Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
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<strong>Pennsylvania</strong> has seen an increase of 26% in revenue from 2009 to 2010. This large increase is<br />
the result of newer facilities ramping up operations and the introduction of table games. The<br />
average year-over-year change among the other facilities, which had full year operations in 2009<br />
and 2010, was 7%, with PARX experiencing the most growth at 20% and The Meadows<br />
experiencing the largest drop at 5%. The addition of table games at the casinos in July 2010 is<br />
also a key factor in the growth of the overall market, as it may show inflated revenue. As these<br />
changes took place, <strong>Pennsylvania</strong> saw its gaming positions rise almost 28% from 2009 to 2010.<br />
The western part of the state has seen an increase in revenue of 36% as the Pittsburgh market<br />
surged after the addition of The Rivers facility.<br />
<strong>Pennsylvania</strong> Total <strong>Gaming</strong> <strong>Market</strong> Performance (Revenue in millions)<br />
2009 Rev 2010 Rev %<br />
Change<br />
2009<br />
Positions<br />
2010<br />
Positions<br />
%<br />
Change<br />
2009<br />
Win/Pos.<br />
2010<br />
Win/Pos.<br />
The Innovation Group Project #054-11 August 2011 Page 18<br />
%<br />
Change<br />
Mohegan Sun $220.8 $243.2 10.1% 2,466 2,820 14.3% $245 $236 -3.7%<br />
PARX $359.3 $432.6 20.4% 2,904 3,799 30.9% $339 $312 -8.0%<br />
Harrah's Chester $315.9 $326.5 3.3% 2,915 3,550 21.7% $297 $252 -15.1%<br />
Mt Airy $164.6 $163.3 -0.8% 2,506 2,865 14.3% $180 $156 -13.3%<br />
Meadows $278.5 $264.1 -5.1% 3,128 3,929 25.6% $244 $184 -24.5%<br />
Presque Isle $166.7 $180.2 8.1% 1,995 2,286 14.6% $229 $216 -5.7%<br />
Penn National $237.7 $268.5 12.9% 2,318 2,758 19.0% $281 $281 0.0%<br />
Rivers $78.8 $267.7 239.9% 2,999 3,433 14.5% $179 $214 19.6%<br />
Sands Bethlehem $142.3 $286.1 101.1% 2,964 3,636 22.7% $212 $216 1.5%<br />
Sugar House N/A $54.2 N/A N/A 1,844 N/A N/A $288 N/A<br />
Eastern $1,440.6 $1,774.4 23.2% 15,084 20,123 33.4% $262 $242 -7.7%<br />
Western $523.9 $712.0 35.9% 6,372 9,648 51.4% $225 $202 -10.2%<br />
<strong>Pennsylvania</strong> $1,964.6 $2,478.7 26.2% 24,194 30,919 27.8% $222 $220 -1.3%<br />
Source: <strong>Pennsylvania</strong> <strong>Gaming</strong> Control Board; Innovation Group. 2010 includes table revenues which became operational in July 2010.<br />
Operators<br />
The following section presents an introduction to the regional market segmentations, sub markets<br />
within the regions, operators in each market. For the purposes of this analysis we have split the<br />
state into two regions, The Eastern and Western Region. Within each region, we have<br />
segmented markets to better define the competitive landscape. Only data for full years of<br />
operation are presented in the tables so that accurate market share can be calculated.<br />
Eastern Region<br />
The Eastern Region of <strong>Pennsylvania</strong> includes the Philadelphia, Poconos, Harrisburg, and<br />
Bethlehem-Allentown <strong>Market</strong>s. The Eastern Region still represents more than 70% of the state’s<br />
gaming revenue, consistent with 70% of the population as well, which is to be expected as it has<br />
seven facilities, compared to three in the Western Region. The total revenue for the Eastern<br />
Region has grown to just over $1.7 billion in 2010 as Mohegan Sun, PARX, and Chester have<br />
sharing approximately to 58% of the total revenue, with PARX holding the largest share at 25%.