Posted on Thu, May. 08, 2008

BILOXI -- Beyond the dazzle of the new slot machines and the aroma of grilling shrimp at the Southern Gaming Summit on Wednesday was the question of the economy and how it might affect casinos in Mississippi and across the country.

The 15th annual summit continues today at the Mississippi Coast Coliseum and Convention Center, and Gov. Haley Barbour will give the keynote address.

Barbour is expected to call a special legislative session later this month. As the governor determines the agenda for that session, casino executives will be listening to today's speech to see if Barbour intends to include the casino tax-incentive bill for tourism projects, which failed in the general session.

Biloxi Mayor A.J. Holloway said, "The gaming industry should get some of the benefits afforded other industries in Mississippi." Cathy Beeding, vice president and general counsel for Island View Casino, said every industry in the state, including foreign-owned businesses, are given the tax incentives except casinos.

"I wish everyone would realize that casino is not a four-letter word," said Holloway. Jana McKeag, president of Lowry Strategies, said, "Still there's a very negative perception" of casinos by both the Republican and Democratic parties in Washington. It is the casino industry's responsibility and challenge to educate legislators and their staffs about the benefits of casinos and the economic impact they have on jobs and tourism in a community, she said.

Although Hurricane Katrina was frequently mentioned, the speakers made a point to go beyond the recovery and look toward the future. "Don't underestimate our ability and our resolve to achieve our goals," said Sun Herald President and Publisher Ricky Mathews, who said studies will soon be commissioned to determine how and where more meeting space should be built and what attractions are still needed to make the Coast a premier destination.

Bruce Frallic, executive director of the Gulfport-Biloxi International Airport, and Mississippi Gaming Commissioner John Hairston gave the audience the reasons they should do business on the Coast. Frallic said with the leisure, business and military passengers, "that tells the airlines that we're a very balanced market."

Hairston said even the most conservative estimatessaythe economy will begin to improve in the third quarter of the year and the Coast economy shows strong growth. If the GO Zone tax incentives pass the U.S. Congress, it will bring an additional $1 billion or more in tax relief to the Coast, he said.

Casino markets in other states are looking at the same concerns as Mississippi, including smoking bans and increased gas prices.

New Jersey is adding more non-casino amenities but is also getting a total smoking ban. "There's not going to be smoking inside the casino as of Oct. 15," said Josh Lichtblau, director of the New Jersey Division of Gaming Enforcement. Because neighboring Pennsylvania doesn't have that ban, casino operators hope the lure of vacationing at the shore will increase business.