New Orleans' casino tax break still in the rumor mill

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.

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