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Growth of Mississippi

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Submitted By Blakestockwell
Words 3385
Pages 14
Thesis
At no time did the gaming companies’ commitment to Mississippi prove more vital than following Hurricane Katrina. When the storm hit in August 2005, the Mississippi casinos were forced to shut their doors. Instead of abandoning Mississippi, everyone worked excitedly to restore properties, place employees back to work and bring tourists back to Mississippi’s area. In the eyes of many, the financial impact is obvious by the capital investments and the thousands of jobs created, the quality of life has been improved by the growth and additions of other tourism-related businesses such as restaurants, outdoor recreation, small hotels, museums and festivals. Casino executives have made Mississippi their home and provided extensive community leadership, and millions of dollars have been donated by the industry to local social, educational, cultural, community and economic development organizations. Positive impacts and progress that did not exist for this region just two decades ago, now exists today. (Challenges to Mississippi Gaming Development since Katrina, 2010).
Main point 1: I. Gaming Growth in Mississippi
Sub-point 1: A. Permitting and Approvals
Sub-point 2: B. Financing
Main point 2: II. Economic Growth Sub-point 1: A. Catastrophic Natural Disasters Sub-point 2: B. Redevelopment of Mississippi
Main point 3: III. Mississippi Gulf Coast Casinos Sub-point 1: A. Tourist Attractions Sub-point 2: B. Positive Impacts and Progress
Conclusion
Today the Mississippi Gulf Coast is a destination tourism market and home to first-class resorts, nationally acclaimed golf courses and headline Las Vegas-style entertainment on a weekly basis. Without question the stimulus for this development has been a growing, evolving gaming industry that has designed and developed properties that attract customers from across the U.S. It has been 20 years since the inception of gaming; it is a miracle how far the gaming industry in Mississippi has become. No one could have envisioned the metamorphosis of small river boats into full scale resorts. It has exceeded everyone's expectations. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000)

At no time did the gaming companies’ commitment to Mississippi prove more vital than following Hurricane Katrina. When the storm hit in August 2005, the Mississippi casinos were forced to shut their doors. Instead of abandoning Mississippi, everyone worked excitedly to restore properties, place employees back to work and bring tourists back to Mississippi’s area. In the eyes of many, the financial impact is obvious by the capital investments and the thousands of jobs created, the quality of life has been improved by the growth and additions of other tourism-related businesses such as restaurants, outdoor recreation, small hotels, museums and festivals. Casino executives have made Mississippi their home and provided extensive community leadership, and millions of dollars have been donated by the industry to local social, educational, cultural, community and economic development organizations. Positive impacts and progress that did not exist for this region just two decades ago, now exists today (Challenges to Mississippi Gaming Development since Katrina, 2010). Many developers have obtained site approval or approval to proceed with development from the Mississippi Gaming Commission. The ensuing economic strife has significantly hampered casino development in Mississippi. The Mississippi Gaming Commission site and development approvals since 2005 have been slow coming. Other than the reopening of casino properties on the Mississippi gulf coast damaged or destroyed since Hurricane Katrina, only three new casinos have opened – Harlow’s Casino in Greenville, Silver Slipper in Hancock County and river Walk Casino in Vicksburg. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) The factors affecting Mississippi gaming development and the providing of the future development is the mission of the Mississippi Gaming Commission. They are enforcing the Gaming control Act and Charitable Gaming Laws of the State of Mississippi. The MGC will establish and enforce regulations under the authority of those laws in such a manner that will ensure the integrity of the State of Mississippi and maintain the public confidence in both the charitable gaming and casino gaming industries by working in conjunction with the industry. The Mississippi Gaming Commission will work in concert with international, national, state, county, local regulatory and law enforcement agencies to establish a safe and crime free environment. In additional, the MGC will ensure economic development that is in both the best interest and safety of the citizens of the State of Mississippi. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) The permitting and approvals is a highly regulated industry, many aspects of the gaming business, including gaming site approval, licensure, company financing and findings of suitability of key employees, are subject to review or approval by the Mississippi Gaming Commission. The Firm’s attorneys represent and counsel gaming entities in obtaining the requisite regulatory approvals or reporting such matters to the Mississippi Gaming Commission, and assist with obtaining necessary permits from other governmental bodies with jurisdiction over the development and operation of casinos, including the state and federal environmental agencies and the Alcoholic Beverage Control Division of the Mississippi State Tax Commission (Bingham, 2012). The financing availability of capital is instrumental in the development, operation and growth of gaming companies. Gaming entities and financial institutions secured and unsecured loans and in public offerings and private placement of debt securities are important. (Bridges, 1999) The financial markets provided some financing for the Mississippi gaming projects, most of it is available for purchases of existing casinos properties with existing cash flows. The most recent examples include the June 2010 sale of the Rainbow Casino in Vicksburg, Mississippi, to Isle of Capri Casinos, Inc. and the pending sale of the Harlow’s Casino in Greenville, Mississippi, to Churchill Downs Incorporated (Challenges to Mississippi Gaming Development since Katrina, 2010)

In order for Mississippi casino development to be viable, the financial markets must provide financing that is on reasonable terms. Fortunately, there are some recent unreliable signs that some financing may be coming available for the right projects, particularly those that are well-thought out projects in smaller markets where competition is more limited (Challenges to Mississippi Gaming Development since Katrina, 2010). Implementing economic development in Mississippi requires rural counties to engage in three activities. First, they need to build from community-based initiatives, using local talent to bring in new business. Second, business development must be economically integrated with the region's cities. Without the wedge of filtering and agglomeration around an urban growth pole, a rural economic development effort will be a long-term struggle. Third, economic developers need to recognize the primacy of service-based economic growth. It is the source of future jobs and income growth. (Bridges, 1999) Population statistics provide the first hint of what is happening in the rural Mississippi Delta counties. Increases in population are not keeping up with the growth occurring in the urban areas. While the 65 rural counties still have a bigger population than the eight urban counties—1.6 million people in the rural areas in 1995 compared with 1.3 million in the urban areas—the trend is toward urban population growth. Between 1985 and 2005, the urban population growth was 12 percent, while the rural population growth was only 0.2 percent. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) Perhaps more significant is job creation, which has been less robust in the rural counties than in the urban counties, even though the rural population is greater. Between 1985 and 2005, the eight urban counties—dominated by Memphis—added 175,988 new jobs for area workers, while the rural counties added only 101,091. This translates to a 31.7 percent increase in urban jobs compared with 19.8 percent in rural jobs over the decade. Clearly, the job picture improved in both areas, but the cities outperformed the countryside (Bridges, 1999).

Why are the rural counties neither providing as many jobs nor growing as rapidly? A big issue is the lack of training and education. Rural workforces just do not have the training required for modern economic development. In 1990, 24.5 percent of the U.S. population 18 years and older had a two-year associate's degree or better. Shelby County, which includes Memphis, almost matched that level at 23.2 percent. The rural counties, however, fared less well, with rural Mississippi at 15.3 percent, rural Tennessee at 9.8 percent and rural Arkansas at 10.2 percent. In addition, the percentage of rural residents without a basic high school diploma or GED was far higher than either the urban counties or the national average. Urban or rural, business development requires more workers with computer, communications and office skills than ever before. These skills are generally learned through the higher educational system (Bridges, 1999). Hurricane Katrina was one of the strongest storms to impact the coast of the United States during the last one hundred years. The 125 mph winds during landfall of Katrina caused widespread devastation along the central Gulf Coast states of the US. Cities such as New Orleans, LA, Mobile, AL, and Gulfport, MS. They bore the brunt of Katrina's force and will need weeks and months of recovery efforts to restore normality. (Administration, 2005) Hurricane Katrina developed initially as a tropical depression in the southeastern Bahamas. As the storm moved southwest across the tip of the Florida peninsula, Katrina's winds decreased slightly before regaining hurricane strength in the Gulf of Mexico. Given that Katrina spent only seven hours over land, its strength was not significantly diminished and it quickly re-intensified shortly after moving over the warm waters of the Gulf. (Administration, 2005) Katrina moved almost due westward after entering the Gulf of Mexico. A mid-level ridge centered over Texas weakened and moved westward allowing Katrina to gradually turn to the northwest and then north into the weakness in the ridging over the days that followed. Atmospheric and sea-surface conditions were conducive to the cyclone's rapid intensification, which lead to Katrina attaining 'major hurricane' status. (GCN Recovery News Report, 2011) Continuing to strengthen and move northwards during the next 48 hours, Katrina reached maximum wind speeds and its minimum central pressure dropped that afternoon. Although Katrina, at its peak strength was comparable to Camille's intensity, it was a significantly larger storm and impacted a broader area of the Gulf coast. (GCN Recovery News Report, 2011) Katrina left Mississippi’s floating casinos in ruins after its rampage. The tidal surge lifted the barges that supported the casinos and left them lying across roadways, highways, and even a block away from their moorings. At that time state law prohibited land-based casinos. On October 18, 2005 Mississippi Governor Haley Barbour signed a new bill into law that permits casinos to build on land up to 800 feet from shore (News, 2005). In December of 2005 three casinos reopened for business. By June of 2007 five other casinos opened as well. The newest casino is the Margaritaville Casino and Restaurant that opened May 23, 2012. (News, 2005) Although casino development has been steady and a tremendous amount of recovery has taken place, not all has returned as before. There still remain miles of un-redeveloped property along the beachfront U.S. Highway 90. High insurance costs and uncertainty of financing have been the main problems in rebuilding the coast. Cities across the Coast are also clearing the last remaining structures that were left damaged by Katrina from high visibility areas. Unfortunately, while dilapidated buildings and houses have been removed, very little new is going back in. The Coast still has a growing population but many former beach-area natives have moved inland, many to new neighborhoods built since Katrina (GCN Recovery News Report, 2011).

On the other hand, 3,000 new jobs were created last year in the tourism sector, which remains a key vehicle in the effort to drive recovery. This was due to BP oil’s payout the oil giant made to communities impacted by its oil spill (Anker, 2012). “A lot of different urban work is going on, a lot of different policy work is going on, and you have kind of passed that point of recovery. They call it resiliency now. And doing a lot more long-term strategic planning,” said urban developer Milo Deamgan (Hadavi, 2012). The MississippiMississippi, state, United States
Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by
..... Click the link for more information. Department of Economic and Community Development (MDECD) recently released figures for 1998 concerning the activities and spending patterns of tourists in the state. A significant element to the success and growth of Mississippi tourism is directly attributable to the gaming industry that began in 1992. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) According to according to prep. 1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3. the study, over 35 percent of overnight visitors were attracted to Mississippi for the casino casino or cassino (both: kəsē`nō).

1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. gaming opportunities. While this is significant, large percentages of these visitors also spent money on dining, shopping, other entertainment, and sightseeing activities. This diverse spending pattern shows that Mississippi's casinos A list of casinos. Antigua and Barbuda
St. James's Club Antigua in Mamora Bayhave extensive economic impacts throughout the economy. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) The Mississippi Gaming industry is extremely pleased to have been a significant part of the overall growth of tourism in the state. "By providing a wonderfully diverse entertainment experience, the industry has contributed to the growth of the state's economy by attracting visitors from throughout the USUnited States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and the world," (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) Andy Bourland, Executive Director of the Mississippi Gaming Association, said. The study found that overnight leisure trips increased over 64 percent and day trips increased over 86 percent between 1992 and 1998. The state hosted 10 million overnight visitors in 1998. These visitors stayed an average of 3.4 days and spent $87 each day. The direct economic impact of these overnight leisure visitors totaled $2.9 billion. This considerable figure does not include day-trippers and business travelers (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000). The increase in tourism activity in Mississippi has fueled a boom in hotel construction. Since 1992, the number of hotel rooms in the state has more than doubled. Casino hotels provided more than half of the new rooms over this period. Despite this growth, occupancy ratesNoun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) at the casino hotels continue to run above 80 percent statewide (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000).
Casino tourism provides tremendous economic benefits to the state. Mississippi casinos have grown to employ almost 40,000 with payrolls approaching $1 billion. Direct tax payments by the casinos to state and local government now total over $310 million annually. These impacts were also highlighted in another recently released MDECD report, "1999 Economic Impact for Tourism and Recreation in Mississippi." Although its figures did not include the Silver Star Resort, the report still found that gaming employment represented over 37 percent of total tourism and recreation employment in Mississippi. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000) Twenty years ago, legalized gaming arrived on the Mississippi Gulf Coast with the docking of two riverboats side by side in Biloxi. “Vegas it was not (Jones, 2012).” The vessels, Emerald Lady and Diamond Lady, offered only a cramped quarters and any first class, land based amenities were years away. Fast forward to 2012 – today the Mississippi gulf Coast is a destination tourism market and home to first class resorts, nationally acclaimed golf courses and headline Las Vegas-style entertainment on a weekly basis. Without question the stimulus for this development has been a growing, evolving gaming industry that has designed and developed properties that attract customers from across the U.S. “It is mind boggling to think it has been 20 years since the beginning of gaming (Jones, 2012)” For an industry whose winnings and losses are based on numbers, Mississippi Gulf Coast casinos attracted more than 15.6 million patrons last year. Roughly 75 percent of those visitors were from out of the state (Jones, 2012).

Because of casino developments, the area now has 19 championship golf courses by top course designers. Five of these courses are ranked among Golf week’s top 50 casino courses nationally. The Mississippi Gulf Coast’s existing tourism offerings, from small hotels and local restaurants to attractions have enhanced their product to meet the expectations of the expanded variety of people now visiting the area. There are close to 300 festivals and special events each year, and a new ecotourism segment is burgeoning (Chandler, 2012). The industry has created a domino effect that has positively affected tourism and economic development. In the eyes of many, nothing has had a bigger impact on the Mississippi Gulf Coast in the area’s 313 year history than the launch of the casino industry in 1992. While the financial impact is obvious by the capital investments and the thousands of jobs created, the quality of life has been enhanced by the expansion and additions of other tourism related businesses such as restaurants, outdoor recreation, small hotels, museums and festivals. Dozens of casino executives have made the Mississippi Gulf Coast their home and provided extensive community leadership, and millions of dollars have been donated by the industry to local social, education, cultural, community and economic development organizations. Positive impacts and progress that did not exist for this region just two decades ago (Chandler, 2012). Today the Mississippi Gulf Coast is a destination tourism market and home to first-class resorts, nationally acclaimed golf courses and headline Las Vegas-style entertainment on a weekly basis. Without question the stimulus for this development has been a growing, evolving gaming industry that has designed and developed properties that attract customers from across the U.S. It has been 20 years since the inception of gaming; it is a miracle how far the gaming industry in Mississippi has become. No one could have envisioned the metamorphosis of small river boats into full scale resorts. It has exceeded everyone's expectations. (Mississippi Gaming Industry Drives Significant Tourism Growth, 2000)

Work Cited
Administration, N. O. (2005, December). National Climate Data Center. Retrieved May 14, 2012
Anker, J. (2012, March 29). Call it a comeback! NOLA smashes tourism record. Retrieved June 15, 2012, from http://www.hlntv.com/article/2012/03/28
Bingham, B. a. (2012, April 1). Gaming Practices. Retrieved May 17, 2012, from http:/www.balch.com
Bridges. (1999, October 10). Federal Reserve Bank of Saint Louis Central to America's Economy. Retrieved May 14, 2012, from ttp://www.stlouisfed.org/publications
Challenges to Mississippi Gaming Development since Katrina. (2010, September 30). Retrieved May 14, 2012, from http:/www.gmimglaw.com
Chandler, C. (2012, May 9). Legalized gaming industry helps transform Mississippi Gulf coast into tourism destination. Retrieved May 9, 2012, from http://www.casinocitytimes.com
GCN Recovery News Report. (2011, August 28). Retrieved June 15, 2012, from http://.gulfcoastnews.com/Katrina/GCN_Local_News_Update.htm
Hadavi, T. (2012, April 2). Seven years after Katrina, New Orleans still struggles to rebuild. Retrieved June 15, 2012, from http;//voanews.com/content/seven-years-after-katrina-new-orleans-still-struggles
Jones, c. (2012, May 9). Casin oCity Times Your guide to Gaming Excitment. Retrieved May 15, 2012, from http://www.casinocitytmes.com
Mississippi Gaming Industry Drives Significant Tourism Growth. (2000). Retrieved May 10, 2012, from http://www.thefreelibrary.com/Mississippi Gaming Industry Drives Significant Tourism Growth
News, S. A. (2005, October 18). Mississippi Passes Law Allowing Casinos on Land. Retrieved June 15, 2012

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