Gaming Supply and Demand Analysis Las Vegas is recognized worldwide as a premier gaming destination. fe “ From traditional card and dice games, to slot machines and race and ‘= P SS sports book betting, the casino industry has flourished and evolved eT, e ‘ ‘ 7 . into an international phenomenon. A significant portion of the visitor ae ee li i "al = wh revenue generated in the city is attributed to the gaming industry, §& fe os LTE aay sins ‘ i if which posted $9.6 billion in revenue in 2014. 2a fal 8/8] se , ¢ The initial step in analyzing supply and demand trends within a given SfheeJof— 18/8 is “ wenn) i gaming market is to quantify the existing level of gaming inventory. L2/$/s/ =} - in To quantify gaming supply levels, a review of all competitive gaming ae Se ot ay el [Ss | oy > ~ ah facilities is performed. Once the market's supply level is known, an ie 38° py analysis of the demand for gaming facilities is performed. Unlike traditional economic models of supply and demand, the price variable associated with gaming is largely determined by the consumer. Gaming is an intangible product: the consumer is purchasing the “experience” and “excitement” casino gaming offers. The price that the consumer is willing to pay for this experience is known as the “win,” and is quantified on a per-unit basis known as the “win per unit per day” (WPUPD). Research indicates that the WPUPD, or the price a market can bear for gaming activity, is highly correlated to the level of available gaming inventory. The actual WPUPD attained by a market, say $100 per gaming position, and provides an indication of the marketwide demand for gaming. As will be further discussed, these demand levels within a market can be estimated through an analysis of the actual WPUPD attained by the market. Historical fluctuations in the marketwide WPUPD at various levels of supply can provide insight into the future demand for gaming. Further impacting the demand for gaming facilities in the market are curr