Mississippi To Take a Closer Look at Casino Approvals Following Recent Controversy

Article by : Erik Gibbs Feb 26, 2024

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Senate Bill 2780, introduced just before the legislative deadline, addresses concerns beyond the Secretary of State’s office regarding the approval process for a Biloxi beachfront casino.

This proposed legislation aims not only to make procedural adjustments but also to fundamentally reshape the state constitution. It mandates that entities seeking to use Public Trust Tidelands for a casino project must obtain a Tidelands lease directly from the Secretary of State, diverging from the current practice involving local approvals.

The genesis of this bill is rooted in the Mississippi Gaming Commission’s December approval of RW Development’s casino project in Biloxi, despite three prior rejections citing owner Ray Wooldridge’s lack of control over the property up to the water’s edge.

On the fourth attempt, Wooldridge persisted and secured a lease from Biloxi and Harrison County’s endorsement. That allowed him to introduce a pier construction plan to establish a connection to the waterfront.

This strategic shift followed a Supreme Court decision affirming that a state Tidelands lease was not necessary for pier construction.

SB 2780, led by Senator David Blount and supported by Coast senators and members of the Gaming Committee, seeks to provide explicit guidelines for the Gaming Commission regarding site approval for casino operators.

Notably, the Mississippi Legislature is engaging in amendments to the Gaming Control Act.

Senator Blount collaborated with the Secretary of State’s office and coastal casino operators to shape the bill, emphasizing the need for a consistent regulatory environment to preserve the beach and encourage investments in the Coast casino market.

SB 2780 addresses confusion and legal disputes stemming from onshore casino regulations since Hurricane Katrina in 2005.

The bill establishes minimum requirements for Coast casinos, including hotel rooms, a fine dining restaurant, a 40,000 square foot casino floor, and attractions to boost the local casino and tourist market.

Key provisions encompass defining state jurisdiction over Public Trust Tidelands, empowering the Secretary of State for Tidelands leases, and clarifying the necessity of such leases for casino license applicants, even if the use is rent-exempt.

Additionally, it mandates state agencies and political subdivisions with littoral or riparian rights to secure tidelands leases.

In January, Secretary of State Michael Watson voiced concerns regarding the RW Development site approval, expressing doubts about its nature. He suggested that the RW Development saga seemed more politically motivated than a genuine legal development.

In a quest for clarification, Watson called upon the Mississippi Legislature to reassert the state’s authority over Public Trust Tidelands, which encompasses the public sand beach in Harrison County.

In response to these concerns, the bill has promptly been directed to the Senate Gaming, Ports and Marine Resources committees for a comprehensive examination.