RubinBrown Gaming Stats 2012

WashingtonD.C. Region

$6.7 Billion

-1.1% 27 Ops

-3.6% Ops

For the first time in over a decade, the Washington D.C. Region saw a decrease in gaming revenues. In 2010, the region generated $6.7 billion in revenue, which was $71.6 million, or 1.1%, less than the revenues generated in 2009.

In Connecticut, tribal casinos have been thriving for over a decade, but that could change with the recent approval of four commercial gaming properties in Massachusetts. According to analysts, the tribal revenues in Connecticut are projected to decline up to 15% in the next two to three years due to commercial casino openings in nearby Massachusetts and New York. Because of the future competition on the horizon, the Mohegan Tribe is looking to expand into New York with a new resort and casino in the Town of Thompson. The project has multiple phases with an estimated cost of $600 million. The first phase is scheduled to finish in 2013. Further south, other tribes are feeling the pressure to expand. In North Carolina, the Eastern Band of Cherokee Indians signed a new compact with the state allowing them to have table games at their casinos. To take advantage of this opportunity, the tribe spent $633 million to complete an addition to the Harrah’s Cherokee Casino, which includes a third hotel tower, a spa and an expanded gaming floor. In Louisiana, the Coushatta Tribe built a new seven story, 401 room hotel scheduled to open in 2012, just before a new commercial resort casino opens in nearby Lake Charles, Louisiana. Competition will only increase in the Washington D.C. Region as commercial properties continue to open, forcing the tribal nations to continue to differentiate themselves through renovation and expansion of their casinos.

The Washington D.C. Region is the second largest region based on gaming revenue, generating 25.3% of all Indian gaming revenues, but the smallest in total number of casinos, representing only 6.4% of all Indian gaming operations. The decline in revenues is largely attributed to the increased competition from the expansion of commercial gaming in markets neighboring tribal properties. With the increase in openings of new commercial casinos in the Northeast and South, tribal casinos within the Washington D.C. Region are expanding their gaming floors, hotels, restaurant offerings and spa facilities to stay competitive. By expanding and upgrading their hotels, tribes are creating resort-like properties which encourage patrons to stay longer and to visit more often. Within the South, Florida’s tribal market leader, the Seminole Tribe is expanding the Coconut Creek Casino, located north of Miami. The $150 million expansion will add three new restaurants, a LEED certified parking garage and will double the size of the current casino; expanding the gaming floor to include over 2,400 machines and 65 tables. As the Seneca Nation faces increased competition from new commercial casino openings in Maine, Massachusetts and Pennsylvania, the tribe is working to renovate and expand their casinos. The tribe recently completed a $10.4 million renovation to its 604 hotel at the Seneca Niagara facility. The tribe’s gaming corporation also recently approved a $53 million expansion to the Allegany Casino hotel. The expansion will bring the total hotel rooms to 413 from the exiting 212 rooms. The project will complement the 2,300 seat event center which was constructed in 2008. The hotel expansion should be completed by early 2013.

25 RubinBrown - Commercial & Tribal Gaming Stats 2012