Casino official: Bankruptcy hurts tax negotiations
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A Belle of Baton Rouge executive said Wednesday that the riverboat casino property’s bankruptcy status is impeding tax negotiations with the city-parish.
“We are in a difficult position to negotiate,” said Bubba Willis, general manager of the Belle of Baton Rouge. “Anything approved by the city-parish would have to be approved by the bankruptcy court.”
“We are caught,” he added.
Any negotiations would have to be done with the caveat of getting the court go-ahead, Willis said.
Tropicana Entertainment, the parent company of the Belle and the downtown Sheraton hotel, filed for Chapter 11 bankruptcy protection in Delaware on May 5. The Belle is among nine properties named in filing.
The bankruptcy filing came after the gambling license for the company’s Tropicana Casino and Resort in Atlantic City, N.J., was revoked.
Willis’ comments came a day after the Louisiana Senate approved legislation pushed by Mayor-President Kip Holden, which would change the riverboat casino tax levied on the Belle and Hollywood Casino from a per-patron fee to a percentage of net gambling revenue.
Holden and bill sponsor state Sen. Yvonne Dorsey, D-Baton Rouge, said the two local boats pay the least in taxes of any of the state’s boats. Holden said he wants parity. He argues that the riverboat casinos aren’t paying their fair share for the benefits they derive from the city-parish.
Willis said the legislation making its way through the Legislature could more than double the taxes the Belle pays today. Last year, the Belle paid $2.79 million to the city-parish based on a $2.50-per-patron entrance fee, Willis said.
The proposed legislation allowing up to 6 percent of net monthly gambling revenue would mean the boat would pay $5.8 million to the city-parish, he said.
“Obviously, it will affect our business negatively,” Willis said. “We are a small market in this state.”
Willis also said the entry of a third riverboat casino into the market with Pinnacle Entertainment’s venture will have an impact on the Belle’s business as well.
Willis said the Belle hopes its arguments will get a better reception on the House side.
“We are in a difficult position to negotiate,” said Bubba Willis, general manager of the Belle of Baton Rouge. “Anything approved by the city-parish would have to be approved by the bankruptcy court.”
“We are caught,” he added.
Any negotiations would have to be done with the caveat of getting the court go-ahead, Willis said.
Tropicana Entertainment, the parent company of the Belle and the downtown Sheraton hotel, filed for Chapter 11 bankruptcy protection in Delaware on May 5. The Belle is among nine properties named in filing.
The bankruptcy filing came after the gambling license for the company’s Tropicana Casino and Resort in Atlantic City, N.J., was revoked.
Willis’ comments came a day after the Louisiana Senate approved legislation pushed by Mayor-President Kip Holden, which would change the riverboat casino tax levied on the Belle and Hollywood Casino from a per-patron fee to a percentage of net gambling revenue.
Holden and bill sponsor state Sen. Yvonne Dorsey, D-Baton Rouge, said the two local boats pay the least in taxes of any of the state’s boats. Holden said he wants parity. He argues that the riverboat casinos aren’t paying their fair share for the benefits they derive from the city-parish.
Willis said the legislation making its way through the Legislature could more than double the taxes the Belle pays today. Last year, the Belle paid $2.79 million to the city-parish based on a $2.50-per-patron entrance fee, Willis said.
The proposed legislation allowing up to 6 percent of net monthly gambling revenue would mean the boat would pay $5.8 million to the city-parish, he said.
“Obviously, it will affect our business negatively,” Willis said. “We are a small market in this state.”
Willis also said the entry of a third riverboat casino into the market with Pinnacle Entertainment’s venture will have an impact on the Belle’s business as well.
Willis said the Belle hopes its arguments will get a better reception on the House side.
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