Georgia Gaming Market Assessment - Pennsylvania Treasury

More documents

Recommendations

Info

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
Pittsburgh Market Western Region Market Share Ratio 2007 2008 2009 2010 YTD* 2011 Meadows 1.25 1.25 1.08 0.91 0.88 Presque Isle 0.83 0.77 1.02 1.07 0.97 Rivers 1.06 1.15 Western 1 1 1 1 1 Source: Pennsylvania Gaming Control Board; Innovation Group; Through July The Pittsburgh market includes The Meadows and The Rivers, which make up 75% of the region’s revenue. Pittsburgh is the second largest city in Pennsylvania, behind Philadelphia. Each facility’s performance in the market is measured in the table below from 2006 through the first four months of 2011, with a comparison to the first four months of 2010 as well. The Meadows The Meadows Racetrack and Casino is located in Washington off Interstate 79, 35 minutes from downtown Pittsburgh and 45 minutes from the Pittsburgh International Airport. The Meadows offers live racing and simulcast year round, as well as 3,500 slots and 70 table games. The facility includes 4 restaurants, 1 bar, 2 music lounges, a bowling alley, and meeting space for up to 110 people. Through the first four months of 2011, slot revenue is up 5% and total revenue is up 19%. Win per Slot and Win per Position have also both increased over 10%. The table below shows The Meadows performance since 2007. Year Slot Revenue The Meadows Historical Performance Slots Win Per Slot Tables Table Revenue Win Per Table Total Revenue WPP 2007 $124,587,912 1,748 $347.68 0 $0 $0 $124,587,912 $347.68 2008 $244,052,451 1,821 $366.22 0 $0 $0 $244,052,451 $366.22 2009 $278,474,209 3,128 $243.95 0 $0 $0 $278,474,209 $243.95 2010 $249,148,627 3,549 $192.34 63 $14,996,801 $1,549.29 $264,145,428 $184.21 Jan 2011 $18,094,002 3,506 $166.48 68 $2,885,453 $1,368.81 $20,979,455 $172.91 Feb 2011 $21,019,269 3,504 $214.25 68 $1,108,587 $582.24 $22,127,856 $202.03 Mar 2011 $22,438,093 3,506 $206.45 70 $4,476,088 $2,050.99 $26,914,181 $221.01 Apr 2011 $21,492,454 3,499 $204.76 71 $2,616,253 $1,228.29 $24,108,707 $204.76 Jan-Apr 2010 $79,022,297 3,662 $179.71 0 $0 $0.00 $79,022,297 $179.71 Jan-Apr 2011 $83,043,818 3,504 $197.99 69 $11,086,381 $1,307.58 $94,130,199 $200.17 % Change 10-11 5.09% -4.33% 10.17% N/A N/A N/A 19.12% 11.39% Source: Pennsylvania Gaming Control Board; Innovation Group The Innovation Group Project #054-11 August 2011 Page 28
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 $46
Page 12 and 13: Employment Employment is a signific
Page 14 and 15: Impact of Recession: Regional vs. N
Page 16 and 17: are the only private companies in t
Page 18 and 19: Pennsylvania Wilds Vineyards, the L
Page 20 and 21: PENNSYLVANIA GAMING This section su
Page 22 and 23: Harrah’s Chester has become the s
Page 24 and 25: Philadelphia Market The following s
Page 26 and 27: for 1,700 cars. The first phase ope
Page 28 and 29: Mt. Airy Mount Airy Casino Resort i
Page 32 and 33: The Rivers The Rivers Casino is loc
Page 34 and 35: HISTORICAL SLOTS TRENDS AND SATURAT
Page 36 and 37: Number of Machines 30,000 25,000 20
Page 38 and 39: Number of Machines 25,000 20,000 15
Page 40 and 41: Slot Revenue ($MM) $1,000 $900 $800
Page 42 and 43: Slot Revenue ($MM) $700 $600 $500 $
Page 44 and 45: Western Region Presque Isle was the
Page 46 and 47: Pittsburgh Market The Pittsburgh Ma
Page 48 and 49: Population/Slot Supply Ratios Adult
Page 50 and 51: Statewide Machine Development: 2003
Page 52 and 53: Eastern Region Performance: 2003 Re
Page 54 and 55: Poconos+BethSands: 2003 Report vs.
Page 56 and 57: With an aggressive marketing and bu
Page 58 and 59: Atlantic City currently offers appr
Page 60 and 61: number of slots from 1998 to 2008,
Page 62 and 63: to include a minimum of three games
Page 64 and 65: Yonkers Gaming Performance Year Rev
Page 66 and 67: Hollywood Casino and Ocean Downs Cu
Page 68 and 69: West Virginia Statewide Table Perfo
Page 70 and 71: Poker Revenue West Virginia Table P
Page 72 and 73: gamer visits thus generated are the
Page 74 and 75: The Innovation Group Project #054-1
Page 76 and 77: The following table shows the rates
Page 78 and 79: Baseline 2010 ($MMs) Eastern Alt. S
Page 80 and 81:
2014 Status Quo ($MMs) Eastern Alt.
Page 82 and 83:
The table on the following page sho
Page 84 and 85:
Location Alternatives As shown on t
Page 86 and 87:
limited individual potential, its i
Page 88 and 89:
• LARGE o $250.0 million + in gam
Page 90 and 91:
These were then input into a financ
show all

Georgia Gaming Market Assessment - Pennsylvania Treasury

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?