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A rendering of the Queen of New Orleans, being built at Trinity's Equitable Shipyard. Rollin' On The Rivers By Greg Trauthwein, managing editor When it finally seems the casino riverboat mar-ket can possibly get no bigger, it does. Recent blockbuster announcements throughout July, such as the legal- ization of riverboat gaming in Indi- ana, and Avondale Industries' win- ning a contract for one vessel and signing a letter of intent to build another, signaling the shipbuilder's entrance into the casino vessel build- ing competition, all point to a mar- ket which has some growing to do. Speaking on behalf of prevailing market conditions and his company's future plans, Laurance Lacaff, president of Harrah's Riverboat Gaming Division (Memphis, Tenn.) said, "With Indiana just legalizing I think its fair to say we will be pursu- ing opportunities there. We would be interested in being in any state or jurisdiction which legalizes." While Mr. Lacaff said it was far too premature to even guess when the market will peak or eventually how many gaming vessels Harrah's will operate—based on the uncer- tainty of which states will fall in line and when—he would say, "It is con- ceivable that within a little time we could have 10 to 15 vessels out there, but that is pure speculation, guess- ing on states which might legalize." Harrah's recently took delivery of the Northern Star (exterior and in- terior pictured on the supplemental cover) which was built by Service Marine. Service Marine is currently working on the Southern Star, which is scheduled to start operation in early 1994. Tom Hensley, vice president of marketing for Service Marine, said, "I think the market is going to continue to expand. With Indiana passing its legislation, and indications pointing to Texas pass- ing legislation in 1995...but is it a two-, a three- or a five-year boom...who knows." All Eyes On Indiana While hopes are high for Texas, Virginia, Maryland and Pennsylva- nia to legalize riverboat gaming, the reality is legalization in Indiana, where 11 boats are authorized. Five boats are approved on Lake Michigan, with two in Gary and one each in East Chicago and Hammond. Michigan City and Porter County are competing for the fifth boat. Five boats are authorized in non- specified sites along the Ohio River, and one will be on Patoka Lake in southern Indiana. The riverboat gaming provision, included on a budget bill, was passed despite a veto by Governor Evan Bayh, a veto which was cast for reasons unrelated to the gaming provision and was quickly overridden. But although the bureaucracy is in mo- tion, owners and builders might be slowed, although Players Interna- tional Inc. is already seeking a riverboat gaming license in Evans- ville. City or county governments have to authorize referendums and gain public approval before licenses are considered, except for Gary, where voters have already approved it. In Clark County, residents will have a chance to decide this fall whether they want riverboat gam- ing in their area, as a referendum has been set up on the issue in November. Vanderburgh County officials also are preparing for a special election this November for a riverboat development in the Evans- ville area. But the Army Corps of Engineers is claiming the permit- ting procedures for any floating ca- sino can take at least a year. Yard Competition Grows With Market While wading through the red tape for permits and licenses in Indi- ana, or any of the other five states with legalized riverboat gaming, might seem an arduous task, finding a competent yard to build the spe- cialized vessels is becoming easier by the day. And the increased com- petition is nothing but good news for the owner/operator. "There are more boats to build than there is capacity to build, and this has brought some other yards into the market," said Mr. Hensley. One of the newcomers is Avondale Industries, which recently signed an $11.7 million contract for the con- struction of a 266-foot paddlewheel gaming vessel for Jazz Enterprises, Inc. of Baton Rouge, La., and signed a letter of intent with Skylink America Inc. of Dallas to design and plan the construction of a 280-foot riverboat gaming vessel for opera- tion on the Mississippi River. "It is the hottest market out there right now," said Charles Burrell, sales manager for Leevac Shipyards. "There are certainly more shipyards showing an interest in the market." Despite that competition, Leevac has gotten its fair share, as it recently delivered the MTU-powered Player Riverboat Casino, and is scheduled to deliver three additional casinos August, 1993 37
