Tunica, Mississippi Turns to Wind Energy for Economic Boost with Casinos Shut Down
Local authorities in Mississippi's Tunica County are hoping that an upcoming wind energy farm will revitalize the local economy as casinos in the area face a challenging business environment.
Tunica is one of the poorest counties in both Mississippi and the entire United States. With a population of less than 10,000 people, this riverboat casino town in the northwest of the state is experiencing a decline in residents. According to the US Census Bureau, over 25% of Tunicans live below the poverty line, with an annual median household income of only $41,200.
Previously, Tunica's riverboat casinos were a significant contributor to the local gaming industry, comparable only to Las Vegas and Atlantic City. However, as commercial gambling has expanded across the country in recent years, particularly in neighboring Arkansas, Tunica's casinos have found it increasingly difficult to retain their customer base. As a result, their gross gaming revenues have substantially decreased.
A Promising Breeze
Despite these challenges, Tunica officials are hopeful about the potential impact of a wind farm. AES, a Virginia-based energy producer, is constructing a utility-scale wind farm in Tunica that will primarily supply energy to Amazon.
Amazon operates fulfillment and sortation centers, a distribution facility, and a Whole Foods Market in northwest Mississippi, and this wind farm will be the first of its kind in the state.
According to county officials, the wind farm will generate millions of dollars in annual property taxes that will help fund necessary improvements to Tunica's public schools. The school district has struggled with some of the lowest K-12 test scores in Mississippi for several years.
Construction of the wind farm has already created 300 temporary jobs, but once it is fully operational, it will only require approximately seven to ten employees to maintain it. The wind farm is expected to be completed in early 2024.
As Charles Finkley Jr., the director of the Tunica County Chamber of Commerce and Economic Development, stated, "These types of projects won't solve all the problems in our communities, but it's a start. It's a step in the right direction."
However, some critics have criticized the county's decision to offer significant tax incentives to AES.
While county officials argue that the wind farm will produce more than $60 million in property taxes over the next thirty years, if the wind farm hadn't received these incentives, the property would have been responsible for only about $20,000 in property taxes during that time period.
An Evolving Landscape
Tunica's casino industry is represented by seven casinos, including 1st Jackpot, Fitzgerald's, Gold Strike, Hollywood, Horseshoe, Isle of Capri, and Sam's Town. These properties are located north of Tunica proper in Tunica Resorts, which used to be known as Robinsonville until 2005.
From 2012 to 2020, Tunica's annual gaming revenues declined each year. The pandemic has led to a resurgence in gaming, with the seven casinos winning $696.1 million in 2021, a nearly 20% increase from 2019 revenues. Casino revenues have since diminished, as Tunica's GGR in 2022 totaled $636.4 million, a nearly 9% decline from the previous year.
Throughout the 2000s and 2010s, Tunica's casinos consistently generated around $1 billion in annual GGR.
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Source: www.casino.org
