The new $10.8 million dollar Culinary, Gaming, and Hospitality Training Center officially opened last week at SOWELA Technical Community College. Governor John Bel Edwards said this state-of-the-art Hospitality and Tourism Center is a
shining example of world-class career training provided by the Louisiana Technical and Community College System. SOWELA Chancellor Dr. Neil Aspinwall said in the last several years, the gaming and hospitality industry has greatly expanded and along with the present culinary workforce needs, the industry is desperate for additional workers. Designed by the architecture firm of Champeaux, Evans, and Hotard, the 28,000 square-foot building features a top-of-the-line culinary kitchen, model hotel rooms, and an event space to provide high-demand education and training for students seeking a job in our state’s booming hospitality industry, which, in 2022 was estimated to have more than 222,000 employees according to Lieutenant Governor Bill Nungesser. The facility will also train culinary workers needed for organizations like hospitals, caterers, and restaurants.

Many failed to recognize when our area casinos first opened that this is an industry that would provide robust employment with paths for advancement. At the building dedication, Ronnie Johns, former State Senator and now Chairman of the
Louisiana Gaming Control Board said the gaming industry statewide now accounts for over $1 billion in state revenue for the State General Fund Budget. It’s the largest source of private industry direct tax revenue in our state budget,
exceeding oil and gas revenue. The Lake Charles market is now the number one market share statewide of gaming revenue. With only three licenses and one racetrack, it far exceeds the Shreveport/Bossier market which has six licenses plus a racetrack. With the Horseshoe Casino now open, the Lake Charles market should bring in $82-$85 million a month in taxable revenue which is consistently $15-$20 million more per month than any other market in the state.

The "Lake Charles" market consists of the Golden Nugget, L'Auberge Lake Charles, The Horseshoe Lake Charles, and Delta Downs Racetrack and Casino. Coushatta Casino Resort, a Native American owned facility, is not included in
these numbers since they are not required to report any of their information publicly. 

The casinos are required to pay a 21-1/2% gaming tax on their net revenues to the state and pay additional local taxes to the cities, the parish, the school board of Calcasieu as well as McNeese and SOWELA. The local tax rates were agreed
upon by contracts and also legislation years ago. Their effective tax rate is approximately 27%    Delta Downs also is taxed at 21-1/2% plus some local taxes and then also 15% to supplement the pari-mutuel horse racing industry.  Their net
effective tax rate is 36% because of how it is implemented.

At the end of 2022, the Lake Charles market had over 4900 direct employees in the three casinos and the racetrack.  With Coushatta, there are about 7500 direct employees in gaming. There are also hundreds of indirect employees of various
vendors and businesses that cater to the industry. Total compensation for these direct employees now exceeds $200 million annually plus benefits and the total spent on goods and services from the local market now exceeds $400 million
annually.  

The Port of Lake Charles receives significant lease payments from the Golden Nugget and L'Auberge and the Visitors and Convention Bureau also prospers substantially from the 4% hotel/motel tax on the thousands of rooms at the casino
hotels. 

Chairman Johns reminds us, no form of gaming has been implemented by the legislature without a local option vote of the people.  We recognize this important industry and its impact on Southwest Louisiana and the state. The new facility at SOWELA is a sure bet to provide jobs in the hospitality sector.