ANNUAL REPORT STATE OF THE INDUSTRY LOOKING BACK ON 2018 MGHA2_Layout_24_template.indd 1 1/22/19 11:35 AM STATE OF THE INDUSTRY MGHA The Mississippi Gaming & Mississippi Gaming & Hospitality state associations that support the Hospitality Association was Association (MGHA). gaming, hospitality and tourism chartered in 1993 originating as a MGHA works in cooperation industry — the fourth largest unified group of casino executives with the American Gaming industry in Mississippi. operating as the Gulf Coast Association in Washington, D.C. The goals of the association Gaming Association. As of the date of this report, all are to ensure the industry The association grew into a 28 commercial casinos operating remains competitive and strong statewide association and, in in Mississippi are members of so it can continue to be a healthy 2005, began operating as the MGHA. contributor to the overall Mississippi Casino Operators Also, MGHA’s membership economy. Association in accordance with includes approximately 50 With that in mind, MGHA has section 501(c)(6) of the Internal associate members including through collaboration come up Revenue Code. In 2013, the various professional service with recommendations to support association changed its name to providers, vendors from other its five goals: • Encourage resort-style casino developments in • Maintain Mississippi’s stable gaming regulatory Mississippi through tourism incentive programs. environment. Tourism-related activities should include well- capitalized gaming resort projects and encourage • Invest in post-secondary curricula that will other non-gaming amenities. provide residents with the training and education needed to have an immediate impact on • Avoid policies that single out gaming from the Mississippi’s $6 billion tourism industry and make tourism industry or puts an unfair burden upon the state’s workforce more competitive. the gaming industry. • Continue to support the state’s and the industry’s initiatives to combat problem gambling. MGHA STAFF Larry Gregory, Executive Director Mississippi Gaming & Hospitality Association MAILING ADDRESS: P.O. Box 4479 Jackson, MS 39296 WWW.MSGAMING.ORG OFFICE: 601/940-3236 [email protected] The MGHA website is a valuable resource of information relevant to our industry in Mississippi. It includes an updated list of members and associate members, updated news in our Press Room, our monthly newsletter, annual reports, studies, analysis and more. MGHA2_Layout_24_template.indd 2 1/22/19 11:35 AM 2018 REPORT HIGHLIGHTS About MGHA elcome W Letter — MGC Executive Director Officers and Current Board Members 2018 Milestones and Highlights 2018 Gaming Hall of Fame — Inaugural Class Regional Gaming Expansion 2018 Visitation Trends Sports Betting Now in Mississippi 2018 Gaming Economic Impact — Over $4 Billion 2018 Giving Back — Donating Millions to Charities A Look Back at the Southern Gaming Summit MGHA Plans Southern Gaming Summit, May 7-9, 2019 Letter from MGHA Executive Director GHA’s Meet Executive M Committee By the Numbers — North River Market By the Numbers — Central River Market By the Numbers — Gulf Coast Market Editor Acknowledgements & Resources MGHA Member Directory MGHA Associate Member Directory MGHA2_Layout_24_template.indd 3 1/22/19 11:35 AM LETTER FROM The year 2018 began with the Mississippi Gaming Commission taking a hard look at the possibility of sports betting becoming legal in the state of Mississippi. I have heard it said by many a property general manager that sports betting would be the one thing that might raise revenue and increase foot traffic at the casinos. As you know, the Professional and Amateur Sports Protection Act (PASPA) was repealed and the rest is history. The industry is responsible for determining how large this new amenity will become, but the first few months have proven that there is interest in sports betting by many people. The operators have reported additional foot traffic and, hopefully, this will continue. The Mississippi Gaming Commission has for years tried to be a firm, fair and consistent regulator and will continue to work toward that goal in the upcoming year. The agency has seen extensive budget cuts and personnel reductions in the last three years and, hopefully, that will change soon, as the need for additional personnel grows daily. The challenge to keep up with technology and the additional travel requirements due to sports betting applications from overseas will prove to be challenging with the current budget, but the agency will prioritize and accomplish its mission statement. The past year has been challenging and exciting for all of us at the Mississippi Gaming Commission as we have worked closely with you, the operators, and many regulatory bodies across the country. It is my desire that this agency serve all in a professional manner, and that we will continue to train to be better servants of the public and members of this regulatory body. It is also my desire to see this industry grow and prosper and continue to be a good corporate citizen. Sincerely, Allen Godfrey, Executive Director Mississippi Gaming Commission MGHA2_Layout_24_template.indd 4 1/22/19 11:35 AM STATE OF THE INDUSTRY OFFICERS Roscoe Greene Harlow’s Casino Resort & Spa - Greenville AND CURRENT Chett Harrison Golden Nugget - Biloxi Jonathan Jones BOARD MEMBERS Harrah’s Gulf Coast - Biloxi Travis Lunn Beau Rivage Resort & Casino - Biloxi OFFICERS Derrick Madison Gerad Hardy, Chair — (Central Region) Isle of Capri Casino & Hotel - Lula Ameristar Casino Hotel - Vicksburg LuAnn Pappas Joe Lodise, Vice Chair — (Northern Region) Scarlet Pearl Casino Resort - D’Iberville Tunica Roadhouse Casino - Tunica Kevin Preston Duncan M. McKenzie, Treasurer — (Southern Region) Magnolia Bluffs Casino - Natchez IP Casino Resort Spa - Biloxi Todd Raziano Penny Bankston, Secretary — (Central Region) Hard Rock Hotel & Casino - Biloxi WaterView Casino Hotel - Vicksburg James Rigot Note: Officers represent the three regions within the state. Trop Casino - Greenville Each officer is appointed for a two-year term. Officers also serve as board members for their respective property. The Anthony Scudiero term of current officers is from Jan. 1, 2019 to Dec. 31, 2020. Fitz Casino & Hotel - Tunica BOARD MEMBERS (Primary Representatives) Clay Collins Resorts Casino - Tunica Paul Avery Lady Luck Casino – Vicksburg Himbert Sinopoli Hollywood Casino - Tunica R. Scott Barber Horseshoe Tunica Hotel & Casino - Tunica Susan Foster 1st Jackpot Casino – Tunica Mike Bruffey Island View Casino Resort - Gulfport David Tsai Gold Strike - Tunica Toni Burns Sam’s Town Hotel & Gambling Hall - Tunica Ginny Tzotzolas Riverwalk Casino Hotel - Vicksburg Keith Crosby Palace Casino Resort - Biloxi Susan Varnes Treasure Bay Casino & Hotel - Biloxi John Ferrucci Silver Slipper Casino & Hotel - Bay St. Louis Mike Galle Boomtown Casino - Biloxi Mike Galle Hollywood Gulf Coast - Bay St. Louis MGHA2_Layout_24_template.indd 5 1/22/19 11:35 AM STATE OF THE INDUSTRY MILESTONES HIGHLIGHTS • On May 14, 2018, the United States Supreme Court issued • Sept. 6, 2018, Governor Phil Bryant signed the BP Oil Spill its ruling in Murphy vs. NCAA, in which the Supreme Court Legislation into law. The bill divides the money from the BP ruled that the Professional and Amateur Sports Protection Act Oil Spill Settlement into a 75/25 percent split, with 75 percent (PASPA) impermissibly preempted the states from regulating going to the major coastal counties and 25 percent being sports betting on their own. In the immediate aftermath, divided across the state for special projects. Pennsylvania, Mississippi, West Virginia, New Jersey and Delaware adopted regulations to allow sports betting. Over • On Oct. 26, 2018, the final nine-mile segment of Interstate the remainder of the year, Rhode Island, Arkansas and the 269 opened in DeSoto County, Mississippi. The new DeSoto District of Columbia, through various means, have authorized County section runs from I-55 to State Route 305. The sports betting in their states, and a number of other states have completion of the section creates direct connectivity from I-40 legislation pending. in Tennessee to US-61 in Tunica County for travelers coming in from points east of Memphis. • The Mississippi Gaming Commission issued regulations pertaining to sports betting, and on Aug. 1, 2018, bettors placed • Tunica Roadhouse Casino will close its doors on Jan. the first legal sports wagers in the state of Mississippi. In the 31, 2019. Caesars Entertainment attributed the closing to subsequent four months, gross gaming revenue increased 5.25 “persistent declines in business levels in the area stemming percent over 2017, and 3 percent over the same four-month from increased competition.” Although the casino will close, period in 2016. Additionally, gross gaming revenue for 2018 the property’s hotel will remain operational. Experts say that was on track to increase by approximately 2 percent from 2017. sports betting, entertainment and Interstate 69 from Tunica Meanwhile, the Pearl River Resort properties in Choctaw, to Hernando will keep casino businesses busy — good news Mississippi, became the first tribal casinos in the U.S. to offer sports wagering. for the Tunica market, which has overcome many challenges over the years. • In October 2018, Penn National Gaming completed the acquisition of Pinnacle Entertainment, Inc. After the conclusion of the transaction, Penn is the largest regional gaming operator in North America, with 40 facilities in 18 jurisdictions,