BATON ROUGE — Louisiana's Senate upped the ante on a deal to extend Harrah's no-bid lease on its New Orleans casino, deciding a sure thing was better than a gamble.
"It's a bird in the hand," said Sen. Karen Carter Peterson, who handled House Bill 533 by House Speaker Taylor Barras, R-New Iberia. "It's a $350 million investment with no subsidies from the state."
Enough senators agreed, passing the bill with a 21-16 vote here late Wednesday, although there was opposition.
"This is a crap shoot," said Sen. Eric LaFleur, D-Ville Platte.
"I think this is done in haste," said Sen. Bodi White, R-Baton Rouge. "This whole deal is kind of pulled out of the air."
House Bill 553 was once considered a sure bet before a revelation another company has an option to buy the casino and questions emerged about whether Louisiana was getting short-changed in the deal.
The bill as amended would give Harrah's a 20-year extension of its current lease with a 10-year option. Harrah's current 25-year lease doesn't expire until 2024.
It would also increase Harrah's annual payment to the state from the current $60 million to more than $80 million.
"I think what we have here is a fair deal," said Sen. Danny Martiny, R-Metairie.
Harrah's New Orleans General Manager Don Real told USA Today Network earlier this week he doesn't know how his company will react to the amended deal, "but I'm thrilled we have the chance to move forward and address the amendment positively."
Casino officials promise to invest $350 million in a new hotel and surrounding amenities, which they estimate will create 500 jobs new direct jobs at the foot of Canal Street.
"It will be a game-changer," Real said. "It's a visionary package for the city of New Orleans."
The measure sailed through the House under Barras' wing on a 79-12 vote in March.
But The Advocate then reported Vici Properties, a real estate investment trust in Las Vegas, has the right to buy the casino, taking lawmakers and even Gov. John Bel Edwards by surprise even though it was approved last year by the Gaming Control Board.
The Advocate also calculated Harrah's hired at least 21 lobbyists, enough to almost field two football teams, to curry favor for the bill.
If Vici bought the casino complex, it would lease the gambling operation back to Harrah’s owner, Caesars Entertainment.
The expansion would include more retail, an entertainment complex and restaurants in addition to the expanded hotel. It wouldn't include addition gambling venues.
"I wouldn't be at the table if I thought this was an expansion of gambling," Barras said previously. "It's an expansion of an economic development opportunity that's broader and wider than the city of New Orleans."
Gov. John Bel Edwards said this week he "would like to get a bill good enough so that I can consider signing it," but didn't commit to do so.
"I have to be sure we're getting a good enough deal to forgo the competitive process," Edwards said.
The bill now moves back to the House, which must decide if it will concur with the Senate changes.
Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1.
