Casinos Close due to Mississippi Flooding
May 12th, 2011 | Published in Inrodution
Mississippi features 19 dockside casinos; all are expected to be closed within several days as a result of the recent flooding by the Mississippi River. This will cost the taxpayers millions of dollars and cause temporary unemployment for thousands of employees. Therefore, the local and state economy is predicted to also be heavily affected.
Casinos in Vicksburg
At one of the five Vicksburg, Mississippi casinos, the doors were closed bringing the number of gambling revenues shut down due to flooding up to 15. Authorities have been heavily monitoring the four other casinos. These properties will close if the river crests, as predicted by experts.
Casinos in Tunica
In Tunica, the record high river levels have closed a total of nine casinos. Three have closed in Greenville, one in Lula and one at Natchez. The total shutdown of all Mississippi River gambling locations is estimated to cost local governments between $12 and $13 million in taxes for every month they are not functional. This figure does not include local sales tax for other services like the 6,700 casino hotel rooms and loss of income for 13,000 employees.
Cleaning up after the Disaster
Once the water subsides, there will continue to be a large amount of cleanup that must ensue in addition to remodeling and landscaping prior to reopening. When casinos are shut down, the money in slot machines and cages is transported to secure locations. When a casino is cleared by the state government to reopen, it takes approximately 12 hours for the money to be back on the property, ensure account and security controls are in place and restart all machine-games.
Louisiana and the Gulf Coast Casinos
Louisiana boasts 13 riverboat casinos but only two are on the Mississippi River. Representatives from the Louisiana Control Board stated that regulators continue to monitor the river levels but no closures have yet been made. The 11 casinos located on the Mississippi Gulf Coast have not been affected by the flooding and continue to operate as usual.
The Disaster and the Economy
Natural disasters such as flooding can cripple a local economy, especially those built on gambling. Since the gambling industry is already being negatively affected by the global recession, situations such as flooding along the Mississippi River do not help improve. Hopefully the water will subside and the affected properties can quickly clean up and reopen their doors.