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Ohio Newspaper Association

Ohio Newspaper Association. Working with the Casino Industry Alan Silver Ohio University May 16, 2013. US COMMERICAL CASINOS. Spectum Gaming Group. The analysis offered the following GGR projections for the year 2013:

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Ohio Newspaper Association

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  1. Ohio Newspaper Association Working with the Casino Industry Alan Silver Ohio University May 16, 2013

  2. US COMMERICAL CASINOS

  3. Spectum Gaming Group • The analysis offered the following GGR projections for the year 2013: • Scenario 1: Four casinos with both slots and tables games could generate at least • $1.8 billion in GGR at the following locations: • Cincinnati – $369 million (Est. $230 Million) • Cleveland – $568 million (Est $ 263 Million) • Columbus – $602 million (Est $230 Million • Toledo – $265 million ( Est $182 Million)

  4. Spectum Gaming • Scenario 2: Four casinos with both slots and table games along with up to 2,500 VLTs at each of the seven existing racetracks in Ohio could generate nearly $2.25 billion in GGR:

  5. The average GGR per casino/VLT location would be $205 million. • The four casinos with both slots and table games could generate $1.1 billion in GGR (48.9% of state total), or average GGR per casino of $276 million. • The VLT casinos at the seven racetracks could generate slightly more than $1.15 billion (51.1% of state total), or average GGR per VLT casino of $165 million.

  6. Moelis & Co • 2.7 Billion GGR from both casino & Racinos (VLT’s) • Assuming cannibalization from having both, the total market is expected to be $2.3 billion at a steady state

  7. Where did Projections come from? • Annual Gross casino revenue with VLT’s ODT issue 3 Casino Ballot Initiative Memo Oct 2009 $1.4235 billion • Annual Gross VLT Revenue with Casinos Ohio Statewide Racetrack Casino Assessment/March 2011 $1.2658 billion Total Casino & VLT Market Size $2.6893 Billion

  8. My Projections 1st full yr. • EST • Horseshoe Cleveland: $274M • Horseshoe Cincinnati: $245M • Hollywood Columbus: $225M • Hollywood Toledo: $190M $934 MILLION

  9. What is your “objective” in Casino Management? • “maximize profit”

  10. Margin • The Percentage of Win that remains after expenses (e.g., dealer salaries, benefits).

  11. Departmental Margins DepartmentMargin 60%-70% Slots 15%-20% Table Games

  12. Ohio Casinos 20122013 YTD Tables: 28% GGR 31% GGR Slots: 72% GGR 69% GGR

  13. Ohio Slot WPD-/ April March • Hollywood Toledo: $215 $227 • Hollywood Columbus: $161 $173 • Horseshoe Cleveland: $216 $280 • Horseshoe Cincinnati: $220 $283 • Scioto Downs: $180 $193 • Thisledowns: $331 • State Wide Avg 4 Casinos: $200.43

  14. Pennsylvania WPD- April • State Average: $262.27 Mohegan S $266 Parx $313 Harrah’s $246 Presque $230 Meadows $202 Mt. Airy $209 Pina Nat $277 Sands $270 Rivers $278 Sugar H $322 Valley F $300

  15. Indiana Slot WPD- April Ameristar 326 Horseshoe SI 454 Beltera 240 Indiana G 327 Blue Chip 301 Maj Star 304 French Link 189 Maj Star II 257 Hollywood 301 Rising Star 156 Hoosier 277 Horseshoe HD 460.27 State Average: $293.52

  16. How does Ohio Compare?Win Per day SlotsApril • Indiana: State Average $293.52 • Pennsylvania: State Average $262.27 • Ohio: State Wide Avg. Casinos $200.43

  17. Scioto Downs • Doing extremely well for MTR • Head-to-head competition w/Hollywood has heated up. Promo Play increased. • 10 Months YTD: $113,314,099 • Full Year (my est): $135,976,918 • Spectum Report: $165 Million each • 7 Racinos @165 Million= $1.15 Billion

  18. Key Revenue SourcesIntegrated Resorts

  19. Key Profit Sources Integrated Resorts

  20. Las Vegas Repeater-Market Resort • Any critical observations here?

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