New Orleans Gaming Strong Post-Katrina
In the 10 years since Hurricane Katrina, New Orleans' casino industry has impressively recovered. Its three casinos—Boomtown, Treasure Chest and Harrah's New Orleans—generated $552.5 million last year, the result of recession and competition, after a peak of nearly $700 million in 2007. But new hotels and other amenities are attracting gamblers and visitors.
Although Hurricane Katrina caused 0 billion in damages and more than 1,570 deaths, the New Orleans casino industry emerged fairly intact. In the aftermath of the catastrophe which hit the Deep South in August 2005,
two casinos reopened within two months: Las Vegas-based Pinnacle Entertainment’s Boomtown and Boyd Gaming’s Treasure Chest. Caesars Entertainment Corporation’s Harrah’s New Orleans reopened six months later, in time for Mardi Gras.
John Payne, chief executive officer for the southern region of Caesars Entertainment Operating Company, said, “From a tourist standpoint, the city is the strongest it’s ever been. There is an entrepreneurial spirit here that the city never had before. Everyone who came back had a commitment to help rebuild the city in many different ways. Tourism is one of the top drivers of business in this town. It’s one of the areas that had to be great again.”
At Boomtown, 20 minutes southeast of the French Quarter in Harvey, workers served thousands of meals to law enforcement personnel, electrical crews and construction workers rebuilding New Orleans. General Manager Harold Rowland said, “It seems like a special relationship was created among the team members who went through Katrina together. I have heard them talk about how they were able to do something good for the community and allow the customers to have some sense of normalcy. We became a place for locals to escape and get a warm meal.”
One noticeable change at the casino is the 3.5 mile, 14 foot high concrete-and-steel wall encircling the property, built as a safety measure by the U.S. Army Corp. of Engineers. It was completed in 2010 after Katrina breached several levees in the New Orleans area. “With the big iron doors, it kind of reminds you of ‘Escape from New York,'” Rowland said.
After Katrina, Harrah’s New Orleans, located near the French Quarter, sustained only minor damage. But because the city was uninhabitable, the casino was closed for months and the New Orleans police department used its porte-cache as a command center.
Treasure Chest Casino in Kenner, 15 miles west of New Orleans, reopened quickly although in the immediate aftermath of Katrina, Boyd Gaming officials were uncertain if it had survived. Three days after the storm, Dean Naquin, who captained the boat on Lake Pontchartrain gambling cruises before it was permanently moored, few over the site to confirm the moorings had held. “Water surrounded the boat. The whole area was flooded days until the water receded. The outbuildings and shelters around the boat were gone,” he said. “It took us a while to get staff back in here.”
The Amelia Belle Casino, formerly Bally’s, was the only gaming facility that left after Katrina. Columbia Sussex, the owners at that time, initially planned to dock the boat in Baton Rouge, but it ended up in Amelia, 79 miles west of New Orleans. It’s owned by Boyd Gaming, which also operates four other gaming properties in Louisiana.
Gaming revenue has rebounded in the 10 years since Katrina. According to the Louisiana Gaming Control Board, the three New Orleans casinos generated $548 million in revenue in 2004, the last full year before Katrina. In 2005, revenue declined to $499.9 million, with Harrah’s closed the last four months of the year. In 2006, gaming revenue was $696.4 million for the three casinos, with $698.5 million in 2007. However, revenue in the past seven years has declined due to the recession and new regional competition. Last year the three casinos posted revenue of $552.5 million.
In order to hold their own against regional competitors in Louisiana and other states, Boomtown and Harrah’s have added hotels and other amenities to their properties. Treasure Chest has not changed much, limited by being moored in a state park.
The state’s only land-based casino, Harrah’s New Orleans, owned by Caesars Entertainment, is located in the former Rivergate Convention Center. When Katrina hit, a 26-story, 450-room hotel tower was under construction and finally opened in late 2006. Caesars also took over Fulton Street from the city, closing it to cars to create an outdoor dining, retail and entertainment pedestrian district.
In January, Boomtown completed a $20 million, 150-room hotel with 14,000 square feet of meeting space in January. Rowland said hotel occupancy is high on weekends and when large events “fill up” New Orleans. He said the Harvey Canal Floodwall has not been a deterrent to business. “Thank God we haven’t had to close the doors yet. The drive to Boomtown is pretty industrial. You see this massive wall with a Boomtown sign in front. But when you drive in, you see this beautiful riverboat casino and a hotel.”
