Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
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COMPETITIVE ENVIRONMENT<br />
The following section describes the competitive environment for <strong>Pennsylvania</strong> facilities.<br />
Neighboring states such as New Jersey, Delaware, New York, Maryland and West Virginia all<br />
represent competition due to their proximity to <strong>Pennsylvania</strong> facilities and population centers.<br />
The Innovation Group has determined which properties in each state represent competition and<br />
summarized them below.<br />
New Jersey<br />
Atlantic City<br />
Although Atlantic City’s dominance as the largest and most mature gaming market on the East<br />
Coast has dwindled, it still remains as stiff competition to <strong>Pennsylvania</strong> facilities, given its<br />
proximity and attractiveness. Revenues for the market in 2010 totaled $3.5 billion, down from<br />
$3.9 billion in 2009. Revenue declined each year since 2005, largely due to increased<br />
competition in <strong>Pennsylvania</strong> and the economic slowdown. Slots accounted for $2.5 billion of the<br />
$3.5 billion in 2010 gaming revenue, or 69.5%. Slot win as a percentage of total revenue<br />
increased annually from 1990 to 2004, but then began to fall until 2009 when it saw a slight<br />
increase. Table win was relatively flat for the market from 1990 to 2003, averaging about $1.16<br />
billion each year, but has experienced a spur in market revenue growth through 2008, averaging<br />
about $1.38 billion, possibly due to the introduction of Borgata to the market. This run up in<br />
table game revenue halted in 2009, when table revenue dropped 14% to $1.2 billion and then fell<br />
an additional 11% to $1.09 million in 2010. The current tax rate in New Jersey is 8% of gross<br />
gaming revenues as well as a community investment tax of 1.25% of gross gaming revenues,<br />
bringing the net tax rate to 9.25%. The graph below illustrates the trend in slot and table revenue<br />
as a percent of total revenue.<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
1990<br />
1991<br />
1992<br />
1993<br />
1994<br />
1995<br />
Atlantic City <strong>Gaming</strong> Win Breakdown<br />
1996<br />
1997<br />
1998<br />
Slot Table<br />
Source: New Jersey Casino Control Commission<br />
The Innovation Group Project #054-11 August 2011 Page 54<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010
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