Louisiana Casino Industry Enjoy Sunny Skies After Storms

Without the fierce competition coming from the Mississippi Gulf Coast and with the hordes of recovery workers who have all the time in the world and money to spend, the casino industry in Louisiana is enjoying bright skies. Figures now indicate that the industry is witnessing the biggest boom it has ever seen following the wrath of hurricanes Katrina and Rita.

But New Orleans must not relax on this opportunity as analysts predict that Mississippi will be back in the game soon to reclaim their gaming dominance in the South. Experts say that they will be getting much help to do this from the attraction of billions of dollars in investments for the reconstruction of the region. Plans are now underway in the area for the construction of shore-side casinos.

In the 11 months of the current fiscal year, Louisiana's take on casino revenues has been $473.8 million, a steep climb from a year ago's $413.9 million. What makes it an even healthier figure is the fact that this rise is despite the closing of three casinos from damages sustained in the two storms.

Just this May, casino patrons poured $220.2 million at Louisiana's 16 casinos from $199.5 million the same month last year. In April, its was $213.9 million as opposed to last year's $189.4 million the same month.

"The people who have come here to rebuild the city have a lot of money in their pockets and not a whole lot of entertainment options," said industry analyst Nick Danna of Stern, Agee & Leach in New Orleans.

The increase in casino revenues is mostly centered in New Orleans and Baton Rouge, regions that hosted the exodus of people coming from the more devastated areas due to the storms.

There is no telling how long this upward surge will be sustained but analysts have a good guess. They suggest together with industry figures that when the Mississippi casino industry has obtained a full recovery, it will very quickly displace Louisiana casinos.

Prior to the storms, the Mississippi coast was already one of the nation's top three gambling markets coming only behind Atlantic City in New Jersey and Las Vegas. As soon as today, the Mississippi casino industry is showing signs of picking up.

Gambling in general across the country has substantially recovered after the slump following the 9/11 attacks that showed a dramatic decrease in travel. According to the American Gaming Association, state-licensed casinos took in $30.3 billion in 2005, up from $28.9 billion in 2004, $27 billion in 2003 and $26.5 billion in 2002.