Philly's 2nd Casino License: The Odds

The Pennsylvania Gaming Control Board is holding a meeting Tuesday in Philadelphia to decide about the 2nd gaming license. The 4 remaining applicants are awaiting this decision. The existing 4 operators are also concerned. Market conditions indicate that gaming revenue is not at a premium on the east coast. But the board has the final say in this.  So I decided to set  a betting line as to who the odds favor in this process.

 

Philly Live has an impressive track record(Maryland Live). Live has partnered with Parx Casino and both have strong numbers in their respective markets. Great location near stadiums. They will have a synergy with Xfinity Live. A existing hotel site in place. 2-1

 

Casino Revolution has a location near the stadiums and is accessible to major highways. I-95 and Delaware Avenue come to mind. They have plans to develop an amusement park that will cater to families. They state they can open faster than any other applicant (15 to 18 months). 3-1

Market Eight has the development of the center city Gallery area to draw on. Major stores that cater to millennials are part of this renaissance. This group has the most disposable income.  Easy access by public transportation. They are located near major hotels and the convention center. 4-1

 

The Provence has the most original design of the 4. They plan to have a international flavor to their casino. Note the name. They 'll have a spa and world class restaurants. This will appeal to the business clientele that surrounds them in the heart of center city. 4-1

The Board could also differ a decision until 2015 when Governor -elect Tom Wolf can weigh in. They are politically appointed and able to vote without responding to the influence from the governor's office. 7-1

The Gaming Board could also look at the state of gaming on the east coast and feel that the region is not ready for another casino. This would maintain the balance that currently exist. Each existing operator has it's own niche. Harrah's Philly has the Total Reward brand that works nationally. Parx and Valley Forge have the outlying areas of Philadelphia and the suburbs to draw from. SugarHouse Casino has the prime location and is approximately 10 minutes away from center city. 
                                   Odds of not granting a license to anyone. Even Money.

          You can't bet these propositions anywhere but you can talk about them everywhere.
                                              What do you think will happen?

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Gaming in Pennsylvania: Where do we go from here?

The election is over. Governor-elect Tom Wolf will be sworn in January 2015. He inherits a state that is in need of cash for a myriad of problems.

Where will that money come from?  I'm a betting man so I'm looking at gambling. Not for me but for Pennsylvania. I see two potential options for 2015.

One is the gaming license that the Pennsylvania Gaming Control Board is mulling over for Philadelphia. The applicants are vying for it and willing to provide tax revenue and jobs. The closing of several casinos in Atlantic City has many insiders thinking that another license may saturate the Philadelphia market. That is not the view of Casino Revolution, Market 8, Live! and Provence. It should be noted that Wynn Philadelphia and Hollywood withdrew their bids.

They all feel they can make it work without  totally cannibalizing  the 3 casinos that are presently in operation. The economic impact will primarily effect Philadelphia and not the entire Commonwealth. I'll go into detail about the viability of expanding the market in a future post. You can get updates through the process by joining the PGCB mailing list.

The second option is to explore online gaming from all aspects. Poker and Table Games come to mind. The model in New Jersey shows that there is a demand to play online. That demand is slowly manifesting toward being a 200 million dollar business within the next 18 months.

Poker alone will not bring in enough revenue to merit implementation. Nevada's online poker’s best month this year was June, when the revenue exceeded $1 million. This was largely due to the World Series of Poker. The live event prompted an influx of online players. Experts say the game would be more popular and lucrative if Nevadans could legally gamble online with pools of players from other states.

Poker Only Model

I think the online line approach is more feasible. It creates jobs, tax revenue and more importantly, levels the playing field amongst the existing casinos. New Jersey was able to get ramped up and start gaming online in less than a year. Pennsylvania could do the same thing. 

Due to a larger population and site possibilities to play, we could exceed the 200 million I quoted earlier in New Jersey in half the time. An extensive report was submitted to the Pennsylvania legislature by  Econsult  and it supports this theory. The revenue from online gaming could cure a lot of problems in the areas of social services and education.

Where do you think we should go?  Share your thoughts on gaming in Pennsylvania by following me.
Learn more about online gaming and how it can shape your future entertainment experiences.
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