New Orleans Plans to Sell Future Casino Payments to Boost Finances

New Orleans is exploring a unique financial strategy to address its fiscal crisis by selling the rights to future payments from the city’s Caesars-owned casino. This move is expected to raise more than $100 million. An ordinance allowing for the sale was introduced on April 23 and endorsed by all seven city council members.

The New Orleans Building Corp., which leases the property to Caesars, would sell future payments worth $148.8 million. This deal covers nine years and two months of rent, significantly reducing the city’s share of casino payments from $23.6 million to $7.3 million annually.

Caesars New Orleans, previously known as Harrah’s New Orleans, has been a key venue for the World Series of Poker Circuit. The city’s proposal acknowledges a pressing need for additional financial resources, although the funds are not immediately required for public purposes. Concerns have been raised by the Bureau of Governmental Research, which noted that the ordinance lacks specifics on how the funds must be used. The city’s emergency fund has plummeted from $344 million in 2022 to $35 million today, highlighting the urgency of the situation.