Casino revenue drops, expected to rise|[6/13/06]

Published 12:00 am Wednesday, June 14, 2006

Local government revenue from Vicksburg casinos followed a trend predicted by industry analysts, dropping during the spring from winter peaks, but a summer rebound may be around the corner.

Figures for May show the City of Vicksburg and Warren County taking in slightly more from the casinos in May over April. However, total tax revenue for March through May dropped about 25 percent from December through February.

The numbers suggest the period of increased business at Vicksburg’s four casinos due to the decimation of coast casinos after Hurricane Katrina has ended.

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Of a 3.2 percent tax on wagers the casinos collect, 10 percent goes to schools, 25 percent to Warren County and 65 percent to the City of Vicksburg. A second revenue tax is an .8 percent share of the state’s 8 percent revenue tax. It is split based on population proportions between Vicksburg and Warren County.

The four casinos in Vicksburg also pay the city $150 per gaming position per year, called a device tax. During 2005, the city collected $579,341. The casinos also pay about $2 million in property taxes to the city, county and Vicksburg Warren School District based on the value of their casinos, hotels and other property.

It’s the revenue taxes that provide the best look into how area casinos are performing, a trend that some say will move upward again with the arrival of summer.

&#8220You’ll see that pop right back up again in June,” Mayor Laurence Leyens said Monday.

Last year at this time, the city did experience a slight increase in tax revenue in June over May, about $100,000. But the entire increase and more can be contributed to a $136,350 payment in June 2005 of the device tax.

The county’s gaming revenues decreased by about $16,000 from May 2005 to June 2005.

Moreover, during the two best months of this fiscal year for the city’s gaming coffers, January and February, casinos paid $359,700 in device taxes, accounting for some of the spike. Likewise, more than $300,000 in device taxes were paid for the same two months the previous fiscal year.

Gaming funds have traditionally been used by supervisors as matching money for various items during the fiscal year that are not budgeted, with one example being the county’s purchase of the building at First North and Clay streets to house the new voting machines and be the eventual new home to emergency dispatch.

County Administrator John Smith has said he predicts the county’s total intake of casino revenue to exceed last year’s. There was a slight surge after Katrina, which hit Aug. 29, closed all Gulf Coast casinos. Three have since reopened and more are expected to be back in business this summer and fall.

In fiscal year 2004-05, the county took in $2,292,442.61 in casino gaming revenue. Through April, the county has taken in $2,088,806.34 in fiscal year 2005-06.

Final figures for May might help push the county’s intake over last year’s mark once the county’s share of the revenue tax is determined, with the initial estimate of the county’s gaming intake for May at about $270,000.

In the summer months of fiscal year 2004-05, the city took in $2,201,697 in taxes, about a third of its total for the year of $6,853,449.12. Warren County took in $972,335, or about 42 percent of its total gaming tax intake for the year.

The Vicksburg casino market started developing when the Isle of Capri opened in August 1993. Of four original developments, Ameristar and Rainbow remain; Harrah’s sold to Horizon and the Isle has been sold, and a name change by the new owners to Legends Casino is expected within weeks.

TAX REVENUE COLLECTIONS FROM GAMING.

Comparison in tax revenue collections from gaming in fiscal years 2004-05 and 2005-06:.

CITY OF VICKSBURG:.

October 2004 $552,717* October 2005 $783,215*.

November 2004 $481,057 November 2005 $647,394.

December 2004 $459,947 December 2005 $674,763*.

January 2005 $801,887* January 2006 $894,996*.

February 2005 $613,814* February 2006 $865,235*.

March 2005 $635,466 March 2006 $699,331.

April 2005 $561,154 April 2006 $551,988.

May 2005 $545,710 May 2006 $575,971.

WARREN COUNTY.

October 2004 $210,631 October 2005 $343,177.

November 2004 $226,643 November 2005 $304,612.

December 2004 $216,747 December 2005 $316,837.

January 2005 $277,728 January 2006 $309,657.

February 2005 $230,513 February 2006 $346,190.

March 2005 $299,021 March 2006 $312,957.

April 2005 $264,188 April 2006 $258,419.

May 2005 $256,949 May 2006 $270,000**.

* Signifies months in which the city received funds from the $150 per position device tax.

** Preliminary estimate for May.

Sources: City of Vicksburg, Warren County