Florida Expands and Mississippi Worries

The Seminole Casino expansion and recent bills that have expanded their poker and greyhound racetracks that won approval from the Florida Senate Committee on Tuesday have now caused their Gulf Coast neighbor, Mississippi to consider competitive measures and tax breaks for their casinos in order to retain Florida gamblers. Gamblers from Florida made up nearly a quarter of the Mississippi's casino's  visitors in 2007 and they want to keep them coming back for more. 

Last November, Florida Governor Charlie Crist signed a gambling compact with the Seminole Tribe of Florida that gave the tribe the right to operate gaming facilities at seven locations across Florida, and they can now hold six no limit poker tournaments each year.  The tribe will have to pay the state at least $2.5 Billion dollars over the next 25 years as their share of the revenue.

This has got Mississippi worried as gamblers from Florida represented nearly 21.2 percent of all visitors to their 29 casinos in 2007, according to a memo that was issued by the Joint Committee on Performance Evaluation and Expenditure Review.  And if half of the Florida market decides to stay closer to home to play in the newly expanded casinos and poker tournaments, Mississippi could expect to lose $254 million in gaming and tax revenues and would also lose 3,191 direct jobs according to the memo.

There are other reports that offer more conservative numbers that show that if 25 percent of the Florida market is lost Mississippi could lose $75.7 million in gaming and tax revenues and lose 1,595 direct jobs.  Neither prognosis is really appealing for the state and the people that could lose their jobs so Mississippi is taking action.

Mississippi lawmakers are now pushing a bill that would give tax breaks for casinos that want to build tourist attractions to woo non gamers to the state.  House Bill 1196 proposes to allow Mississippi casinos to "diversify in other areas of the state," said House Tourism Committee Chairwoman Diane Peranich, D-Pass Christian. As an example, she cited a Tunica casino that wants to invest in a public-private project to build a sports arena.

The bill would give tax breaks to casino companies that invest at least $10 million in non gaming attractions such as theme and water parks, motor speedways, etc.  The bill would also offer incentives to high end hotel and golf course projects.  But Diane Peranich warns that legislation similar to the tax break bill has failed repeatedly in the past.