MGM likely restore Miss. barge, Harrah\'s wants land
MGM Mirage is likely to rebuild its badly damaged Mississippi casino barge over water regardless of whether the state decides to allow land-based casinos, the company's chief executive said Wednesday.
The company's Beau Rivage resort in Biloxi, Mississippi was badly damaged by Hurricane Katrina, but unlike other gambling barges in the area, it is still above water.
"Four feet of sludge wiped out the ground floor, but it did what it was supposed to do," MGM Chairman and Chief Executive J. Terrence Lanni said, referring to the pilings that hold the facility in place.
He said the state would do still do well to change its regulations since insurance will be harder to come by in the wake of the storm.
Other casino owners, like Harrah's Entertainment Inc., have said they will wait until the state decides whether or not to allow land-based casinos before they commit to rebuilding.
"We'd like to come back big and strong in Mississippi, but it's time to put these places on land," said Gary Loveman, CEO of Harrah's.
If the Mississippi legislature decides not to change existing laws, Harrah's would likely build a more modest structure, Loveman said.
If land-based casinos are allowed, he envisions Harrah's building a Beau Rivage-type casino, which could take three years to complete, the Harrah's CEO said.
Loveman said the company has not yet decided whether it will rebuild both of its casinos, one located in Biloxi, the other in Gulfport.
In the interim, companies that saw their barges destroyed are seeking to operate temporary casinos, either in buildings they own that suffered less storm damage or in temporary tent-like structures.
Both Lanni and Loveman said they are unable as yet to estimate the amount of damage to their companies' property.
Lanni said it will take more than a year to repair Beau Rivage.
Both men said insurance will cover their losses. Business interruption insurance kicks in through the first six months after the property reopens, but it could take longer than that for business to return to normal, Lanni said.
MGM Mirage is likely to rebuild its badly damaged Mississippi casino barge over water regardless of whether the state decides to allow land-based casinos, the company's chief executive said Wednesday.