Louisiana Lawmakers Disagree on Harrah’s New Orleans Extension

Louisiana lawmakers are divided on the best way to proceed in extending the contract for Harrah s New Orleans, the state s lone land-based commercial casino.

Louisiana House Speak Taylor Barras is fighting against a Senate increase to Harrah s New Orleans $60 million annual payment to the state. (Image: Sarah Gamard/Gambit/Harrah s New Orleans/Casino.org)

On Wednesday night, the Louisiana Senate amended House Bill 553 to increase Caesars Entertainment s annual payment to the state from $60 million to $80 million. Caesars is the parent company to Harrah s New Orleans.

The legislation was then passed by the Senate in a 21-16 vote, and of Representatives for endorsement of the change. House Speaker Taylor Barras (R) rejected the amendment, therefore moving the bill to a conference committee made up of three Senate members and three House reps who will try and determine its ultimate fate.

The Louisiana Legislature s 2018 regular session ends today, but a special session is expected to commence next week to address a budget shortfall. Under the state constitution, both chambers must adjourn no later than June 4.

Difficult in Big Easy

Caesars commercial gaming license doesn t expire for another six years. But Caesars lobbyists, which there are more than 20 actively working in the Louisiana capital of Baton Rouge, are looking to secure a long before the company s license terminates in 2024.

Caesars agreed to terms with the House to continue its $60 million annual payment during the 30-year extension.

The casino operator said in exchange for the extension, it would invest $350 million in building a second hotel tower with 340 guestrooms, spa, nightclub, and roof space that would cover a one-block stretch over Fulton Street.

Caesars says the expansion would create 600 additional full-time jobs and generate millions of dollars in supplemental tax revenue for the state.

The City of New Orleans actually owns the Harrah s property, and leases the building back to Caesars.

Caesars says its $350 million investment might be withdrawn should the company be forced to pay the state $20 million more per year, or $600 million, during the 30-year extension.

More Info Needed

The editorial team at The Advocate, the largest news outlet in Louisiana, recently called on lawmakers to slow down before deciding on such a lengthy extension.

The casino contract for Harrah s is one of the most important decisions that the state will make for decades, the op-ed declared. It is being rushed through the legislative process, even though the current contract is not up for six years.

Sen. Jack Donahue (R-Mandeville) said he agrees this week, telling The Advocate, It may be a good deal, but I don t know that. The only way I can tell is if we had somebody who we hired do an analysis of the project.

Governor John Bel Edwards (D) said the Harrah s split in the legislature is simply part of the process and important in making sure the state gets the best deal possible.

I m going to reserve final judgement until a bill hits my desk, the governor stated this week. I can tell you I generally favor anything that would invest $350 million in our state.