Mississippi Casino Revenues Take Unexpected Downturn
Mississippi casinos may operate as regional casinos for much of the year, but in summertime, the gambling venues depend on tourism, much like the entire Gulf Coast beach area. And, with consumer budgets strained by the economy and high unemployment, low tourist figures have translated to plummeting casino revenues.The Mississippi State Tax Commission says that June revenue figures for the state's thirty casinos show a total of $189.7 million for June, off 20 percent, or $47.6 million from the same month last year. The month was the worst for state casinos since the reopening of coastal casinos after the Hurricane Katrina disaster.
The casino and gaming figures are reflected in hotel operating numbers. While the June report isn't in, the Mississippi Hotel and Lodging Association says the May 2008 occupancy rate of 73.2 percent fell to 55.9 percent in May of this year. And anecdotal evidence is that the Fourth of July weekend, normally a sellout, saw numerous rooms go unrented.
Scott King, director of research and policy at the Gulf Coast Business Council, says the drop was far sharper than expected, and notes July figures will be closely scrutinized. He says casino traffic is still strong, but guests are staying less long, sometimes even daytripping.
"Overall guest counts are not as bad as they could be, but people are just spending less," King told Forbes. "Their gaming budgets are smaller."
While riverboat casinos declined about $15 million in revenue to $105.6 million, coastal operations dropped $32 million to $84.1 million, going from substantially more than the river gaming outlets to substantially less.
