By Dave Anderson:
Chris Briem and I have been collaborating on tracking the revenue at the Pittsburgh Rivers Casino. This week saw a take of $173 per machine per day.
This is a slight improvement from last week, but it is further confirmation that there seems to be a firm floor in the region of $160 to $180 per machine per day. The Rivers Casino has indicated that they are giving out much larger promotional deals to attract buses and other large groups to the casino. I would expect that the customers that are being attracted by these higher deals are primarily cannibalized customers from the Washington Downs casino. That casino is about 20 miles from Pittsburgh and historically has been giving out fairly large promotions to bus trips. The two locations offer the same games and the same number of machines. They are very near substitutes for each other.
Even at these slight "improvements" the revenue flow from the Pittsburgh Rivers Casino is on pace to barely cover debt costs much less operational costs. Revenue would have to double for the next forty-two weeks to meet the state�s projections on the average take per machine per day. Revenue would have to increase by 250% over the next forty-two weeks to meet the owners� projected average take per machine per day for the first year of operations. I have severe doubts that this will happen.
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