Wall Street Transcript Interview with Timothy J. Wilmott, CEO of Penn National Gaming, Inc. (PENN)
67 WALL STREET, New York - November 27, 2013 - The Wall Street Transcript has just published its Gaming and Leisure Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: U.S. Regional and Emerging Market Hospitality - Gaming Opportunities In Asian Markets - Macau VIP and Mass Market Gaming - Lodging C-Corporations - Timeshare Industry Recovery - Regional Casino Development
Companies include: Penn National Gaming Inc. (PENN) and many more.
In the following excerpt from the Gaming and Leisure Report, the CEO of Penn National Gaming, Inc. (PENN) discusses company strategy and the outlook for this vital industry:
TWST: What's the competitive landscape like for you? What do you see as some of your competitive advantages in the space?
Mr. Wilmott: In the regional gaming markets, the landscape is fairly intense. We opened three ground-up Hollywood Casino properties in 2012 - at Kansas Speedway in Kansas City, Kansas, in Toledo, Ohio and in Columbus, Ohio - making us the only casino company to open up that many new properties. With the increased competition in certain Midwest jurisdictions, it is taking time for us to fully ramp up the growth these new markets.
In the case of Ohio, which is very important for us, we opened up two land-based casinos. Caesars, with their partner Rock Gaming, also opened two land-based casinos, one in Cleveland and the other in Cincinnati. We also have racetracks with video lottery terminals opening up in the state next year. So there is a lot of new supply being absorbed in these markets.
On top of that, we've seen pressure on the U.S. consumer that has shown up as softness, especially over the last six or seven months, primarily on the slot side of the business. That has put further competitive pressure on all of the operators. So it's an interesting time. However, we feel we're well-positioned because we have new markets that are going to continue to mature and grow. But we also have some markets that are feeling the effect of this new supply.
In Cincinnati, for example, our Hollywood Lawrenceburg facility in Indiana, which had been the closest and largest casino to Cincinnati, now has a lot more new supply coming in, and that's going to take a year or so to completely absorb and cycle through. We're also seeing competition in Maryland with opening of Maryland Live. Last year they opened up a slot operation, and this year they added table games. That's putting pressure on our Charlestown, West Virginia, facility, which serves Washington, D.C., and northern...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
