Georgia Gaming Market Assessment - Pennsylvania Treasury

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West Virginia Statewide Table Performance Gross Table Revenue % Change 2007 $4,430,263 2008 $77,604,583 N/A 2009 $96,006,870 23.71% 2010 $133,073,834 38.61% Jan-Apr 2011 $68,195,020 128.56% Source: West Virginia Lottery Mountaineer has historically been the market leader for the northern panhandle of West Virginia, offering the most games and the broadest amenity mix. The two casinos in the area attract gamers from Cleveland, Pittsburgh and Columbus. Both Mountaineer and Wheeling have seen declining revenue in the past few years, likely due to the expansion of competition in <strong>Pennsylvania</strong>. In 2010, Mountaineer saw revenue hit a six year low at about $202 million while wheeling saw its revenue fall to just $145 million. Charles Town on the other hand, has faired well, being further away from competitors in other states, seeing revenue over $465 million in 2010. Through the first four months of 2011, Charles Town has seen revenue of almost $220 million while Mountaineer had a little less than $73 millions and Wheeling had about $49.5 million. The table below shows each facilities’ performance since 2005. West Virginia Overall Performance by Property 2005 2006 2007 2008 2009 2010 Jan-Apr 2011 Mountaineer Win $257,353,300 $257,832,502 $223,841,390 $257,803,391 $232,966,453 $202,379,557 $72,768,864 Positions 3,159 3,178 3,629 3,755 3,417 3,097 2,893 Win/Position Wheeling Island $223.18 $222.31 $168.97 $188.11 $186.77 $179.01 $211.35 Win $194,715,355 $201,730,442 $174,922,503 $193,008,289 $176,885,276 $145,137,140 $49,592,142 Positions 2,265 2,310 2,485 2,426 2,246 2,137 2,184 Win/Position Charles Town $235.54 $239.25 $192.87 $217.93 $215.80 $186.05 $190.83 Win $414,124,376 $448,022,619 $463,367,841 $454,010,812 $424,334,013 $465,166,483 $219,961,008 Positions 4,028 4,120 4,739 5,012 4,976 5,317 5,100 Win/Position $281.66 $297.92 $267.91 $248.15 $233.64 $239.67 $362.44 Source: West Virginia Lottery; The Innovation Group Charles Town is the largest facility in terms of slot positions with more than 4,600, while Mountaineer is in second with more than 2,600 and Wheeling is third with more than 1,800 positions in 2010. Slot revenue follows the same pattern as Charles Town had revenue higher than the other two combined, with a total of $397 million in 2010. The first four months of 2011 have seen Charles Town Slot collect more than $128.8 million in slot revenue, while Mountaineer collected about $52.5 million and Wheeling collected $38.5 million. West Virginia’s slot performance since 2005 at each property is shown below. The Innovation Group Project #054-11 August 2011 Page 65
West Virginia Slot Performance by Property Slot Revenue Slots Win per Slot Mountaineer 2005 $257,353,300 3,159 $223 2006 $257,832,502 3,178 $222 2007 $226,025,207 3,197 $194 2008 $209,273,933 3,185 $180 2009 $187,482,675 2,847 $180 2010 $164,926,453 2,665 $170 Jan-Apr 2011 $52,526,927 2,461 $179 Wheeling Island 2005 $194,715,355 2,265 $236 2006 $201,730,442 2,310 $239 2007 $172,676,057 2,191 $216 2008 $160,444,114 2,048 $215 2009 $145,987,570 1,874 $213 2010 $123,564,313 1,843 $184 Jan-Apr 2011 $38,537,915 1,890 $171 Charles Town 2005 $414,124,376 4,028 $282 2006 $448,022,619 4,120 $298 2007 $463,367,841 4,739 $268 2008 $454,010,812 5,012 $248 2009 $424,334,013 4,976 $234 2010 $397,124,594 4,645 $234 Jan-Apr 2011 $128,854,529 4,428 $245 Source: West Virginia Lottery Beginning in October 2007, Mountaineer and Wheeling installed poker table games, followed by a full spread of table games beginning in December. The host county referendum for Charles Town Races was defeated at that time, but Charles Town later installed tables in July 2010. Mountaineer had 109 tables, including 40 poker tables in 2010. Wheeling Island had 64 tables, including 20 poker tables and Charles Town had 134 tables, including 30 poker tables. Mountaineer and Wheeling have since decreased their offerings in 2011. The table games have performed well, though revenues have declined in 2009 and 2010 at Mountaineer and Wheeling. In 2010 daily win per table was $1,324 at Mountaineer, $1,135 at Wheeling Island and $1,436 at Charles Town. The performance of the poker tables has varied widely, due possibly to having an over-supply of tables, and the increasing competition from neighboring states. In 2011, each facility has seen win per poker table and win per other table increase during the first four months. The increase in these figures can largely be attributed to the fact that each facility has reduced the number of tables offered. Charles Town has been the clear leader with a win per poker table of $1,800 and a win per other table of almost $3,900. West Virginia’s table performance by property is shown below. The Innovation Group Project #054-11 August 2011 Page 66
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 $46
Page 12 and 13:
Employment Employment is a signific
Page 14 and 15:
Impact of Recession: Regional vs. N
Page 16 and 17:
are the only private companies in t
Page 18 and 19: Pennsylvania Wilds Vineyards, the L
Page 20 and 21: PENNSYLVANIA GAMING This section su
Page 22 and 23: Harrah’s Chester has become the s
Page 24 and 25: Philadelphia Market The following s
Page 26 and 27: for 1,700 cars. The first phase ope
Page 28 and 29: Mt. Airy Mount Airy Casino Resort i
Page 30 and 31: Western Region The Western Region c
Page 32 and 33: The Rivers The Rivers Casino is loc
Page 34 and 35: HISTORICAL SLOTS TRENDS AND SATURAT
Page 36 and 37: Number of Machines 30,000 25,000 20
Page 38 and 39: Number of Machines 25,000 20,000 15
Page 40 and 41: Slot Revenue ($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 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
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Georgia Gaming Market Assessment - Pennsylvania Treasury

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