Will Coast gaming become stronger or weaker?

The success, strength and growth of the Coast gaming market have been driven by three primary factors.

1) The adoption of a free market, unlimited license gaming law coupled with a moderate tax rate. This law was patterned on the highly successful Nevada model and has contributed directly to the vibrant and growing gaming industry on the Mississippi Coast. It allowed qualified operators with demonstrated suitability and financial capability to get a gaming license at sites deemed legal by local government zoning and the Mississippi Gaming Commission. There are no monopoly gaming licenses granted. The free market determines the success of these ventures and the ultimate number of gaming facilities. Gaming operators knew they could compete fairly with established casinos for a share of the Coast gaming market.

2) Gaming regulation in Mississippi was perceived as free of political interference and anti-competitive activity from existing casinos. There are Gaming Commission rules against anti-competitive actions by casinos.

3) After Hurricane Katrina’s devastation in 2005, the adoption of House Bill 45 allowed casinos to come onshore. This re-established a Coast market so strong that it survived the Great Recession and the world’s largest oil spill. It has also meant thousands of jobs, millions in wages and millions more in tax revenue for cities, school systems, counties and the state. This model has ensured the strength of the Mississippi Coast gaming market. Actually, from 2013 to 2016, the Coast market has grown from $1.064 billion to $1.188 billion, according to the Mississippi Gaming Commission’s website.

The law has not changed, but some existing casinos want to change the intent of the law. They want to limit competition.

The former director of the Gaming Commission left the agency to work for the Mississippi Gaming and Hospitality Association, and he has submitted a letter opposing RW’s site in Biloxi on behalf of that group. His transition in jobs apparently changed his opinion about what constitutes a legal gaming site. The same law and “mean high water line” by which the Foxwoods site at the Broadwater was approved under his watch is the same seawall “mean high water line” as RW is using.

In my opinion, a majority of the existing casinos in that association are trying to change the rules to protect themselves from competition. Lobbyists have been hired to start new casinos in Georgia to compete with the Coast market. That allows the casinos to divert money from improving Mississippi casinos and invest it with our out-of-state competition.

In 2008, I believe the Gaming Commission ignored the law and its own rules to deny site approval to RW Casino Development. That damaged our reputation as a state free of political interference.

The chairman abruptly moved to deny the application without the required recommendation of the director who is now with the casino association. That was wrong. The commission staff then failed to provide a written opinion as required, effectively preventing an appeal. That was wrong.

The current director of the Gaming Commission was assistant director when Foxwoods was approved and RW was denied, even though they both met the same standard. On Oct. 18, 2016, the current director spoke in Louisiana to the Riverboat Economic Development and Gaming Task Force and said, “We don’t need another slot machine in the state of Mississippi.”

He seeks to limit competition. This director has prejudged RW’s site application. That is wrong and he should recuse himself from the RW application.

Every citizen and every community hoping to secure casino developments should be deeply concerned.

This type of anti-competitive activity by the former staff and commissioners is wrong. It jeopardizes all potential future developments and portrays to the gaming community that the Coast is closed for new gaming business.

The new commissioners have an opportunity to right these wrongs and restore the Gaming Commission’s respectable, fair and non-political reputation that has been damaged. It was wrong then and it needs to be made right now.

This story was originally published February 15, 2017 at 5:00 AM with the headline "Will Coast gaming become stronger or weaker?."