase the net benefits to Louisiana because it would be less dependent upon local gamblers.

If Pinnacle gets the license, it would be the fifth riverboat casino in Lake Charles, competing against two-boat complexes owned by Harrah's Entertainment Inc. and a popular Indian reservation casino in Kinder.

Horseshoe Entertainment wants a second boat in the Shreveport area, where its Bossier City hotel-gambling complex typically wins the most money from gamblers in the four-boat, Texas-fueled market. A fifth riverboat casino project already is under construction in Shreveport.

The head of Horseshoe Entertainment, Jack Binion, recently was declared unfit to hold riverboat casino licenses in Illinois. Louisiana regulators have said they are cooperating with their Illinois counterparts and will decide Horseshoe's suitability later for a license renewal in Bossier City.

Horseshoe and Binion have denied wrongdoing and say they will appeal the Illinois board's ruling, which could boomerang into other states where Binion operates.

The 15th riverboat license has a troubled history.

The license was granted in 1997 to then-San Francisco 49ers owner Edward DeBartolo Jr., but given back to the state after DeBartolo was summoned before a federal grand jury investigating the business dealings of former Gov. Edwin Edwards.

DeBartolo was put on probation after pleading guilty to failing to report a felony and testified he gave Edwards $400,000 for his help in securing the license. Edwards was convicted in May of federal charges alleging a widespread scheme to extort riverboat casino applicants during his fourth term.

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