Gaming tax hike would force casino closures, study says.(Knight Ridder Newspapers)

GULFPORT, Miss._ A new study prepared for a Mississippi Coast economic development group says if the state raised the gross gaming tax by 3 percent, seven casinos including three on the Coast could be forced to close and 5,000 direct jobs would be lost.

The University of Southern Mississippi-Gulf Coast's study also said the state would get less than $15 million in new revenue from such a tax increase.

The Mississippi Gulf Coast Economic Development Commission paid USM $55,000 to follow up on a study done in 1999 for the state Legislature.

"The main thing we wanted to demonstrate is that the gaming industry, which is celebrating its 10th anniversary, is as important as two Nissan plants," said Michael Olivier, executive director of the Harrison County Development Council.

Opponents of a casino tax hike are concerned the state's budget problems will prompt lawmakers to look to the casino companies for a quick fiscal boost. Several attempts to raise the gross gaming tax have failed.

Olivier said the new report will be sent to every state legislator.

Andy Bourland, executive director of the Mississippi Gaming Association, said the study supports the industry's position about increasing taxes.