Can exisiting market support second casino?
Published 12:00 am Saturday, December 23, 2006
NATCHEZ &8212; The small local gambling market, as it exists, might not support two casinos, but two companies vying for a riverfront spot aren&8217;t counting on the existing market.
Lane Company and Natchez Riverfront Development want to broaden that market.
Since the first Natchez riverboat casino &8212; Lady Luck &8212; opened in February 1993, the gambling market has been comprised of mostly locals.
If a second boat comes in at Roth Hill Road, that market might get awfully tight.
Jack Sours, vice president and general manager of Isle of Capri Casino &8212; the company that bought the Lady Luck in 2000 &8212; doesn&8217;t see any room for another casino
&8220;We&8217;ve always believed the market is only big enough for one casino operator,&8221; Sours said. &8220;We&8217;ve been proven time and again over the years as others have come into town.&8221;
Over the years, several investors have come to town to consider building another casino in Natchez, but a second one never opened.
If the city approves the lease of the land under Roth Hill and a second casino does come to town, Sours said the Isle would likely not close.
&8220;We&8217;re certainly not planning on closing up our doors and withering away,&8221; he said. &8220;We&8217;ve dealt with competition in other markets (up river), and we will plan accordingly to deal with other competition. We&8217;ve been in this market for years, and we&8217;re not planning on going anywhere.&8221;
Prospects and plans
Reginald Thompson, a managing member of Natchez Riverfront Development Group, said his company plans to bring in a broader audience.
&8220;We&8217;re trying to expand the overall reach of who Natchez contacts,&8221; Thompson said. &8220;We feel Natchez is primed to reach out a little further than what they do now, to reach the regional and national market.&8221;
Thompson said his company was working with a marketing company out of Atlanta that plans to advertise in &8220;airline literature&8221; and other venues.
Riverfront Development&8217;s proposal includes a hotel, an amphitheater and shops, among other things, features Thompson said would bring more business to town and keep customers here longer.
&8220;A casino is part of the plan, but greater than that is a comprehensive development,&8221; he said. &8220;I think what we&8217;re trying to do is say, how does Natchez want to portray itself to the world, and let&8217;s see if we can help do that.&8221;
Fernando Cuquet Jr., a partner with Lane Company, said his company would spend a good deal of money on marketing outside the area, as well.
&8220;We think there&8217;s a great opportunity if it&8217;s marketed properly,&8221; Cuquet said. &8220;We do believe the market is not strong enough as it is, and we would have to get a greater volume coming in.&8221;
Cuquet, along with another Lane Company partner, Matt Walker, spearheaded the Splash casino in Tunica.
Natchez is not Tunica, though, Cuquet said. Tunica was at the time an untapped market and had a bigger market from which to draw.
&8220;I know (a Natchez casino) won&8217;t be a moneymaker like that at all; it wasn&8217;t intended as such,&8221; he said. &8220;The thing that makes it happen is the jewel of a city you have. (The company) is going to have a good excuse to come to paradise.&8221;
Riverfront towns: one size does not fit all
Just up the river is a multi-casino market &8212; Vicksburg.
But that town is very different from Natchez, Rainbow Casino and Hotel Marketing Director Mickey Fedell said.
&8220;In our market, multiple casinos are very good,&8221; Fedell said. &8220;It creates competition and ensures slot machines are set at an optimum level for players to come play.&8221;
But Vicksburg&8217;s market is very much Jackson-based, with a higher population from which to draw and an interstate location, he said.
&8220;It&8217;s going to be fairly difficult for two casinos to exist in a market that small,&8221; Fedell said. &8220;Two casinos in Vicksburg, if we didn&8217;t have Jackson, that would be difficult.&8221; Fedell said if the casinos were able to pull in people from farther out, they might succeed.
Local flavor
Current players who visit the Isle of Capri voiced mixed reactions to the idea of a second casino in town.
Sue Berry from Simpson County comes to play about once or twice a month, she said.
Berry said she and her elderly mother were familiar with the Isle and probably wouldn&8217;t spend much time at another casino.
&8220;We might go a time or two, but they&8217;re so good to Mom here, they take good care of her because they know us so well,&8221; Berry said.
Walice and Cynthia Smith, from Ferriday, said they welcomed the idea of a second casino.
&8220;We need it,&8221; Walice Smith said. &8220;With competition, they may pay off better.&8221;
Natchez resident Steve Favell, who visits about four times a week, said he would &8220;absolutely&8221; try a new casino if it came to town.
&8220;(The Isle) is the only game in town,&8221; Favell said. &8220;We need competition. We might get better service, and we might not have to stand in line so long at the cashier&8217;s.&8221;
James McDonald, of Fayette, said he liked the idea of another casino because it would offer variety.
&8220;It would be something else to try,&8221; McDonald said.
&8220;Maybe it would be a change for the better instead of seeing the same thing all the time.&8221;