Home Hollywood Hollywood Baton Rouge Move Ashore Stalled By Inflation

Hollywood Baton Rouge Move Ashore Stalled By Inflation

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Posted on: Jul 20, 2022, 02:41.

Last updated: 07/20/2022, 03:02.

Rampant inflation and broken supply chains are affecting all walks of life, and gaming is not immune. The Hollywood Casino in Baton Rouge, Louisiana, is a prime example of the macroeconomic woes that hinder gaming establishments.

Hollywood Baton Rouge
Hollywood Casino Baton Rouge. Its landings have been delayed due to inflation and supply chain issues. (picture: advocate)

Continued high inflation and disrupted supply chains due to the coronavirus pandemic are major factors delaying riverboat casino landings. The plan was announced nearly two years ago. At the time, it was estimated that the Hollywood Casino would become a land-based venue in early 2022.

The Louisiana Gaming Control Board (LGCB) told local media that Hollywood’s onshore plans were delayed in part because of a shortage of steel, which has pushed up the price of the material.

Due to soaring producer prices, the budget to land the gaming venue has soared from $60 million to $100 million. Hollywood Casino is one of the few casinos owned and operated by Gaming and Leisure Properties, Inc., which is primarily a casino owner.

Hollywood Baton Rouge has motivation to go ashore

The Louisiana Gaming and Control Board (LGCB) approved the move. In 2018, Pelican State policymakers passed a bill, later signed by Gov. John Bel Edwards (D), that would allow the state’s 15 riverboats to land. The problem with this legislation is that gaming operations at land-based venues must be conducted within 1,200 feet of the original stop.

Since then, several other riverboat casinos have been approved as land-based venues. The motivation for this move is clear: more play space. Hollywood Casino currently has a 29,000-square-foot gaming area with 859 machines and 12 table games — numbers that could be expanded by moving to dry land. When completed, the new venue will also feature a sports viewing area and sports betting.

When it comes to gaming and leisure, access to labor isn’t one of the issues it faces in Louisiana. Nonetheless, inflation and supply chain issues are delaying dryland migration until the second quarter of 2023.

Gaming and Leisure plan to rename the venue Casino Rouge after the relocation is complete.

Louisiana Casino Inflation Problem

Hollywood Baton Rouge isn’t the only casino in Louisiana that has had to deal with the specter of inflation. Rising consumer prices are an issue that could weigh on the gaming industry across the state.

Most of the state’s casinos are frequented by locals and tourists from Texas, meaning still-high gas prices could easily prompt patrons to spend less when they arrive at Louisiana gaming venues, or give up entirely travel.

Gaming executives who own properties in other states say there are signs that inflation is playing an increasingly important role in customers’ spending habits.



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