Harrah’s Renewal Up For Final Passage

A 30-year extension for the Harrah’s Casino license in New Orleans Is headed to the Senate floor for final passage after clearing committee. The deal features over $60 million in one-time payments, a yearly payment of 65 million that increases over time, and calls for $325 million in upgrades to the facility, including a new hotel.

Caesars’ VP of Governmental relations David Satz says it’s a fair deal.

“This is about new revenue, reoccurring revenue for the state and the city, economic development, non-gaming economic development, new jobs, and long-term stability.”

The reoccurring revenue will be sent to education specific funds.

Last year the renewal push fell apart amidst cries that Louisiana was getting ripped off relative to similar deals in other states, so this year’s deal will pay the state $130 million more over the length of the deal. Satz says this agreement is incline with the national market.

“In Boston you have heard about the Wynn license that is about to open up, the state received 85 million for that. For Ohio and for New York, it was $50 million, so I think the state did very very well there.”

Caesar’s Regional President of the South Dan Real says the stability this deal provides will give their company the confidence it needs to invest hundreds of millions into the property, which will generate more revenue for the state.

“At one point as you all know we were giving 90 million dollars to the state, and we are now in the 60s, and I believe that with a project like this we are going to be able to get back to those numbers.”

Once the deal is finalized, the state will receive an immediate payment of $17.5 million, and the City of New Orleans will receive $7.5 million.