Spring 2013 issue of Horizons

HOSPITALITY & GAMING

$141.5 million, or 7.3%. However, in the Chicago market, Rivers Casino was the only casino to generate growth, as the other eight casinos experienced a collective $98.5 million, or 5.6%, decline in gaming revenues. Missouri Missouri gaming revenues declined 2.0% in 2012; however, all three markets in which Missouri casinos operate in (Kansas City, St. Louis, and rural communities) experienced growth in gaming revenues. The decline of Missouri gaming revenues was the result of legalized commercial gaming in Kansas and gaming revenues going across the border to the new Kansas City, Kansas casino. In 2012, the Kansas City market saw revenue growth of 8.0% with the opening of the Hollywood Casino at Kansas Speedway; however, only one of the existing five casinos experienced revenue growth. The one casino that did experience growth in 2012 was closed for three months in 2011 from damage sustained by the Missouri River flooding. The other four casinos experienced a $64.4 million, or 9.1%, decline in gaming revenues. New York/Atlantic City New York gaming revenues had the largest increase in terms of total dollars, generating $542.40 million more in 2012. Virtually all of the growth can be attributed to the New York City market and the Resorts World Casino operating for a full calendar year. The Resorts World Casino’s revenue increased $582.7 million in 2012; however, Resorts World Casino’s fortune came at the expense of the neighboring Yonkers raceway, which saw revenue decline by 12.8% or $79.7 million, and Atlantic City, which saw revenues decline 8.0% or $265.8 million. Pennsylvania Pennsylvania gaming revenues increased 4.4% in 2012 to $3.16 billion. Most significantly, the state surpassed New Jersey as the second largest statewide gaming market; however, Pennsylvania still has a long way to go to surpass New Jersey’s peak year of 2006, when the New Jersey gaming industry generated $5.22 billion.

Top 15 United States Commercial Gaming Markets

Las Vegas Strip, NV $6,207.23M

Atlantic City, NJ $3,051.87M

Chicagoland, IL & IN $2,068.29M

Detroit, MI $1,416.73M

Saint Louis, MO & IL $1,113.64M

New York, NY $911.36M

Philadelphia, PA $871.02M

Biloxi, MS $830.01M

Tunica, MS $809.49M

Kansas City, MO & KS $801.03M

Boulder Strip, NV $796.67M

Shreveport, LA $713.30M

Lake Charles, LA $686.99M

Reno, NV $644.84M

New Orleans, LA $622.19M

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increase in revenue in 2012

decrease in revenue in 2012

Outside of casino expansion, favorable regulations also catered to gaming growth. Midway through 2012, South Dakota increased the maximum bet limits to $1,000, which in turn, had a substantial impact on both table games and total gaming revenues. Examining the market-specific data illustrates the story of how gaming expansion has led to growth in the overall gaming revenues at the detriment of pre-existing gaming operations. Chicago Illinois gaming revenues increased $160.8 million, or 10.9%. While impressive, this growth is solely attributed to the revenue generated from the new Rivers Casino, located near Chicago, IL. The casino opened in July 2011 and after benefiting from a full calendar year of operations, saw revenue increase $239.9 million in 2012. The Chicago market (encompassing 9 casinos in both Illinois and Indiana), saw gaming revenues increase

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