Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
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The table on the following page shows gravity model revenues by market area and out-of-market<br />
revenues for <strong>Pennsylvania</strong> facilities for the baseline 2014. On a statewide basis, market growth<br />
in <strong>Pennsylvania</strong> is projected to be counteracted by new competition in Atlantic City, New York,<br />
Maryland, and Ohio. At this point, only the Ohio landbased casinos have been introduced into<br />
the model. The Ohio racinos have not yet received final approval; therefore their impact on<br />
western <strong>Pennsylvania</strong> is provided in a separate scenario. No out-of-market revenue has been<br />
projected for Valley Forge or Nemacolin since that is not material to this analysis. Participation<br />
of Valley Forge and Nemacolin in the gravity model is assumed to be muted by the de minimis<br />
purchase requirement.<br />
As the table shows, Penn National is expected to take a 13% hit from Maryland (over status quo<br />
2014), and Presque Isle Downs is projected to take a 30% hit from the downtown landbased<br />
casino in Cleveland, Ohio. At the other <strong>Pennsylvania</strong> casinos, impacts from new competition<br />
range from 2.6% at Parx to 8.5% at the Meadows (impact of Ohio and Nemacolin).<br />
The Innovation Group Project #054-11 August 2011 Page 79