Mississippi Gaming Revenue

[ko king]

not an expert in casino management, but, i think the problem is complex. most states are in desperate need of revenue and it must seem like a quick fix to allow new or additional casinos to open. the politicans take credit for a brief surge in construction hires, some long term casino jobs and an increase in tax revenue. the problem is sooo many states are doing this and there are only so many gamblers out there. the mystique of going to a casino is gone as they become more common. too many places to play and not enough customers, especially in a slow growth economy.  what further adds to the problem is the model of mega, high priced properties that require large fixed costs. combine a boom in casino building with a high fixed cost structure and slow growth economy and i just do not think there is a lot of wiggle room for casinos to elevate ther payouts. also, do not believe that casinos are reporting much in the way of profit growth, especially after years of losing money.   i think tunica is unique. it is a casino destination city, with not much else to offer. vegas a lot to offer and biloxi does have the gulf. not qualified, but i would think tunica has seen it's best days.  

I would have to agree Tunica's best days are far behind and in the end I believe there will be maybe 3 casinos left standing. There was a time they had their chance to really be something special but they blew it, now it's just a mess. I don't know when you were there but now even the roads that lead to the casinos are in bad shape. Speaking of roads, when Tunica was blowing and going the local police departments and the Ms. Highway patrol were nowhere to be found unless an accident occurred, now they set up radar on an almost daily basis from what I'm told. The mall down the road from the casinos only has a few stores left open now and all the small businesses that popped up are long gone now.

[notes1]

kk, it was just about a year ago i was there. as there are more casinos built, i doubt they will ever fully recover. agree, a reduction in the number of properities in tunica is likely.  the 2 days i spent there and the 3 days i spent at the beau, produced some of the worst results i have ever had. and, i am not just talking about my personal results. if one is like me, it really makes one wonder if there is more to battle than just reduced paytables and bad luck. as i have pointed out before, i move around a lot when playing, so i do see what is going on. during those two trips last year, which i will not repeat, i saw almost no premium wins from anyone. five days of VP, not a single premium hand, just a couple of low paying quads. and, i did not see much better from anyone else. i learned my lesson. free plane, free room, free food ....free, hardly. 

[rascal]

not an expert in casino management, but, i think the problem is complex. most states are in desperate need of revenue and it must seem like a quick fix to allow new or additional casinos to open. the politicans take credit for a brief surge in construction hires, some long term casino jobs and an increase in tax revenue. the problem is sooo many states are doing this and there are only so many gamblers out there. the mystique of going to a casino is gone as they become more common. too many places to play and not enough customers, especially in a slow growth economy.  what further adds to the problem is the model of mega, high priced properties that require large fixed costs. combine a boom in casino building with a high fixed cost structure and slow growth economy and i just do not think there is a lot of wiggle room for casinos to elevate ther payouts. also, do not believe that casinos are reporting much in the way of profit growth, especially after years of losing money.   i think tunica is unique. it is a casino destination city, with not much else to offer. vegas a lot to offer and biloxi does have the gulf. not qualified, but i would think tunica has seen it's best days.  

You got it about right. Casino destination places such as Tunica and Atlantic City are on a downslide. More diversified areas, such as the Mississippi Coast and Vegas, can hold their own. In New Orleans, casino revenue is a small fraction of the local economy, which is one of the reason why the smoking-ban is a tempest in a teapot. Makes you wonder about the geniuses who came up with the model for destinations such as Tunica. A loser if there ever was one.

[rascal]

Overly optimistic developers are not restricted to the casino industry, not by a long shot. Happens all the time. In the case of Tunica, however, it would not have been developed without the overly optimistic assistance of the state, county and local governments.

[CTPlayer]

Very interesting comments in this thread about the reasons for the decline of Mississippi gaming revenue.   I agree with many of the comments posted, especially about the VP pay tables.   I live out of state and used to enjoy traveling to CET properties in Biloxi and Tunica, but here's another reason why I stopped travelling to Mississippi.   If I'm fortunate to win a jackpot and get a W2G on VP, I pay a Mississippi state tax.   OK, that's understandable - but when I file a MS state income tax form as a non-resident, I get no refund of those MS taxes.   At least with other states (like Louisiana, Iowa,or Missouri) that also deduct a state income tax automatically on any jackpot win that generates a W2G, I get a 100% refund on that tax when I file a non-resident state income tax form.   So, in Mississippi - unlike all other states - if I'm fortunate to win a jackpot, I end up paying taxes on that jackpot to the feds, to Mississippi, and back home in Connecticut.   Mississippi is the only state where, if I won a jackpot, I would yell "oh NO" instead of "oh YEAH."

[ko king]

kk, it was just about a year ago i was there. as there are more casinos built, i doubt they will ever fully recover. agree, a reduction in the number of properities in tunica is likely.  the 2 days i spent there and the 3 days i spent at the beau, produced some of the worst results i have ever had. and, i am not just talking about my personal results. if one is like me, it really makes one wonder if there is more to battle than just reduced paytables and bad luck. as i have pointed out before, i move around a lot when playing, so i do see what is going on. during those two trips last year, which i will not repeat, i saw almost no premium wins from anyone. five days of VP, not a single premium hand, just a couple of low paying quads. and, i did not see much better from anyone else. i learned my lesson. free plane, free room, free food ....free, hardly. 

I've told the story more than once and I just about bet you read it also when it comes to the history of Tunica in my opinion. When you have nothing to offer but gambling it better be pretty good and it was for years. I honestly couldn't provide anyone a decent reason why they should accept a "free" trip to any Tunica casino. I've taken several casino provided trips to other destinations and they all had something other than casinos to keep you entertained, Tunica has nothing. Now with that said if the gaming is good many players like myself would still take the trip but it's no fun to fly across the country and get dumped in the middle of nowhere and get wiped out. Tunica deserves what it's getting but they seem to be doubling down on stupid because nothing has changed other than it may have gotten worse.

[ko king]

[QUOTE=notes1]

not an expert in casino management, but, i think the problem is complex. most states are in desperate need of revenue and it must seem like a quick fix to allow new or additional casinos to open. the politicans take credit for a brief surge in construction hires, some long term casino jobs and an increase in tax revenue. the problem is sooo many states are doing this and there are only so many gamblers out there. the mystique of going to a casino is gone as they become more common. too many places to play and not enough customers, especially in a slow growth economy.  what further adds to the problem is the model of mega, high priced properties that require large fixed costs. combine a boom in casino building with a high fixed cost structure and slow growth economy and i just do not think there is a lot of wiggle room for casinos to elevate ther payouts. also, do not believe that casinos are reporting much in the way of profit growth, especially after years of losing money.   i think tunica is unique. it is a casino destination city, with not much else to offer. vegas a lot to offer and biloxi does have the gulf. not qualified, but i would think tunica has seen it's best days.  

You got it about right. Casino destination places such as Tunica and Atlantic City are on a downslide. More diversified areas, such as the Mississippi Coast and Vegas, can hold their own. In New Orleans, casino revenue is a small fraction of the local economy, which is one of the reason why the smoking-ban is a tempest in a teapot. Makes you wonder about the geniuses who came up with the model for destinations such as Tunica. A loser if there ever was one.[/QUOTE]

Rascal, if a casino offered some of the best gaming available anywhere (both video poker and slots), some pretty decent shows, a very good band on site to watch and dance to, great food and even a shuttle to Beale St. are you saying you wouldn't be interested. That's what Tunica was, they changed, that's why they are losers.

[FAA]

they still seem to think it's the economy. Makes me want to get in the
faces and yell "it's no us, it's you, you offer a crappy product". Give
me just one of the casinos for a year and I'd have that place jumping
and packed with people because I know what it takes. But no, they seem
to be content with busing in a few seniors on days trips and chipping
away from their retirement fund while they push and pound away at penny
and nickel machines, maybe the seniors like the quiet (almost dead)
atmosphere and lack of excitement.---------------------------------------------------------------------------------------------------------------This was a hilarious rant! I do think it is at least a two year turnaround even imposing drastic changes.  I remember how quiet Showboat was in its last year. I still had to wait sometimes for one of the four 9/6 quarter JOBs in a cozier spot. But it was a lot of losing throughout the vast property. Glad it finally stopped sapping everyone's funds. If all Tunica can boast is casinos, hasta la vista.

[FAA]

Casino destination places such as Tunica and Atlantic City are on a downslide.---------------------------------------------------------------------------------------------------------Notes and kk, AC gets such a bad rap as a casino destination city. The boardwalk and beach are fantastic. Plenty for kids to do w Steel Pier, lighthouse, etc. Great shows just about everywhere. The marina casinos are kicking butt. I sound like the Chamber of Commerce. I don't think there's jack to do at Tunica, though I am ignorant about the area.

[FloridaPhil]

[quote=notes1] i learned my lesson. free plane, free room, free food ....free, hardly.[/quote]Amen!