Philadelphia Casino Application Review September 24, 2013 AKRF.COM - - PowerPoint PPT Presentation

Philadelphia Casino Application Review

September 24, 2013

AKRF.COM

AKRF’s Analysis Objectives

1. Third-party review of applications 2. “Normalize” estimates 3. Competitive effects → net fiscal revenue 4. Induced growth

Local Economic Impacts

Construction-Period Benefits - Jobs

• 1,000

2,000 3,000 4,000 5,000 6,000 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia

1,506 1,164 1,869 2,045 1,413 3,803 174 136 220 233 174 441 451 351 567 607 441 1,142

Person-Years of Employment Direct Indirect Induced

Tota tal l constr struction tion-period riod em emplo loyme yment r t ranges fr s from m 2,00 ,000 to to over r 5,00 ,000 job jobs* s*

* T Total l developm lopment cost sts s range fr from $4 m $428 mil milli lion to $92 $926 mil milli lion

Local Economic Impacts

Operating Benefits - Jobs

500 1,000 1,500 2,000 2,500 3,000 3,500 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia

1,068 1,231 1,458 2,241 1,064 1,682 208 238 262 386 216 304 245 281 307 462 250 350

Full-Time Equivalent (FTE) Jobs Direct Indirect Induced

Tota tal l perma manent t emp mplo loyme yment r t ranges fr s from m 1,50 ,500 to to over 3,00 r 3,000 j jobs

Gaming Revenues and Potential Competition

• Key factors:

1. Market trends 2. Program 3. Location

Gaming Revenue Trends in Eastern Pennsylvania

2007 - Current

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Millions

Total gaming Revenues by Casino - Semi Annually

Valley Forge Sugarhouse Sands Bethlehem Penn National Mount Airy Harrah's Philadelphia Parx Monhegan Sun

Reven enue ue tr tren ends s ds sug ugge gest st mar market et is is app pproa

• aching

hing sa satur turation tion

Program Comparison

• 200,000

400,000 600,000 800,000 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia

104,650 112,250 116,820 122,947 71,582 180,000

Square Feet

Gaming Floor Restaurant, Bar & Lounge Nightclub Event & Meeting Space Hotel Retail Recreation & Fitness

Pr Prog

• gramme

ammed d ar area eas s ran ange ge fr from

• m app

pproxima ximatel tely y 16 160,00 0,000 0 to to 70 700,00 0,000 0 squa square f e fee eet* t*

* E * Exclud udes es ba back-of

• f-ho

house, use, cir circu culation

• n, pu

publi blic ar c area eas s an and par d parking king

Applicants’ Project Locations

Local and Regional Analysis Local & Regional Assessment

The he ne next ca xt casi sino no wil will l be be within within a 10 a 100-mil mile e rad adius ius of

• f 22 oth

22 other ca er casi sino nos. s.

Projected Gross Annual Gaming Revenues

in $Millions

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia

Slots Tables

High Low

Reven enue ue estima estimates tes fr from

• m app

pproxima ximatel tely y $3 $375 75 mil milli lion

• n to

to $4 $475 75 mil milli lion

• n

Projected Net New Annual Gaming Revenues

City of Philadelphia – in $Millions

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia Slots Tables

Low High

Reven enue ue estima estimates tes ran ange ge fr from

• m app

pproxima ximatel tely y $2 $275 75 mil milli lion

• n to $4

to $400 00 mil milli lion

• n

Annual Non-Gaming Revenues

$- $50 $100 $150 $200 $250 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia Millions of Dollars Restaurant, Lounge, and Bar Entertainment, Event, and Meeting Space Hotel Retail Parking

Revenue esti stima mate tes s range fr from m approxima imate tely y $40 mil milli lion to to $200 mill million ion

Total Revenues (gaming + non-gaming)

$247 $45

Hollywood Casino

$320 $83

Market 8

$435 $201

The Provence

$283 $38

Live!

$301 $138

Wynn Philadelphia Gaming Revenue Non-Gaming Revenue

$298 $28

Casino Revolution

Ran ange ge i in n no non-ga gaming r ming reven enue ue amo amoun unts ts to to ga gaming r ming reven enue ue ac across

• ss the

the pr projec

• jects

ts

Gaming Tax Revenues – Commonwealth of PA

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia Slots Tables

High Low

Tax r revenue esti stima mate tes s range fr from m approxima imate tely y $160 mill million ion to to $190 mill million ion

Gaming Tax Revenues – City of Philadelphia

$0 $2 $4 $6 $8 $10 $12 $14 $16 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia $0 $2 $4 $6 $8 $10 $12 $14 $16 Hollywood Casino Casino Revolution Market 8 The Provence Live! Wynn Philadelphia Slots Tables

High Low

Tax ax r reven enue ue estima estimates tes ran ange ge fr from

• m app

pproxima ximatel tely y $9 $9 mi mill llion ion to to $1 $14 4 mil milli lion

• n

Pr Proposed Pr

• posed Projects
• jects in F

in Four

• ur Ar

Areas of eas of t the Cit he City

Potential for Induced Development

The Provence Market 8 Wynn Philadelphia Hollywood Casino Live! Casino Revolution

• 1. North Broad Street Corridor

The Provence

• 2. Market East Corridor

Market 8

• 3. Waterfront District

Wynn Philadelphia

• 4. Stadium District

Live! Hollywood Casino Casino Revolution 1 2 3 4

Pr Projec

• ject

t Cha harac acterist teristics ics With ith Pote

• tential

ntial to to In Indu duce ce Develop elopmen ment

Potential for Induced Development

Program Attributes

(Attract wide audience: gaming & non-gaming)

Design & Locational Attributes

Retail Integrated into Existing Urban Fabric Restaurants and Bars Pedestrian Access/Foot traffic Entertainment Public Transit Accessible Hotels and Spa/Resort amenities Proximity/Synergy with other attractions

▶ Provides synergy with existing business and attractions ▶ Creates authentic urban entertainment destination environment ▶ Appeals to broad customer base (gaming/non-gaming and local/non-local) ▶ Improves ability to attract additional market interest in the area

The he Philade Philadelphia lphia Op Oppo portun tunity ity: : Based ased on

• n P

Pop

• pula

ulation, Phil tion, Philad adelph elphia T ia Trails ails Oth Other er Major ajor Citi ities es in in the the Numb Number er of

• f R

Restau estauran ant, t, Bar ars, s, an and d Reta etail il Of Offering erings* s*

Potential for Induced Development

Location

• No. Residents
• No. Eating &

Drinking Places Per 1,000 Residents Manhattan 1, 585,873 4,220 2.7 Boston 617,594 1,276 2.1 San Francisco 805,235 2,232 2.8 Washington, DC 601,723 1,209 2.0 Philadelphia 1,526,006 2,398 1.6 Location

• No. Residents

Retail Businesses Per 1,000 Residents Manhattan 1, 585,873 9,399 5.9 Boston 617,594 1,642 2.7 San Francisco 805,235 3,229 4.0 Washington, DC 601,723 1,342 2.2 Philadelphia 1,526,006 3,519 2.3

Restaurants & Bars Retail

* Source: Esri

Potential for Induced Development

The Provence

Urban Mixed-use Casino, Hotel, Retail, and Entertainment Destination

4Accelerate revitalization of North Broad Street Corridor from City Hall to Temple University

The he Pr Proven ence ce an and M d Mar arket et 8 pr 8 projec

• jects h

ts have e si simil milar ar cha harac acterist teristics ics to to po poten tentiall tially y indu induce ce ad additiona ditional l de develop elopmen ment t in in the the C Cen enter ter City ity ar area eas s whe here e the they y ar are e loca located ted

Market 8

Urban Mixed-use Casino, Hotel, and Entertainment Destination

4Activate Market East Corridor

Inducement Indicators

4Proximity to Convention Center 4Synergy between project and other city cultural/historic destinations 4Mixed-use development program that can attract broad audience (gaming/non-gaming, local/non-local) 4Projects are physically integrated into urban fabric – activates street, generates foot traffic = perception change 4Potential sites for spin-off projects (surface parking lots and underdeveloped/vacant buildings)

Issues

4The Provence: market absorption of proposed retail and entertainment program in one-phase 4Market 8: appeal of multi-level casino to gaming customers (not widely practiced in industry)

Potential for Induced Development

Wynn Philadelphia

Luxury Casino Hotel Resort Destination

4Stimulate development at the northern end of the Delaware River Master Plan

The he Wynn Wynn Philade Philadelphia pr lphia projec

• ject

t ha has s po poten tential to tial to activa activate te the the D Delawar elaware e Riv iver er Waterfr terfront

• nt

Inducement Indicators

4Potential transformation of waterfront by creating luxury casino resort destination and attract high-end customers: including non-regional and international 4Provides major public space amenity that can activate waterfront front and transform perception of area 420-acre waterfront park with potential linkage to public trails 4Potential synergy with SugarHouse to create a mixed-use entertainment district that links the two attractions 4Near vacant parcels for spin-off projects

Issues

4Ability of project to attract luxury market segment to location and rebrand area 4Possible public sector investment needed for infrastructure improvements in waterfront area

Potential for Induced Development

Live!

Casino, Hotel, Restaurants, and Entertainment

4Near-term potential due to synergy and linkage with proposed future expansion of xfinity Live!

The he Stad Stadium ium Dis istrict trict Pr Projec

• jects

ts tar targe get gaming t gaming aud audienc ience e bu but ha t have e po poten tential tial to to indu induce ce spin spin-of

• ff spor

sports ts - the themed med ente entertainme tainment de nt develop elopmen ment

Hollywood Casino

Casino, Restaurants, and Entertainment

4Long-term potential to induce sports-themed entertainment

Casino Revolution

Casino, Hotel, Restaurants, and Entertainment

4Long-term potential to induce sports-themed entertainment

Inducement Indicators

4Proximity to major-league sports facilities and major concert venue 4Good potential to attract regional attendees of year-round calendar of sporting and entertainment events

Issues

4Less focus on non-gaming audience 4Project locations are vehicular oriented – limited pedestrian access 4Potential spin-off development sites occupied by active industrial/distribution businesses

End of Presentation