\nRepresentatives of the proposed Parx Casino in Prince George’s County say they expect the casino to bring in between $800 million to $1 billion in gaming revenue in its third year full year of operation.<\/p>\n
\tP.G. County Casino Infographic. Click on image for larger rendition.<\/p>\n
\tCOLLEGE PARK, Md. — Representatives of the proposed Parx Casino in Prince George\u2019s County say they expect the casino to bring in between $800 million to $1 billion in gaming revenue in its third year full year of operation. <\/p>\n
\tIf it hits that target, Parx — a project proposed by Greenwood Racing Inc. — would become one of the largest casinos as measured by gambling revenue in the United States, bringing in more money from gambling than any casino in Atlantic City, N.J., industry analysts said. <\/p>\n
\t\u201cWhen you\u2019re getting up to the $800 million to $1 billion range, you\u2019re talking about being one of the most lucrative revenue generating casinos in the Western Hemisphere,\u201d said Clyde Barrow, director for the Center of Policy Analysis at the University of Massachusetts, Dartmouth. <\/p>\n
\tGreenwood Racing representatives said they believe the casino will hit those targets because of the demographics of the regional market and the company\u2019s experience with similar gaming operations in Pennsylvania. <\/p>\n
\t\u201cEffectively, the numbers did not look large,\u201d Marc Oppenheimer, chief marketing officer for Greenwood Racing said. \u201cWe are pretty confident in our numbers.\u201d <\/p>\n
\tGreenwood Racing is one of three companies competing for the right to build the state\u2019s sixth casino in Prince George\u2019s County. <\/p>\n
\tRepresentatives for the proposed MGM National Harbor project said they expect their casino to bring in $650 million in its third year of operation. The third bidder, Penn National Gaming, Inc. has not yet released the projected revenue numbers for their proposed casino, Hollywood Casino at Rosecroft Raceway. <\/p>\n
\tGreenwood Racing\u2019s ambitious number gives off the impression that they are trying to \u201cbuy\u201d the video lottery operation license, said Andrew Klebanow, a principal with Gaming Market Advisors who worked on economic impact analysis studies for the Baltimore city and Rocky Gap casino projects. <\/p>\n
\t\u201cIt\u2019s not politically a bad idea to go with a big projection. Commissions like that,\u201d he said. \u201cThey look at that big revenue number and they become enamored by it.\u201d <\/p>\n
\tAfter site visits last month, the three companies competing to build the new Prince George\u2019s casino presented detailed proposals to the Video Lottery Facility Location Commission at public meetings in Fort Washington. <\/p>\n
\tThe commission is now deliberating and expects to make a decision on which company they will award a gaming license to before the end of year. <\/p>\n
\tTwo of the largest casinos in the northeast, Foxwoods Resort Casino and Mohegan Sun, brought in about $900 million and $1 billion respectively in gaming revenue in 2011, according to a study done by the Center for Policy Analysis at the University of Massachusetts, Dartmouth. <\/p>\n
\tThe Maryland Lottery and Gaming Commission reported earlier this year that Maryland Live Casino, the state\u2019s highest revenue generating casino, brought in a little over $472 million in gaming revenue in fiscal year 2013, which ended in June. <\/p>\n
\tThe total collective gaming revenue for the top 23 casinos in Las Vegas, each of which makes more than $72 million annually, was about $5 billion in 2012, according to a report produced by the Center for Gaming Research at the University of Nevada, Las Vegas that is based on state gaming statistics. The Nevada State Gaming Control Board does not release revenue numbers for individual casinos. <\/p>\n
\tColeman Bazelon, a principal with The Brattle Group who has done national studies for the American Gaming Association, said gaming revenue for the U.S. was about $35 billion in 2010. Parx\u2019s revenue would essentially make up about 3 percent of that number, he said. <\/p>\n
\t\u201cI know the industry well enough to comfortably say that those numbers would make it one of the largest in the U.S.,\u201d he said of Parx\u2019s revenue projections. \u201cIt would be a very significant property.\u201d <\/p>\n
\tGreenwood Racing runs Pennsylvania\u2019s highest revenue-generating casino — Parx Casino and Racing near Philadelphia — according to the project\u2019s website. The casino brought in $487 million in total gaming revenue during fiscal year 2012-2013. <\/p>\n
\tOppenheimer said that some of their confidence in their projections for the proposed Prince George\u2019s County casino comes from their experience operating the casino in Pennsylvania. <\/p>\n
\t\u201cWe know how to work and operate in an environment very similar to Maryland,\u201d Oppenheimer said of their casino in Pennsylvania. <\/p>\n
\tHe said they feel comfortable in projecting higher numbers than Pennsylvania because they expect to draw from a larger local, regional and national market in Maryland. <\/p>\n
\tParx\u2019s economic analysis report showed that they expect the majority of their visitors will come from Washington and Virginia, areas west of the casino, and as far south as North Carolina, Oppenheimer said. <\/p>\n
\tThe vast majority of casinos in the world operate in a local market, with the exception of those in places like Las Vegas, Klebanow said. The Prince George\u2019s location will be no different, with most gamers coming in only on a local day trip visit, he said. <\/p>\n
\tMGM\u2019s president and chief marketing officer Bill Hornbuckle told the commission that they were \u201cconservatively\u201d predicting $650 million in total gaming revenue for the casino\u2019s third year of operation. <\/p>\n
\tJim Murren, chairman and chief executive officer of MGM, said that they hadn\u2019t seen the proposals for Greenwood Racing or Penn National Gaming, but predicted that MGM would bring in more gaming revenue than the other bidders. <\/p>\n
\t\u201cWe haven\u2019t spend too much time thinking about the other guys,\u201d Murren said of Greenwood Racing and Penn National\u2019s proposals. \u201cBut just by the public comments that we\u2019ve seen, we are highly confident that our gaming revenue will be materially above either one of the other two applicants, both initially and on a growing basis.\u201d
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