Hollywood Baton Rouge Move Ashore Stalled By Inflation

Hollywood Casino in Baton Rouge, La. is feeling the effects of rampant inflation and a broken supply chain, which are having an impact on a variety of industries, gaming included. This is an excellent example of how macroeconomic challenges can affect a gaming venue.

Unrelenting inflation and a desperately unpredictable supply chain due to the COVID-19 pandemic are impeding the progress of Hollywood Casino Baton Rouge’s move ashore. This project was proposed almost two years ago with the goal of converting the former riverboat gaming hub into a land-based casino venue by early 2022. According to the Louisiana Gaming Control Board, the shortage of steel and its marked increase in cost are another challenging factor in the delay of this important transition. Hollywood Casino will prove to be a $100 million investment, originally budgeted for only $60 million, as producers prices skyrocket. The Casino is proud to be one of the few accommodations owned and operated by Gaming and Leisure Properties, Inc, a leading landlord in the gaming industry.

Hollywood Baton Rouge Motivated to Come Ashore

In 2018, Louisiana policymakers passed a bill which was then signed into law by Governor John Bel Edwards (D) permitting the state’s 15 riverboats to come onto land. This legislation stipulated that any gaming conducted at the land-based venues must take place within 1,200 feet of the original docking site. After that, numerous other riverboat casinos gained approval to become land-based venues, mainly for the purpose of obtaining more available space for gaming. Hollywood Casino currently boasts 29,000 square feet of gaming area and 859 machines and 12 table games; however, these figures have the potential to increase after relocating to land. The new venue will provide an area for sports watching as well as a sportsbook. Labor access is not a problem in Louisiana, however, the cost increases and supply chain issues have caused a delay in the move to land until the second quarter of 2023. The Louisiana Gaming and Control Board (LGCB) approved this shift.

Gaming and Leisure are planning to rename the venue “Casino Rouge” when the transition to its new onshore location is finished. There is, however, some concern in Louisiana regarding the potential for increased casino inflation.

Louisiana Casino Inflation Concerns

Inflation is a threat to the casino industry in Louisiana, particularly Hollywood Baton Rouge. While many casinos are often visited by travelers from Texas, the high cost of gas may cause them to limit their spending or avoid the trip altogether. This is a concern shared among gaming executives across the country — inflation appears to be influencing how many customers spend their money.