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Past Projects

Public Domain Feasibility Studies - Casino, Racino/VLT Projects

Project Type: VLT Consulting

Client: The Kansas Lottery

Time Period: Spring 2004, 2006 and 2008

Role: CCA provided the Kansas Lottery with a series of studies evaluating the impacts of expanded gaming. CCA provided revenue projections for multiple scenarios of VLT gaming including recommendations for the best locations in the State to site gaming facilities vis-à-vis maximizing receipts to the State of Kansas.

Status: 2004/2005/2006/2008 reports: completed.

 

Christiansen Capital Advisors was the successful bidder of Kansas Lottery RFP No. 06694. The underlying project and subsequent updates included the following analyses:

  • Evaluate whether the expansion of gaming in the State of Kansas was economically feasible;
  • If expansion of gaming in Kansas was deemed feasible, determine what type(s) of gaming might be considered;
  • Evaluate in economic terms the impact of various gaming venue(s) scenarios;
  • Evaluate and made recommendations as to which city/cities and/or area(s) of the State expanded gaming should be located, and what level of gaming activity each market could bear. Particular emphasis was given to the type of facility gaming being considered (e.g., stand-alone casinos, existing pari-mutuel facilities, existing Kansas Lottery retailer outlets, etc.), the expected impact on other gaming venues in the vicinity of each, and the expected impact of other leisure and entertainment developments in the vicinity of each.

CCA assisted the State of New Jersey in two separate engagements evaluating the feasibility of authorizing VLT gaming devices at the Meadowland in northern New Jersey. This proposal has been controversial and to date remains unresolved. Below is a summary of CCA’s participation in exploring the possibility of authorizing VLT gaming devices outside Atlantic City.

Project Type: VLT Consulting

Client: State of New Jersey, Office of Treasurer with Merrill Lynch & Co. and the Jersey Casino Reinvestment Development Authority

Time Period: 2005

Role: CCA worked with the State of New Jersey, the New Jersey Casino Reinvestment Development Authority and Merrill Lynch & Co. to evaluate the potential market, revenues and impacts on Atlantic City casinos of authorizing a Video Lottery Terminal (“VTL”) facility at The Meadowlands in northern New Jersey.

 

The objective of this project was to explore options that might increase resources for programs supported by the New Jersey State Lottery via the installation of player gaming terminals (“VLT devices”) at The Meadowlands. The rationale for authorizing gaming devices outside Atlantic City was to capture lost New Jersey consumer spending on gaming to newly authorized facilities in New York and Pennsylvania.

 

CCA submitted a White Paper to the Office of the Treasurer - “A Market and Potential Revenue Analysis of a Video Lottery Terminal Facility at The Meadowlands and Review of Potential Impacts on the Atlantic City Gaming Industry”. March 2005.

Project Type: VLT and Pari-Mutuel Consulting

Client: State of New Jersey, Office of Treasurer

Time Period: 2007

Role: CCA was awarded RFQ – “Video Lottery Terminal (“VLT”) Market Feasibility Consultant Services” for the Office of Treasurer issue in March 2007.

Status: Completed

 

CCA provided the Office of the Treasurer with a review, assessment, and analysis of the complex interrelationship between declining pari-mutuel racing (and purses) in New Jersey along with new casino competition from New York and Pennsylvania on Atlantic City casinos. CCA again evaluated the prospect of VLTs at the Meadowlands and how such newly authorized devices might mitigate the exporting of consumer gaming dollars to its neighbors while revitalizing harness racing in New Jersey by increasing purses to the horsemen via the distribution of VLT payouts. CCA submitted to the Treasurer a report entitled “VLT Feasibility Consultant Analysis and Report” in June, 2007.

Project Type: Casino Consulting

Client: Forest City/Harrah’s

Time Period: 2007

Role: Provide an independent assessment of the revenue potential and economic impact of a Category II stand-alone slot machine facility located in Pittsburgh, Pennsylvania.

Status: Completed

 

CCA provided Forest City Enterprise (with Harrah’s) with a demand analysis (and economic impact study) for a proposed Category II facility located in Pittsburgh, Pennsylvania. “The Revenue Potential of a Category 2 Slot Machine Facility in Pittsburgh, Pennsylvania”

Proprietary Feasibility Studies – Casino, Racino/VLT Projects

Project Type: Casino Consulting

Client: Isle of Capri Casinos, Inc

Time Period: April, 2009

Role: CCA was retained by Isle of Capri Casinos Inc. – Pompano Park,to provide Isle of Capri with estimates of the revenue potential of expanded gaming in Broward and Miami-Dade counties.

Status: Completed

 

CCA was asked to provide Isle of Capri with an update of a September 2007 memorandum delineating the estimated revenue potential of expanded gaming in Florida prepared for Mardi-Gras Gaming. This report updated and expanded upon that memorandum and provided three-year projections (FY 2010, FY 2011, and FY 2012) of the revenue that would be generated from slot machines and blackjack games at pari-mutuel facilities in Broward and Miami-Dade counties, assuming Florida Senate Bill 788 or similar legislation become law during the legislative session.

Project Type: Casino (Riverboat) Consulting

Client: CPG Gaming, LLC

Time Period: Fall 2008

Role: CCA provided CPG Gaming with two studies in support of an application for a 10th Illinois riverboat license to be located in Country Club Hills. These studies included a market assessment/demand analysis as well as an economic impact analysis on Cook County, Illinois relating to the proposed gaming facility and an associated mall/hotel and leisure complex.

Status: Completed

 

CCA provided CPG Gaming with an impact analysis – “Supply and Demand for Gaming in the Chicago Market: An Evaluation of the Revenue Potential and Impact on the Chicago Gaming Market of a Casino in Country Clubs Hills”. This report included an overview of the current Chicago gaming market, measures of market saturation, and estimates for demand for casino gaming in the Country Club Hills area along with the effect on the overall Chicago gaming market of locating a 10th license at Country Club Hills.

Project Type: Casino Consulting

Client: Revel Entertainment Group, LLC

Time Period: 2006 and 2007

Role: CCA performed a demand and impact analysis and subsequent revised analysis of the Atlantic City casino market focusing on the impact that one or more major resort casino complexes constructed on the Atlantic City/Bader Field Airport property might have on the business operations and financial results of the existing Atlantic City casinos.

Status: Completed

 

The possibility of allowing a resort casino/leisure facility(s) to be constructed on the Bader Field property has been controversial. The Bader Field property is positioned at an “intercept” location vis-à-vis all other Atlantic City casinos and, as such, any new Bader development would place all other Atlantic City casinos at a competitive disadvantage. CCA undertook a demand analysis for Revel Entertainment Group in order to quantify the impact of such an eventuality.

Project Type: VLT Consulting

Client: Churchill Downs, Inc.

Time Period: 2006

Role: An analysis of the feasibility and pro forma revenues and statutory expenses of slot machine gaming at Beulah Park and Scioto Downs.

Status: Completed

 

Ohio has considered authorizing some form of casino gambling for the last several years primarily to recapture lost consumer spending now being exported to its neighbors: Michigan, Indiana, West Virginia, and Pennsylvania. Within this context, CDI asked CCA to evaluate the feasibility of racino gaming at Beulah Park and Scioto Downs. CCA undertook this analysis under two scenarios:

  • In Scenario One CCA assumed that Beulah Park and Scioto Downs would be allocated 2,500 slot machines each. CCA also assumed that the other currently licensed Ohio pari-mutuel facilities, Lebanon Downs, Thistle Downs, River Downs, Northfield Park, and Raceway Park, would also open slot machine gaming facilities at approximately the same time.
  • In Scenario Two CCA assumed that only one slot machine gaming facility, with 5,000 slot machines, would be opened at Scioto Downs (i.e., that no slot machines would be installed at Beulah Park). CCA also assumed that, excluding Beulah Park, the other currently licensed Ohio pari-mutuel facilities, Lebanon Downs, Thistle Downs, River Downs, Northfield Park, and Raceway Park, would also open slot machine gaming facilities at approximately the same time.

Project Type: Casino Consulting

Client: Wimar Tahoe Corporation d/b/a Columbia Entertainment

Time Period: December, 2006

Role: Provide Columbia Entertainment with an independent third party analysis and market feasibility study assessing the revenue potential of slot machine gaming at a Category II facility in Allentown, Pennsylvania.

Status: Completed

 

CCA provided Wimar Tahoe Corp with a demand analysis for a Category II license application for a proposed facility in Allentown, Pennsylvania.

Project Type: Casino Consulting

Client: Silver Point Capital

Time Period: 2006

Role: Performed an independent third party analysis and market feasibility study assessing the revenue potential of slot machine gaming at a Category II facility in Gettysburg, Pennsylvania

Status: Completed

 

Christiansen Capital Advisors, LLC provided an independent assessment of the revenue potential of a proposed Category II stand-alone slot machine facility to be located in Gettysburg, Pennsylvania in support of Silver Point Capital’s license proposal.

Project Type: Casino Consulting

Client: Magna Entertainment Corp

Time Period: 2005

Role: An analysis of the feasibility and pro forma revenues and statutory expenses of a new type of Class II machine to be located at Remington Park, Oklahoma.

Status: Completed

 

CCA was asked by Magna to provide an independent assessment of the revenue potential of machine gaming at Remington Park. The Remington Park Study included an analysis of consumer spending on existing gambling available to Oklahoma residents and correlated this baseline with spending on gambling in a variety of comparable markets.

Project Type: Casino Consulting

Client: Magna Entertainment Corp

Time Period: December, 2004

Role: Performed an analysis of the feasibility and pro forma revenues and statutory expenses including the economic impact of slot machine gaming at a Category II facility located at The Meadows in Pennsylvania. (See Economic Impact Studies)

Status: Completed

 

CCA provided Magna with an independent assessment of the revenue potential of slot machine gaming at The Meadows Racetrack in the Pittsburgh area. CCA evaluated the demand for slots in that market under several competitive scenarios. In an un-competed market, CCA estimated the Meadows would generate $321 million gross gaming revenues annually and in a stabilized-competed market the facility win approximately $238 million annually, equivalent to $283 per machine per day. In the 2nd year of operations (FY 2007-2008), the Meadows recorded gross gaming revenue of $231.2 million.

Project Type: Casino Consulting

Client: Delaware North Companies, Inc.

Time Period: October, 2004

Role: An assessment of the revenue potential and feasibility of a slot gaming facility in Philadelphia, Pennsylvania

Status: Completed

 

CCA’s analysis included estimates of pro forma revenue for gaming devices at a Category II facility in Philadelphia. This analysis included:

  • An assessment of demand in the market for slot machine operations in Philadelphia;
  • A review of the market demographics including population and per capita income;
  • A review of possible demand constraints on the machine business; including types of games allowed, and payouts;
  • A review of the experience and performance of other slot machine operations in other comparable markets;
  • An assessment of existing and potential future competition in the market and the anticipated timing of such developments as well as estimated projections for revenues and statutory expenses.

Project Type: Casino Consulting

Client: Harrah’s Entertainment, Inc

Time Period: 2004

Role: An analysis of gaming supply and demand in the Chicago market and the relative impacts on this market of a casino in Rosemont or Waukegan.

Status: Completed

 

CCA provided Harrah’s with an analysis of gaming supply and demand in the Chicago market and the relative impacts of a casino in Rosemont or Waukegan. As part of this analysis, CCA modeled the Chicagoland market and prepared demand estimates for casino gaming and associated revenue at potential locations (Rosemont and Waukegan) using assumptions developed in consultation with Harrah’s.

Project Type: Casino Consulting

Client: Boyd Gaming

Time Period: 2001

Role: In support of the financing efforts of Boyd Gaming Corporation, CCA performed a market analysis and feasibility of the hotel at The Borgata, Atlantic City, New Jersey

Status: Completed

 

CCA developed for Boyd Gaming an assessment of the casino rooms market in Atlantic City, focusing on the absorption of the Borgata's two thousand incremental rooms, the likely resulting occupancy percentage, room rate achievable initially and in a stabilized year, and an assessment of how the market might be impacted in the future.

 

Additionally, CCA provided an assessment of the observed impacts of up-scale accommodations, mixed retail, name-brand food and beverage, and broadening the consumer gaming franchise include entertainment in this market.

Tribal Gaming and Related Engagements

Project Type: State/Tribal Casino Consulting

Client: State of Florida

Time Period: 2009

Role: CCA provided consulting services to The Florida House of Representatives regarding the proposed gaming compact between the Seminole Tribe of Florida and the State of Florida

Status: Completed

 

This project included:

  • A review, analysis and assessment of the proposed gaming compact;
  • Detailed analysis of the financial aspect of the proposed gaming compact;
  • Recommendations as to what financial or economic provisions should be included in a gaming compact between the Seminole Tribe and the State;
  • Provide testimony and advice to the Legislature.

Project Type: Tribal Gaming Consulting

Client: Cherokee Nation Enterprises

Time Period: 2000-2003

Role: From 2000 through 2003, CCA provide Cherokee Nation Enterprises (“CNE”) with a series of impact studies and advice with respect to gaming projects under consideration by CNE . After 2003, CNE opted to conduct its own in-house analyses.

Status: Completed

 

Included below are the major studies undertaken by CCA on behalf of CNE:

  • In 2000, CCA conducted a preliminary assessment of the market demand and potential revenues for gaming devices incorporating elements of skill in and around four Oklahoma metropolitan areas;
  • At CNE’s request, CCA provided CNE with an assessment of the value of Will Rogers Downs, assuming a range of gaming options CNE might employ if it were to purchase this racetrack (without offering an opinion as to the current regulatory constraints associated with such options). These options included: card rooms, expanded gaming devices, auto racing, Internet betting, digital television, and an entertainment option.
  • CCA provided CNE with additional advise and counsel concerning gaming developments in Oklahoma;
  • CCA conducted a 2003 update of its original Oklahoma market study as specified by CNE.

Project Type: Tribal Gaming Consulting

Client: Cherokee Nation Enterprises

Time Period: 2000-2003

Role: From 2000 through 2003, CCA provide Cherokee Nation Enterprises (“CNE”) with a series of impact studies and advice with respect to gaming projects under consideration by CNE . After 2003, CNE opted to conduct its own in-house analyses.

Status: Completed

 

Included below are the major studies undertaken by CCA on behalf of CNE:

  • In 2000, CCA conducted a preliminary assessment of the market demand and potential revenues for gaming devices incorporating elements of skill in and around four Oklahoma metropolitan areas;
  • At CNE’s request, CCA provided CNE with an assessment of the value of Will Rogers Downs, assuming a range of gaming options CNE might employ if it were to purchase this racetrack (without offering an opinion as to the current regulatory constraints associated with such options). These options included: card rooms, expanded gaming devices, auto racing, Internet betting, digital television, and an entertainment option.
  • CCA provided CNE with additional advise and counsel concerning gaming developments in Oklahoma;
  • CCA conducted a 2003 update of its original Oklahoma market study as specified by CNE.

Project Type: Casino Consulting

Client: ASA Stone Creek and the Morongo Band of Mission Indians

Time Period: 2001

Role: For ASA Stone Creek and the Morongo Band of Mission Indians, a detailed feasibility analysis and project plan for the redevelopment of Casino Morongo in light of regulatory changes within the State of California.

Status: Completed

 

CCA undertook an extensive study for ASI Stone Creek and the Morongo Tribe assessing the market demand and potential revenues for an expanded Casino Morongo. This project included:

  • An assessment of the market demand for casino gaming at a proposed expanded Morongo facility;
  • Advice and counsel on alternative plans for the casino’s development that could boost the properties position in the market;
  • Feasibility and assistance with the business plan for the project;
  • Assistance with the master project plan.

CCA Early Studies on Casino Gambling

 

1997 – “The Current and Prospective Market for Casino Gambling in Phoenix” Prepared for the race tracks of Phoenix, Arizona: Turf Paradise and Phoenix Greyhound Park to assess the existing and potential markets for casino gaming in the greater Phoenix metropolitan area.

 

1996 – “Assessment of the Proposed Casino Venture at the Port of Miami” Prepared for Mansur & Company to assess the existing and potential markets for a cruise-to-nowhere ship to be berthed at the Port of Miami focusing on the pro forma financial projections.

 

1996 – “Southeastern Iowa Casino Market Analysis” Prepared for Iowa Racing and Gaming Commission to assess the existing and potential markets for casino gaming in Southeast Iowa.

 

1995 – “Iowa Statewide Casino Market Analysis”. Prepared for the Iowa Racing and Gaming Commission to assess the existing and potential markets for casino gaming in Iowa as a whole.

 

1995 – “Supply, Demand and the Merger of Gaming & Entertainment Companies”. By Eugene Martin Christiansen and Julie Brinkerhoff-Jacobs. Prepared for the World Gaming Congress & Expo, Las Vegas, Nevada, October, 1995.

 

1995 – “A Tale of Two Cities: Destinations, Entertainment and the Hospitality Industry". By Eugene Martin Christiansen. Presentation prepared for the The Real Estate Institute 17th Annual International Hospitality Industry Investment Conference.

 

1995 – “Potential Casino Gaming Win (Revenues) from the Markets of Central Iowa. Prepared for the Iowa Racing and Gaming Commission to assess the potential market for casino gaming in Central Iowa.

 

1995 – “Undiscovered Country: Interactive Gambling on Planes, Train, and in Your Home. By Eugene Martin Christiansen, Presented to the AIC Interactive Gaming and Wagering Conference, Las Vegas, Nevada.

 

1994 – “Casinos and Vancouver” by Eugene Martin Christiansen. Presentation prepared for the Policy Forum on Casino Gambling, Vancouver Board of Trade, Community Affairs Committee.

 

1994 – “Gaming and Commercial Entertainment: An Inquiry Into Their Respective Natures and the Prospect For Their Marriage” by Eugene martin Christiansen and Julie Brinkerhoff-Jacobs. Presentation to the Institute for the Study of Gambling and Commercial Gaming, Ninth International Conference on Gaming and Risk Taking, Las Vegas, Nevada.

 

1990 – “Casino Gaming, New Racetracks, Off-Track Betting and Inter-Track Wagering, Teletheaters, Greyhound Racing, Sports Betting, Lotteries and Wagering Statistics – Recent CCA Articles by Eugene Martin Christiansen and Will E. Cummings. Articles and gambling statistics by Christiansen and Cummings 1986-1990.

Public Domain Economic Impact Studies

Project Type: Economic Impact Analysis

Client: Town of West Warwick, Rhode Island

Time Period: 2001, 2004, 2006

Role: CCA conducted a series of studies for the Town of West Warwick, Rhode Island evaluating the revenue potential and impacts of a resort casino.

Status: Completed

 

In Phase I, CCA reviewed the economic impacts on the Town, excluding the issue of taxes in lieu of tax payments or other town projected revenues. CCA focused on the impacts to citizens of the Town both as residents and employees. This review included:

  • An analysis of potential gambling revenue, visitation, and likely community impacts of the proposed facility;
  • The estimated net impacts on restaurants and retail in the downtown area;
  • An assessment of the net effects of increased visitation to the Town;
  • An estimate of the direct and indirect impacts on The Town during the construction phase of the casino development;
  • An estimate of the direct and indirect impacts of the casino resort;
  • An assessment of the impacts of the purchase of goods and services by the casino resort and an estimate of how much of that spending may be directed toward local vendors;
  • CCA provided the town with estimates of the cost of increased public services, including transportation and other municipal infrastructure (e.g. water and sewer), law enforcement, emergency medical services, and fire protection.

In Phase II, CCA utilized its industry experience, knowledge, and the findings derived from the work conducted above to provide the Town with strategic advice and assistance in securing the best revenue sharing agreement between representatives of the proposed casino, the State of Rhode Island, and the Town of West Warwick. This included:

  • Consultation on the magnitude of the proposed revenue sharing formula(s) for the Town derived from CCA’s estimates of gambling revenues associated with the proposed facility.
  • Information on other local revenue sharing arrangements for similar developments in other jurisdictions, in both percentage and absolute terms.
  • Negotiation support and strategic advice with respect to securing a revenue sharing agreement between the Town, the Tribe, and the State.
  • Revised economic impact analysis.

Proprietary Economic Impact Studies

Project Type: Economic Impact Analysis

Client: CPG Gaming, LLC

Time Period: Fall 2008

Role: CCA provided CPG Gaming with an economic impact analysis in support of a 10th riverboat license to be located in Country Club Hills, Illinois. This study, as well as an associated market assessment / demand analysis were related to the proposed gaming facility and an associated mall/hotel and leisure complex in Country Club Hills Illinois (Chicago market).

Status: Completed

 

CCA preformed an economic impact analysis in support of CPG Gaming’s application: “The Economic Impact of a New Gaming Facility Located In The Country Club Hills Sections of Chicago, Illinois”. The economic impact report included direct, indirect and induced impacts on employment and wages of a newly constructed and operating casino as well as well as a newly constructed and operating adjoining shopping mall complex. The economic impact study also evaluated the fiscal impacts of a casino generating additional gambling privilege taxes for the State of Illinois.

Project Type: Economic Impact Analysis - Casino Consulting

Contact: David Satz

Time Period: 2007

Role: Provide an economic impact of a Category II stand-alone slot machine facility located in Pittsburgh, Pennsylvania.

Status: Completed

 

CCA provided Harrah’s with an economic impact analysis on the Pittsburgh, Pennsylvania area in support of a Category II license application before the Pennsylvania Gaming Control Board. CCA also provided Harrah’s with demand estimate for the proposed facility.

Project Type: Economic Impact Analysis

Client: Magna Entertainment

Time Period: 2004

Role: CCA provided Magna Entertainment Corp. with a market study and a statement of economic impacts with respect to the proposed “Gaming Revenue Act of 2004”, which would authorize slot machines at California racetracks and cardrooms participating in the initiative. This study evaluated the long term economic consequences to California of restricting gaming development on Indian land (where it is forever off California tax rolls and beyond the reach of California environmental and zoning authority) and considered the arguments for allowing non-tribal California localities to participate in gaming development.

Status: Completed

 

CCA’s analysis included:

  • The benefits to California localities of allowing gaming development on non-Indian land where it is subject to taxation by the State of California and its local governments, subject to State and local environmental laws, subject to local zoning laws, and accountable for the public sector infrastructure costs resulting from any development, viz., parking, traffic, road and other transportation network, water, sewage, police, fire, environmental impact and similar development-related public sector costs;
  • An independent assessment of overall demand in the market for gaming at the participating card rooms and racetracks in California;
  • A review of the experience, performance and distance-adjusted per capita spending at racinos and comparable gaming facilities in other comparable markets;
  • An Economic Impact Statement – CCA reviewed, tested, and analyzed the direct economic impacts of the proposed legislation, focusing on the long term economic consequences to the State of California of restricting gaming development to Indian land.
  • An evaluation of the direct impacts to State and local governments and local economies and industries;
  • A detailed statement of direct, indirect and induced regional and statewide economic impacts utilizing CCA's proprietary input/output model, IMPLAN models, and CCA’s detailed knowledge of casino, racino and racetrack economics.

Additionally, CCA prepared a detailed assessment of the likely future for horse racing in California in the absence of machine gaming. This analysis included:

  • A detailed statistical review of escalating purse structures in jurisdictions with gaming machines;
  • A description of the increasing importance of export simulcasting to the survival of racetracks today;
  • A commentary on the trend of increasing supply of gaming devices at racetracks, its impact upon purse structures, the ability to attract quality horses, and what it means for pari-mutuel racing in California.

Project Type: Economic Impact Analysis

Client: Boyd Gaming

Time Period: 2005

Role: Economic Impact Analysis, Limerick Township, Pennsylvania

Status: Completed

 

CCA performed an economic impact and market feasibility study including estimates of the pro forma revenue potential and statuary expenses of slot machine gaming at a Category II facility in Limerick Township, Pennsylvania.

Project Type: Economic Impact Analysis

Client: Magna Entertainment Corp

Time Period: December, 2004

Role: CCA performed an economic impact analysis (as well as an analysis of the feasibility and pro forma revenues and statutory expenses) in support of a Category I facility located at The Meadows Racetrack in North Strabane Township.

Status: Completed

 

Pursuant to State requirements in applying for a Category 1 slot machine facility license, CCA was asked by Magna Entertainment Corporation to provide an independent assessment of the economic impact of a proposed Category I slot machine facility at The Meadows in North Strabane Township, Pennsylvania.

 

CCA’s Economic Impact Report included the following:

  • An analysis providing an indication of how much Pennsylvania personal income was flowing to gaming facilities in other States (export spending);
  • Community impacts including local vs. export spending, direct substitution effect, direct destination effect, and costs to local governments of increased visitation due to the addition of the racino facility;
  • The economic impacts including both county and state direct, indirect, and induced wage and employment impacts, State fiscal impacts, and aggregate impacts.

Selected Lottery Consulting Engagements

Project Type: Lottery Consulting

Client: State of Illinois

Time Period: 2010

Role: Consulting services for the State of Illinois and the Illinois Lottery

Status: Ongoing

 

CCA is part of a team to provide the State of Illinois and the Illinois Lottery with advisory and consulting services to assist in evaluating and securing a private manager to manage the day-to-day operations of the lottery in order to make the business more efficient, nimble and responsive to market needs and changes. The selection of a lottery private manager or management entity is strategically important to the State of Illinois, as the expected increase in lottery revenues will fund much needed statewide capital improvements.

 

The team is currently providing consulting services relating to the proper structure of the management relationships, assisting in drafting a request for proposal, developing selection criteria and tools and assisting in the valuation of offers and support in contract negotiations.

 

The tasks associated with this ongoing project include:

  • Initial Review of the Lottery Industry and Economic and Non-Economic Factors Impacting the Transaction. The Team is currently conducting a review and assessment of all relevant factors, including issues facing the lottery industry in general and the Illinois Lottery in particular, as well as economic and non-economic factors impacting the value and structuring of the proposed transaction, in support of a management agreement and performance expectations that will best serve the Illinois Lottery and extract the maximum value for the State of Illinois;
  • Development of the Request for Proposal (RFP) to include development of key aspects of the RFP including probity requirements, technical requirements, staffing specifications, and financial and business terms, reviewing RFP language for technical accuracy, incorporating revisions, and developing supporting documentation, developing evaluation criteria, valuation models, scoring methodologies and supporting documentation and tools.
  • Procurement & Selection Process
    • Including the preparation and conducting of pre-proposal conferences, briefings or meetings, as directed by the Lottery, including the development of presentations and supporting documentation, compilation and analysis of questions received, and assistance in the development and preparation of written responses.
    • Reviewing proposals submitted in response to the RFP and verifying and confirming information provided by Offerors.
    • Providing background, performance or historical information on any features proposed by an Offeror.
    • Preparing reports, summarizing findings, and analyzing proposals, including valuation of competing business plans and revenue growth projections.
    • Accompanying and assisting the Lottery in preparation for vendor presentations or site visits throughout the procurement process.
    • Assisting in the evaluation process and attending any meetings scheduled by the Evaluation Committee(s).
    • Providing factual testimony, if necessary, at the request of the Lottery, pertaining to work preformed, technical requirements and evaluation and selection criteria, among other things.
    • Consulting with and assisting the Lottery in the defense or investigation of any protest, claim, suit, or action filed relating to the RFP and the resulting Contract.
  • Negotiation, Contracting and Implementation. The Team will be providing strategic, financial, technical and transactional advice, as needed, during the contract negotiations and implementation of the management agreement.

Project Type: Lottery Study Including Privatization

Client: District of Columbia - Independent Lottery Research and Consultant Services.

Time Period: 2009

Role: Consulting and research into optimization of the District of Columbia’s Lottery

Status: Completed

 

CCA was the winning response to RFP CFROPD-08-R-003 “Consulting Services – Lottery Privatization”. The tasks associated with this RFP include an in-depth analysis of the value of the District’s lottery system and an evaluation of the benefits, if any, as well as the issues associated with privatizing its lottery system.

 

The tasks associated with this project included:

Lottery Analysis

  • Review and analyze the District’s current lottery system and advise the District of any inherent risks such as competitive and market pressures that may contribute to declining lottery revenues in the future;
  • Analyze and quantify if there are any substantial untapped revenues or unrealized value in the District’s current lottery system;
  • Advise the District of potential strategies for unlocking the unrealized value of the lottery system, including advantages/disadvantages of each strategy and associated potential economic benefits;

Valuation Context

The valuation study assesses the current social and regulatory environment in the U.S. in general and specifically, in the District of Columbia, providing advice to the District on any issues that may adversely affect complete or partial privatization of the lottery system. Additionally, the study provides a comprehensive valuation and feasibility report to the District regarding monetization/privatization of the lottery.

Project Type: Lottery Consulting

Client: La Francaise Des Jeux (“LFDJ”)

Time Period: 2009

Role: CCA provided LFDJ with an independent third party overview of the US lottery market and its dynamics and the potential for outsourcing of lottery operations.

Status: Completed

CCA’s review included:

  • The estimated market size and growth potential by major game type and a description of primary distribution channels for lottery products, the estimated consumer base for lottery products and consumption per capita, and key factors that explain that growth, or lack thereof going forward;
  • A description of lottery regulation in the US, including: the relationship with State administrations, the level of contribution to public funding, a review of the status of Internet lottery programs in various States, an evaluation and review of the ratio of lottery sales to prizes in various States, and a review of the consistency of regulation among the various State lotteries.

Project Type: Lottery Study including VLT Analysis

Client: Indiana Lottery - Independent Lottery Research and Consultant Services.

Time Period: 2008

Role: CCA was awarded a “Professional/Personal Services Agreement” with the State of Indiana in 2008. The tasks associated with this project focused on identifying enhancing measures with respect to the operation of the Lottery.

Status: Completed

 

This project, in part, included:

  • An analysis of the current and historical performance of the Hoosier Lottery and its product portfolio compared to other forms of gambling within Indiana and to other State lotteries;
  • Evaluating new lottery games or products that might be added to the Lottery’s offering; including Hot Lotto™, a $50 instant ticket, add-on games, and the bundling of Hoosier Lottery products;
  • Evaluating and recommendations toward new sales and marketing strategies for the Hoosier Lottery;
  • Reviewing the current retailer network, including identification of regions of the State that would benefit from additional retail penetration, and an analysis of new ITVM machines available from vendors and their placement.
  • Review and analysis of the Lottery’s existing on-line ticket system with recommendations for new software and equipment;
  • A review and analysis of the Hoosier Lottery’s existing vendor contracts (which are up for rebid in 2009) as well vendor contracts in other States.
  • Recommendations for increased revenue efficiency; including paring Lottery administrative costs and recommendations for inclusion in the Request for Proposals in the Hoosier Lottery’s upcoming re-bid of its vendor contracts.
  • Base Case and Upside pro forma projections for a period of 10 years for each recommendation in made the final report.

Project Type: Lottery Study including VLT Analysis

Client: The State of Illinois—subcontractor to Scott Balice Strategies, LLC

Time Period: 2007

Role: Consulting and research into the performance of, likely prospects for, and ways to improve the operation of the Illinois Lottery, including the evaluation of VLTs.

Status: Completed March 2007.

 

CCA’s analysis of the Illinois Lottery included:

An analysis of the current and historical performance of the Illinois Lottery compared to other forms of gambling within Illinois and to other State lotteries. The analysis includes:

  • Payout Ratios,
  • New Game Innovation,
  • Retail Relationships,
  • Advertising Effectiveness,
  • Sales, Operating Expenses, and Government Revenues.

 

CCA further provided a business review and description of the Illinois Lottery highlighting those areas for additional penetration, operational improvements, revenue maximization and margin expansion. The analysis also included a qualitative review of the last three years’ historical financial performance and key drivers of this performance.

 

Finally, based upon the foregoing analysis, CCA developed pro forma financial projections for the Illinois Lottery for a period of ten years. CCA developed three sets of projections including a base case, a moderate case with the assumption of slight operational improvements, and an upside case including the potential of newly incorporated or authorized games.

Project Type: Lottery Study including VLT Analysis

Client: The Massachusetts Lottery - Independent Lottery Research and Consultant Services.

Time Period: 2006

Role: CCA was the winning response to “RFP #LOT 526 - Independent Lottery Research and Consultant Services”. The tasks associated with this RFP required an evaluation and recommendations into the optimization of the Massachusetts Lottery including the evaluation of VLTs.

Status: Completed January 2006

 

This project, in part, included:

  • An analysis of the MSLC’s current gaming product portfolio compared to other State lotteries identifying weaknesses and strengths in its offerings;
  • An assessment and recommendations of potential new lottery products with estimates of changes in MSLC revenues associated with the introduction of new lottery products including a cost-benefit analysis of all recommended scenarios,
  • A review and analysis of the introduction of a second monitor game, to complement the current MSLC Keno monitor game. Focus was on the Daily Race Game, but included a discussion of other monitor games available in the marketplace as well as estimated potential revenues and the effect, if any, these games would have on other gaming venues within Massachusetts, particularly the racing industry;
  • An evaluation of the introduction of electronic instant tickets or electronic game cards, the effect that these products would have on the sales of other current Lottery offerings, and the potential for revenue enhancement;
  • An evaluation of the introduction of electronic gaming devices, commonly referred to as video lottery terminals (VLT’s) in the Commonwealth for potential revenue enhancement and prepared estimates of cannibalization of existing MSLC games, particularly instant tickets.
  • A review of the MSLC’s current public relations/advertising campaigns and promotional strategies with recommendations for optimizing promotional expenditures.

For The Connecticut Department of Revenue Services - Project completed April 1992

 

Scope of work included an extensive study for the Connecticut Division of Special Revenue examining the current status of all types of gambling (including the lottery) legal in Connecticut, the competitive threats facing Connecticut gambling industries (including the soon-to-be opened Foxwoods casino at Ledyard), and ten alternative future options regarding legal gambling (including privatization of State-owned off-track betting facilities). This study included both telephone and intercept surveys. CCA's projections for the performance of Foxwoods and its impacts proved to be close to actual results after Foxwoods opened.

Selected Pari-mutuel Consulting Engagements

Project Type: Pari-mutuel Consulting

Client: Harrah’s Entertainment

Time Period: 2009

Role: The Economic Impact of Greyhound Racing and an Analysis of Purses and Purse Supplements Associated with Greyhound Racing in Iowa

Status: Completed

 

CCA provided Harrah’s with an economic impact analysis of Iowa greyhound racing, including direct and indirect employment, capital investment estimating cap ex at the largest breeders’ facilities, wages, etc. Additionally, CCA undertake a trend analysis of Iowa greyhound racing including attendance, purses, and handles, both in-state live and off-track as well as a trend analysis of greyhound purses and purse supplements derived from Iowa’s slot machines, including an identification of what purses would be absent supplements related to slot machines.

Project Type: Pari-mutuel Consulting

Client: Friends of New York Racing

Time Period: 2004-2005

Role: Eugene Christiansen and Christiansen Capital Advisors served as a Team Member and consultant providing material support to Friends of New York Racing in the preparation of a report outlining recommendations with respect to the future of NYRA (New York Racing Association).

Status: Completed

 

Tim Smith formed the Friends of New York Racing in association with a wide range of New York State and national racing specialists concerned about the future viability of the New York Racing Association (NYRA) and its three racetracks. Christiansen Capital Advisors played a crucial role in formulating the policy objectives of this organization.

 

Friends of New York Racing associates and staff reviewed a great deal of material relating both to pari-mutuel wagering in New York and the United States as well as studies provided by CCA relating to the privatization of publicly owned gaming enterprises. From this work, Friends of New York Racing wrote a report entitled “The Way Forward”. This report recommended the replacement of the existing quasi-public NYRA structure with either a reorganized public/private organization or a privately run organization with a small not-for-profit entity.

 

Additionally, the report recommended that the New York City OTB organization be merged with the new NYRA structure and that VLTs be authorized at Belmont and Saratoga.

 

The report concluded that these recommendations represent the only practical way of ensuring the viability of the New York horse racing industry and by extension, the viability of the North American racing industry.

Project Type: Pari-mutuel Consulting

Client: Magna Entertainment

Time Period: 2004

Role: Pari-mutuel

CCA provided Magna Entertainment Corp. with a market study and a statement of economic impacts with respect to the proposed “Gaming Revenue Act of 2004”, which would authorize slot machines at California racetracks and cardrooms participating in the initiative. (See Economic Impact Section). This comprehensive analysis included a broad review of pari-mutuel racing in California.

Status: Completed

 

As part of this engagement, CCA provided Maga with:

  • An analysis of the increasing importance of export simulcasting to the survival of pari-mutuel racing;
  • An assessment of the increasing supply of VLTs at tracks in the United States, and what it means for racing in California.

Project Type: Pari-mutuel Consulting

Client: Penn National Gaming

Time Period: 2004

Role: An independent valuation of Pocono Downs the revenue potential for gaming devices at this facility.

Status: Completed

 

CCA was asked by Penn National to provide an independent valuation of Pocono Downs. Pocono Downs has been a profitable harness racetrack and off-track betting operation situated on 400 acres of land in Wilkes-Barre, Pennsylvania. CCA analyzed the historical performance of Pocono Downs as a racetrack and OTB operator and projected the likely future results of Pocono Downs as a racino.

Project Type: Pari-mutuel Consulting

Client: Churchill Downs, Inc.

Time Period: October, 2003

Role: Estimates of the Demand for Pari-Mutuel Betting and Machine Gaming at Pittsburgh Palisades Park

Status: Completed

 

CCA was retained by Churchill Downs to estimate the demand for live Thoroughbred pari-mutuel racing, pari-mutuel betting on simulcast racing, telephone betting on horse racing and machine gaming at Pittsburgh Palisades Park (“PPP”), a facility CDI considered building in Pittsburgh, Pennsylvania.

 

CCA prepared projections of the pari-mutuel betting (“handle”), pari-mutuel revenue (“takeout”) and machine win (“gross gaming revenue”) likely to be generated by Pittsburgh Palisades Park under the following scenarios:

  • Scenario One assumed PPP would be a pari-mutuel Thoroughbred racing facility similar to existing Thoroughbred racing facilities in Pennsylvania, but without off-track betting (“OTB”) facilities and without machine gaming;
  • Scenario Two assumed PPP would be a pari-mutuel Thoroughbred racing facility similar to existing Thoroughbred racing facilities in Pennsylvania, without off-track betting facilities and with 3,000 reel spinning slot machines;
  • Scenario Three assumed PPP would be a pari-mutuel Thoroughbred racing facility similar to existing Thoroughbred racing facilities in Pennsylvania, without off-track betting facilities and with 1,500 reel spinning slot machines.

Project Type: Pari-mutuel Consulting

Client: Joseph Lasinger - Chester Downs and Marina LLC.

Time Period: October, 2002

Role: Eugene Christiansen was asked to evaluate an application for a pari-mutuel license for a new Pennsylvania harness track, Chester Downs and Marina LCC (“Chester Downs”) and provide expert testimony concerning this application before the Pennsylvania Racing Commission.

Status: Completed

 

Eugene Christiansen and CCA staff successfully provided expert advice and counsel to Chester Downs and Marina, LLC in support of their harness racing application in Chester, Pennsylvania. The Pennsylvania Racing Commission approved Chester Downs application and subsequently the track became the first pari-mutuel facility in Pennsylvania to receive authorization to install slot machines under HB 2330.

 

The specific tasks CCA performed on behalf of Chester Downs and Marina, LLC include:

  • Mr. Christiansen opined on the reasonableness of pro forma financial projections and other aspects of the application as well as the viability of the pari-mutuel project;
  • CCA advised Chester Downs of any changes that in its opinion should be made to the application to enhance its reasonableness and the viability of the pari-mutuel project;
  • CCA prepared a report for the Pennsylvania Harness Commission containing Mr. Christiansen’s opinion;
  • Mr. Christiansen appeared and testified at a public hearing on October 29, 2002 in the City of Chester on behalf of Chester Downs’s license application.

Early Pari-mutuel Studies

 

Christiansen Capital Advisors,LLC (formally – Christiansen Cummings Associates) has a long and distinguished record in preparing evaluations and analyses of pari-mutuel industries in the United States and Canada. Below is a list of early studies CCA has undertaken in this field:

 

 

2000 – “A Strategic Plan for the New York Racing Association, Inc.”

In partnership with Price Waterhouse Coopers (“PwC”), Christiansen Capital Advisor (Christiansen Cummings Associates) prepared an assessment of the New York Racing Association (NYRA) pari-mutuel horse racing operation including on-track horse racing, simulcasting, and telephone deposit account wagering.

 

CCA and PwC then prepared a strategic plan for the New York Racing Association, evaluating potential racetrack acquisitions in other states, the acquisition or merger with the New York City Off-track Betting Corp and Internet betting operations.

 

In preparing the strategic plan, CCA and PwC made a detailed assessment of the New York Racing Association’s financial condition and made recommendations for improving their performance and financial condition.

 

1999 – “Preliminary Assessment of the Likely Impacts on Calder Race Course, Inc from the Introduction of Video Lottery Terminals (VLTs) Under the Auspices of the Florida Lottery at Florida Racetracks and Frontons”.

Prepared for Calder Race Course, Inc.

 

1997 – “Simulcasting Strategy for Alberta, Action Plan”.

Prepared for the Alberta Racing Corporation, Canada.

 

1997 – “Off-Track Betting in the United States and Canada, Implications for the Racing Industry of Massachusetts”.

Prepared for Suffolk Downs.

 

1993 – “Review of the Experience with Video Gaming Devices at Pari-Mutuel Facilities”.

Prepared for Southland Racing Corporation.

 

1993 – “Summary of Pari-Mutuel Taxation in the United States and Canada”.

CCA research.

 

1993 – “Summary of Pari-Mutuel Taxation in the United States and Canada”.

CCA research.

 

1993 – "Racing into the 21st Century, A Plan to Reform, Restructure and Revitalize the Horse Racing, Pari-Mutuel Wagering and Breeding Industry in New York State”.

A report to the Governor and Legislature of the State of New York. Prepared for the Advisory Commission on Racing in the 21st Century.

 

1992 – “Summary of Pari-Mutuel Taxation in the United States and Canada”.

CCA research.

 

1990 – “An Assessment of the Market Potential and financial Prospect of Ellis Park”.

Prepared for the Kentucky Horse Center (KHC).

 

1990 – “Summary of Pari-Mutuel Taxation in the United States and Canada”.

CCA research.

 

1989 – “Summary of Pari-Mutuel Taxation in the United States and Canada”.

CCA research.

Selected Litigation Support Services

Project Type: Litigation Support

Client: Conway Davis Gryski, Barristers, Toronto, Canada.

Contact: Karey Lunau, Barrister

Role: Christiansen Capital Advisors, LLC is currently engaged by Conway Davis to provide valuation services in connection with ongoing property tax litigation concerning gambling properties in the Province of Ontario, Canada.

Status: Ongoing

Project Type: Litigation Support

Client: Ballard, Sphar, Andrews, & Ingersoll, LLP, Philadelphia, Pennsylvania

Contact: Raymond A Quaglia,. Partner

Role: Proprietary – Gambling tax litigation

Status: Completed

Project Type: Litigation Support

Client: Taylor, Porter, Brooks & Phillips, LLP, Baton Rouge, Louisiana

Contact: Fred Tulley, Esquire

Role: Proprietary

Status: Completed

Project Type: Litigation Support

Client: Mayer, Brown, Rowe & Maw LLP, Chicago, Illinois

Contact: Michele Odorizzi, Esq.

Role: CCA was engaged by Mayer, Brown to provide expert services concerning P.A. 94-0805. CCA conducted a review and analysis of racing in Illinois with a comparison to national trends in pari-mutuel wagering.

Status: Completed

Project Type: Litigation Support

Client: United States Department of Justice, Tax Division, Civil Trial Section, Southern Region

Time Period 2006

Role: Assist the DOJ on issues relating to Las Vegas sports books - Proprietary

Status: Completed

Project Type: Litigation Support

Client: Hill, Ward & Henderson, PA, Tampa, Florida

Time Period 2003

Role: Assessing whether Gulfstream violated United States and Florida pari-mutuel antitrust statutes harmful to Tampa Bay Downs. This project included defining the Florida market with respect to simulcasting Thoroughbred horse races and assessing the market power of Gulfstream within this market. Deposition taken of Eugene Martin Christiansen.

Status: Currently on appeal

Project Type: Litigation Support

Client: Ehrilich Foley & Serwer, P.C., Birmingham, Michigan

Time Period 2002

Role: Valuation of Motor City Casino as of September 6, 1997. CCA formulated an opinion as to the value of the interest Ehrlich’s client held in the entity that became Motor City Casino during the period 1997-1999, prior to and after the investor divested himself of this interest through its sale.

 

Project included expert report and signatory on opinion letter. Deposition taken of Eugene Christiansen.

Status: Settled

Project Type: Litigation Support

Client: Karalekas & Noone, Washington, D.C.

Time Period 2002

Role: Valuation of Army Bingo Concession (Charitable Bingo Associates, Inc. dba Mr. Bingo v. US Army) included expert report and signatory on opinion letter. Deposition and testimony provided by Eugene Christiansen.) Tried; undecided.

Status: Settled

Project Type: Litigation Support

Client: Foley & Lardner LLP, Washington, D.C.

Time Period 2002

Role: Valuation of an unbuilt Louisiana racetrack (Livingston Downs Racing Association, Inc. v. Jefferson Downs, et al). Included expert report and deposition of both Eugene Christiansen and Sebastian Sinclair.

Status: Settled

Project Type: Litigation Support

Client: Wisconsin Department of Justice, Madison, Wisconsin

Time Period 2002

Role: Role: Assessment of the Impacts of Indian Gaming on Wisconsin Greyhounds Tracks (Dairyland Greyhound Park, Inc. v. Scott McCallum et al.)

Status: Ongoing

Project Type: Litigation Support

Client: Sutherland Asbill & Brennan

Time Period 1991

Role: CCA was engaged by Sutherland Asbill & Brennan as an expert witness in a suit brought by the Department of Justice (DOJ) against United Tote, which had acquired AutoTote, one of three totalizator (pari-mutuel wagering) system vendors then supplying the U.S. market. DOJ thought the acquisition of AutoTote by United Tote created excessive concentration in the totalizator market. CCA was tasked with defining this market and developing arguments supporting the United Tote acquisition. CCA was deposed by DOJ, called to the witness stand by a DOJ attorney when the case was tried but not questioned. United Tote ultimately lost. In his ruling Judge Kaufman said, very simply, that before the acquisition there were three tote companies and after the acquisition there were two and that was presumptively anti-competitive.

Status: Completed

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