Page 110: of Maritime Reporter Magazine (June 1994)

OceanQuest International's concept design for a casino barge.

Maritime Reporter & Engineering News'

CASINO RIVERBOAT QUARTERLY

Site Selection Key To Long Term

Success In Growing Market by Erin M. O'Driscoll, assistant editor

Location, location, location...the axiom to describe the key to success in the real estate market can also be applied to the riverboat casino in- dustry. Securing a prime location which offers the potential of long- term success is more crucial today, as casino. riverboat owner/opera- tors face increasingly stiff competi- tion in the handfull of states which allow riverboat gaming, and the numerous states which are close to legalization.

The Search Begins

As only five states to date have legalized riverboat gaming, legisla- tion is the initial determinant when searching for a new location to de- velop a riverboat casino site. As more states legalize this mode of enter- tainment, site selection—by state and within a state—takes on an ex- panded importance. Inter- and intra- state rivalries will become more heated, as additional vessels vie for a finite number of dollars. Bad news for owner/operators, good news for boat owners and suppliers.

With Texas, Ohio and several other states reportedly close to le- galization, riverboat gaming opera- tors in the future will be able to choose a site for what the area has to offer rather than just because gam- ing is legalized there.

When considering a location for a site, owner/operators research the area extensively. Much money goes into the project at its early stages.

Competition is studied—competition that exists in the area already and competition there is likely to be in the future.

Companies must also hire re- searchers to investigate the area's market feasibility, as well as con- duct demographic analyses of the area's population, tourism, trans- portation, and accessibility to high- ways and airports. When an area meets a company's satisfaction, the company must then go through the sometimes arduous process of ob- taining a license to operate in that area.

States: Looking For Stability

Just as each state differs in its legislation, each state differs in what owner/operators must do to prove the casino will be economically and sociologically sound, and none of the owner/operators feel that the licensing process is getting any easier.

A company must prove that it is more capable of delivering than its competitors. The company also needs to prove that it will be finan- cially stable through both periods of ups and downs. The support of local businesses and political people is vital.

According to Mark Bradley of

Jazz Enterprises, Jazz—when pur- suing its Catfish Town Project site— had to spend close to nine months convincing the City of Baton Rouge that the company would have a posi

OceanQuest International, Providence,

R.I., an industrial, commercial and marine consulting firm, presented its newest casino barge design at the Intl. Gaming Show in

Las Vegas in May. The vessel has 76,298- sq.-ft. of gaming space and cost about $80 million to build. OceanQuest is planning two more, bigger vessels in the future. The vessel is 480 feet (146 m) long with a breadth of 118 feet (36 m). OceanQuest was the architect for the vessel. Interior designs were by Directions in Design. 120 Maritime Reporter/Engineering News