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Ohio Newspaper Association Working with the Casino Industry Alan Silver Ohio University May 16, 2013.

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Presentation on theme: "Ohio Newspaper Association Working with the Casino Industry Alan Silver Ohio University May 16, 2013."— Presentation transcript:

1 Ohio Newspaper Association Working with the Casino Industry Alan Silver Ohio University May 16, 2013

2 US COMMERICAL CASINOS

3

4 Spectum Gaming Group The analysis offered the following GGR projections for the year 2013: Scenario 1: Four casinos with both slots and tables games could generate at least $1.8 billion in GGR at the following locations: Cincinnati – $369 million (Est. $230 Million) Cleveland – $568 million (Est $ 263 Million) Columbus – $602 million (Est $230 Million Toledo – $265 million ( Est $182 Million)

5 Spectum Gaming Scenario 2: Four casinos with both slots and table games along with up to 2,500 VLTs at each of the seven existing racetracks in Ohio could generate nearly $2.25 billion in GGR:

6 The average GGR per casino/VLT location would be $205 million. The four casinos with both slots and table games could generate $1.1 billion in GGR (48.9% of state total), or average GGR per casino of $276 million. The VLT casinos at the seven racetracks could generate slightly more than $1.15 billion (51.1% of state total), or average GGR per VLT casino of $165 million.

7 Moelis & Co 2.7 Billion GGR from both casino & Racinos (VLTs)2.7 Billion GGR from both casino & Racinos (VLTs) Assuming cannibalization from having both, the total market is expected to be $2.3 billion at a steady stateAssuming cannibalization from having both, the total market is expected to be $2.3 billion at a steady state

8 Where did Projections come from? Annual Gross casino revenue with VLTs ODT issue 3 Casino Ballot Initiative Memo Oct 2009$ billionAnnual Gross casino revenue with VLTs ODT issue 3 Casino Ballot Initiative Memo Oct 2009$ billion Annual Gross VLT Revenue with Casinos Ohio Statewide Racetrack Casino Assessment/March 2011$ billionAnnual Gross VLT Revenue with Casinos Ohio Statewide Racetrack Casino Assessment/March 2011$ billion Total Casino & VLT Market Size $ Billion Total Casino & VLT Market Size $ Billion

9 My Projections 1 st full yr. » EST Horseshoe Cleveland:$274MHorseshoe Cleveland:$274M Horseshoe Cincinnati:$245MHorseshoe Cincinnati:$245M Hollywood Columbus:$225MHollywood Columbus:$225M Hollywood Toledo:$190MHollywood Toledo:$190M » $934 MILLION

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11 What is your objective in Casino Management? maximize profit

12 Margin The Percentage of Win that remains after expenses (e.g., dealer salaries, benefits).

13 Departmental Margins Department Margin Slots 60%-70% Table Games 15%-20%

14 Ohio Casinos YTD Tables: 28% GGR31% GGR Slots: 72% GGR69% GGR

15 Ohio Slot WPD-/ AprilMarch Hollywood Toledo:$215$227Hollywood Toledo:$215$227 Hollywood Columbus:$161$173Hollywood Columbus:$161$173 Horseshoe Cleveland:$216$280Horseshoe Cleveland:$216$280 Horseshoe Cincinnati:$220$283Horseshoe Cincinnati:$220$283 Scioto Downs:$180$193Scioto Downs:$180$193 Thisledowns:$331Thisledowns:$331 State Wide Avg 4 Casinos: $200.43State Wide Avg 4 Casinos: $200.43

16 Pennsylvania WPD- April State Average: $262.27State Average: $ Mohegan S $266Parx $313 Harrahs $246Presque $230 Meadows $202Mt. Airy $209 Pina Nat $277 Sands $270 Rivers $278 Sugar H $322 Valley F $300

17 Indiana Slot WPD- April Ameristar 326HorseshoeSI 454 Beltera 240Indiana G 327 Blue Chip 301Maj Star 304 French Link 189Maj Star II 257 Hollywood 301Rising Star 156 Hoosier 277 Horseshoe HD State Average: $ State Average: $293.52

18 How does Ohio Compare? Win Per day Slots April Indiana: State Average $293.52Indiana: State Average $ Pennsylvania: State Average $262.27Pennsylvania: State Average $ Ohio: State Wide Avg. Casinos $200.43Ohio: State Wide Avg. Casinos $200.43

19 Scioto Downs Doing extremely well for MTRDoing extremely well for MTR Head-to-head competition w/Hollywood has heated up. Promo Play increased.Head-to-head competition w/Hollywood has heated up. Promo Play increased. 10 Months YTD: $113,314,09910 Months YTD: $113,314,099 Full Year (my est): $135,976,918Full Year (my est): $135,976,918 Spectum Report: $165 Million eachSpectum Report: $165 Million each 7 Million= $1.15 Billion7 Million= $1.15 Billion

20 20 Key Revenue Sources Integrated Resorts

21 21 Key Profit Sources Integrated Resorts

22 22 Las Vegas Repeater-Market Resort Any critical observations here?Any critical observations here?


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