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Margaritaville Biloxi Casino’s Scope and Size Shrinking

August 11th, 2008

On July 23rd, The Sun Herald reported that work was slowing down on the Margaritaville Casino project in Biloxi, Mississippi. Now, Harrah’s says that the scope and size of the project is shrinking considerably:

The original $700 million estimated cost of the casino resort on the beach in Biloxi is being revised “down, down,” Harrah’s officials said during a conference call Friday.

About $110 million has been invested in Margaritaville as of June 30, and the company anticipates another $40 million to $45 million will be spent through the remainder of the year.

Harrah’s President Gary Loveman said they slowed construction of Margaritaville casino for a couple of reasons. “First, because business conditions in that market are very trying and new capacity is not exactly what that market needs in the short term.”

Loveland said Harrah’s also intends to refine the scope and the cost estimates for Margaritaville Casino “as carefully as possible to make sure that we build exactly what it is we think is prudent in that market. So we have slowed down the pace to regather ourselves” he said, to ensure Margaritaville “is appropriately sized and configured for the marketplace.”

Read the entire article here

Tagged in Business Empire, In The News, Margaritaville Casinos