Mississippi Gulf Coast Casino Development Advances Following Major Tidelands Legal Victory

• Mississippi tidelands on private property aren’t owned by the state, another court ruling has found
• Tidelands are lands covered and uncovered daily by tidal water
• The latest court ruling could allow new casinos to come to Biloxi

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State judges in Mississippi have issued a landmark ruling upholding that Gulf Coast casinos retain ownership of the local tidelands attached to their properties. This decision serves as a massive victory for the gaming sector, providing the legal certainty necessary to fuel large-scale casino development and long-term infrastructure growth. By securing these coastal land rights, the ruling clears a path for ambitious new expansions and sophisticated casino development projects throughout the Biloxi region.

Last Friday, Harrison Chancery Court Judge Jim Persons ruled in favour of Harrah’s Gulf Coast Hotel & Casino Biloxi in a dispute with Mississippi Secretary of State Michael Watson. The ruling determined that a parcel of waterfront land measuring approximately 1.5 acres on Biloxi Bay is entirely owned by the casino.

Watson argued that the tideland property was state-controlled, claiming it originated from the 1784 Spanish Land Grant when Mississippi was established. However, Judge Persons referenced the Mississippi Supreme Court’s March 2023 opinion, which clearly stated that the state cannot claim tidelands that are a part of private property lots.

Key Impacts of the Rulings

The rulings passed by the Mississippi Supreme Court and Judge Persons have significant implications for both existing casinos and potential new developments. Here’s an overview of the effect of these legal outcomes:

• Proposed casino developments can now apply for state-issued gaming licences through the Mississippi Gaming Commission (MGC).
• Public pressure has been aimed at Watson for attempting to restrict new casino constructions in response to lobbying from current casinos that assert that Biloxi has reached its capacity for gaming establishments.
• In the aftermath of Hurricane Katrina, state legislation allowed casinos to build inland structures that are within 800 feet of the historic high tide line.

Despite ceasing to use shoreland, casinos have been obliged to make payments for tideland leases to the state. Harrah’s allocated approximately $700K to the Tidelands Trust Fund Program in the prior year, which was established to harmonise public and private interests concerning tidelands use.

Future Casino Proposals

Recent decisions have opened the doors for several new casino projects. Notably, last December, the MGC approved the application for the Tullis Garden Hotel and Casino, proposed by Tennessee businessman Israel Schwartz. This project features:

• An 11-story hotel with 300 rooms
• 900 slot machines
• 35 table games
• A sportsbook

The proposed site will also include a full-scale replica of the Tullis-Toledano Manor, a historic Greek Revival mansion lost to Hurricane Katrina.

Nearby, developer Danny Conwill aims to erect a 1,300-room hotel and casino with a greater number of slots and tables, alongside another sportsbook. The city has consented to a tidelands lease, provided Conwill includes a public, accessible pier in his plans.

Another 5 miles along the Gulf, Ray Wooldridge has proposed a casino project at the Big Play Entertainment Center, which likewise includes stipulations to build a local pier.

Conclusion

As the Mississippi Gulf Coast continues to develop its casino landscape rapidly, the recent legal rulings have set a precedent for further growth in the industry. The endorsement of local ownership of tidelands not only benefits current operators but also opens the field for new entrants in the market, promising exhilarating prospects for locals and tourists alike.

With ongoing developments and potential expansions, the Mississippi Gulf Coast is poised to remain a vibrant hub for gaming enthusiasts.