Georgia Gaming Market Assessment - Pennsylvania Treasury

Pennsylvania 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, Pennsylvania 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.
Pennsylvania Total Gaming Market 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%
Pennsylvania $1,964.6 $2,478.7 26.2% 24,194 30,919 27.8% $222 $220 -1.3%
Source: Pennsylvania Gaming 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 Pennsylvania includes the Philadelphia, Poconos, Harrisburg, and
Bethlehem-Allentown Markets. 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%.