Hilton Joins Bidding for New Orleans Casino
Hilton Hotels Corp. on Monday proposed a $300-million casino in New Orleans that would pay $100 million upfront to city and state governments.
Meanwhile, a group of investors unveiled a proposed casino that would be run by Bally Manufacturing Corp. The group said it would set aside 30% of profits to help the city’s poor.
Casino gambling isn’t legal in Louisiana, but the Louisiana House voted 53-50 on Monday to establish a single casino in New Orleans. The bill goes to the Senate, which has already approved almost identical legislation. Gov. Edwin Edwards supports the bill.
Monday was the deadline for interested groups to get their proposals to the city’s Maryland consultant. Both proposals would build a casino on the city’s 6.5-acre Rivergate site.
Wendell Gauthier, a spokesman for the investor group New Orleans-Louisiana Development Corp., said its proposed Jazzville Casino would use the old Rivergate convention center, developing it in phases, rather than tearing it down to build a new casino.
He said it would put 30% of its net earnings into a new foundation called HELP-NOW to be used for education, housing, health care for the poor and feeding the hungry.
That could be as much as $30 million a year when the casino is fully operational, he said.
In addition, Gauthier said, investors promised to staff the casino with people who have lived in Louisiana at least five years, including 33% minorities and 46% women.
The proposal by Beverly Hills-based Hilton goes against one of the city’s requirements: that the license allow only a casino, without any associated restaurant, hotel or entertainment.
“Without entertainment and without food, what we have is a large arcade for adults. We’re not really willing to operate a large arcade for adults,” said John Giovenco, president of Hilton Gaming division and a director of Hilton Hotels Corp.
Hilton would build its high-tech entertainment and restaurant complex at the site of the Rivergate, which is across the street from its riverfront hotel.
Giovenco said the $100-million check to be split between city and state government would be payment for a 20-year lock on all land-based casino gambling in Louisiana.
In addition, the state would get 10% of all revenue as a gaming tax, and another 5% of casino revenue would continue to pay for the exclusive license, he said.
Developer Christopher Hemmeter proposed last month to invest $1 billion in a casino, park, opera house and museums.
