Category Archives: Gambling

Governor still uncommitted to gaming course expansion.


A bill headed to the governor would allow more of Mississippi’s public universities and community colleges to teach management, accounting or other courses specifically related to running casinos.

The courses could be taught only in counties where casinos are legal — some areas along the Mississippi River and the Gulf Coast and in places with casinos run by the Mississippi Band of Choctaw Indians.

Republican Gov. Phil Bryant did not immediately say whether he’ll sign or veto the bill

“The governor will take it under consideration once he receives it,” Bryant spokesman Mick Bullock said Thursday.

The House has passed similar bills for years, but they died in the Senate.

This year, the bill moved through the Senate first, passing 34-17 on Feb. 7. The bill cleared the House 78-37 on Thursday.

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Filed under Economic Development, Education, Gambling, Governor, Gulf Coast, Legislature, Mississippi, Mississippi State House, Mississippi State Senate, Phil Bryant, Politics, Religion, Republican, State Government

DMR Interim Director says $4 million in state tidelands money missing.


Danny Guice, the interim director of the state Department of Marine Resources, has told the Sun Herald he can’t account for millions in state money that has come to the agency in the last decade.

“There were monies that I thought should have been available that turns out aren’t,” he said, “because they’re not there. The money was spent.”

Guice discussed the issue during a series of interviews over the past two weeks on how difficult it is to navigate DMR spending. And he conceded the agency “just hasn’t been managed well.”

Guice took over in January when Director Bill Walker was fired after coming under scrutiny for spending practices; the creation of a foundation that financially benefited from its relationship with the DMR; and the use of federal money to buy land from a relative.

The agency also is the focus of investigations by the State Auditor’s Office and the FBI.

“When I first got here and started looking at the books, just from a cursory glance, I thought we had a little money set aside, but we don’t,” Guice said. “And I’m in the process now of finding out where that money went.”

The money, roughly $4 million, is from multiple projects, but only one funding source — state Tidelands money, he said.

That’s the money the state receives from leasing land — the bulk of it from casino leases — that is subject to tidal ebb and flow.

The DMR has a committee that decides how Tidelands money will be spent and sends a list to the Legislature for final approval as long as it’s for “conservation, reclamation, preservation, acquisition, education” and better access to the water.

But going back through the years, Guice said he is finding cases in which more money was spent on projects than was budgeted and cases in which leftover money was spent on projects that weren’t on the list.

“What I was trying to find out is what they spent it on and I’m not sure they know what it was spent on,” Guice said.

He said some of the project accounts were “overspent by five or six times what was budgeted.”

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Filed under Economic Development, Ethics, Gambling, Gulf Coast, Law Enforcement, Mississippi, Politics, Spending, State Government

Mississippi, Lauderdale County taxpayers out $5 million from MDA gamble


Handy Hardware, a Texas-based hardware store cooperative, plans to close its 2-year-old Meridian warehouse Dec. 31, laying off 109 workers.

Mississippi Development Authority spokesman Dan Turner said the state contributed a $3.6 million grant to Handy and plans to demand the return of the money. Handy CEO Ken White said he hasn’t heard from the state.

White said Handy plans to give the 463,000-square-foot warehouse back to lender Capital One Financial Corp. in exchange for wiping out its debt on the $20 million building.

Handy, a 1,300-store cooperative, built the warehouse with the aim of expanding eastward. White said the economy tanked after Handy decided to expand. Now the distributor is losing money and needs to pull back to its original warehouse in Houston to save money.

“The expansion was too great, and the cost to keep that open far exceeded the growth that was happening in the region,” he told The Associated Press in a Thursday phone interview. The company also was dogged for a time by troubles with its electronic ordering system, but White said those problems had been resolved.

Lauderdale County Board of Supervisors President Joe Norwood said White told him the Meridian warehouse handles only 20 percent of Handy’s business. White said the company has $240 million in yearly revenue.

White praised workers in Meridian when he met with them and local leaders Wednesday to announce the closing.

“Our first concern is the impact this is going to have on the employees of Handy Hardware,” said Wade Jones, president of East Mississippi Business Development Corp. “We’re shocked and highly disappointed by this announcement.”

State and local entities contributed at least $5 million in grants, tax breaks and loans toward the distribution center, opened in 2010 along the interstate on the east side of Meridian.

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Filed under East Mississippi, Economic Development, Gambling, MDA, Mississippi, Spending, State Government, Unemployment

Casino revenue down 4.3 percent in Mississippi.


Casino revenue on the Mississippi Gulf Coast showed some improvement in September, but the state’s gamblers lost less along the Mississippi River, dragging down overall receipts.

Statewide casino revenue fell 4.3 percent from September 2011, to $177.9 million, according to Mississippi Department of Revenue figures.

The 17 river casinos from Tunica to Natchez won $91.2 million, down 10 percent from the $101.6 million they won in September of last year.

In September, the 12 coastal casinos won a total of $86.7 million from gamblers, up 2.8 percent from the $84.3 million they won in September 2011.

HA

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Pender: Expect loud passionate outcry over Mississippi lottery in 2013


Bennett said lawmakers will likely wait and see what transpires in other states and Washington before tackling online gambling. But a lottery will probably get cussed and discussed this legislative session.

“So many people have asked about (a lottery),” said Bennett, R-Long Beach. “Legislators put in bills for it — every year. I told them we would look at it.”

I expect some loud, passionate outcry will be forthcoming, but the real debate on a Mississippi lottery has probably shifted over the last 20 years from religious-moral to economic-pragmatic. Does a lottery make financial sense for Mississippi? Would it hurt casinos?

Forty three states have lotteries, including all but one — Alabama — that border us. In recent years, many lottery programs have been struggling financially.

But supporters say a lottery would help shore the state budget — and could be earmarked for education — and keep Mississippians from spending lottery dollars in neighboring states.

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Mississippi slips among 5 casino states as gambling revenue drops » The Commercial Appeal


beau rivage

Image by digitizedchaos via Flickr

JACKSON — Mississippi’s longtime dream of passing New Jersey to become the nation’s second-largest gambling destination has not happened. Now, Pennsylvania and Indiana have passed the Magnolia State in terms of casino revenue.

The economy and the competition have contributed to Mississippi’s current standing as the No. 5 gambling market in the United States. Of course, this spring brought the worst flooding along the Mississippi River since 1927, forcing the river casinos in Tunica and elsewhere along the river to close temporarily. And, Hurricane Katrina in 2005 knocked the Gulf Coast casinos out of business for several months, some of them for more than a year.

Then there was the unexpected — and to some people inexplicable — 9 percent drop in August gambling earnings from a year ago at Mississippi’s state-licensed casinos.

“I have no insight. I would hate to speculate,” Allen Godfrey, executive director of the Mississippi Gaming Commission, said about August revenue.

Godfrey said while Mississippi was once third behind Nevada and New Jersey, it has dropped to fifth behind Indiana and Pennsylvania.

“Pennsylvania probably is going to continue to grow. It is a fairly new market. We’ve been a fairly consistent market and there is room to grow,” Godfrey said.

The casino business nationwide has been struggling to recover from the Great Recession, which slashed discretionary spending and business travel and was followed early in 2011 by rising gasoline prices. Recently, some economists have been warning about the possibility of another recession amid slow job growth.

The 19 casinos along the Mississippi River took in $94 million from players in August, down $6.5 million from August 2010. The 11 casinos along the Gulf Coast won $90.9 million, down from $101 million a year ago.

Overall, casino winnings totaled $185.1 million, down from $201.7 million a year ago. For July, typically a busier month for the business, winnings totaled $210.6 million.

The news came just as lawmakers were wrapping up budget hearings in preparation for the 2012 session.

Casino tax revenues to the state and local governments have remained relatively steady — totaling $274.5 million in the fiscal year that ended June 30, 2010. Not bad. However, it is lowest revenue figure since post-Katrina, when revenues were $273.5 million in the fiscal year ending June 30, 2006.

That factor weighs on lawmakers as they write a state budget. Gambling taxes represent about 3 percent of all revenue collections in Mississippi.

via Mississippi slips among 5 casino states as gambling revenue drops » The Commercial Appeal.

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State agencies are big casino customers – Local – SunHerald.com


Slot machines are common place in casinos

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Mississippi government agencies spend millions of dollars in casinos, from the Coast to Las Vegas.

Just how much they spend is hard to determine. It’s spread across individual agencies’ budgets and listed under many labels. Much of the spending is reimbursed to individuals for hotel rooms or meals and hard to track. But a look at just the direct billing from casinos to agencies — mainly for conferences, luncheons and dinners — would indicate state government has not curtailed its spending to the extent private industry has.

For instance, the Mississippi Department of Transportation has paid casinos an average of about $137,500 a year over the last eight fiscal years. The Mississippi Development Authority spent an average $45,000 a year — although records would indicate that figure is far higher. The Department of Education spent about $105,000 a year on casino meetings and luncheons. The attorney general’s office averaged $74,800 a year to casinos, but records indicate that number is probably much higher. The list goes on, and most state agencies appear to have dropped a few dimes with casinos in recent years.

A look at other MDA spending — such as a payment to boxing promoter Don King Productions Inc. for $10,000 listed as “promotional expense” — would indicate its spending on casino events goes well beyond what direct billing shows. An MDA official said the Don King expenditure could have been boxing tickets for clients, likely “key consultants who bring projects to the state.”

MDA spent more than $7.8 million from fiscal ’04 to ’11 on “promotional expenses,” some of which appear to be casino-related events. Over the last two full fiscal years, MDA paid the Venetian Casino in Las Vegas more than $48,000.

Several state officials said holding meetings and training seminars at casinos makes sense — they have more meeting and convention space and hotel rooms than most other facilities across the state, and they often get good government rates on the rooms and food. They said gambling and swankiness is not the draw.

“We have a lot of ours at (Pearl River Resort) because it’s centrally located for all our districts,” said Butch McMillan, head of the state Department of Rehab Services. His department has paid an average $31,00 a fiscal year to casinos from ’04 to ’11.

“The main reason for casinos more than anywhere else is they have the meeting space,” McMillan said. “Plus, most of the time, casino room rates are lower than other hotels, and they give us a state rate, we negotiate it …. As far as the gambling aspect, if I spend $10 they’re lucky. I won’t say all my employees are so frugal.”

via State agencies are big casino customers – Local – SunHerald.com.

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Filed under Biloxi, Economic Development, Education, Gambling, Gulf Coast, MDA, MDOT, Mississippi, Spending, State Government, Taxes

Bryant focuses on job creation – Elections – SunHerald.com


In a meeting with the Sun Herald on Wednesday, Bryant said as governor he would be focused on creating jobs and keeping existing jobs.

He outlined his jobs program, which includes keeping corporate taxes low and creating a “Governor’s Regulatory Commission.” He said this 12-member civilian panel would review current regulatory practices to ensure fairness and make the state more business friendly.

Bryant said he would push to phase out the inventory tax and reduce the sales tax on construction equipment.

He said the state must expand its energy exploration and production, and look to new technologies such as biofuels, clean coal and nuclear and solar engergy “to ensure Mississippi maintains its roles as a world leader in energy production.”

Bryant said he would continue to promote tourism on the Coast and statewide.

“There are 81,000 direct and indirect jobs in Mississippi in tourism and travel,” he said. “That’s 81 Toyota plants.”

Bryant said he would also work to bring more manufacturers to the state. He said he would love for the state slogan to change from “the Hospitality State” to “We Make Things.”

Bryant refuses to take campaign donations from casinos, and said he opposes them expanding to jurisdictions beyond where they are now. But he said he fought any efforts in the Legislature to raise their taxes and he doesn’t oppose the industry.

via Bryant focuses on job creation – Elections – SunHerald.com.

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Filed under Elections, Gambling, Gulf Coast, Job Growth, Mississippi, Phil Bryant, Politics, Republican, Tourism