Georgia Gaming Market Assessment - Pennsylvania Treasury

Tioga Downs
Tioga Downs Casino is located in Nichols, New York off of Interstate -86 in the central part of
the state near the Pennsylvania border. The racino hosts live harness racing May through
September and simulcast throughout the year. Tioga has operated about 800 slot machines since
February 2011, while also offering a restaurant, buffet, and a bar. The facility also has the ability
to host events with a capacity of 600 poeple. Tioga also offers live music and a flea market on
the weekends. Tioga Downs has seen revenue increase from nearly $41.5 million in 2007, which
was its first full year of slot operations, to over $53 million in 2010. The number of slots has
increased about 50 machines since inception in mid 2006, but not at the cost of win per unit as
win per unit has grown to over $185 in 2010. Tioga Downs has increased revenue by more than
6% through the first four months of 2011, compared to 2010, while also increasing its number of
machines by 3%. Tioga Downs performance since 2006 is shown below.
Tioga Downs Gaming Performance
Year Revenues % Change Units % Change Win/Unit % Change
2006 $20,869,261
750
$152.05
2007 $41,433,974 98.5% 750 0.0% $151.36 -0.5%
2008 $47,240,210 14.0% 751 0.2% $171.81 13.5%
2009 $49,352,263 4.5% 771 2.6% $175.49 2.1%
2010 $53,036,886 7.5% 782 1.5% $185.73 5.8%
Jan-Apr 2011 $18,268,018 6.6% 801 3.3% $190.15 3.2%
Source: New York Lottery
Seneca Allegany
Seneca Allegany Casino and Hotel is located in Salamanca, New York off of Intyerate -86 in the
western region of the state. Seneca Allegany is an hour and a half from the Presque Isle facility
in Erie, PA. The facility offers more than 2,000 gaming machines and 30 tables. Seneca
Allegany also includes 2 restaurants, a buffet, 3 cafes, 2 bars, a 212 room hotel, a spa, meeting
space for up to 2,000 people, and an entertainment venue that hosts major music and comedy
acts. Allegany also offers two retail stores at the property as well as bus transportation for
customers in Ontario, New York, Ohio and Pennsylvania. Seneca Allegany had gaming revenue
of $142 million in 2010, down from $147 million in 2009. These figures are estimates based on
second quarter revenue.
Seneca Allegany Gaming Performance
2010 2009
Seneca Allegany $142,185,255 $147,660,048
Source: Securities & Exchange Commission
Maryland
Maryland shares a border with Pennsylvania and although its gaming market is relatively new,
with only 2 facilities currently open, there is potential for more facilities to enter the market and
compete for revenue from Pennsylvania residents.
The Innovation Group Project #054-11 August 2011 Page 62