Mississippi Could Amend Casino Law After Biloxi Project Controversy
Legislators from Mississippi are debating a bill in Jackson that would change the state's regulations governing the approval process for new casinos on the Gulf Coast.
This month, one Democrat and four Republican state senators introduced Senate Bill 2780. The Mississippi Gaming Control Act is intended to be amended by this bill in order to modify the application procedure for new casino projects in Gulf communities like Biloxi.
After Hurricane Katrina devastated Gulf Coast casinos in 2005, politicians in the state approved their inland reconstruction. That is, if the casino floors didn't move farther than 800 feet from the initial barges. A planned gaming area for a new casino on the Gulf must be located no more than 800 feet from the mean high-water line.
A private company was hired by the city of Biloxi last year to build a $3 million pier close to the intersection of Veterans Avenue and Beach Boulevard (U.S. Highway 90). The project allowed businessman Ray Wooldridge's company, RW Development, access to land that is 800 feet below the mean high-water line. For Wooldridge, who has been attempting for years to get state clearance to construct a casino resort, that is crucial.
The Big Play Entertainment Center, located slightly inland from the proposed pier, is owned by Wooldridge. He intends to build a casino resort in place of the arcade and amusement park.
Attorney General of Mississippi Lynn Fitch filed a lawsuit against Harrison County and Biloxi for awarding the pier contract without state clearance. After ruling against Fitch, the Mississippi Supreme Court determined that the county had the right to accept the project even though the developer did not have a state lease on Tidelands.
Revision of Casino Licensing
SB 2780 would require all applicants to first secure a Tidelands lease from the state, altering the procedure for a Gulf casino development. The lands in Mississippi that are constantly submerged under water due to tides are owned by the state government.
According to the legislation, casino developers would have to pay yearly rent and apply for a tidelands lease through the secretary of state's office. Presumably, the policy aims to impede any other casino expansions after the contentious approval of RW Development.
A casino development was granted site approval by the Mississippi Gaming Commission in January, following RW's acquisition of property located within the 800-foot mean high-water line.
"Now more than ever, we need to restore a consistent regulatory environment to preserve the sand beach and encourage further investment and improvements in the Coast casino market,” bill sponsor Sen. David Blount (D-Hinds) told the Sun Herald.
Blount claimed he co-wrote the law with the casinos that are currently operating in Biloxi.
The bill aims to increase the cost of Wooldridge's casino ambitions. A minimum of 300 hotel rooms, 40,000 square feet of casino space, and an amenity "unique to the licensee's market to encourage economic development and promote tourism" would also be required under SB 2780's amended standards for new casinos. For preliminary study, SB 2780 has been referred to the Senate Gaming Committee.
Wooldridge believes the Gulf casinos are merely wary of fresh rivals.
The History of Wooldridge
In 1999, Wooldridge received $270 million for the sale of his modular furniture business, Space Master International. He invested $56 million, or a portion of the revenues, to purchase a 35% share in the NBA Charlotte Hornets.
Wooldridge had a key role in the Hornets' 2002 move to New Orleans, where they became the Pelicans. Wooldridge received $65 million in 2004 when he sold his ownership interest in the Pelicans.
