Office of the Controller, City of Philadelphia

HLT Advisory Case Study

City of Philadelphia (2013)

HLT also assessed the financial information provided as part of the proposal and undertook sensitivity analysis with regards to the proposed financial arrangement with a non-profit entity.

City of Philadelphia (2013)

The Office of the Controller of the City of Philadelphia engaged HLT to assess elements of a proposal submitted by Penn National Gaming Inc. for the second casino license in the City of Philadelphia. Specifically, the assessment focuses on the structure of the proposed casino concept and its financial impact on the City.

HLT focused the impact assessment on two core components, market impact and ownership impact. To complete these impact assessments, HLT conducted a benchmarking and supply/demand analysis of the existing casino market in Philadelphia and provided commentary on the impact of a second casino license on the City’s direct gaming taxes. HLT also assessed the financial information provided as part of the proposal and undertook sensitivity analysis with regards to the proposed financial arrangement with a non-profit entity.

While the findings suggested the proposed ownership structure represents an opportunity for the City to indirectly benefit from casino profits without any injection of capital and limited or no legal liability, the proposal did not progress.