Area casinos see profit down as 6 vie for permit

Just as hearings are about to begin on the six applicants vying for the city's second casino license, SugarHouse finished just eighth out of 11 statewide venues last month in gross slots revenue, generating $14.7 million.

It was the same amount the casino reported in November 2011, according to figures released Tuesday by the Pennsylvania Gaming Control Board.

Parx in Bensalem, the state's top-grossing casino, made $29.9 million, down just modestly from a year ago, while Harrah's Philadelphia in Chester also had a revenue decline of 2.71 percent, and generated $20.4 million last month.

The declines underscore what some gaming analysts have been saying for a while: The Philadelphia market, with four casinos within a 25-mile radius, is saturated.

Valley Forge Casino Resort, the fourth and smallest of the Philadelphia-area casinos and opened in March, ranked last in gross slots revenue, at $4.3 million, in November.

"We believe the Philadelphia gaming market has reached a point of saturation and any new gaming . . . will likely take share from existing operators," said Dennis M. Farrell Jr., managing director at Wells Fargo Securities L.L.C. "A new destination casino in Philadelphia offering more non-gaming amenities, such as a hotel and retail, could meaningfully cannibalize both SugarHouse and Harrah's Philadelphia."

SugarHouse has been the city's only casino since opening Sept. 23, 2010.

Six groups emerged last month seeking the city's second and final gaming license. They are casino mogul Steve Wynn; local developer Bart Blatstein; a partnership between Greenwood Gaming and Entertainment Inc. (owner of Parx) and Baltimore-based Cordish Cos.; Penn National Gaming Inc.; Market East Associates L.P., which includes Valley Forge casino majority owner Ira Lubert; and PHL Local Gaming L.L.C., with local businessman Joseph G. Procacci.

The state's 11 gambling halls combined made $192.5 million in November - up .34 percent from a year ago. Sands Casino Resort Bethlehem and Rivers in Pittsburgh rounded out the top three, generating $23.2 million and $23.1 million, respectively.