VICKSBURG — Bally Technologies Inc. and the city of Vicksburg have agreed on a payment for the almost five years the city under-billed the former Rainbow Casino for natural gas service from 2005 to 2010.
The Vicksburg Post reports Bally will pay the city $175,000, about 46 percent less than the $378,234 the city said Bally owed for natural gas at the time it sold the casino.
“They made us an offer, and we decided it was in the best interest (of the city) to accept that offer and not go through the arbitration with the Public Service Commission,” city attorney Nancy Thomas said.
Bally sold its interest in the casino to Isle of Capri in June 2010, The casino was renamed Lady Luck in 2012.
City officials say an error caused the city to under-bill gas service to Rainbow from Dec. 14, 2005, to May 13, 2010, when Bally owned a general partnership interest in the casino. When Bally prepared to sell its interest, the city presented the company a bill for $378,234 and explained the billing errors. The company filed its petition for arbitration in 2011.
Mayor George Flaggs Jr. commended Thomas, aldermen Michael Mayfield and Willis Thompson and other city officials for their work in the negotiations with Bally.
“I think that speaks volumes about this board working together to get all the money we can out of this due the city,” Flaggs said.