Jackson, Mississippi Gambling revenue has fallen $550,000 since 2007 for casinos in Mississippi from $2.8 billion to $2.25 billion.
The Clarion-Ledger reports Mississippi once was the nation's third-largest gambling market, but has lost standing in the last few years.
Officials cite competition from other states as the biggest challenge more than the recession, Hurricane Katrina in 2005 and the Deepwater Horizon oil spill of 2010.
Now the state's oldest casino, the Isle of Capri, is being renovated as a Golden Nugget casino. Spokesman Brad Rhines says it will reopen as the newest, freshest casino on the Gulf Coast.
Industry officials hope it becomes a symbol of rebirth for gambling in the state.