BILOXI--Mississippi's gulf coast resorts lost an estimated $12.5
million in gaming revenues after being forced to close while
Hurricane Georges swept through the region, according to one resort
official.
Barbara Shattles, executive vice president of Treasure Bay
Casino Resort, said no estimates of damage had been made yet, but
stated the riverboat casinos in nearby Gulfport and in Biloxi lost
$12.5 million in gaming revenues over the weekend. Shattles said
the casinos will probably open within a week.
Grand Casinos, Inc., Minneapolis, said the company's two casino
resorts on the Mississippi Gulf Coast temporarily closed.
Preliminary indications are that no major damage to either facility
has been sustained.
Grand Casino Gulfport and Grand Casino Biloxi, along with the
other nine casinos on the Mississippi Gulf Coast, were closed based
on a mandate by the Mississippi Gaming Commission. The company said
it is completely insured for the full replacement value of its Gulf
Coast properties, inclusive of all real and personal property.
Additionally, Grand Casino Gulfport and Grand Casino Biloxi have
full business interruption insurance including coverage for wind
and flood. The company said it anticipates that the closing will
hurt financial results for both the third and fourth quarters of
this year.
Hollywood Park, Inc., Inglewood, Calif., said its properties in
Biloxi and Harvey, La., sustained minor wind damage as a result of
Hurricane Georges. Biloxi was littered with fallen branches, downed
power lines and the remnants of traffic lights, according to press
reports. Sections of Biloxi's beaches were washed onto the coast
road.
In Alabama, law officials charged two hotels with charging
excess prices to people seeking shelter from the storm. Conecuh
County District attorney Tommy Chapman accused Conecuh County
motels of illegally raising rooms rates.on the disaster.
After receiving dozens of complaints, Chapman subpoenaed the
motels' records. He said there were allegations that the motels
increased prices by more than 100 percent and that guests from
other states were charged higher rates than evacuees from Alabama.
The hotels involved were the Evergreen Inn and Days Inn -- both at
the interchange of Interstate 65 and Alabama 63. Chapman said the
average room rate at the Evergreen Inn for the previous month was
$39, plus tax, for one person. An Evergreen Inn customer,
complained after paying $69 for a room that the motel told him in
advance would cost $49.
After meeting with hotel managers, Chapman said the managers
agreed to obey the 1996 law and make partial refunds. He said the
Evergreen Inn would be making partial refunds to more than 10
customers and the Days Inn to fewer than 10.
In Mobile, Ala., Mayor Mike Dow said most of the hurricane
damage was outside the city -- at Gulf Shores, Dauphin Island and
other beaches. "We had about $1 million in road and bridge
infrastructure damage," Dow said.
On Monday, a mandatory evacuation forced thousands of people in
the New Orleans area to flee the wrath of Hurricane Georges. Hotel
managers along Interstate 65 near Hoover and Homewood were sold
out, as residents from Louisiana and South Alabama began arriving
early Monday morning.