The Sky’s The Limit Slot – Originally, when it opened in 2012, Valley Forge Casino Resort was just another small casino. It was a product of Pennsylvania policy that allowed (initially) smaller casinos with limited gaming capacity and gambling venues with only 850 slot machines and 50 table games – large by continental standards but small by American standards. (The floor of the Valley Forge Casino was the show floor of the Valley Forge Convention Center, built in 1985.) The property still has a convention center, now defunct, as well as two hotels, including the Radisson.
However, Boyd Gaming took one look at Valley Forge and saw the potential, purchasing the property in 2018 for $281 million and turning it into one of Philadelphia’s most reliable performers. (George Washington’s Valley Forge Campground directly overlooks the resort.)
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In an added stroke, Boyd partnered with FanDuel in March 2019 to introduce sports betting and online sports betting four months later, making Valley Forge the Keystone State’s sports betting leader, a title it likely won’t relinquish anytime soon. soon.
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As the cherry on top of the week, Boyd recently added Valley Forge to its B Connected loyalty program, replacing the Valley Club rewards system and greatly expanding player loyalty benefits. We spent some time with General Manager David Zerfing, weighing in on the success stories on the ground and in digital, and the challenges brought by Covid-19.
It was very important. In March 2019, the sportsbook added convenience to our property and brought new excitement to the casino. It is the same today. It creates a completely different demographic for the property and the casino, so it’s integral to our success.
The demographics of this casino differ from the previous ones. It’s a bit dated and the sports book is a bit younger. It’s a crowd that hasn’t visited Valley Forge before, and they’re coming in now, and they’re not just playing the sports book; they also play in the casino.
This is a huge advantage because they are the number one name in sports betting, so if you see or hear an ad for FanDuel anywhere in Pennsylvania, it is related to Valley Forge. This is a huge benefit for us, it keeps our name out there and keeps us top of mind. It draws people to the property, so when people think of FanDuel and sports betting, they think of Valley Forge, and that really helps keep our brand out there and helps our customers remember us.
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I think the sky is the limit. Every month we set a new record. Now we only track Nevada and New Jersey, but those are the sports betting markets, especially Nevada. I believe that over time as Pennsylvania matures we will be able to capture both and the market will be very large.
Well, it certainly helped us when we were closed, it brought in some revenue, but at that time online casino was just starting and there was really no online sports betting at that time. Major US sports were also shut down. Now of course it contributes to our financial success and our bottom line, but at the end of the day our focus is the safety of our guests and the safety of our team members and the cleanliness of the floor – making sure people feel safe and secure . . We make sure that’s the environment we’re providing, so that helps us now, but our main focus is keeping everyone safe until we get through this pandemic.
Since our floor isn’t as big as others, we’ve made some changes to open up more slots. But on the table side, it has largely remained the same.
Most of the time we have all other slots open, bringing us to 499 slots currently open. There are still 50 tables, which is much less than before with only one sitting at a table. We basically run three people per board game and six in the silly game.
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That didn’t happen here. We placed our sports book in an area where part of it is part of our food court, so it doesn’t disrupt the existing casino space. This size was perfect for us. It’s not like a Vegas sportsbook where people watch games all day. A lot of people come in and out, they’ll bet their money, they’ll watch some games, they’ll go out to the casino, so it works really well here and it didn’t require us to lower the casino floor at all.
With pandemic restrictions, do new nests and desk products have a high clearance bar to justify the floor space?
Due to the type of gaming license we have, our options are limited in terms of tables and slots. We had a very high bar to get a new slot product or table product on our floor because we just can’t add more games because we are limited by our gaming license. We still have the same measurements. Any game or game product should significantly increase revenue and profitability. We’ve always looked at it that way because of the gaming licensing style in Pennsylvania.
In general, in 2020, after we open, saving cash is the most important thing until the end of this year. As we look ahead to 2021, I think things will return to normal, not just in home flipping, but in all types of equity investments.
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What security measures have you put in place and which can be permanent?
The general cleanliness standards we have implemented will continue. All the extra cleaning we do makes a lot of sense. Of course, once the pandemic is over, we will open all slot machines and allow people to return to playing all slots in table games. But the overall cleanliness of the casino shows that it’s not just the crews who do it day and night, but the management team and the efforts of everyone who comes to help and make sure the casino is clean and safe.
We currently have one of our towers, Casino Tower, open on weekends as strong as before the pandemic, and sometimes slower mid-week without groups. We’ve had heavy band business here in the past and it filled one of our hotel towers. This tower is now closed.
When the pandemic is over and the group’s business starts traveling and functioning [again], we will start reopening this tower and selling to those people again.
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We have a steakhouse open, our food court is open. The pool is closed for the summer. Obviously, it will be closed at this point. Also, the gym is not open at this time. Due to the restrictions we have, not all bars are open.
This is a great benefit. It will definitely be a 600 pound gorilla in Pennsylvania. Our corporate loyalty program is far better than our competitors. This is based on a lot of experience. Players can enjoy free trips to the Bahamas on cruises, Las Vegas as part of the program and their level of play. This is an important advantage for us because the program really benefits our customers immensely.
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