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PURPOSE:
To project visitation and revenue levels at a casino after it opens or undergoes an expansion.
These analyses can also be used to determine the effects of a change in the local competitive
mix or gaming regulations on an operating facility. Clients have used these reports to pursue
gaming licenses or to attract investors to a project. In addition, they can be used to booster
community relations by providing independent corroboration of revenue projections. The assessment
can include not only the gaming portion of the operation but also ancillary developments
such as hotels, waterparks, convention centers, and spas.
INPUT & INFORMATION NEEDED:
Provided by Client:
1. Development plans
2. Location of the development
Provided by TMG:
1. Established expertise in the gaming market
2. Analysis of the competitive market
3. Visitation and revenue projections for 5-year period
4. Ratio of slot machines to table positions
OUTPUT & PRODUCT:
A report tailored to your needs and requests. Typically these reports contain a 5-year projection
of annual visitation levels and revenue projections. We build a gravity model specific to your
market area. The model generates visitation and revenue projections based on the distance between
your facility, your competitors and the population within a day-trip distance of the casino.
The model takes into account geographical barriers, manmade impediments and the relative
attractiveness of the local market casinos. Based on model output, we recommend the
number of gaming positions as well as the ratio between table and slot positions most appropriate
for your development. Five-year operating pro forma can also be produced to allow you to
see how the revenue projections compare to the cost of operation. Incremental gaming revenue
analysis can be performed for any ancillary developments that may accompany the casino.
USES:
1. Casino gaming license application
2. Gaming compact or memorandum of understanding negotiations
3. Providing independent analysis for investors
4. Marketing tool
GAMING MARKET ASSESSMENT CLIENTS:
Trump Hotels and Casino Resorts, Isleta Casino and Resort
CONTACT:
email: Anthony J. Mumphrey Jr.
Tel: (504) 569-9239, Ex. 26.
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