Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
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The following chart zooms in on the effects of the 2010 introduction of SugarHouse on the<br />
Eastern market and recent adjustments in supply. The sharp increase in September marks the<br />
opening of the casino. Demand shows a steady growth line (with the exception of heavy snow<br />
storms in December and January), indicating that SugarHouse was being absorbed. Some<br />
Eastern facilities took slot machines off the floor beginning in February, in response to<br />
SugarHouse and to make room for table games, resulting in a dip in supply. The growth in<br />
demand and the dip in supply have brought the two lines close together as of April.<br />
% Change<br />
15.0%<br />
13.0%<br />
11.0%<br />
9.0%<br />
7.0%<br />
5.0%<br />
3.0%<br />
1.0%<br />
-1.0%<br />
Source: PGCB, The Innovation Group<br />
Percentage Change in Slot Revenue vs. Change in<br />
Supply (August 10 - April 11)<br />
SugarHouse<br />
Sept 10<br />
Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11<br />
% Change in Revenue % Change in Supply<br />
Philadelphia Submarket<br />
The Philadelphia submarket is represented by Parx Casino, Harrah’s Chester Downs and the<br />
recently opened Sugar House Casino. The Philadelphia market is generates the most revenue<br />
and has the second largest supply of machines. The Philadelphia market, because of its mainly<br />
urban locations has the highest WPU in the state. Both Park and Chester Downs opened in a<br />
month of each other and showed relatively flat, but still positive revenue growth. The increase in<br />
revenue shown beginning in September 2010 is explained by the opening of Sugarhouse which<br />
grew the overall market but also cannibalized Parx and Chester, diluting the WPU.<br />
The Innovation Group Project #054-11 August 2011 Page 36