AZDuffman
AZDuffman
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April 15th, 2011 at 8:26:33 AM permalink
http://www.businessweek.com/ap/financialnews/D9MJMO000.htm

Nemacolin Woodlands has gotten the last remaining PA casino license. This is a "resort" liscense per the article and it will be smaller than most of the other casinos in PA. For now looks to be slots-only with table games to come at a later date. My guess is they open slots-only fairly fast and then hire management to train dealers, something that should take about 6 months.

For th 98% of readers not local, Nemacolin is owned by Joe Hardy, founder of 84 Lumber of nearby Eighty-Four, PA (yes, that is the name of the town!) The Hardy Family is to Fayette County (home of Nemacolin) what the Ewing Family was to fictional Braddock County on the TV show "Dallas." Nemacolin Woodlands is a golf-resort/conference center in the mountains. This will make the resort a sort-of "Hotel-Casino" as unklike Vegas there is business for the resort even without the casino being there first.

It was not my choice since the location is very remote and access is, to be polite, terrible. One 2-lane road up and down some very steep mountains. Very dark at night, middle of nowhere. Several PGA Players skip it on the tour due to access being so difficutlt. There is a private air-strip on the property, nearest real commercial airport is PIT, 2+ hours away.

Anyone else familiar with the area care to add any points?
All animals are equal, but some are more equal than others
pacomartin
pacomartin
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April 15th, 2011 at 8:58:50 AM permalink
I did post this announcement yesterday. The law specifically indicated that the mini-licenses should be used to encourage people to stay in PA, to promote tourism rather than local traffic or day trips.

Frankly, I think that the board was simply to sensitive to complaints that the gaming policy was designed to drain money from working class PA people. No working class people will be anywhere near Nemocolin. The Gettysburg location is simply too sensitive, and the idea of putting another resort on the NJ border is risky. Mount Airy is not making any money, and if NJ puts a casino in the northern part of the state, then all of that money going to the Poconos is going to dry up.


The gamble may pay off. Future helicopters will go over 300 miles per hour, and allow convenient trips to these posh resorts from NYC. They may cater to some high rollers someday.



===========================
The 12th PA casino license was awarded today to Nemacolin Woodlands Resort in a remote area of Western PA about 60 miles from the Meadows racetrack. It has two golf courses, a spa with 100 treatments and a full-service salon, fitness center, tennis courts and six swimming pools. Rooms are between $300 and $800 per night. It's more or less the Pennsylvania equivalent of the Greenbriar.

Falling Rock is a tiny 42 room four suite resort on the grounds which holds a Forbes Five-Star, and AAA Five Diamonds.

pacomartin
pacomartin
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April 15th, 2011 at 9:13:56 AM permalink
It may be a reasonable gamble to select this resort. The table games are drying up in Atlantic City, so obviously the Borgata is not attracting the high rollers. Mt Airy is pulling in about $1200 per table day. Perhaps the East Coast needs a resort in an expensive destination.
Doc
Doc
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April 15th, 2011 at 11:51:55 AM permalink
Quote: AZDuffman

... nearby Eighty-Four, PA (yes, that is the name of the town!) ...


Reminds me of Ninety-Six, SC, sometimes just written "96". How many (real) towns are there with numeric names? And I'm not referring to those who claim, "We're #1" while looking more like #2.
pacomartin
pacomartin
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April 15th, 2011 at 5:21:06 PM permalink
Quote: Doc

Reminds me of Ninety-Six, SC, sometimes just written "96". How many (real) towns are there with numeric names? And I'm not referring to those who claim, "We're #1" while looking more like #2.


Seventy Six, and Eighty Eight Kentucky and Sixes, Oregon,


Intercourse, Pennsylvania (pop. roughly 1,558) is an unincorporated village in Leacock Township, Lancaster County in the U.S. state of Pennsylvania, ten miles east of Lancaster on PA 340. The movie Witness was filmed in Intercourse.

"Another theory concerns two famous roads that crossed here. The Old King's highway from Philadelphia to Pittsburgh (now the Old Philadelphia Pike) ran east and west through the center of the town. The road from Wilmington to Erie intersected in the middle. The joining of these two roads is claimed by some to be the basis for the town 'Cross Keys' or eventually 'Intercourse'. A final idea comes from the use of language during the early days of the Village. The word 'intercourse' was commonly used to describe the 'fellowship' and 'social interaction and support' shared in the community of faith, which was much a part of a rural village like this one."

If you fail to make it to Intercourse, you might end up in Blue Ball 50 miles away.
kenarman
kenarman
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April 15th, 2011 at 5:39:07 PM permalink
Quote: Doc

Reminds me of Ninety-Six, SC, sometimes just written "96". How many (real) towns are there with numeric names? And I'm not referring to those who claim, "We're #1" while looking more like #2.



The original gold rush trail to Barkerville has left several communities in British Columbia with names that actual have the numeric digits in their official name. 100 Mile House, 150 Mile House and 70 Mile House. 100 Mile House is the only one that is actually an incorporated village. Some of the other mile houses still exist but don't have a community around them.
Be careful when you follow the masses, the M is sometimes silent.
AZDuffman
AZDuffman
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April 17th, 2011 at 7:20:39 AM permalink
This will be of interest to locals who may be going when this opens. Over the weekend I got some more info on plans for the Nemacolin Casino.

First, it will not be in the hotel or main resort but rather a little ways down the road, Maryland direction. This will give it visibility.

Second, Nemacolin has no intention to run it themselves but have already made arrangements to rent the concession, I forget to whom.

Though the concession is rented Nemacolin has marketing plans. Word I got was they *will not* go the AC route and go after bus tours. They plan that table games will be the focus and are going after higher-rollers. No idea how this will affect minimums, etc. At only 600 slots and 50 table games it will be the smallest casino in the area. Maybe someone could put 600 slots/50 tables into prespective by mentioning what Vegas Property comes closest?
All animals are equal, but some are more equal than others
pacomartin
pacomartin
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April 17th, 2011 at 8:15:36 AM permalink
Quote: AZDuffman

Though the concession is rented Nemacolin has marketing plans. Word I got was they *will not* go the AC route and go after bus tours. They plan that table games will be the focus and are going after higher-rollers. No idea how this will affect minimums, etc. At only 600 slots and 50 table games it will be the smallest casino in the area. Maybe someone could put 600 slots/50 tables into prespective by mentioning what Vegas Property comes closest?



Buses wouldn't do them any good, they are too far from population center, and Pittsburgh has the downtown casinos and the racetrack casino at The Meadows.

Wynn Encore has 95 tables and 780 slots. Casino Royale has 544 slots.

Possibly a better analogy would be Montbleau resort in south Lake Tahoe with 626 slots and 30 games + poker tables.

Montbleau's competition is:
Harvey's (& Harrah's) resort with 1648 slots, 134 table games, and 46 poker tables.
Lakeside Inn 339 slots, 12 games & poker tables
Horizon Casino 200 slots, no tables.

The four Lake Tahoe resorts make $210 million in slot revenue (2751 machines), and $57.3 million in table games and poker (not counting race & sports). Total is 168 games & 22 poker tables.

But for western PA, table games monthly average $2.4m for Meadows racetrack (60 miles away) and slots are $22m per month. Obviously no one will travel an extra 60 miles for slots, but possibly a few people will come that far for tables if it's a nicer venue.
AZDuffman
AZDuffman
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April 17th, 2011 at 8:47:23 AM permalink
Quote: pacomartin


But for western PA, table games monthly average $2.4m for Meadows racetrack (60 miles away) and slots are $22m per month. Obviously no one will travel an extra 60 miles for slots, but possibly a few people will come that far for tables if it's a nicer venue.



I agree they will not drain much form Rivers/Meadows. But I think there are plenty of folks in Fayette Coiunty and Northwest Maryland who would drop by. It never ceases to amaze me how much we tend to underestimate the population and wealth of such rural areas.
All animals are equal, but some are more equal than others
pacomartin
pacomartin
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April 17th, 2011 at 9:09:29 AM permalink
Quote: AZDuffman

I agree they will not drain much form Rivers/Meadows. But I think there are plenty of folks in Fayette Coiunty and Northwest Maryland who would drop by. It never ceases to amaze me how much we tend to underestimate the population and wealth of such rural areas.



Elko County in northeastern Nevada makes $258 million in gaming revenue. They have probably a third of the population of Fayette county in PA, but they draw in tourism from Salt Lake city and Twin Falls Idaho.

Looking at the Atlantic City Revenue more closely, it seems they went from increasing their revenue by $200m a year to losing $300m (slots only) in 2007 when they got competition with the slot clubs attached to the Philadelphia area racetracks. That was before the recession. When the recession hit, the combination of the fiscal situation and the competition meant that they started losing $400m to $600m a year.

Pennsylvania could get slammed if New Jersey changes there mind , and begins building slot clubs in their population centers. The new slot club at in Queen's New York might suck up a huge part of the business.

I think they were smart trying to add a high end resort to the mix. I agree that it was a smarter decision than the Valley Forge, Harrisburg, or a 3rd Poconos location.

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