Judgment day: Mississippi Coast city trying to collect millions from failed casino venture
The company behind a failed casino venture in Gulfport’s harbor owes the city more than $1.8 million, plus 8% interest from the time a court judgment for that amount was entered in 2017.
Whether the money can be collected from Rotate Black MS LLC is another matter, but the city hasn’t given up trying. Court judgments must be renewed every seven years to remain valid, so Gulfport recently filed its notice of renewal before the original May 2017 judgment expires.
“As part of our standard procedures, the city periodically reviews and renews judgments for monetary relief to ensure they remain valid and collectible,” Public Information Officer Jase Payne said. “ . . . the associated costs are minimal. Our goal is to uphold the city’s financial interests efficiently and responsibly.”
Harbor casino history
Rotate Black tied up about 4.5 acres of city property in the harbor for four years, with the intention of developing a casino. The city terminated the lease in October 2014, according to one of its court documents, because Rotate Black had failed since February 2014 to pay $25,000 in monthly rent.
The judgment against Rotate Black includes unpaid rent of $225,000, plus interest and late fees, and $1.5 million in damages for breach of the lease, court records show.
Rotate Black was one of numerous companies that tried to develop a casino in the harbor on land the city owned, combined with private property. The private property owners have since gone their own way to find a buyer for their land.
Rotate Black finally won permission for a casino from the Mississippi Gaming Commission but was unable to pull together financing.
Rotate Black CEO John Paulsen told the Sun Herald in April 2014 that his company owed $6 million for professional services and up-front costs for the Gulfport casino. The company filed annual reports with the Secretary of State’s Office through 2015 but was dissolved at the end of 2016, state records show.
