Economic & Market Studies
Each Spectrum project is customized to our client’s specific requirements and developed from the ground up. Our findings, conclusions and recommendations are based solely on our research, analysis and experience.
Our detailed economic and market studies fall into two general categories:
Disciplined market, feasibility and reasonableness studies are characterized by:
- Conservative and supported assumptions: Our studies are grounded in assumptions that are the basis for our projections, and our reports make clear what the precise assumptions are, and how they were developed, including citations from previous studies and other relevant markets.
- Detailed examination: Spectrum does not rely on desktop analyses, but rather ensure our analysts are intimately familiar with the location, accessibility and economic realities of each location and market, including on-site visitation and observations.
Our analysts rely on a combination of robust models – including gravity models – and our deep experience with multiple market segments that can support a gaming property, ranging from local adults to MICE attendees to free-and-independent travelers, among others.
Market studies often require a further in-depth analysis that projects the economic impacts of gaming – either new construction or existing operations – in a comprehensive, clear manner that allows our clients and other stakeholders to fully understand the potential implications.
- Our studies are characterized by a deep understanding of gaming, and by extensive work. We visit sites, interview stakeholders of varying viewpoints and develop reports that are candid and comprehensive.
- We rely on a host of appropriate models, and have a longstanding relationship with economists at firms such as Regional Economic Models Inc. (REMI) of Amherst, MA and with leading universities around the world.
- We spend considerable research meeting with a variety of crucial stakeholders, from legislators and regulators to small business owners and labor leaders, among others.
- We recognize that economic impacts are not static, and that the impacts can differ based on public policies. Where appropriate, we will recommend policies that could enhance the economic benefits and minimize the negative impacts.
- Spectrum approaches all such studies with a combination of candor and experience. We analyze impacts as they are – or could be. We never tailor our findings to benefit a client
Our regulatory experience includes the following engagements and testimonials:
- Hard Rock International engaged Spectrum to undertake a market analysis and develop a pro forma income statement in association with its $500 million redevelopment of the former Drumpf Taj Mahal in Atlantic City.
- A Pennsylvania casino operator engaged Spectrum to analyze the revenue and fiscal impacts that retail gaming (i.e., electronic gaming devices in liquor-licensed establishments) would have on existing gaming industry and on the Commonwealth of Pennsylvania.
- Three Canadian companies separately retained Spectrum to conduct market analyses, including gross gaming revenue forecasts, as part of their bids for different Ontario gaming bundles offered by the Ontario Lottery and Gaming Corp.
- The Rostov Oblast government of Russia retained Spectrum, along with project partner BDO of Moscow, to assess the feasibility of the federal government’s planned Azov City Gaming Zone on the Sea of Azov. Spectrum analyzed comparative gaming zones worldwide, surveyed prospective international operators, performed a feasibility study, and conducted a consumer profile study.
- Spectrum was engaged by a major Japanese company to provide detailed quantitative and qualitative analysis of designated international gaming-resort operators for the purpose selecting a potential development partner in anticipation of that country legalizing integrated gaming resorts.
- International developers have retained Spectrum to undertake market analyses, feasibility studies and risk assessments throughout Southeast Asia, including in Burma, Cambodia, Laos, the Philippines and Vietnam. Our research and analysis included assessing the critical issue of junket operations and VIP play, determining the optimal size of the gaming floor, developing pro forma income statements, and evaluating the tourism markets.
- Gateway Casinos and Entertainment Limited retained Spectrum to prepare a market analysis, and to project gross gaming revenue, related to a proposed casino in Surrey, British Columbia, based on current competitive landscape in today’s dollars, and forward-looking over a five-year period. Subsequent to this report, Gateway Casinos and Entertainment Limited retained Spectrum to compare and contrast our gross gaming revenue projections to a similar set/scope of projections prepared by another organization.
“Working on short notice, Spectrum Gaming Group produced two reports, including a market study, that were comprehensive with supportable, conservative projections. Spectrum’s professionals and leaders were available as needed and, again, on short notice to be here on site to meet with our staff and with government officials. They understood the unique regulatory and demographic nuances of our province and identified opportunities that might not be apparent to less experienced consultants.”
– Lorenzo Creighton, then-CEO, Gateway Casinos and Entertainment
- The Casino Association of Indiana retained Spectrum to project the impact on gaming revenue and state tax revenue from potential expanded competition in neighboring states. The report, presented at a public meeting of the Indiana Gaming Study Committee, included general recommendations as to policy changes that could be implemented to help protect the state’s gaming industry.
- Spectrum completed a market analysis and economic projections for the Casino Association of Indiana that also suggested actions for improving the performance of the Indiana gaming industry. This report, our second for the association, recognized that Indiana’s casino industry is facing serious competitive challenges, and requires a revised tax and regulatory structure in order to attract investment and become more competitive.
- The Casino Association of Indiana retained Spectrum to project the impact that a large tribal casino in the state would have on Indiana’s commercial casinos. We further recommended certain actions that the State should consider taking to assist its commercial casino industry.
“The work product that the Casino Association of Indiana received was exceptional. The report has widely been distributed to stakeholders including members of the Indiana legislature, Indiana Governor Eric Holcomb and his staff, the Indiana Gaming Commission, local chambers of commerce, media and business and industry leaders throughout the state. The product has proven to be reliable and the data presented in the report has quickly become a catalyst for action.”
− Matt Bell, President and CEO, Casino Association of Indiana
- Empire City Casino at Yonkers Raceway has retained Spectrum on several occasions to project the revenues and feasibility of potential expansion projects.
- Genting, one of the world’s largest and most successful gaming operators, retained Spectrum to project the gross gaming revenues and cannibalization impacts regarding new projects in Florida and New York. Such projections included analyses of the competitive landscape.
- The developer of a proposed casino resort in a major southern gaming market retained Spectrum to assess the marketplace and project the gross gaming revenues of both the marketplace and the subject property.
- The developer of a landmark retail, dining, entertainment and tourist destination in the Northeast retained Spectrum to project the visitation and economic impacts of adding a casino to the complex. In addition, we provided qualitative analysis so put the unique project into proper perspective.
- Centaur Gaming retained Spectrum to conduct multiple market assessments for projects in Indiana and Pennsylvania.
“I really enjoy working with Spectrum – all of us at Centaur do. A class act and very well researched and presented reports and information.”
− Jim Brown, President and COO, Centaur Gaming
- A Midwest gaming company retained Spectrum to project the gross gaming revenues and develop a pro forma income statement for two proposed gaming facilities that would use historical horse-racing machines.
- Spectrum evaluated the reasonableness of income, operations and staffing projections for the proposed operator of a major casino resort in the Northeast.
- The Good for Oregon Committee retained Spectrum to analyze a report on the potential impact of a casino on Oregon video lottery terminals. In less than one week, Spectrum compiled a thorough review that included examples from other states, and conducted numerous interviews with relevant officials in Oregon and throughout the United States.
“Clairvest has worked with – and has retained – Spectrum Gaming Group on various gaming-related matters, some of which presented enormous economic and/or political challenges. Spectrum’s experienced professionals met all these challenges successfully, regardless of the level of complexity or the pressures of a tight deadline. Spectrum has a well-earned reputation for integrity, for professionalism and for understanding all facets of the gaming industry and how it impacts public policy.”
− Jeff Parr, co-CEO and Managing Director, Clairvest LLC
- The Puerto Rico Tourism Company has retained Spectrum to conduct market analyses for more than a decade. Our studies have included estimating the impact of illegal gaming devices, projecting the growth of the casino market, and projecting the revenues generated by proposed slot machines at airports throughout the Commonwealth.
“Integrity, objectivity and professionalism are the qualities we are looking for as regulators. Those are the reasons why in our jurisdiction we choose Spectrum Gaming Group as our gaming consultant.”
− Andy Viera, then-Director, Gaming Division, Puerto Rico Tourism Company
- The Georgia Lottery Corporation retained Spectrum Gaming Group to provide gross gaming revenue projections that would illustrate the market potential for video lottery terminal casinos at various locations throughout the state.
“That leaves the Spectrum Group’s study. I thought when I started working through it that it would be just more industry cheerleading. But it wasn’t. It was a sober, professional piece of work full of cautions and qualifications.”
− Leon Galls, Athens (GA) Patch
- Saratoga Gaming and Racing retained Spectrum to analyze, both quantitatively and qualitatively, the impact that adding a national-brand premium steakhouse would have on its gaming revenue.
- Sonco Gaming (Alberta) Ltd. retained Spectrum to prepare a market analysis, followed by financial and operating projections, related to a possible hotel and/or entertainment/convention center expansion for Grey Eagle Casino & Bingo in Calgary, Canada, which the client developed and currently operates. The market analysis projects expected gross gaming revenue results for this casino in the current, competitive marketplace and expected incremental gaming revenue results, and operating profit, that may result from these additional amenities at the casino.
“Your staff involved understood the assignment and all its implications, liaised well with our management and staff on-site, and finally produced a report which is clear, concise and fully addressed all of the issues raised.”
− Michael M. Novac, President and CEO, Sonco Group Inc.
- A major international gaming operator retained Spectrum to perform country evaluations of Chile, Croatia, Czech Republic, Slovakia and Spain. The company used these reports to help guide its international investment decisions.
- Spectrum performed a detailed analysis for a potential casino development in a resort area of South Korea. This comprehensive study included suggested strategies for the national government to ensure that such a project would boost tourism, while adhering to other public policies – including minimizing problem gambling and other social concerns.
- Esquire Casinos retained Spectrum to perform a market analysis and financial analysis of a planned casino in a major European city.
“Spectrum’s comprehensive study of a proposed casino project in Europe has given our company a concise, thoughtful and independent assessment of the project’s feasibility. The care, in-depth analysis and integrity associated with the report cannot be overstated.”
− Jamie J. Berman, Principal, Esquire Casinos
Our relevant market studies include the following:
- The Florida Legislature retained Spectrum to complete a comprehensive two-part study designed to help lawmakers understand the economic, fiscal, and social impacts of any potential changes in Florida’s gaming environment. The report provided both an educational component and complex economic-impact analyses of gaming expansion under 12 different scenarios.
“Spectrum has extensive experience in providing independent studies of gaming in a variety of jurisdictions, including Massachusetts, Connecticut, Illinois, Kentucky, Louisiana, and Ohio.”
− Florida House Speaker Will Weatherford
- The Washington State Gambling Commission retained Spectrum to conduct a comprehensive impact study of tribal gaming, card room gaming and other forms of gambling throughout the state, as well as provide insights on emerging forms of gambling such as Internet gaming, daily fantasy sports and skill-based gaming.
“Spectrum Gaming Group (an independent research firm), which generated an economic market study on gambling (2016) for the Washington State Gambling Commission, found that ‘90 percent of Washington adults reside within a reasonable one-hour drive of a Washington Class III casino,’ and 99 percent reside within a 2-hour drive.”
− Vancouver – SW Washington Business Journal, April 21, 2017
- The American Gaming Association retained Spectrum to undertake a comprehensive national study on the relationship between gaming and small businesses throughout the United States.
“The U.S. gambling industry supports 350,000 small-business jobs, according to research by Spectrum Gaming Group for the association. The report looked at nearly a dozen markets in the U.S. to assess gambling’s direct and indirect impact on small local businesses. It found gambling has the largest impact in small to midsized communities.”
− Baltimore Sun, June 23, 2017
- The Massachusetts State Lottery Commission retained Spectrum to do a ground-breaking study on whether the lottery should offer online gaming, and if so, how should it do so without hurting its network of retailers, and without damaging the value of casino licenses that had not yet been issued. The study examined a variety of issues, ranging from risks associated with underage gambling to the demographic differences between lottery and casino players.
- The Iowa Racing and Gaming Commission retained Spectrum and project partner Strategic Economics Group to complete a comprehensive study on the socioeconomic impacts of casino gambling in Iowa.
- Twin River Management Group retained Spectrum to project the economic impacts of building a new casino in Tiverton, RI, and closing the existing Newport Grand casino.
- Spectrum performed a detailed study for the Kentucky racing industry that projected gross gaming revenues as well as the total economic impact on the Commonwealth from the legalization of casinos. The report also estimated how much Kentucky adults were gambling in other states, and how much would be retained if casinos at tracks were approved.
“ ‘We have long known that hundreds of millions of Kentucky dollars are flowing out of our state and into the budgets of surrounding states with expanded gaming — paying for their roads and their schools,’ Gov. Steve Beshear said in a statement Monday night in response to the (Spectrum) study. ‘The fact that gaming could generate nearly $2 billion in Kentucky in the first year reminds us just how much we are losing.’ “
− Lexington (KY) Herald-Leader, January 7, 2012
- The Illinois Revenue and Jobs Alliance retained Spectrum to project the gross gaming revenue and economic impacts of a proposed statewide gaming expansion that was under consideration by the Illinois legislature.
- The Casino Association of New Jersey retained Spectrum to perform several comprehensive studies, including evaluating the potential impact of slot machines at New Jersey racetracks on the casino industry.
“Spectrum has a depth of knowledge and understanding of our industry and also has the resources necessary to complete in-depth data assemblage and analysis. [We] retained Spectrum because of their reputation for integrity and the credibility that it enjoys within both industry and government circles.”
− Joseph Corbo, then-President, Casino Association of New Jersey
- The Governor of Massachusetts retained Spectrum to conduct a comprehensive study that examined the potential economic and social impact of three casino resorts in the state. This study examined a wide variety of areas, from projecting revenue and employment to suggesting strategies to maximize the benefit of gaming for restaurants and other small businesses. The report offered comprehensive analyses on several critical subjects, from crime to problem gambling.
“The administration ought to revive the proposal to reflect the findings in the independent analysis conducted by Spectrum Gaming.”
− Boston Herald editorial, August 8, 2008
“[The Spectrum study] provides each side with plenty of objective analysis to consider. … The Spectrum study makes the essential point … The study makes a powerful case … The report issues another important warning … The report’s authors know all the angles played by casino developers.”
− Boston Globe editorial, August 15, 2008
- Spectrum completed a detailed examination for the State of Connecticut of the social and economic impacts of all forms of gambling in the state, including casinos, lottery and pari-mutuel wagering. The study includes a 3,000-response survey of adults, and examines such trends as migration patterns of adults into and out of Connecticut in counties that host casinos.
“This [Spectrum] report should be required reading by every state official. … [T]he report reads like a good investigative series, and takes a big-picture view.”
− Hartford Courant editorial, July 5, 2009