PENNSYLVANIA GAMING This section summarizes the current gaming structure and facilities in <strong>Pennsylvania</strong>. The following charts show regional gaming revenue trends and opening dates for facilities in <strong>Pennsylvania</strong>. $2,500 $2,000 $1,500 $1,000 $500 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $0 Nov-06 Mohegan Nov 06 Parx Nov 6 Jan-07 Presque Feb 07 Eastern Region <strong>Gaming</strong> Revenue (MMs, Trailing 12 Months) Chester Jan 07 Mar-07 May-07 Jul-07 Mt Airy Oct 07 Sep-07 Nov-07 Penn National Feb 08 Jan-08 Mar-08 May-08 Jul-08 Sep-08 The Innovation Group Project #054-11 August 2011 Page 17 Nov-08 Jan-09 Mar-09 Sands May 09 May-09 Total Slot Table Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 Tables Jul 10 Western Region <strong>Gaming</strong> Revenue (MMs, Trailing 12 Months) Meadows Jun 07 Meadows Expansion May 09 Total Slot Table Rivers Aug 09 May-10 Jul-10 Tables Jul 10 SugarHouse Sept 10 Sep-10 Nov-10 Jan-11 Mar-11
<strong>Pennsylvania</strong> has seen an increase of 26% in revenue from 2009 to 2010. This large increase is the result of newer facilities ramping up operations and the introduction of table games. The average year-over-year change among the other facilities, which had full year operations in 2009 and 2010, was 7%, with PARX experiencing the most growth at 20% and The Meadows experiencing the largest drop at 5%. The addition of table games at the casinos in July 2010 is also a key factor in the growth of the overall market, as it may show inflated revenue. As these changes took place, <strong>Pennsylvania</strong> saw its gaming positions rise almost 28% from 2009 to 2010. The western part of the state has seen an increase in revenue of 36% as the Pittsburgh market surged after the addition of The Rivers facility. <strong>Pennsylvania</strong> Total <strong>Gaming</strong> <strong>Market</strong> Performance (Revenue in millions) 2009 Rev 2010 Rev % Change 2009 Positions 2010 Positions % Change 2009 Win/Pos. 2010 Win/Pos. The Innovation Group Project #054-11 August 2011 Page 18 % Change Mohegan Sun $220.8 $243.2 10.1% 2,466 2,820 14.3% $245 $236 -3.7% PARX $359.3 $432.6 20.4% 2,904 3,799 30.9% $339 $312 -8.0% Harrah's Chester $315.9 $326.5 3.3% 2,915 3,550 21.7% $297 $252 -15.1% Mt Airy $164.6 $163.3 -0.8% 2,506 2,865 14.3% $180 $156 -13.3% Meadows $278.5 $264.1 -5.1% 3,128 3,929 25.6% $244 $184 -24.5% Presque Isle $166.7 $180.2 8.1% 1,995 2,286 14.6% $229 $216 -5.7% Penn National $237.7 $268.5 12.9% 2,318 2,758 19.0% $281 $281 0.0% Rivers $78.8 $267.7 239.9% 2,999 3,433 14.5% $179 $214 19.6% Sands Bethlehem $142.3 $286.1 101.1% 2,964 3,636 22.7% $212 $216 1.5% Sugar House N/A $54.2 N/A N/A 1,844 N/A N/A $288 N/A Eastern $1,440.6 $1,774.4 23.2% 15,084 20,123 33.4% $262 $242 -7.7% Western $523.9 $712.0 35.9% 6,372 9,648 51.4% $225 $202 -10.2% <strong>Pennsylvania</strong> $1,964.6 $2,478.7 26.2% 24,194 30,919 27.8% $222 $220 -1.3% Source: <strong>Pennsylvania</strong> <strong>Gaming</strong> Control Board; Innovation Group. 2010 includes table revenues which became operational in July 2010. Operators The following section presents an introduction to the regional market segmentations, sub markets within the regions, operators in each market. For the purposes of this analysis we have split the state into two regions, The Eastern and Western Region. Within each region, we have segmented markets to better define the competitive landscape. Only data for full years of operation are presented in the tables so that accurate market share can be calculated. Eastern Region The Eastern Region of <strong>Pennsylvania</strong> includes the Philadelphia, Poconos, Harrisburg, and Bethlehem-Allentown <strong>Market</strong>s. The Eastern Region still represents more than 70% of the state’s gaming revenue, consistent with 70% of the population as well, which is to be expected as it has seven facilities, compared to three in the Western Region. The total revenue for the Eastern Region has grown to just over $1.7 billion in 2010 as Mohegan Sun, PARX, and Chester have sharing approximately to 58% of the total revenue, with PARX holding the largest share at 25%.
- Page 2 and 3: Pennsylvania Statewide Gaming Marke
- Page 4 and 5: INTRODUCTION The Innovation Group w
- Page 6 and 7: ECONOMIC AND DEMOGRAPHIC ANALYSIS A
- Page 8 and 9: Pennsylvania Total Population Regio
- Page 10 and 11: $54,000 $52,000 $50,000 $48,000 $46
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- Page 34 and 35: HISTORICAL SLOTS TRENDS AND SATURAT
- Page 36 and 37: Number of Machines 30,000 25,000 20
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- Page 40 and 41: Slot Revenue ($MM) $1,000 $900 $800
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- Page 44 and 45: Western Region Presque Isle was the
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- Page 60 and 61: number of slots from 1998 to 2008,
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Poker Revenue West Virginia Table P
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gamer visits thus generated are the
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The Innovation Group Project #054-1
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The following table shows the rates
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Baseline 2010 ($MMs) Eastern Alt. S
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2014 Status Quo ($MMs) Eastern Alt.
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The table on the following page sho
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Location Alternatives As shown on t
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limited individual potential, its i
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• LARGE o $250.0 million + in gam
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These were then input into a financ
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