FEASIBILITY
The decision to invest millions of dollars in new or expanded developments is always a difficult one. For more than three decades clients (including Tribes, Commercial casino operators, State and City governments) have turned to Mr. Girvan for timely and accurate analyses of their projects. Rather than a simple yes/no decision we work to provide a solution that maximizes revenues and profitability by recommending sizing adjustments to best serve the market. If it does not work for the market we will not “force” the numbers-we are secure and confident in our analyses and therefore we believe it is a service to our clients to simply say “this does not work for this market” but "we think this does”. The range of feasibility studies are very broad and include such diverse topics as: integrated casino resorts, regional casinos, Tribal Gaming, hotels, theme parks, museum’s, aquatic centers, F&B outlets within larger developments, bowling alleys, sports fields, outlet malls, retail malls, and a buffalo herd!
STATEWIDE STUDIES
Many states (and tribes) are now assessing the potential of iGaming and Sports Betting. For a state the issues revolve around revenue generation for government coffers. To assess the impacts the state must first determine the likely revenue generated by the new gaming development, then the state must develop a tax rate that provides revenue to government but at the same time allows for the development of a healthy gaming industry. Critical to such analyses our assessment addresses proposed tax rates and the impact on state revenues and industry health making sure that proposed legislation will maximize revenues to government while providing sufficient incentive to private operators to aggressively develop the market. In addition we provide an assessment of the impact on existing forms of gaming thus determining the net impact on state revenues.
IGAMING
Many operators, State and City governments have embarked, or are planning too, on the development of iGaming. We have previously provided statewide iGaming projections for New Jersey, Michigan, Pennsylvania and New York. Our services range from revenue projection, actions that improve land based to online conversion, assistance in developing legislation and regulations, organizational structure, and collateral impacts (such as the impact on land based casino operations). Sports betting has spread rapidly across the US, while iGaming has remained confined to the 6 early adaptor states. The success of sports betting is expected to lead to a renewed interest in iGaming especially as this gaming modality offers much greater revenue potential to government while offering the potential to strengthen landbased operations through extension of the landbased brand online and into the homes of its customers. The limited data from the 6 existing states with iGaming suggests no significant negative impact on landbased casino revenues meaning that the large online casino market is revenue positrive for both established gaming operators and governments. PKC can provide bespoke analysis of the implications of legalizing iGaming for operators and local governments.
Tribal iGaming
For tribes the primary issue revolves around retaining soverignty and control. PKC offers Tribes the ability to connect with ‘white label’ providers in the UK and Europe thereby ensuring that the business remains primarily under the control of, and for the benefit of, tribes.
CITY IMPACTS
Perhaps one of the most consequential of decisions a jurisdiction can make is to invite casino development. While the benefits can be substantial in terms of jobs and economic development. However, costs and impacts will be incurred in areas such a required services, and there will be impacts on schools, housing, and on problem gambling. In addition there is the issue of site location to maximize community benefits while minimizing any negative impacts. Mr. Girvan has substantial experience in this area having worked with The City of Springfield on its Community Agreement with MGM. Mr Girvan also led a multi-disciplinary team reviewing locations and impacts for the City of Philadelphia. In addition, Mr. Girvan has worked on numerous casino proposals across the US and was involved in the early process for the downtown New Orleans casinos.
ECONOMIC IMPACT
Utilizing IMPLAN PKC can provide a detailed economic impact of various leisure and gaming developments. These analyses include construction impacts and ongoing impacts from operations including direct, indirect and induced impacts. Typically measured in spending in the local economy, job creation and salaries the analysis also provides an assessment of Government payments in the form of taxes and other fees. Clients have included major gaming companies and State and City governments. Importantly our three plus decades of experience allow us the ability to make the appropriate adjustments needed to provide an unassailable economic impact statement. PKC can rapidly develop either a detailed economic impact report or high level summary providing all the salient facts and figures in an easily disetible graphic format.
DUE DILIGENCE, Database Mapping AND location and Site ANALYSES
Clients also have reached out to PKC to conduct due diligence on various investments. Whether this is a review of a specific company, project or market we provide analysis by highly experienced professionals. PKC also provides casino site and location analysis and database mapping services.