BILOXI, Miss. (AP) – It’s been a tough week for the Coast casino industry, hit with news that 2009 gross casino revenue fell to 2000 levels and construction cranes are coming down at the Margaritaville Casino site, while a blimp flew over Biloxi advertising an Alabama casino.

A meeting to discuss promoting Mississippi casinos against the newly opened electronic bingo parlor outside Dothan, and other Alabama Class II casinos was held this past week in Biloxi.

“They’re definitely going after our casino and tourism market,” said Beverly Martin, director of the Mississippi Casino Operators Association and a member of the Harrison County Tourism Association.

The meeting was called by former state senator Gloria Williamson, now a lobbyist for the Mississippi Band of Choctaws, to consider cooperative advertising with the state, visitors’ bureaus and other casinos.

Currently 15 percent of the gamblers at Mississippi casinos come from Alabama and 25 percent from Louisiana. At least one candidate in the November Alabama governor’s race, agriculture commissioner Ron Sparks, favors legalizing casinos.

“We’ve got increased competition out there,” Martin said.

That competition and the slow economy were evident in the December gross casino revenue report released Jan. 20 by the Mississippi State Tax Commission.

The 11 Gulf Coast casinos made $83.5 million in December compared to $95.5 million in 2008. For the year, the coast casino gross revenue was $143.6 million less than in 2008, an 11 percent drop.

The river casinos – which include Tunica, Lula, Natchez and Vicksburg – were down 8 percent and the state’s gross casino revenue was at the lowest level since 1998 and even slightly behind 2005, when all the coast casinos were closed for four months after Hurricane Katrina.

Larry Gregory, director of the Mississippi Gaming Commission, said the casinos are seeing the same challenges as other businesses.

“We’re in a major economic downturn,” he said, “and people are just not spending their money like they were a few years ago.”

He sees casino revenue remaining down over the next three months but he’s also optimistic.

“We’re seeing an upswing in the new developments, especially along the Gulf Coast,” said Gregory.

He calls that a sign the coast is still “a good, healthy market.”

Three developers are ready to move on their plans for casinos and he said others continue to come to his office with blueprints.

“They know this is temporary. They know this is the economy,” Gregory said.

The economy and the crisis in the financial market stopped work at Margaritaville Casino in early 2008, and now the three construction cranes that have been at the site since then are coming down. John Payne, president of Harrah’s Entertainment Central Division, said the cranes will be moved in the next couple weeks.

Biloxi mayor A.J. Holloway said while those cranes remained at the site, people had hope Margaritaville Casino would be built. He understands Harrah’s no longer wants to spend $30,000 each month for the cranes and he has hope the casino will be built. The partnership between Harrah’s and singer-songwriter Jimmy Buffett was announced in 2007 and the $700 million resort was scheduled to open this spring.

Payne said, “We continue to look for partners and opportunities.”

Biloxi’s eight casinos saw earnings drop from a high of $1 billion in 2007 to $950 million in 2008 and $834 million in 2009.

“Hopefully this thing will turn around,” said Holloway, although analysts say it could take another two years before casinos nationwide see an upswing.

Meanwhile Biloxi’s Palace Casino is undergoing an 110,000-square-foot expansion and the Beau Rivage, IP and Grand Biloxi casinos are bringing guests each week by charter flights.

“2010 is the year we are going to come out of the ground with our expansion,’’ said Silver Slipper Casino general manager John Ferrucci. Until the hotel is built, they are busing players from a 25 to 75 mile radius, mostly from Louisiana, and shuttling locals to the Hancock County casino from the new Pier House restaurant in Diamondhead.

Ferrucci said the down economy is when casinos should be getting ready for the upturn. “This is the time to be planning your next move.”

For the calendar year 2009, the casinos took in $2.46 billion, compared to $2.72 billion for 2008.

Casino revenue, or “win,” is the net amount of money won from gamblers. It is not profit.

The gross earnings figure represents casino revenue only – separate from hotel, restaurant or bar revenues generated by the resorts.

The figures do not include Indian reservation casinos, which are not required to report their winnings to the public.

Gaming tax collections are tracked on Mississippi’s fiscal year, which runs from July 1 to June 30. Casino tax collections in December totaled $20.6 million compared to $22.8 million in November.

Mississippi collected $139.5 million in the first six months of this fiscal year.

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