The gaming industry faces unique challenges that impact established entities and those contemplating entry in the market. The global market continues to grow rapidly as new markets emerge. Demand and consumer expectations force gaming operations to differentiate themselves from the competition.

To address these challenges and sustain daily operations, gaming owners and operators must interact with many organizations in both the public and private sectors — from investment banks, analysts and commercial lending institutions, to governing bodies and licensing agencies that regulate and monitor their operations.

Complex issues also confront gaming regulators: how to monitor and safeguard enterprises that provide gaming tax revenues and also preserve the integrity of the gaming environment and the reputation of all parties involved. Gaming boards and regulatory commissions require internal control standards and practices, cost effective and equitable tax structures and ongoing analysis of legislative and economic impacts on the industry.

If this is your situation

Gaming industry participants and the administrators that regulate them require a wide variety of strategic and financial advisory services, such as those needed in the following situations:

  • Your organization intends to enter a new gaming jurisdiction and wants to understand the revenue potential of the new market
  • Two gaming companies, connected through a merger, seek to understand the market dynamics of the combined organization's product portfolio
  • You are part of a newly-formed gaming jurisdiction that plans to establish a licensing or license renewal process, and need to evaluate the financial suitability and overall viability of potential licensees
  • You want to separate an organization's management expertise from its real estate ownership

How PwC can help you

Your organization can benefit from the industry knowledge, global resources and sound discipline of the PwC's Hospitality & Leisure practice. In addition to serving casino developments in mature gaming jurisdictions, such as Las Vegas and Atlantic City, our gaming professionals possess considerable experience in dockside and riverboat markets, lotteries, gaming equipment manufacturers, Native American casinos and the pari-mutuel, card club, cruise and charitable casino gaming sub-sectors.

We provide assistance in evaluating operational, market and financial performance through independent analyses, as well as benchmarking and standard industry practices analysis.

Our Hospitality & Leisure practice also includes experienced professionals in the areas of lodging, food and beverage, sports, convention centers, leisure facilities, vacation ownership or tourism. Collaboration with colleagues in Tax, Global Risk Management, Government Services and other PwC professionals provides a broad range of experience to clients in the gaming industry.

Your organization can benefit from the national presence, size and depth of our practice experience in provision of gaming sector services, including:

  • Demand and competitor research
    To understand the potential of the entity and develop a solution, we research markets, study competitors, and provide consumer, demand and competitor research. Our practice has a leading research team focused on the gaming industry.
  • Dispute analysis
    We assist clients facing litigation and disputes that involve gaming industry issues, providing financial, economic, business advisory and expert witness testimony for litigation, arbitration, and mediation concerning real estate, construction, regulatory, insurance and human resource issues.
  • Economic impact
    We estimate the economic consequences associated with the introduction of legalized gaming into an area, including incremental tax revenues, capital investment, increases in direct employment and tourism, as well as the related multiplier effects of induced economic activity. We can evaluate the effects of gaming on population, housing, transportation and other qualitative issues, such as spin-off development and social changes.
  • Financial analysis
    Our gaming industry specialists prepare prospective financial analyses for proposed and existing operations. We evaluate actual results, and analyze the effectiveness of an entity’s accounting and internal control systems for regulatory compliance and other purposes. Financial analysis services also include assisting entities in structuring joint venture agreements, negotiating management contracts and providing direction in the development of financial terms and the overall capital structure with lending institutions and investment banks.
  • License proposals and presentations
    We assist in preparing all elements of the license renewal process, which may include quantifying market size as well as future market potential. We assess direct and indirect economic impacts associated with a gaming initiative in a new or changing jurisdiction. Our expert testimony analyses and documentation support provide valuable guidance to licensing agencies and other regulatory authorities.
  • Market research
    Our professionals estimate potential market demand for a proposed gaming development, which may entail identifying the appropriate site for a specific gaming venue. We monitor the performance of gaming jurisdictions globally and draw upon extensive experience in analyzing economic and demographic information when assessing the potential size of a gaming market. For an existing project, we can conduct market research as part of a profit improvement plan or operational assessment. We also provide consumer and competitor research to benchmark and support standard industry practices for owners/operators in numerous jurisdictions.
  • Merger and acquisition
    We identify merger and acquisition candidates, perform acquisition advisory procedures and disposition assistance of gaming operations. We assist our clients through every stage of a transaction, including deal structuring and fund raising. In conjunction with PwC Transaction Services specialists, we expedite all stages of acquisition/disposition and help clients adapt quickly to the resultant changes.
  • Operational review
    Our gaming industry specialists work within an organization to assess areas for operational improvement and enhanced financial performance. This includes in-depth analysis by department of current practices, funds flow, staffing, departmental objectives, marketing initiatives and internal communication tools to enhance customer satisfaction and property earnings. We use our experiences with standard industry practices and benchmarks to develop operational refinements and profit improvement recommendations.
  • Regulatory support
    Our specialists participate in initial licensing reviews and assist clients in filing licensing documents with gaming regulators. We also help design and implement regulatory systems for gaming jurisdictions.
  • Request for proposal assistance
    We assist in all aspects of the request for proposal (RFP) process for both the administering party and the respondents. When working with government agencies, we develop timelines and assessment criteria, and provide selection assistance. When working for potential operators in other markets, we guide clients through the approval and regulatory process as a third-party advisor. Our gaming industry professionals can assist you to develop investment terms and structure for a project, develop the RFP, identify management and financial priorities, select qualified respondents and administer the entire RFP process.
  • Strategy and planning
    Strategic planning services include the assessment of various gaming options for a client considering a gaming development, preparation of three to five-year business plans and development of overall strategic initiatives to meet the goals of the organization. In addition, our specialists can also assist in the development of a structure for creating, licensing, regulating and controlling gaming enterprises in a new jurisdiction.

Solving complex business problems

The financial, strategic and tactical skills of our gaming professionals, combined with the full service resources of a global firm, give us the unique ability to analyze relevant information, solve complex problems and ultimately assist our clients in making sound business decisions.

Our gaming industry specialists have worked on projects in the United States, Canada, Mexico, the Caribbean, South America, Europe, South Africa and the Pacific Rim. Our presence in multiple gaming jurisdictions and familiarity with specific regional regulatory bodies give you the distinct advantage of our global organization. We have a long-term commitment to the gaming industry, and deliver substantial experience for the strategic and financial decisions required by successful gaming companies.

Contact us

Steven J. Barr
Consumer Markets Leader
Tel: +1 (415) 498 5190

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