Page 32: of Maritime Reporter Magazine (January 1993)

Interior of The President Casino Mississippi by John Connelly's Gateway

Riverboat Cruises of St. Louis, would give the former steamer a new life.

The old riverboat, which measures 374- by 92-feet and was at one time licensed to carry 4,400 passengers, has been shut down since late 1988.

Mr. Connelly also owns the excur- sion vessel Belle of St. Louis, built by Leevac Shipyards.

When she was constructed, the vessel, an integrated power unit and barge, was prewired for slot gaming operations. Mr. Connelly has al- ready indicated that he plans to uti- lize both these vessels in casino op- erations.

According to preliminary plans recently outlined by Gary C.

Frommelt, director of marine op- erations for Gateway Riverboat

Cruises, the refurbishment of the

Admiral would involve the removal of bulkheads and gift shop areas on the first deck.

The first deck would then prob- ably be closed off. The main ball- room on the second deck would be widened to the full beam of the boat by removing the outer bulkheads.

This area would then be utilized as the main casino. The renovation of the Admiral is expected to be com- pleted this spring.

In addition, according to one in- dustry source, another gaming ves- sel is in the design phase for the

Connelly Group.

Its intended area of operation is unknown at this time.

There are approximately 10 slots available near the Eads Bridge for permanently moored casino boats, six of which are reportedly controlled by the Connelly Group.

At the recent Riverboat Gaming

Congress & Expo held in New Or- leans, Mr. Connelly also announced that his firm, President Riverboat

Casinos, Inc., had applied for regis- tration for public trading on the

NASDAQ exchange.

A stock offering would supply the firm with an infusion of capital to further expand operations.

The firm includes excursion ves- sel operator Gateway Riverboat

Cruises, President Casinos gaming operations in Iowa and Mississippi, and gaming equipment manufac- turer International Gaming Tech- nology.

Proposals For The St. Louis

Riverfront

In the space of one week of the approval of riverboat gaming in

Missouri, there were no less than a half dozen projects proposed for the

St. Louis riverfront by would-be ca- sino operators.

One of the most ambitious projects came from Jumer Hotels & Casinos, the operator of the successful Illi- nois gaming vessel Casino Rock Is- land.

Jumer's proposal calls for the con- struction of two new casino boats and a 250-room hotel at Laclede's

Landing, an historic district north of the Eads Bridge currently under renovation.

As laid out by Jumer, the two casino boats would be near replicas of the steamers J.S. Deluxe and

Capital, which served St. Louis in the early 1900s.

The J.S. Deluxe II would be per- manently moored at the site, while the Capitol II would make regular gaming excursion trips. The 320- foot J.S. Deluxe II, with a restau- rant on its upper deck and casinos on its second and main decks, and a 195-foot pavilion barge, featuring gift shops, recreation area and of- fices, would be built first and open in the spring of 1994.

The 293-foot Capital II would be completed in the fall of 1995. The hotel would be open by late 1994.

Jumer expects to draw over 3.1 mil- lion people to the complex upon its completion.

The total cost of the project would be more than $90 million.

According to figures released by the company, this unique attraction would create jobs for 2,250 employ- ees with a payroll of $67 million and produce a projected $163.9 million in city and state revenues over its initial five years.

Other proposals for Laclede's

Landing came from: Ashfari Enter- prises, Casino Magic Corporation,

Kuhlmann Design Group, St. Louis

Riverport Resort, and Skyline Casi- nos, Inc.

City officials are expected to de- cide late this month which of the firms would receive the mooring lease for Laclede's Landing.

Queen of New Orleans: A $35

Million Riverboat "Hilton has long been at the fore- front of the gaming industry and as gaming proliferated across the coun- try, we plan on taking advantage of appropriate opportunities," said

Barron Hilton, chairman and president of Hilton Hotels Corpora- tion. Sticking to its philosophy,

Hilton Hotels Corporation and its partner New Orleans Paddle wheels,

Inc., are soon expected to announce the award of the contract to con- struct a 3,500-passenger, 400- by 90-foot casino paddlewheeler for

Louisiana.

According to Duncan McKenzi, president, Hilton's Queen of New

Orleans Riverboat Casino, the short list of yards in the running for the contract has been narrowed to Hal- ter Marine, Inc., a part of the Trinity

Marine Group; Avondale Industries,

Inc.; Bender Shipbuilding & Repair

Co., Inc.; and McDermott, Inc.

Many insiders believe that Hal- ter Marine, which provided the de- sign work for the vessel, will be awarded the construction contract.

The $35 million project, which will involve 200 jobs for ship workers, is expected to be completed approxi- mately 12 months from the start of construction.

Some industry sources suggest that the cost of the vessel might exceed $35 million, once specialized surveillance, coin counting and gam- ing equipment is installed. Upon completion, the Queen of New Or- leans would feature a 30,000-square- foot casino containing nearly 1,500 slot machines and 60 table games. "We are going to award the con- tract to a Louisiana-based yard to stay within the spirit of the law, which was to create jobs locally," said Mr. McKenzie. "Three of the yards are based right here in New

Orleans, while Bender just recently purchased the Bergeron Shipyard in Braithwaite."

Conservative estimates by Mr.

McKenzie project that the vessel will carry over one million passen- gers per year, generating revenues of about $40-45 per person per trip.

If a lease can be obtained, the Queen of New Orleans would operate out of a new open air pavilion located at the Canal Street Wharf.

New Orleans Paddlewheels, Inc., will own 50 percent of the project and manage the operation of the vessel. Hilton Gaming Division will manage the operation of the casino.

According to joint venture part- ner Warren Reuther, president of

New Orleans Paddlewheels, Inc., the two firms are also considering oper- ating vessels out of the cities of Lake

Charles and Shreveport.

These vessels would be smaller than the Queen of New Orleans, with a length of250 feet and beam of 60 feet, carrying 1,500 passengers.

The paddlewheelers, of Rodney E.

Lay design, would be similar in style to the Players Riverboat Casino under construction at Leevac Ship- yards, Inc., in Jennings, La. "Riverboat gaming will have a major impact on tourism to Louisi- ana," said Mr. Reuther. "The project [Queen of New Orleans] will work to enhance the existing charm and ex- citement New Orleans is renowned for . . ."

As many as 15 licenses are ex- pected to be issued in Louisiana, with a maximum of six vessels oper- ating out of any one Parish.

By law, gaming operations have been limited to: the Mississippi, Red,

Calcasieu, Mermentau, Ouachita and Atchafalaya Rivers, Bayou

Bienvenue, Lake Pontchartrain,

Lake Maurepas and the Gulf

Intracoastal Waterway.

All the vessels must be paddlewheelers and of at least 150 feet in length. Up to 60 percent of the passenger square footage can be devoted to gaming.

Current Constructions:

Largest Boat Being Built

At Patti Shipyards

The largest riverboat casino to date, the Casino Queen, is under construction at Patti Shipyards in

Pensacola, Fla.

The 445-foot riverboat will be delivered this spring for operation out of East St. Louis, 111. Originally ordered by Roberts River Rides on speculation, it was recently sold to

Arch Paddle Boat Company of East

St. Louis.

In mid-November, the first steel was cut for Harrah's new 210- by 78-Harrah's Casino boat under construction at Service Marine 34 Maritime Reporter/Engineering News