RubinBrown Gaming Stats 2011

Adjusted Gross Receipts by Region

Missouri was a hot spot for regulator and commercial activity in 2010. The year started out with great anticipation of the opening of what was thought to be the last gaming facility in Missouri. However, just as Pinnacle opened River City, they announced their surrender of the President Casino’s license. The license forfeiture resulted in the Missouri Gaming Commission initiating a bidding process for the 13th gaming license. The state moved efficiently through the process and awarded the license to Isle of Capri for the development of a property in Cape Girardeau, Missouri. While there were multiple factors that led to the final selection, the Cape Girardeau property is forecasted to bring in over $67 million in new gaming revenues, while minimizing the cannibalization of other properties, an issue that has begun to gain attention in the larger metropolitan markets. The expansion of casinos in St. Louis led to a 7.52% increase in the St. Louis market and was the primary reason for the overall state increase in revenues. However, the market increase from the addition of River City came at a cost to the pre-existing properties, with each property recording declines greater than 5%. Overall, the St. Louis market, including the Illinois properties, recorded a net increase of $35.7 million, implying that 75% of River City’s $143 million in revenues was the result of market share cannibalization. Focusing on the other regions in the state, revenues remained consistent with the prior year. Kansas City recorded a 0.80% decline in revenues, while the other communities recorded a 0.94% increase. While revenues remained flat and market share was stable, the Kansas City and other community properties recognize the challenges coming in 2012, when Penn National and the Kansas Speedway complete the first Kansas regulated casino within the Kansas City marketplace and Isle of Capri completes its construction of its recently awarded Cape Girardeau license.

$900M

$600M

$300M

$0

Kansas City Vicinity

St. Louis Vicinity

Other Communities

2008

2009

2010

Adjusted Gross Receipts Analysis

$2.3K

$72.00

$1.5K

$68.00

$750

$64.00

$0

$60.00

Kansas City Vicinity

St. Louis Vicinity

Other Communities

AGR per Square Foot

AGR per Patron

While Kansas City properties work to position themselves in the marketplace prior to the addition of the Kansas facility, operators can reassure themselves that they recorded the highest revenue per square foot and per patron as compared to the other Missouri regions. Furthermore, Kansas City was the only region to successfully increase their revenue per patron in 2010, recording a $4.49 increase per patron from $63.48 in 2009 to $67.97 in 2010. Meanwhile both the St. Louis and Other Communities recorded declines.

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