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Cautious Optimism On The Future Of Riverboat Casinos Owner Discretion Is The Latest Challenge To An Enduring Industry by Dan Maniotis, Senior Editor Riverboat gaming has met some serious challenges lately. In Indiana, the legis- lative method by which riverboat gaming received its initial approval was disputed and overturned. It was eventually reinstated, but the delay in awarding riverboat licenses had some owners and builders counting the seconds. In Missouri, the constitutionality of games of chance was contested, and eventu- ally upheld. While the outcomes of both challenges were triumphs for the industry, the realization that such challenges could threaten in- vestments has caused many own- ers to proceed more cautiously than before. Nevertheless, the builders of these riverboats expect the mar- ket to be a source of considerable business for years to come. Builders: Still A Cord Up Their Sleeves? With the legality of riverboat gaming confirmed in Indiana, build- ers such as Jeffboat of Jeffersonville, Ind., are well-situated to take ad- vantage — and in fact, they are now constructing the City of Evansville riverboat casino, planned for opera- tion in Evansville, Ind. But the victories are felt more than locally. "Obviously it was good news for the whole industry," said Larry Hairston of Service Marine of Mor- gan City, La., an active riverboat builder. He said the re-passage of riverboat gaming in Indiana has al- lowed Service Marine to move ahead on one of the first licenses awarded in Indiana, and that three vessels already constructed for the Missouri market could now be shipped to their owners. "The law has withstood the chal- lenge," said Ed Doherty, president of Atlantic Marine, Jacksonville, Fla. "For any builder of riverboats, it means prospective owners will be re-interested if they'd lost interest," he said. The challenge itself, how- ever, has had an effect: "The buyers have become wary," he said. "For the first time the law was challenged, and people realized the risk they were taking." Atlantic Marine was one of the first shipyards to build gaming ves- sels when the state of Iowa legalized riverboat gaming in 1991. Atlantic Marine has built eight gaming ves- sels — three paddlewheelers and five catamaran-style vessels. Its most recent work includes the Empress II, the Par-A-Dice, and the Empress III — a Great Lakes vessel built capable of oceangoing service. Ronald Babin of Avondale Boat Division, Westwego, La. —which was responsible for such prominent deliv- eries as theBoomtown Belle, theBelle of Baton Rouge, and the Belle of Or- leans — said it would be interesting to see whether the companies vying for licenses would build before li- censes were granted, as they have done in other states in the past. "We feel that with all we've learned, we're in a great position to benefit from the next wave of casino boat activity," said Gary Lipely of the Trinity Marine Group (TMG). He said that with all Trinity's capacity in 17 shipyards, TMG was in a position to deliver a casino boat of the highest quality in the shortest time. It was coop- eration between Trinity shipyards that resulted in the Queen of New Orleans and its replacement, the 322-ft (98-m) Flamingo, both of which were positioned in the New Orleans market. However, Mr. Lipely acknowl- edged the greater caution among owners. "Nobody seems to be will- ing to build a boat on speculation that they'll get a license," he said. "It was a definite setback for the whole industry, left them very cau- tious, but we still feel the trend will continue for a while ... We're very close to a couple of projects and we feel we'll close them within (Continued on page 44) "/ think there's a fair amount of growth potential, hut it's going to he cautious growth" — Ronald Babin. Avondale 42 Maritime Reporter/Engineering News
