TABLE OF CONTENTS
SECTION I
EXECUTIVE
SUMMARY..... 1
TERMS DEFINED......... 2
SERVICES...... 3
STATE REGULATIONS 3
The Law and State Taxes 3
The State Police............. 3
Truck Stops 5
MARKET ANALYSIS..... 5
Total Market......... 5
Trends........... 6
Target Markets....... 6
Competition 7
MARKETING. 7
BUSINESS SETUP AND
MANAGEMENT 8
SECTION II
Construction Budget
SECTION III
·
Year 1 with 100% of net gaming revenue
·
Year 2 with 100% of net gaming revenue
EXECUTIVE SUMMARY
The
following report gives a brief overview of the video poker industry and truck
stops in Louisiana. In every other
state, the typical truck stop offers convenient diesel fuel, food, sleep, and
maintenance for commercial truck drivers.
In Louisiana, truck stops have become "mini casinos" because
the state allows up to 50 video poker machines to be placed at a "truck
stop." This new addition to truck
stops has turned once marginal businesses into cash cows. Many investors and entrepreneurs are seeking
to enter the truck stop market.
The
truck stop market caters to truck drivers and local residents near the
facility. Most patrons in video poker
rooms are residents living near by.
Many new truck stops are being built to capture local markets. The truck stops are competing with other
gaming industries -- the lottery, bingo, riverboat casinos, and a land based
casino. The lottery and bingo have been
drastically impacted by video poker.
However, riverboats and land casinos may have a slight impact on video
poker revenues. Therefore, truck stops
target those markets that are attracted to video poker rooms.
Two
vehicles are available for investors, bankers, or financiers to enter this
gaming market. First, truck stops with
operating poker rooms are refinancing debt incurred for building the poker
room. Second, various truck stop
projects are seeking financing to build or finish building truck stop
facilities or poker rooms. The start up
projects usually require $1,000,000 to $2,500,000 to build an entire
facility. Truck stops trying to build a
poker room usually need $250,000 to $400,000 to build a quality room. Of course, each truck stop project varies
according financial needs and abilities, as well as the services offered.
The
determining factor of the truck stop market is the state average of net
revenues. Currently, the typical poker machine in a truck stop averages $163
each day of the month. With 50 machines
running 365 days a year, the numbers produce a result that has caught the
attention of many.
