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Mississippi After Katrina: Gambling and Tourism? 
Linda Goin
  
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The national news honored Katrina's first annual anniversary last month with a focus on New Orleans. While people who live along the coastlines in Florida, Alabama, Mississippi, and Louisiana keep nudging - nay - haranguing the media about lack of attention to other areas that were affected by this storm, little is done to pull attention away from the Super Dome City. While I can't answer why the media beads in on New Orleans, I can guess that it's because few hotels are open in other areas at the moment.

I had a first-hand perspective on the recovery efforts on Mississippi's coast in August. My photographs could tell the story, but I can sum it up for you briefly in one sentence: The entire Mississippi coastline resembles a bombed-out city in war-torn Lebanon. But, there are two sides to this story, one that is painfully visible and one that is quietly and stealthily rebuilding Mississippi's tax revenue.

The visible side to the story was shocking, as I drove past schools that remained shuttered, libraries that were replaced by tiny trailers, and historical buildings reduced to rubble. Equally disturbing was the drive along I-90, as I could drive 10 mph by choice rather than be forced to a crawl by summertime tourism traffic. I had few opportunities to pull off the road to take photographs, as temporary fences that constrained deconstruction refuse blocked most pull-off areas. But, I could stop wherever I wanted on the highway to snap pictures, as the traffic was so sparse.

I didn't have a chance to view the damage in Ocean Springs because the bridge that carried traffic across Biloxi Bay remained unfinished. But, the drive in that direction revealed some interesting aspects to this area's recovery. Amidst the rubble, garbage, and vacant lots stood one casino hotel that withstood raging winds and high waters. As I drove a bit further, I saw foot traffic leading to another active casino. In the opposite direction, toward New Orleans, I saw signs of other casinos that seemed ripe for re-opening. Then, when I returned home, I heard the NPR story about how Mississippi is rebuilding its tax revenue base.

Before Katrina, Mississippi's casinos were forced by law to remain offshore, although any connected hotels remained onshore. In other words, the casinos floated, and when a storm brewed, these barges could be moved into Biloxi's Back Bay for shelter. Why these barges weren't moved for Katrina is beyond my comprehension. The only reason I can gather is that the owners knew that the storm was so fierce that any movement would be a waste of time and money. They were correct, as the Back Bay area received as much damage (and suffered more deaths) as the actual coastline.

Additionally, before Katrina, twelve casinos along 70 miles of shoreline brought $888,370,904.37 to Mississippi's tax base in 2005 - slightly down from the $1,226,874,811.64 figure from the previous year. In a legalized breakdown for these revenues, 8 percent of gross gaming revenue went to the state and 3.2 percent of gross gaming revenue was distributed among city institutions, including the general fund, the city public safety department, the city and county school systems, and the county public safety department. The shrimp industry and local Keesler Air Force Base, in comparison, contributed only $450 million and $1.7 million respectively immediately before Katrina. The total sum of all mentioned revenues equaled 85 percent of Mississippi's total tax base.

Now, after Katrina, Mississippi Gulf Coast casinos are remodeling that state's shoreline and that state's tax base. Within two months after the storm, a special session of the Mississippi Legislature changed state laws to permit casinos to move 800 ft. inland. The gaming commission is now allowed to house casinos within onshore hotels, massive concrete and steel buildings that basically withstood Katrina. And, the tax base figures are astounding although hotel rooms are sparse. By the end of July, day-tripping gamblers brought $447,910,263.68 to Mississippi's tax base through three casinos alone. Now that eight casinos are open, that number may reach pre-Katrina levels by the end of the year, as they currently have contributed 65 percent of what all coastline casinos reported before the storm.

When NPR broadcast this story, I was dumbfounded. I didn't see those dollars dancing on the coast while I was there?in fact, it seemed that the coast was headed toward ghost town status. But, Biloxi Mayor A.J. Holloway confirmed NPR's story with his speech to two audiences of financial analysts in New York City on 18 June 2006. When I dug further for information about Mississippi's gaming industry, I discovered that casinos are spreading from the Gulf Coast to the Back Bay. D'Iberville, a little-known fishing town along I-10 just north of Biloxi on the Bay's north shore, appears to be the next target for the gaming industry.

The casinos have cornered Mississippi's post-Katrina dollars, since few restaurants and hotels are open otherwise. You might find signs for restaurants still standing, but the actual buildings are gone. So, when locals want to go out to eat or if the media chose to produce stories from Mississippi, the casinos would garner their business. And, the face of "locals" is changing as well. According to Time Magazine, "Descendants of many of the early settlers banded together after the storm to sell large chunks of land in order to make more profitable deals with the gaming casinos." Private industry, not the government, is rebuilding the coast, and it's silent about its growth "out of respect" for those who suffered from Katrina's rage.

Granted, deconstruction and construction are prevalent along the coast, but this industry represents only one post-Katrina investment strategy. The silent partner to construction appears to be gaming, with tourism to follow in its wake.

Until Next Week,
Linda Goin


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