By Dave Anderson:
The Pittsburgh slots casino is significantly underpeforming. I think a good deal of the underperformance is the general state of the economy as people are out of work, afraid of being out of work, or have not seen a raise in a while. Throw in the fact that I think the Pennsylvania casino market is approaching saturation with only half of the legally allowed machines already installed, and the Pittsburgh casino is an undifferentiated product, this all adds up to trouble. I just want to look at the size of the gap on the take per machine basis in the first month of operation.
Current data is at the Pennsylvania Gaming Control Revenue site, projections for both the state and the private owners have been reported in the Post-Gazette. Right now there is a massive gap between what is actually happening and what the state expected to happen. There is an even larger gap between reality and the casino owner's revenue projections. This is a local political problem because the casino revenue has been promised to several major projects, most notably the Penguins arena, and I think there is a chance that more revenue has been committed than that which will be achieved.
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