Gambling on a big return: New Orleans riverboat casino piloted by African Americans.

The turning of the big paddle wheel might charm Mississippi riverboat passengers into believing they've been transported back to the time of Mark Twain. But patrons of Bally's Casino and Lakeshore Resort, the first casino or gaming operation in the country to have black majority ownership, will be sailing resolutely into the future.

The New Orleans resort includes a $37 million riverboat casino, Bally's Belle of Orleans, which will make its maiden voyage this month. A $43 million hotel and entertainment arena will open this fall.

The casino and hotel is a limited liability corporation composed of two members, rather than shareholders. The members are Metro Riverboat Associates, owned by New Orleans native Norbert A. Simmons, and Chicago-based Bally Entertainment Corp. Simmons, a 46-year-old investment banker and attorney, will own 51% of the project; Bally will own the remaining 49%.

"African-American ownership in gaming has been as elusive as it has been in major league sports," says Simmons. "It's been a whites-only, country-club kind of business that has high revenues and a relatively high profit margin."

The two companies raised $24 million of the $45 million equity required, and packaged debt financing of $45 million came from a consortium of local banks, says Simmons. The early operations of the casino, he believes, will help finance the latter stages of the project.

Bally Entertainment operates casinos in Atlantic City and Las Vegas, and a floating casino in Tunica, Miss. "We believe that having Mr. Simmons as a partner brings us a prominent businessman in the New Orleans market that can assist us in many aspects of our project," says Lee Hillman, executive vice president and chief financial officer of Bally Entertainment.

Bally's Belle of Orleans, which will accommodate 2,350 passengers and 400 crew and staff members, is 350 feet long and 83 feet wide. The terminal will be an extension of the 230-room hotel lobby and the entertainment complex features a 2,500-seat Las Vegas-style arena.

The riverboat features close to 2,000 gaming positions within 30,000 sq. ft. of casino space. The boat was built at Avondale Industries in Westwego, La. Simmons says Avondale was selected because of its large black workforce. The riverboat part of the project created more than 200 jobs, and construction of the hotel is expected to create at least 1,000 jobs, according to Simmons.

At least 50% of all workers hired will be black, says Simmons. "In this casino, everything from parking attendant to president is open to African-Americans," he says. "Every employee can legitimately aspire to any position in the company."

RELATED ARTICLE: DEALS BLACK INVESTMENT BANK NAMED BOND AGENT FOR HBCU IMPROVEMENT PLAN

The U.S. Department of Education recently selected Pryor, McClendon, Counts & Co. of Atlanta as designated bonding authority for the department's $375 million capital financing program for historically black colleges and universities (HBCUs).

Pryor, McClendon, the country's largest minority-owned investment bank, will issue bonds and make loans for capital improvements at HBCUs. "We are extremely pleased to have been selected to play this central role," says PMC Chairman Malcolm D. Pryor. "It is especially meaningful for us because we have made concerted efforts to include HBCUs in our client base all along," he adds.

Congress approved funding for capital improvements at HBCUs in 1992.