with source references in the endnotes
Note
I wrote this last November but had not published it.
Now seems an appropriate time
The casino license must be granted to a financially sound and ethical company. Our representatives should not endorse Gulfside, owned by Terry Green and Rick Carter, due to their history of bankruptcies, federal investigations, delinquent taxes, money laundering fines, gaming license forfeiture, debts, and layoffs of employees. These factors disqualify them from receiving any support from Pope County.[1]
According to the rules of the Arkansas Racing Commission for Casino Gaming, the commission may deny a casino application if the applicant provides misleading, incorrect, false, or fraudulent information with the intent to deceive.[2]
During a meeting held by the Racing Commission on June 18, 2020, Terry Green, a Gulfside Casino Partnership co-owner, was asked multiple times whether he or any of his partners in any prior casino venture had ever defaulted on debts or filed for bankruptcy. [3]
Mr. Green claimed that he never filed for bankruptcy. While this statement may be technically accurate regarding his personal capacity, it misrepresented the facts relevant to the inquiry. Mr. Green was an owner and operator at least three times when his companies filed for bankruptcy: Carter-Green-Redd, Inc. (Mississippi 1989), Pride Cruise Lines, Ltd. (Texas 1992-1998), and Gulfside Casino, Inc. (Mississippi 1997).[4]
Also, Gulfside failed to disclose to the Commission that its owners, Green and Carter, were restricted for a time from obtaining a gaming license in Mississippi due to violations or alleged law violations.[5]
One of the criteria for selecting a licensee in the Casino Gaming Rules is “Experience in conducting casino gaming.” Mr. Carter and Mr. Green were responsible for the gaming operations in casino gaming cruise ventures in Mississippi and Texas, both of which involved bankruptcy, and Copa Casino, which also involved bankruptcy. However, none of this casino gaming experience was presented to the Commission nor considered by the Commission.[6]
The Racing Commission’s negligence in investigating the gaming industry history of Mr. Green and Mr. Carter led to the licensing of Gulfside Casino Partnership for the Pope County casino without considering their prior bankruptcy filings and adverse licensure decisions. This oversight could have been avoided with proper investigation.[7]
History
In the late 1980s, William “Si” Redd, a renowned figure in the gaming industry also known as the “king of slot machines,” teamed up with two up-and-coming restaurateurs from the Gulf Coast named Terry Green and Joel “Rick” Carter. They formed a partnership, named Carter-Green-Redd Inc., to establish a casino that would operate on a floating platform off the coast of Mississippi in international waters, where gambling was legal. Redd was the majority shareholder with 70%, while Green and Carter held the remaining 30% through sweat equity. Hugh Keating, a corporate and commercial attorney from Gulfport, introduced Green and Carter to Redd and served as their general counsel, providing legal guidance to navigate challenges.[8]
In 1988, Pride Cruise Lines, a new company established by Carter-Green-Redd, bought the 568-passenger Atlas[9] from Epirotiki Lines to operate one-day cruises from Gulfport, Mississippi. The ship was renamed Pride of Mississippi and reflagged from Greek to Bahamian registry.[10]
The firm had also acquired a letter of intent on November 18, 1988, from the Galveston, Texas, Wharves trustees to develop an exclusive contract to operate day-trip “cruise to nowhere” voyages out of Galveston featuring entertainment and casino gambling.[11]
The Pride embarked on its inaugural cruise from Gulfport on February 19, 1989. Green and Carter quickly realized that the venture would be unprofitable unless gambling could commence shortly after departing the dock.[12]
During the few years it operated in the Gulf of Mexico, the ship was the world’s largest day cruise vessel, providing “up to 1,000 passengers with six decks of entertainment and amenities.”[13] However, the business was continually plagued with issues.
The ship’s engine had mechanical problems due to silt and advanced age.[14] It sailed under a foreign flag, mandating a monthly voyage to a foreign port, incurring additional costs. Licensed harbor pilots daily navigated the ship out past barrier islands and back at steep fees. The ship needed a larger crew for its daily gaming cruises, many from foreign countries, with resultant language difficulties. About 50% of each eight-hour “cruise to nowhere” was spent traveling to and from international waters, leaving limited time for gambling.[15]
Redd’s inexperienced management team made costly errors. During the first few months of operation, there was no surveillance system, and the partnership faced numerous challenges, such as higher than anticipated costs, attendant problems, and other unforeseen issues, such as failed health inspections,[16] leading to significant challenges.[17]
In December 1989, Pride Cruise Lines, after only ten months of operation, filed for reorganization under Chapter 11 bankruptcy when the company was assessed a $1 million use tax and seizure of the ship was threatened by Mississippi,[18] [19] [20] after the ship was relocated to Galveston, Texas, where it was later renamed Pride of Galveston.[21] Pride had planned to replace its casino cruise vessel out of Gulfport with a smaller one,[22] but the bankruptcy derailed that plan.[23] In June, the firm’s lawyer, Hugh Keating had said that moving the Pride without a replacement “would be suicidal.”[24]
Having invested $20 million in the company, Sy Redd ensured all creditors were paid.[25] Due to failing health, doctors advised Redd to get out of the gambling ship business. As a result, he transferred all his stock in the venture to his wife, Marilyn. When questioned, Redd clarified that he could not influence her.[26]
For a time, the company intended to run two casino ships, one based in Gulfport and the other in Galveston. In April 1989, while they were still looking for a second ship, they entered into an exclusive agreement with the Port of Galveston to operate a 500-foot-long vessel from Pier 21[27] [28] They were exploring the possibility of also operating a ship out of Corpus Christi.[29] The Galveston City Council passed an ordinance on August 15, 1989, regulating cruise ships operating out of Galveston more than 12 times a year.[30]
While Carter-Green-Redd[31] moved their casino day cruise operation venture to Texas, with a maiden cruise out of Galveston on December 8, 1989,[32] the effort was doomed to failure.[33] Even before moving the ship to Texas, the company was under investigation for violating the 1948 federal Gambling Ship Act, an act originally designed to prevent gambling barges from operating along the California coast.[34] In December 1989, Terry Green said, “If we can’t make it in Galveston, we can’t make it anywhere. We’ll shut the doors and sell the ship. But we don’t expect that to happen. All I’m asking for is a chance. We’ll make it work.”[35] When another ship managed to get a license from the city of Galveston, Pride scrambled to get its ship into the city two or three months ahead of its original start of operations date.[36] [37]
Near the end of December 1990, the Pride of Mississippi was docked, and cruises canceled, including New Year’s Eve, due to problems that developed in one of its two boilers.[38] [39]
When the ship was moved from Mississippi, the owners had considered changing the name from Pride of Mississippi to Pride of Texas but decided against it. Rick Carter said they kept the name because Carter, Green, and Redd were, ”proud natives of Mississippi.” Carter also said that a name change would cost $100,000.[40]
In 1991, the ship underwent a $4 million renovation in Port Arthur, Texas, and Freeport, Bahamas, to expand capacity and upgrade facilities.[41] In March, it returned to Galveston as the Pride of Galveston.[42] [43]
Business in Texas was good until the company ran into legal and tax complications. Tax issues and the threat of seizure of the vessel after Pride failed to pay more than $557,00 in back taxes crippled the business.[44] In August 1991, Terry Green, president of Pride Cruise Lines, said, “We’re going to make it.”[45] While last-minute negotiations kept the ship afloat,[46] Green’s statement was overly optimistic, with the license to operate the ship from the Port of Galveston expiring on September 1.[47]
After Pride was tentatively granted an extension in May 1991,[48] [49] Ron Woods, the U.S. Attorney in Galveston, later enforced the 1948 federal Gambling Ship Act.[50]
Federal marshals temporarily seized the ship on November 1, 1991, after a Galveston attorney representing about 60 of the 160 crew members told a judge he feared it might flee Texas waters.[51] During the week the federal government was responsible for the Pride, they paid $1,625 in daily dockage fees. This was nearly 12 times more than what Prize Cruise Lines, which had a flat annual rate, was charged.[52]
Pride was still in dispute with Galveston County over $500,000 in unpaid taxes, and a Houston grand jury was investigating their potential violations of federal laws regulating gambling ships.[53]
Federal Judge Sam Kent ruled on November 8, 1991, that the U.S. Justice Department could pursue criminal charges against Pride Cruise Lines. The Gambling Ship Act of 1948 stated that ships like the Pride of Galveston had to stay out overnight in international waters or dock at a foreign port before returning to their home harbors, according to an interpretation issued by the former Attorney General Dick Thornburgh. While seeking legal redress from Thornburgh’s ruling, Pride continued to operate. Because of that continued operation, the Pride’s owners could face indictment. Justice Department officials confirmed that a criminal investigation was initiated.[54] Pride officials asked Judge Kent to go ahead and sell the beleaguered vessel. Kent declined their offer and lifted the seizure order he had issued a week earlier, returning control of the ship to Pride Cruise Lines. “I’ve got the vessel back, but big deal,” owner Terry Green said. The ship had been laid up due to a blown boiler since mid-October. “I don’t know what this means. [55]
In December, the Pride of Galveston sat crewless at its Galveston Dock, the victim of litigation, a federal investigation, and a disabled boiler.[56] The owners were considering moving the vessel back to Mississippi, pending the legalization of dockside gambling in Harrison County.[57] [58]
The loss of the ship resulted in a significant economic loss for Galveston. Pride Cruise Lines had spent $33,360,356 on various expenses such as salaries, food, fuel, liquor, valet parking help from the longshoreman’s union, and more in about 20 months of operation.[59]
Pride Cruise Lines and Carter-Green-Redd Inc., due to legal, financial, and mechanical issues, filed for Chapter 7 bankruptcy on May 4, 1992,[60] which led to the liquidation of the company’s assets.[61] [62]
By declaring bankruptcy and ceasing gambling operations, Pride avoided Federal indictments.[63] The ship was to be sold at auction on August 12, 1992.[64] Issues related to the bankruptcy remained even two years later.[65]
Docked at the State Port in Gulfport, Mississippi, the new Copa Casino opened in September 1993 on the former “Pride of Galveston,” which had been towed back to Mississippi from Texas.[66] Joel “Rick” Carter has claimed the ship was purchased out of bankruptcy by Green and Carter with help from some financial partners and that a legal brawl with those same partners lasted over five years. He has also said that they turned the Copa’s $1.5M annual losses into a $1.5M profit the first year after finally acquiring “its keys” in 1998.[67], [68]
Carter’s version of the story doesn’t match with the actual events.
Late in 1992, The Sands Regent, a Nevada company led by Pete Cladianos, was approached by the owners of the Copa, Stanley and Kirby McDonald, inviting Sands to invest in their Mississippi dockside casino.[69] Rick Carter and Terry Green were to be the operators.[70] The resulting partnership deal was signed on December 31, 1992, without anticipating difficulties that were just over the horizon in licensing the casino.[71]
In 1993, because of their previous issues in Mississippi gaming, Carter and Green could not obtain the required approval from the Mississippi Gaming Commission to directly or indirectly hold an interest in a gaming license.[72] This delayed Copa’s opening, endangering the project. The McDonalds bought out Carter and Green’s interests to secure Gaming Commission approval, becoming the sole owners of Gulfside Casino, Inc.[73]
In 2020, Gulfside’s proposed River Valley Casino website claimed that Rick and Terry operated the Copa Casino starting in 1992, despite the fact that they were absent from the Copa for a significant amount of time.[74]
[1] Akin, Thomas (April 13, 2020). Letter from a former member of the Arkansas Racing Commission to Russellville, Arkansas, Councilman Chris Olson. “RE: Resolution of Welcome for Gulfside Casino Partnership, LLC, a subsidiary of Copa Casino of Mississippi, LLC”
[2] Rules of the Arkansas Racing Commission—Casino Gaming. Rule 2.13.12(a)(iii)
[3] McDaniel, Dustin. (2020, June 17). “Affidavit of Misrepresentation submitted to the Arkansas Racing Commission.”
[4] McDaniel
[5] Calhoun, Bart W.; Richardson, Scott; McDaniel, Dustin (2020). In The Matter of the Pope County License—Notice of Appeal and Request for Hearing to the Racing Commission.
[6] Rules of the Arkansas Racing Commission—Casino Gaming. Rule 2.13.9(b)(i)
[7] Calhoun.
[8] Harpster, Jack (May 5, 2010). King of the Slots: William “Si” Redd. New York, NY: Bloomsbury Publishing USA. p. 193-199.
[9] First named Ryndam II, the ship was a passenger ocean liner whose construction, started in 1942 was delayed by war, was launched in December 1950 and built in the Netherlands. It was the first trans-Atlantic liner with air conditioning and allocated 90% of its cabin space to tourist class passengers. It was transferred to HAL’s German subsidiary in 1966, and after being sold to Epirotiki Lines in 1972, it was renamed Atlas. (Originally intended for service out of Galveston) in 1989, after its purchase by Pride Cruise Lines, it began sailing day cruises from Gulfport, Mississippi, as Pride of Mississippi, later from Galveston, Texas, as Pride of Galveston. In 1993, it was towed back to Gulfport, where it served as a stationary casino ship, Copa Casino, until 2002. It was sold to a Louisiana company for $190,000 in December 2002 and then to a New York company for $500,000 for scrap in 2003 and sank while under tow to India near the Dominican Republic. (more details)
[10] “Pride Cruises to Begin One-Day Operations”. Cruise Industry News. New York, NY. January 17, 1989. Retrieved 15 November 2023. The company purchased the 38-year-old, 16,000-ton Atlas after another ship, the Jupiter, on which they had placed a deposit and planned for use out of Gulfport, sank after being hit by an Italian cargo ship. In early 1989, the company said it was searching for a second vessel to be based in Galveston.
[11] Kirkpatrick, Joel (November 23, 1988). “Pride cruises – Firm wins pact for gambling ship“. The Galveston Daily News. No. 227 Vol 146. Galveston, Texas: Galveston Newspapers, Inc. pp. 1, 11. Retrieved 22 November 2023.
[12] Nash, Jere; Taggart, Andy (2006). Mississippi Politics: The Struggle for Power, 1976-2006. Jackson, Mississippi: Univ. Press of Mississippi. p. 216.
[13] “Pride pays fee, set to sail Friday night”. Galveston Daily News. No. 241 Vol. 147. Galveston, Texas: Galveston Newspapers, Inc. December 7, 1989. p. 13. Retrieved 21 November 2023.
[14] Wilson, D.V. (December 14, 1989). “Pride files for bankruptcy – Reorganization stems from unpaid tax in Mississippi”. The Galveston Daily News. No. 147 Vol. 147. Galveston, Texas: Galveston Newspapers, Inc. pp. 1, 15. Retrieved 21 November 2023. “…The Pride of Mississippi began to have financial problems when the engine failed because of port conditions in Gulfport… The engine’s breakdown forced the vessel to remain in port during the potentially lucrative Labor Day weekend and the company never recovered…
[15] Harpster.
[16] Wilson, D.V. (December 22, 1989). “Pride of Mississippi fails federal health inspection once again“. The Galveston Daily News. No. 256 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 22 November 2023. “Many of the violations are technical and do not include those that might jeopardize passenger safety”
[17] Harpster. Redd’s management team made costly mistakes in their inexperience with gambling ships and the financial drain on the venture. The casino operated for the first four to five months without a surveillance system, which is essential in the casino business. “We would fill the boat up and have a thousand people on the cruise,” Carter stated, “and when the boat returned, no one could tell me if we had made any profit or not.” “If we had the correct management and checks and balances, we would have succeeded in Mississippi,” Carter added. Despite attracting the expected number of passengers, the partnership encountered various challenges, such as higher than anticipated costs, attendant problems, and other unforeseen issues, leading to significant complications.
[18] Harpster
[19] U.S. Bankruptcy Court, Southern District of Mississippi, Bankruptcy Petition # 89-09796-ERG, Carter-Green-Redd, Inc. Date Filed 12/12/1989. Date Terminated 8/9/1991
[20] Wilson. “(The bankruptcy) is intended to protect the Pride of Mississippi from seizure for an unpaid $1 million use tax levied by the state of Mississippi.”
[21] “Southern Elegance to Gulfport”. Cruise Industry News. New York, NY. March 12, 1990. Retrieved 15 November 2023. “Sources in the company claimed that the move was partly because the ship, which had a capacity of 1,190 passengers, was too large for the Gulfport market.”
[22] “Missing the boat—Gulfport may get smaller ship when Pride Cruise Lines expands to isle”. The Galveston Daily News. No. 233 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. August 13, 1989. p. 16. Retrieved 22 November 2023. “Pride Cruise Lines has committed to keeping a day-cruise vessel on the Mississippi Gulf Coast. But by all indications the 503-foot Pride of Mississippi will undergo an identity change by February, becoming the Pride of Texas.”
“In its place, the company will likely bring in a smaller ship to offset the $52,00 per day operating costs of the Pride.”
[23] “Cruise line files bankruptcy petition“. Laurel Leader-Call. No. 295, 78th year. AP. Laurel, Miss. December 13, 1989. p. 5. Retrieved 21 November 2023. … (the filing) cast doubt on the company’s ability to obtain a second, promised ship for Gulfport, where the company has a five-year contract with the Mississippi State Port Authority. On the day the Pride left for Galveston, the port authority ruled that Pride Cruise Lines had breached its contract. The port gave the company 30 days to find another ship and pay $75,500 in back rent or face court action.
[24] “Gambling ship owners consider move to Texas“. Laurel Leader-Call. No. 141 78th year. Laurel, Mississippi: Thomson Newspapers. June 14, 1989. p. 3. Retrieved 22 November 2023.
[25] “Cruise line to pay Gulf Coast creditors“. Port Arthur News. Port Arthur, Texas: Cox Enterprises. AP. December 13, 1990. p. 24. Retrieved 21 November 2023. “Pride Cruise Lines will pay bills totalling $1.2 million that it owes Gulf Coast creditors under a bankruptcy agreement signed Tuesday.”
[26] “Principal investor quits Pride“. The Galveston Daily News. No. 277 Vol. 147. Galveston, Texas: Galveston Newspapers, Inc. AP. January 12, 1990. pp. 1, 15. Retrieved 21 November 2023.
“Pride Cruise Lines filed for Chapter 11 reorganization bankruptcy Dec. 13 in U.S. Bankruptcy Court in Biloxi, Miss.”
“The filing was done to protect the vessel from seizure for an unpaid $1 million in use tax levied after the Pride of Mississippi had moved from Gulfport to Galveston for operations.”
[27] Kirkpatrick, Joel (April 26, 1989). “Cruise line pact gets nod from Wharves“. The Galveston Daily News. No. 16 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. pp. 1, 11. Retrieved 22 November 2023.
[28] Morris, Robert (July 21, 1989). “Second cruise line hopes to give Pride a run for its money“. The Galveston Daily News. No. 234 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 22 November 2023.
[29] “1 firm meets deadline – Company wants to operate gambling cruise ship“. Port Arthur News. Port Arthur, Texas: Cox Enterprises. AP. September 19, 1989. p. 6. Retrieved 22 November 2023.
[30] Stengle, Jack (August 18, 1989). “Council OKs cruise ship regulations”. The Galveston Daily News. No. 130 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 23 November 2023.
[31] “Notice of Application for a mixed beverage permit for a location in Galveston“. The Galveston Daily News. No. 234 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. November 30, 1989. p. 26. Retrieved 22 November 2023. …that Carter-Green Investments, Inc. d/b/a Pride Cruise Lines, Terry Wayne Green, Pres., Sec., Treas., has made application for a mixed beverage permit…
[32] Kirkpatrick, Joel (December 10, 1989). “Maiden voyage mood is jubilant”. The Galveston Daily News. No. 244 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. pp. 1, 13. Retrieved 22 November 2023.
[33] Akin. Pride Cruise Lines was constantly mismanaged and violated federal and state regulations. A federal judge ordered US Marshals to seize the ship…. They were also delinquent in over $550,000 in local taxes and filed for bankruptcy again in the Southern District of Texas. However, bankruptcy was not enough this time, as federal indictments were also in the works. Hundreds of employees were laid off.
[34] Wilson, D.V. (October 12, 1989). “Pride Lines under federal investigation“. The Galveston Daily News. No. 185 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. pp. 1, 15. Retrieved 22 November 2023.
[35] Haisten, Bill (December 9, 1989). “Mississippi watches as Pride bets on Texas success“. The Galveston Daily News. No. 243 Vol 147. Galveston, Texas: Galveston Newspaper, Inc. pp. 1, 17. Retrieved 21 November 2023.
[36] Stengler, Jack (January 15, 1990). “Are certain decisions greed or good business“. The Galveston Daily News. No. 280, Vol 147. Galveston, Texas: Galveston Newspapers, Inc. p. 10. Retrieved 21 November 2023.
[37] “Ordinance No. 89-130, granting a city of Galveston Cruise Vessel License to Pride Cruise Lines…16th day of November 1989“. Galveston Daily News. No. 229 Vol. 147. Galveston, Texas: Galveston Newspapers, Inc. November 25, 1989. p. 26. Retrieved 21 November 2023.
[38] “Pride Docked“. Del Rio News Herald. Del Rio, Texas. December 27, 1990. p. 2. Retrieved 21 November 2023.
[39] Stengler, Jack (December 22, 1990). “Broken steam boiler sidelines Pride vessel“. The Galveston Daily News. No. 246 Vol 148. Galveston, Texas: Galveston Newspapers, Inc. p. 8. “Renovation of the boilers was one of the things we have planned all along to do when the Pride goes into a 60-day drydock period beginning Jan. 6”
[40] Wilson, D.V. (November 29, 1989). “Gambling ship finally docks – Ready to begin cruises Dec.8“. The Galveston Daily News. No. 233 Vol 147. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 22 November 2023.
[41] Stengler, Jack (January 18, 1991). “Refurbished Pride of Galveston will return in March“. The Galveston Daily News. No. 238 Vol 148. Galveston, Texas: Galveston Newspapers, Inc. p. 5B. Retrieved 22 November 2023. Terry Green, president of the company…said that the vessel completed its dry dock period in… Port Arthur and was due to sail… for Freeport, Bahamas, for more repairs and renovation… The vessel is to undergo a $4 million repair, renovation and expansion program before returning to Galveston to resume its cruise schedule.
[42] Gartman, Don (March 3, 1991). “Port going after grain, cruise ships, capital improvements“. The Galveston Daily News. No. 327 Vol 148. Galveston, Texas: Galveston Newspapers, Inc. p. 54. Retrieved 21 November 2023.
[43] “It’s back—Pride of Galveston returns to its island home port“. The Galveston Daily News. No. 143 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. March 29, 1991. p. 6. Retrieved 22 November 2023. “The gambling cruise ship had been in drydock in the Bahamas for most of the winter, undergoing repairs and refurbishing. It’s back now, sporting a new name—The Pride of Galveston—and a sporty new paint job.”
[44] Maynard, Roy (September 29, 1991). “Pride says bad publicity keeping customers away“. The Galveston Daily News. No. 172, Vol 149. Galveston, Texas: Galveston Newspapers, Inc. Retrieved 21 November 2023. “Pride Cruise Lines officials told a state district judge… that the threat of seizure of the… casino ship has nearly crippled the business. ‘With the bad publicity we’re getting in the press, a lot of people are concerned about buying tickets. They’re afraid we’re going to go out of business.’”
“… the future of the cruise line is undecided. U.S. Attorney Dick Thornburgh interpreted a 1947 law to mean that a casino ship must remain at sea for at least 24 hours, offer food and lodging to passengers or dock at a foreign port at every trip.”
[45] Maynard, Roy (September 1, 1991). “Pride worth all the fuss? Ship hasn’t had much good luck“. The Galveston Daily News. No. 144 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 1, 13. Retrieved 22 November 2023. “The Pride of Galveston owes more than $500,000 in back taxes, has left passengers standing on the dock when mechanical problems prevented sailing and more than once has kept patrons at sea overnight…”
“the more than 40-year-old cruise ship limped into port under the cloud of bankruptcy, failed several health inspections, and threatened to leave Galveston over a dispute with the city council… (The county tax assessor) was ready to seek a tax warrant that would have allowed him to seize the ship and its contents; the school district and city (on August 27) had already gotten one signed by a state district judge.”
“And mechanical problems that plagued the ship during July and August brought in complaints from tourists who traveled to Galveston, booked hotel rooms and blocked off a day to sail on the Pride. They claimed the Pride refused to book them on the next cruise.”
[46] Maynard, Roy (August 31, 1991). “Pride stays afloat in a sea of debt“. The Galveston Daily News. No. 143 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 22 November 2023.
[47] Stengler, Jack (August 31, 1991). “Cruise ship’s license runs out Sunday”. The Galveston Daily News. No. 143 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 22 November 2023. “According to the ordinance governing the issuance and renewal of the license, applicants must pay an application fee of $5,000 per cruise vessel for each renewal and $25,000 to defray the expense of investigating the applicant, holding a hearing, and investigating complaints against the licensee.”
[48] Stengler, Jack (April 26, 1991). “Council questions AG interpretation“. Galveston Daily News. No. 16 Vol. 149. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 22 November 2023. “Pride Cruise Lines Ltd., operator of the Pride of Galveston was notified April 15 by the federal agency that it has until July 22 to comply with Thornburgh’s opinion.”
[49] “Lawmakers nod needed to save Pride“. Galveston Daily News. No. 51 Vol. 149. Galveston, Texas: Galveston Newspapers, Inc. May 31, 1991. pp. 1, 15. Retrieved 21 November 2023. However, for the Pride (of Galveston) to get the extension, the Legislature must consider a bill that would grant the state’s approval to offshore gambling.”
[50] “Galveston residents working together to save cruise ship“. The Galveston Daily News. No. 137 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. August 25, 1991. p. 42. Retrieved 21 November 2023. “The Pride of Galveston… is threatened with closure… by former U. S. Attorney General Richard Thornburgh’s ruling that gambling ships must dock at a foreign port or remain at sea for a minimum of 24 hours and provide meals and lodging to all passengers.”
[51] Castello, James (January 8, 1992). “Galveston’s riverboat gambling dead in water“. Port Neches Community Post. p. 5. Retrieved 22 November 2023. “The Texas Pride went out of business owing Galveston County about $500,000 in taxes… The ship declared bankruptcy and was seized Nov. 1 after an attorney representing crew members sued the ship and Prided Cruise Lines In., claiming that the crew went unpaid and unfed., according to an Associated Press report. The crew members also allegedly suffered injuries on the vessel….”
“The Pride Cruise Lines promised to bring jobs to the Galveston area, but in reality, most of the cruise ship employees were not from Galveston and weren’t even from Texas… Many of the employees hired were from foreign countries.”
[52] Whitby, Bob (November 8, 1991). “Pride dock fee more now that it’s seized“. The Galveston Daily News. No. 212 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 8. Retrieved 21 November 2023
[53] “U.S. marshals seize casino cruise ship“. The Orange Leader. No. 308 Vol 116. Orange, Texas. AP. November 3, 1991. p. 11. Retrieved 23 November 2023. “(U.S. District Judge Sam) Kent has scheduled an April 9 trial at which lawyers from the Houston U.S. attorney’s office and the cruise line’s lawyers will argue the proper definition of a gambling ship under federal law.”
[54] Maynard, Roy (August 17, 1991). “Judge: Feds can prosecute Pride“. The Galveston Daily News. No. 213 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. pp. 1, 11. Retrieved 21 November 2023. “Pride owner Terry Green said criminal prosecution would be the determining factor on whether Pride sinks or swims.”
[55] Maynard, Roy (August 17, 1991). “Cruise line brass offers to abandon ship for sale“. The Galveston Daily News. No. 213 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 21 November 2023.
[56] Maynard, Roy (December 17, 1991). “Pride of Galveston moved from Pier 21“. The Galveston Daily News. No. 251 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 11. Retrieved 22 November 2023. “The casino ship, now crippled and in financial straits, is docked at Pier 12.”
“… It’s a dead ship at this point.”
“The Pride, which has been plagued by mechanical problems, hasn’t sailed since October. Pride owes nearly $500,000 in disputed back taxes; by the end of the month, it will owe twice that when the 1991 tax bill hits.
“A federal judge briefly seized the ship… The judge later gave the ship back… with the stipulation that they notify the court and claimant before the ship leaves Galveston waters”
“Pride officials have discussed the possibility of towing the ship to its former home port of Gulfport, Miss. A local option election in Gulfport and Harrison County, Miss., could make dockside gambling legal there.”
“Should that happen, the Pride could operate without worrying about the 40-year-old ship’s history of mechanical problems.”
[57] “Pride of Galveston – Gambling Ship may move to Mississippi“. Port Arthur News. Port Arthur, Texas: Cox Enterprises. AP. December 17, 1991. p. 16. Retrieved 22 November 2023.
[58] “Ship may be towed“. The Orange Leader. No. 74 Vol 117. Orange, Texas. AP. March 14, 1992. p. 8. Retrieved 23 November 2023. “Terry Green, Pride Cruise Lines Ltd. president, said insurance money the company is entitled to has not been paid… Our major goal is to get everybody paid off and to move the vessel.”
[59] Tillotson, Dolph (April 5, 1992). “Galveston needs gambling cruise ships“. The Galveston Daily News. No. 360 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 42. Retrieved 23 November 2023.
[60] “Pride Cruise Lines files for Chapter 7“. Odessa American. Odessa, Texas: Ray M. Stafford. AP. May 6, 1992. p. 34. Retrieved 22 November 2023.
[61] Harpster. The Pride of Mississippi, renamed Pride of Galveston, was moved to Galveston, Texas, to save the troubled venture. The casino cruise ship had almost succeeded in its new location, “When we got to Galveston, we were doing fine,” Rick Carter recalled. “We were making a lot of money.” However, things took an unexpected turn when the U.S. attorney in Galveston decided to apply the 1948 Gaming Ship Act that had been created to stop gambling barges from operating off the coast of California. Despite obtaining legal opinions indicating that The Slot King was not breaking this law, Pride Cruise Lines received a target letter from the U.S. attorney stating that the lawsuit would proceed. This was the last straw for Carter and Green, who resigned from their 30% stake in the business. As a result, Redd had to file for Chapter 7 bankruptcy, which led to liquidating the company’s assets.
[62] U.S. District Court, Southern District of Texas (Houston). Bankruptcy Withdrawal, Case #: 4:94-cv-00382, Date Filed 2/4/1994, Date Terminated 4/4/1994
[63] “Casino ship venture files Chapter 7“. Galveston, Texas. United Press International. May 5, 1992. Retrieved 15 November 2023. Pride’s liabilities ranged from $10M to $99.9M and assets from $1M to $9.9M. Carter-Green-Redd reported liabilities ranging from $1M to $9.9M and assets of $500K to $999K. Creditors threatened to put liens on the ship, and the company faced a federal investigation for breaking laws regulating casinos aboard cruise ships.
[64] Brigance, Jim (July 28, 1992). “Pride will be sold on Aug. 12“. The Galveston Daily News. No. 109 Vol 150. Galveston, Texas: Galveston Newspapers, Inc. p. 1. Retrieved 23 November 2023. “’It was a combination of things that did them in,’ said Brian Ettinger, Houston attorney for Pride Cruise Lines, the ship’s owner. ‘They had a fire last July, then the principals were threatened with indictment, plus the bankruptcy and the inoperative boilers. They couldn’t see any light at the end of the tunnel. They just decided to throw in the towel.’”
[65] Simon, Janice (August 17, 1993). “GISD hoping to resolve delinquent taxes today“. The Galveston Daily News. No. 144 Vol 149. Galveston, Texas: Galveston Newspapers, Inc. p. 10. Retrieved 21 November 2023. “Galveston Independent School District… has been trying to get its share of $130,000, which has been in an escrow account since the Pride Cruise Line declared bankruptcy nearly two years ago.”
[66] “As Rick’s Place, Copa Casino users local connection“. Mississippi Business Journal. Flowood, Mississippi. April 19, 2004. Retrieved 16 November 2023. “In September 2002, one of the Coast`s first casinos became one of the newest when the Copa moved into a much bigger facility, a barge that tripled the Copa`s gaming space to make it also one of the largest casinos.”
[67] Boyer, Peter J. (September 18, 2005). “Gone With the Surge”. The New Yorker. Condé Nast. Retrieved 16 November 2023.
[68] Dement, Polly (June 17, 2014). “Rick Carter—Overcoming Serial Bad Luck to Create Winning Casino Resort.” Mississippi Entrepreneurs. Jackson, Mississippi: Univ. Press of Mississippi.
[69] Cladianos, Pete Jr. (2002). My Father’s Son: A Gaming Memoir of Pete Cladianos. University of Nevada Oral History Program. “Then, late in 1992, we were approached by Stanley McDonald. He and his son owned the Copa, a dockside casino in Gulfport, Mississippi. (Mississippi permitted that kind of gambling.) The Copa was a converted cruise ship that no longer had power and had been towed to Gulfport and moored at the dock as a floating casino. Si Redd had once unsuccessfully operated the ship as an offshore casino.
[70] Cladianos. “Rick Carter and Terry Green were to be his operators. They’d been born in Mississippi. They’d had experience operating an offshore gaming ship. Although there wasn’t any licensing procedure for that, there was every reason in the world to believe that those folks could get licensed in Mississippi.
[71] Cladianos. “We made our deal with McDonald, and we actually signed it on New Year’s Eve, 1992. Our conversations with Gaming down there led us to believe that there wasn’t going to be any difficulty at all with licensing for anyone concerned, especially Carter and Green, because they were born in Mississippi, and as far as we knew, had never been involved in any activity that would warrant them not being licensed. It never occurred to us that they could not get licensed.”
[72] Cladianos. “They wound up using some ex-Mississippi state troopers for investigators, and, unfortunately, our investigations fell to one, a man named North. He or some member of his family had had some difficulty with Carter and Green, and I think it had something to do with a bankruptcy. North made it his business to do whatever he could to keep Carter and Green from getting licensed.”
“By that time it was June, and Carter and Green still hadn’t gotten licensed. There had been another change in the directorship of the Gaming Commission. We eventually got a sit-down meeting with this new man, and he told us that it appeared highly unlikely that Carter and Green were going to get licensed; or, if they did get licensed, the procedure was going to take another eighteen months. That was a disaster, of course.
[73] Gulfside Casino, Inc. v. Carter, Supreme Court of Mississippi, October 1, 1998. “Carter and Green facilitated the McDonalds’ acquisition of the casino vessel and port lease and were minority shareholders of Gulfside Casino, Inc. at the time of the formation of the partnership of Gulfside Casino, Inc. and Patrician. Carter and Green had paid little or nothing for their interest in Gulfside Casino, Inc., and had never put any money into the partnership itself. Instead, they obtained an interest in the casino through their work and conceptualization.”
“Problems arose within Gulfside Casino, Inc. between Carter and Green and the McDonalds when Carter and Green failed to obtain the required approval from the Mississippi Gaming Commission to directly or indirectly hold an interest in a gaming license. The inability of Carter and Green to obtain the necessary approval delayed the Copa’s projected opening and placed the entire project in jeopardy of collapse. In order to secure Gaming Commission approval for the entire project, the McDonald family, through Gulfside Casino, Inc., purchased all the interest of Carter and Green in Gulfside Casino, Inc. As a result, the McDonald family owned all outstanding stock in Gulfside Casino, Inc.”
“As Carter and Green could not directly or indirectly hold any interest in any entity holding a gaming license, the
pledge agreement provided that in the event of default, Carter and Green would be entitled, if necessary, to seek to have a receiver appointed to take possession of Gulfside Casino, Inc.’s ‘partnership interest’ in the partnership. Any such receiver would require prior approval of the Gaming Commission.
[74] “River Valley Casino – CoFounders & Owners”. River Valley Casino. Gulfside Casino Partnership. 2020. Retrieved 20 November 2023.