Rivalries Intensify Between Alabama and Mississippi Casinos
Casino operators in Biloxi, Miss., were the target of a little competitive surprise last month when a large blimp floating over their Gulf Coast rooftops invited gamblers to try their luck—but not at Mississippi complexes. Instead, the 178-foot-long blimp sang the praises of Wind Creek Casino & Hotel, a 17-story resort 120 miles away in rural Alabama. Mississippi casinos have long been a stronghold of Southern gambling, but, as the competition for customers stiffens in the economic downturn, a growing number of luxury resorts in neighboring Alabama are vying to siphon off. Revenue at Mississippi casinos fell 8% in 2009 to $2.4 billion, which industry officials in both states attributed to the economy and more competition. Alabama officials say they don’t track casino revenue.
The battle between Alabama and Mississippi casinos comes as Alabama Republican Gov. Bob Riley is cracking down on electronic bingo machines, a popular form of gambling in the state. Mr. Riley says that because they qualify as slot machines, which are illegal in Alabama, the bingo machines are also illegal. Raids on establishments providing access to electronic bingo games were raided, and three have subsequently closed their doors. While the Alabama Supreme Court rules on the legality of electronic bingo machines, thousands of Alabama casino employees are waiting to hear if they will still have jobs next week.
These type of state rivalries over gambling revenues are becoming more and more common. Ohio voters approved an amendment in November to build casinos in four cities that the state hopes will draw gamblers, and revenue, from neighboring Indiana and Michigan. Pennsylvania casinos are luring gamblers from Atlantic City, where casino revenue fell 13% to $3.9 billion in 2009. “With the struggles in Mississippi, part of it obviously has to do with the economy, and part of it has to do with what’s happening to the east of ‘em,” said a smiling Jay Dorris, president and chief executive of Poarch Creek Indian Gaming Authority, which owns and operates Wind Creek and two other tribal casinos in the state. Because Wind Creek operates with oversight from the National Indian Gaming Commission, a federal regulatory agency, the casino’s electronic gambling wouldn’t be affected by the Alabama Supreme Court ruling.
Tags: Alabama, Mississippi, rivalry
