Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
Georgia Gaming Market Assessment - Pennsylvania Treasury
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INTRODUCTION<br />
The Innovation Group was retained by the <strong>Pennsylvania</strong> <strong>Treasury</strong> to assess the past and future<br />
performance of the <strong>Pennsylvania</strong> gaming market, taking into consideration the gaming and net<br />
statewide tax revenue potential for the two undeveloped <strong>Pennsylvania</strong> gaming licenses—the<br />
proposed Valley View location and the former Foxwoods site in Philadelphia. Alternative<br />
locations throughout the Commonwealth were also assessed, keeping within the parameters of<br />
the exclusion zones as defined by existing <strong>Pennsylvania</strong> legislation. The analysis assesses the<br />
gaming revenue potential for each location as well as its net impact to state gaming revenues,<br />
that is, after impacts to existing <strong>Pennsylvania</strong> casinos are deducted.<br />
Proposed new competition in surrounding states is also included in the analysis, most<br />
significantly slot machine development in Baltimore and Anne Arundel, Maryland and casino<br />
and racino development in Ohio.<br />
The following table summarizes the results of the analysis, on the basis of net gain to statewide<br />
gaming revenues.<br />
Alternatives: Net Gain to PA <strong>Gaming</strong> Revenues (MMs)<br />
South York $153.99<br />
Reading $124.75<br />
Valley View $122.65<br />
Chambersburg $106.59<br />
W. Philly/City Line $98.43<br />
Beaver Valley $98.27<br />
Altoona $96.11<br />
Port Jervis $95.56<br />
Foxwoods Site $89.96<br />
Valley View w/ Youngstown Impact $83.39<br />
Johnstown $76.85<br />
Williamsport $54.82<br />
In the Eastern region, South York or Reading offers the largest net impact to the commonwealth.<br />
A western Philadelphia location would add approximately 10% or $10 million more in revenues<br />
than the Foxwoods site, but would still be considerably lower than developing in a less<br />
competitive location like South York or Reading.<br />
In the Western region, Valley View at the current time ranks high in net impact at $122.65<br />
million. However, if a racino is developed in Youngstown, Ohio, the net impact from Valley<br />
View is diminished to $83.39 million. Racino development in Ohio has received legislative<br />
The Innovation Group Project #054-11 August 2011 Page 1