Harrah's asks to build temporary Mississippi casino

September 8

After touring the area of the Mississippi Gulf Coast, Harrah's Entertainment's top executive is asking the Mississippi government to allow the gaming company to build a transitory casino on land to replace its Grand Casino Biloxi riverboat, which was washed ashore and destroyed in Hurricane Katrina.

The temporary casino, without a hotel, could be built relatively quickly and could start to generate some much needed revenue for the state.

Mississippi's Gulf Coast has been decimated by Katrina. Both its riverboat-based tourist economy and its local economy have been destroyed. When asked about the appropriateness of opening a casino amid the destruction. The temporary casino would draw from a wider region and would generate more tax revenue for the state than, say, a hotel.

Harrah's also owns the Grand Casino Gulfport in Mississippi, a riverboat casino that was destroyed, and a land-based casino in New Orleans that sustained only modest damage. Harrah's owns more casinos that were hurt by Katrina than those owned by any other Las Vegas operator.

When and where the company will be allowed to rebuild its Biloxi and Grand Casino Gulfport properties and whether they would be farther inland and in more secure locations will depend upon the law in the state and if it changes because of the devastation.

Mississippi law now requires casinos to be built on boats or pontoons over water, though a change implemented last month allows casinos to be built on pilings over water. Some observers say the riverboat requirement will end because of the damage wrought by the storm, which tossed many riverboats ashore.

Harrah's picked up Caesars Palace when it bought Caesars Entertainment in June.

The company is paying its more than 6,000 workers who've lost jobs in Katrina's aftermath for the next three months and has set up relief centers near the region. It also donated $1 million to the relief effort.