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In Break With Tradition, Casinos May Get Tax Breaks, Too
By Jonathan Weisman
Washington Post Staff Writer
Thursday, September 22, 2005; Page A01
National gambling companies -- already rushing to rebuild casinos on the Gulf Coast -- would be granted access to millions of dollars in tax breaks under President Bush's plan to entice businesses into the Katrina disaster zone.
In a break from previous Gulf Coast economic development practices, White House officials said they do not plan to exclude the gambling industry from huge tax write-offs for investment in equipment and structures in the president's proposed Gulf Opportunity Zone. Mississippi Gov. Haley Barbour (R) endorsed that policy yesterday, saying, "They should be treated like any other business. That's the way we do it in Mississippi."
The Grand Casino barge, which was washed up onto the highway during Hurricane Katrina, is demolished. (By Steve Helber -- Associated Press)
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But economic development officials in the state say Mississippi does not do it that way. The gambling industry largely has been excluded by statute from economic development incentives, said Brian Richard, former director of research at the Mississippi Gaming Association and an economic development expert at the University of Southern Mississippi. Until recently, the casinos even were prohibited from conducting employee training on state property, said Bill Crawford, deputy director of the Mississippi Development Authority.
"The casinos don't need this," said William F. Shughart II, an economist at the University of Mississippi. "If they are [eligible], that would be a complete waste of money."
In fact, the casino industry is trying to appeal to governments by saying it will provide jobs and tax revenue, said Alberto Lopez, director of strategic communication at Harrah's Entertainment Inc., which lost two major casinos on the Mississippi coast. "We're actually scratching our heads. We can't ever remember an instance of being offered a tax credit -- ever."