When Hollywood Casino Baton Rouge moved to land has been delayed due to supply chain disruptions and inflation. The Construction of the new venue was announced last August 2021 and was estimated to be furnished earlier this year but was pushed back due to several problems
Supply Chain Management
According to the Chairman of the Louisiana Gaming Control Board, Ronnie Johns, one of the main reasons for the delay is the shortage of steel which is one of the vital materials in construction.
“And also, the supply chain, it’s horrible right now. They’re having a hard time getting steel, they’re having a hard time getting basic supplies,” John stated.
Supplies may be a major issue, but there is an even greater problem, inflation. The estimated cost of the project was just around $60 million during the initial stages, but it increase to $100 million based on the current figures as unexpected inflation strikes.
“Look, the price of steel is up 25%, inflation alone is at over 9% over the last year. And so, everything is just a lot more expensive than it was, say a year ago,” said Johns.
This is something that the developers have no control over and it is one of the main reasons for the delays. It seems like this problem will not be going away anytime soon, so we can expect more delays in the future.
Riverboat Operations Continue
With several issued encountered, Johns still stated the positive side:
“Not to my knowledge they’ve not, but the good thing about this project is that they have not had to close the existing riverboat casino unlike the horseshoe here in Lake Charles which was severely damaged by Hurricane Laura two years ago,”
However, inflation will also be a concern since it may affect the casino market.
“We’re already seeing it in some of the gaming markets here in Louisiana. So yes, it’s something that the market is watching very closely. I’ve had conversations with multiple casinos across the state. Everybody’s concerned about it, particularly those that draw from out of state,” Johns added.
Online Gaming In Louisiana
While online casinos have yet to go live, Louisiana online sports betting has been made legal and commenced operations last January 28.
It is anticipated that more than a dozen distinct companies to compete in the Louisiana market, which is welcome news for residents and tourists alike.