Georgia Gaming Market Assessment - Pennsylvania Treasury

etail outlet and a parking garage with capacity for 2,600 cars. The live racing season runs from
March through December, with a small simulcast room which is open year round. The casino
offers 2,900 slot machines and 120 table games. Chester Downs, like PARX, has seen an
increase in total revenue despite a decrease in slot revenue. Although slot revenue fell nearly
10.5% over the first 4 months of 2011 compared to 2010, total revenue increased more than
16.5% thanks to table revenue. The table below shows Chester Downs historical performance.
Chester Downs Historical Performance
Slot
Win Per
Year Revenue Slots Win Per Slot Tables Table Revenue Table Total Revenue WPP
2007 $285,978,663 2,765 $298.94 0 $0 $0 $285,978,663 $298.94
2008 $328,443,772 2,816 $318.72 0 $0 $0 $328,443,772 $318.72
2009 $315,938,366 2,915 $296.89 0 $0 $0 $315,938,366 $296.89
2010 $296,491,721 2,912 $278.96 106 $30,019,768 $1,846.37 $326,511,489 $252.02
Jan 2011 $21,608,525 2,956 $235.81 122 $5,616,750 $1,489.20 $27,225,275 $238.26
Feb 2011 $24,239,359 2,948 $293.63 122 $6,900,693 $2,016.80 $31,140,052 $302.09
Mar 2011 $25,613,661 2,953 $279.80 122 $7,426,257 $1,966.80 $33,039,918 $289.32
Apr 2011 $24,264,111 2,957 $273.50 121 $7,932,936 $2,185.38 $32,197,047 $291.38
Jan-Apr 2010 $106,845,194 2,932 $304.06 0 $0 $0.00 $106,845,194 $304.06
Jan-Apr 2011 $95,725,656 2,954 $270.68 122 $27,876,635 $1,914.55 $123,602,291 $280.27
% Change 10-11 -10.41% 0.74% -10.98% N/A N/A N/A 15.68% -7.82%
Source: Pennsylvania Gaming Control Board; Innovation Group
Valley Forge
In May 2009, the Pennsylvania Gaming Control Board approved a category three license for a
resort casino at the Valley Forge Convention Center in King of Prussia, 30 minutes to the
northwest of Philadelphia. This casino license, which permits the development of a resort style
casino to include a hotel as well as up to 500 slot machines, was awarded to Valley Forge
Convention Partners, which includes the Valley Forge Convention Center and multiple local
partners. The casino was expected to open in May 2010, but an appeal of the gaming regulatory
board decision stalled the development. The Pennsylvania Supreme Court approved the Valley
Forge Casino in March 2011 and the Pennsylvania Gaming Control Board approved the financial
plan in April 2011. The casino is nominally scheduled to open in spring 2012 with 600 slots, 50
table games, and a 488-room hotel. As of this date Valley Forge has submitted its patron of
amenities plan but it has not received approval from the board. The plan is subject to challenge,
which would result in further delays in developing and opening the facility. However, for the
purpose of this analysis the facility has been included in the modeling.
Downtown Sub Market
Sugar House
Sugar House Casino opened in September 2010 on North Delaware Avenue, between Frankford
and Shackamaxon Streets in Philadelphia. The casino is 2 miles from downtown Philadelphia.
The casino opened with 1,600 slot machines, 43 table games and a parking garage with capacity
The Innovation Group Project #054-11 August 2011 Page 22