Georgia Gaming Market Assessment - Pennsylvania Treasury

number of slots from 1998 to 2008, including an 11% increase in 2008 alone. The number of
machines decreased nearly 11% in 2010 as each facility reduced their number of slots by more
than 175 machines. In the first four months of 2011, slot revenue is down nearly 10% over 2010,
while the number of machines is down 6%. The table below shows Delaware’s slot revenue
history since 1997.
Delaware State Slot Revenue
Year Gross Revenues % Change Units % Change Win/Unit % Change
1997 $298,905,100
2,566
$319.98
1998 $350,821,200 17.4% 2,709 5.6% $355.74 11.2%
1999 $412,493,300 17.6% 3,616 33.5% $313.42 -11.9%
2000 $485,104,300 17.6% 4,899 35.5% $272.06 -13.2%
2001 $526,939,900 8.6% 5,200 6.2% $278.38 2.3%
2002 $565,909,900 7.4% 5,339 2.7% $291.18 4.6%
2003 $501,999,700 -11.3% 5,463 2.3% $252.46 -13.3%
2004 $553,318,700 10.2% 6,337 16.0% $239.90 -5.0%
2005 $579,546,000 4.7% 6,542 3.2% $243.39 1.5%
2006 $651,733,800 12.5% 6,991 6.9% $256.11 5.2%
2007 $612,407,100 -6.0% 7,225 3.3% $232.87 -9.1%
2008 $588,923,000 -3.8% 8,069 11.7% $200.50 -13.9%
2009 $564,239,300 -4.2% 8,077 0.1% $188.29 -6.1%
2010 $466,572,110 -17.3% 7,210 -10.7% $181.27 -3.7%
Jan-Apr 2010 $180,432,810
7,382
$218.23
Jan-Apr 2011 $162,719,800 -9.8% 6,939 -6.0% $197.06 -9.7%
A.A.G. 1997-2010
3.5%
8.3%
-4.3%
A.A.G. 2004-2010 -2.8% 2.2% -4.6%
Source: Delaware Lottery
Gaming revenue has historically been highest at Delaware Park, which had revenue of $190
million in 2010. Dover Downs was second with $174 million while Harrington was third with
$102 million. Dover Downs was the largest facility in 2010 with over 2,800 machines, followed
by Delaware Park and Harrington which had approximately 2,500 and 1,875 machines,
respectively. Gaming revenues have followed similar trends at each of the facilities over the last
10 years, with the exception of Delaware Park experiencing a more significant drop in revenue
due its proximity to PARX and Chester Downs in Pennsylvania. Similar to Atlantic City, gaming
revenue peaked in 2006 at each facility, but has declined each year since, seeing the largest one
year drop come in 2010. Through the first four months of 2011, Delaware Park has seen revenue
fall nearly 14% over 2010 with its number of terminals remaining relatively flat, falling less than
1%. Dover Downs has seen revenue fall more than 6% during the first four months of 2011,
while reducing its number of terminals by nearly 10%. Harrington saw a decline in revenue of
more than 8% through the first four months of 2011 over 2010, while its number of terminals fell
about 7%. The table below shows each facilities performance since 2000.
The Innovation Group Project #054-11 August 2011 Page 57