Spring flooding reduces casino profits

July 6, 2008 at 11:59 am · Filed under Online Gambling

When the Isle of Capri casino was forced to close its doors due to floodwaters in April, it was inevitable the business would lose money.

The casino was closed for 15 days in the fourth quarter, which ended April 27. It was also closed for a portion of the next quarter.

The fourth quarter reports show the casino’s profit at $8.5 million, down from the 2007 fourth quarter, which showed a net revenue of $10.6 million.

“You can safely say that revenues declined in the quarter,” said Jill Haynes director of Corporate Communications for the Isle of Capri. “Natchez was closed for 15 days during the (fourth) quarter which represents approximately half the time the property was closed.”

Haynes said comparing the net revenue of the 2008 quarter to 2007’s quarter is like comparing apples to oranges, however.

Because the rest of the time the casino was closed falls into the first quarter, it’s still unknown just how much money was lost.

Haynes said the company is preparing a business interruption claim, which is insurance for these types of incidents.

“The Isle insurance carrier will cover a portion of the loss,” Haynes said.

Of course the Isle will have to pay a deductible.

The casino boat had to be moved to higher ground when the Mississippi River hit between 52 and 52.5 feet, but still maintained operations.

By the time floodwaters hit 55.5 feet, the ramp to the boat was obstructed and the base of Silver Street was flooded.

At that time, April 13, the Isle was forced to close.

On May 12, the boat reopened after having being repositioned when the river hit between 52 and 52.5 feet.

Employees of the casino were paid throughout the closure.

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