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Coushatta Casino in dire financial situation after building Legacy Tower, needs $40 million fast
The Louisiana tribal casino needs $40 million to cover a shortfall after budgeting and communication mistakes associated with a $150 million expansion project.
Not long ago, Louisiana's Coushatta Casino Resort was celebrating the opening of its Legacy Tower addition. Now, that same project has put the casino in a dire financial situation.Â
The owners, the Coushatta Tribe of Louisiana, are facing a $40 million shortfall that threatens the state's largest casino. If the tribe can't find more cash soon, it risks defaulting on a $150 million loan from Wells Fargo.
Coushatta CFO admits that mistakes have been made
Tanya Duhon, the Coushatta CFO, notes that a lack of communication and budgeting are the main culprits for the casino's current predicament. As reported by The Current, she takes responsibility for these shortcomings.
Duhon admits prioritizing revenue distributions to the Coushatta Tribe over covering the project funding, capital maintenance, operational expenses, and debt payments. She attributes these mistakes to this being her first time overseeing a project of this "size and complexity."
The plan to meet short-term loan obligations
Duhan's plan to turn the casino's finances around begins with securing an additional $40 million in financing. This amount will help satisfy loan obligations to Wells Fargo and complete unfinished portions of Legacy Tower.
She also wants to cut operating expenses, including freezing hiring of nonessential employees, reducing overtime, and postponing nonessential projects until 2027.
Unlike tribal casinos in some states, Coushatta cannot generate additional revenue from real money online slots to help shore up its budget problems.
Louisiana is among the 43 states that don't currently offer legal and regulated online casino games for real money.
Projected revenue still looking good for Coushatta Casino
Despite not being able to capitalize on online slots, live dealer blackjack, and similar games, Coushatta should still draw plenty of revenue from its land-based gaming operations. According to The Current, Duhon projects nearly $87 million in casino revenue this year against $136 million in debt.
The key remains solving the $40 million shortfall. Assuming Duhon and her colleagues can do that, then Coushatta Casino may start benefiting from its solid projected revenue numbers.
The Legacy Tower could play a role in a potential turnaround. It added 204 guest rooms, including 100 luxury suites, to the property. This gives Coushatta 1,000 rooms total in addition to its 2,800 slot machines and 100,000-square-foot gaming floor.
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