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The Honolulu Advertiser
Posted on: Monday, July 17, 2006

Gulf Coast casinos 'back in the saddle' after Katrina

By MICHAEL KUNZELMAN
Associated Press

James Walker, a dealer at Boomtown Casino in Biloxi, Miss., was more than ready to play when the battered casino reopened almost a year after Hurricane Katrina. The region's gambling industry is rebounding faster than expected, but challenges include a housing, and consequent worker, shortage.

NICOLE LACOUR YOUNG | Associated Press

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BILOXI, Miss. — Ten hours after the doors to Boomtown Casino opened for the first time since Hurricane Katrina closed them, beads of sweat trickled down James Walker's smiling face after a long shift dealing cards.

Returning to his old job felt like "hitting the Lotto" to Walker, who worked at a Lowe's home improvement store while he waited for the Western-themed casino to reopen June 29.

"It feels like I never left," said the 32-year-old father of two, whose uniform is a T-shirt that boasts, "We're Back in the Saddle Again!"

Walker is one of thousands of casino employees returning to work this summer as more hotel and casino resorts reopen on Mississippi's hurricane-battered Gulf Coast. And for many, the tip-driven incomes are a welcome relief from minimum wages, odd jobs or unemployment checks.

"I love my job. I have a good time here, a lot of friends," Walker said.

The five coastal casinos that have reopened since Katrina employ around 6,000 workers. That number is expected to grow to roughly 10,000 by Sept. 1 with the return of several more casinos, all of which are struggling to find workers.

Katrina's powerful winds and storm surge demolished or crippled the dozen casino barges that lined the Mississippi coast, but the region's gambling industry is rebounding more quickly than many experts initially anticipated. Day and night, gamblers drive past blocks of destruction to jockey for seats at blackjack tables and slot machines.

The first three Gulf Coast casinos that reopened after Katrina grossed a total of $246.6 million from January through April — more than half of what 12 coast casinos took in during the same period of 2005.

But the post-Katrina boom hasn't come without serious challenges for casino operators.

Katrina scattered thousands of veteran casino employees and eroded the pool of potential replacements. The storm also left tens of thousands of homes in ruins, creating a housing shortage that makes it difficult for casinos to recruit new hires and lure back old employees.

"Housing is the most difficult obstacle they're facing right now," said Larry Gregory, executive director of the Mississippi Gaming Commission. "It's a definite problem, and there's no answer right now."

The developers behind Bacaran Bay, a $560 million casino and condominium project, haven't broken ground yet and won't be hiring employees for at least another month. But the housing crisis already looms large over the project.

"Affordable housing is the number one, two and three priority down here," said Michael Cavanaugh, a project attorney.

To fill jobs in a competitive market, casino executives say they're boosting pay, offering more generous benefits and helping workers find affordable housing and childcare.