RubinBrown Gaming Stats 2012

Commercial GamingHeadlines

Photo courtesy of SugarHouse Casino located in Philadelphia, Pennsylvania

Pennsylvania Late in 2011, Pennsylvania surpassed New Jersey becoming the second largest commercial gaming state. In November 2011, Pennsylvania edged out New Jersey in monthly gaming revenues. This was the first time in U.S. gaming history that New Jersey was not in the top two states for commercial gaming. Pennsylvania’s climb to number two is attributed to the development of casinos closer to the New York, Philadelphia, and Pittsburg markets. Pennsylvania’s final resort license, awarded to Nemacolin Woodlands Resort, is under appeal. In April 2011, the Pennsylvania Gaming Control Board awarded the final resort casino license to Nemacolin Woodlands Resort. A competitor in the proposal process, Mason Dixon Resorts, has appealed the decision citing “irregularities” in the award process. Nemacolin’s chosen operator, Isle of Capri, cannot break ground until the appeal process is concluded.

South Dakota Casino revenues suffer after the first full year of a state wide non smoking ban. In November 2011, voters approved a smoking ban that included bars, restaurants and casinos. After the first full year of the smoking ban, casinos saw revenues decline 5%. To help mitigate the impact of the ban, casinos have constructed outdoor smoking areas, but revenues are still suffering from the effects on the ban. Four casinos sue the South Dakota Department of Revenue over promotional play. The state currently taxes casinos on promotional play incentives, as the incentives are included in calculating gaming revenue. The casinos are suing the state, claiming that the promotional play should not be taxed as it is “phantom revenue.”

West Virginia Table Games lead to record gaming revenues in West Virginia. In 2011, West Virginia generated a record setting $958 million in gaming revenues. The record revenues were attributed to 2011 being the first full year table games were offered. West Virginia assists casinos in upgrading gaming machines. In March 2011, the legislature passed a bill that established an annual fund of $10 million a year to assist West Virginia casinos purchase new gaming machines. The government program is funded through the revenues collected from casino tax revenues.

13 RubinBrown - Commercial & Tribal Gaming Stats 2012