Georgia Gaming Market Assessment - Pennsylvania Treasury

Western Region
The Western Region consists of the Pittsburgh, Erie, and Newcastle markets. In 2010, Presque
Isle has the lowest share of the total Western Region revenue, at 25%, while The Meadows and
The Rivers each capture close to 37% of the market. The overall market has grown substantially
since 2008, reaching total revenue above $700 million in the first year that all three facilities
were operational. The table below shows the share of revenue in the Western Region.
Western Region Share of Revenue
2008 2009 2010
Meadows $244,052,451 $278,474,209 $264,145,428
Mkt Share 59.74% 62.55% 37.10%
Presque Isle $164,475,937 $166,701,204 $180,217,430
Mkt Share 40.26% 37.45% 25.31%
Rivers
$267,654,973
Mkt Share
37.59%
Total Western $408,528,388 $445,175,413 $712,017,831
Source: Pennsylvania Gaming Control Board; Innovation Group
In 2008, the market share of positions was split between the Meadows temporary structure and
Presque Isle. In 2009, when The Meadows opened its permanent facility, the market share
shifted and The Meadows controlled close to two-thirds the market. In 2010, The Rivers entered
the market and shifted the market share and The Meadows now has the greatest share of
positions with more than 40% of the region’s positions. The Western Region’s share of positions
is shown below.
Western Region Share of Positions
2008 2009 2010
Meadows 1,821 3,128 3,929
Mkt Share 47.69% 61.05% 40.72%
Presque Isle 1,997 1,995 2,286
Mkt Share 52.31% 38.95% 23.70%
Rivers
3,433
Mkt Share
35.58%
Total Western 3,818 5,123 9,648
Source: Pennsylvania Gaming Control Board; Innovation Group
In terms of market share ratio, in 2008 The Meadows was over performing with a ratio of 1.25
while Presque Isle was underperforming with a ratio of 0.77. In 2010, The Meadows
underperformed with a ratio of 0.91, while Presque Isle and The Rivers over performed with
ratios of 1.07 and 1.06 respectively. The table below shows each facility’s market share ratio
since 2007. In April 2011, The Rivers continued to outperform the market and drove a market
share ratio of 1.14, followed by Presque Isle at 1.05. The Meadows continues to lose ground and
underperformed the market at 0.86.
The Innovation Group Project #054-11 August 2011 Page 27