I heard it through the grapevine that the owner of the Flagship is going to keep it in shambles until Galveston passes gaming. He wants a casino inside. The Catholic church is really fighting gaming on Galveston.

That's the rumor I heard from someone fairly close to the situation.

Any word from you locals in the know on the possibility of gambling laws passing?

Casino gambling would have to be passed through the Texas state legislature first (which I don't see happening.) Tilman Fertitta (owner of the Flagship) would no doubt love for gambling to be legalized because he would certainly be the first to open casinos. He already owns a casino in Vegas.

It was just in the paper recently that by the end of this summer he's going to have the Flagship hotel demolished and the pier reinforced. After that the plans I've always heard is that he wants to convert it into something like what he owns in Kemah (a restaurant, amusement park rides, shops, etc.

Although who knows now, after all the damage that Ike did, he tried to get himself out of the contract on the Flagship. After that failed there's been talk about him trying to sell it.

There's also always been a rumor that his San Luis Hotel is already wired for slots if gambling is ever passed.

I think the Flagship is still being disputed.

The city owns the pier which is long term leased to a guy who has been brain damaged.

Fertita has the rights to it at some time in the future when the lease runs out (some number of years). They were fighting for control of it BEFORE the storm. Now, I think I read somewhere-they are fighting to NOT have it until it gets cleaned up by someone else.

I think Fertita will ultimately have it if he wants to as long as his leveraged empire doesn't come apart in a prolonged recession.

I agree with the gambling scenario--it is not a local option election--gambling is illegal in the state until they change the law Galveston has no real input.