Harrah's Philadelphia

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1 «' 6» "_,,... CAESARS ENTERTAINMENT. Harrah's Philadelphia Keeping Pennsylvania Competitive - Liquor License Reform Joint Hearing House Gaming Oversight Committee & Liquor Control Committee Joseph Tyrrell, Regional Vice President, Government Relations Caesars Entertainment Operating Company with Harrah's Philadelphia Casino and Racetrack May 11, 2015

2 .c. l> \...l,f, <II Agenda _,. Property Overview, Impact and Contributions Industry Standards Harrah's Philadelphia Responsible Gaming Commitment Harrah's Philadelphia Alcohol Awareness Regional Competitive Challenges Regulatory Recommendations './, _,.,,, '/. ) 3 _,. 2 :.:.',,,,... - _,.,,, -"'. -- / J ::::;...-

3 .c. t,, ({ p... "'" A Promise I<ept.... Overview Conversion of a 64 acre brownfield site 200,000 sq. ft. multi-level casino, racing, convention center & restaurant complex World class harness track $40M invested capital Major Accomplishments $2.2B in GGR since opening _ lover 33 million visitors! Over 1,400 jobs created $1.6M charitable contributions ;,,, - './.,,,.- /'... /,,,,,,,,, - _, /._, -. '-',, Generated Over $1.4 Billion In Taxes! Economic Driver of The City of Chester - $1 OOm And Delaware County- $100m 2

4 .. c.. };... IP "'" Harness Racing -A Promise I<ept... Harness Racing Contributions PA Horse Racing Development Funding $261 M PA Horse Harness Association Fees: $18M PA Pari-mutuel Taxes: $4.SM Racing Operations - 0+ jobs including affiliated vendors...- '/. -:-;. - ) _,.,,. "' -.- ;:::: " 150 Live Racing days per year with 11 World Records since Opening Dedicated Races PA Sired/Owned horses Average of $200k in daily purses -./ /. - v ',.,- Only PA track with system handle growth Account Wagering (on line horse betting} handle up 603 in 2014! 3

5 !f \ t\'"e Over $1.4 Billion in Taxes and Fees Generated SLOT MACHINES ECONOMllC IMPACT Commonwealth of Pennsylvania $50M _,. './. -:; -- Pennsylvania Race Horse Development Fund Economic Development Fund $25SM $1 lom L. -- L 'L.. Section 1401 Assessment to the Commonwealth $39M Local Share Assessment - City and County $88M Land Lease Agreement - City and County $88M Initial Slot License Fee $SOM ;;:::; / /..,, v ) -- TOTAL SLOTS FINANCIAL IMPACT $1,381 B 4

6 c... ({» "'"" Over $1.4 Billion in Taxes and Fees Generated.-- TABLE GAMES ECONOMIC IMPACT Commonwealth of Pennsylvania $45M Section 1401 Assessment to the Commonwealth $SM Local Share Assessment - City & County $M Land Lease Agreement - City & County $14M Initial Table Games License Fee $16M TOTAL TABLE GAMES FINANCIAL IMPACT $8M r,.- ;:c ' /..- 2'.....::: ' c: -.,.,,_,, , 5 ::::: 5

7 I "' Oil "'" Community Commitment - A Promise Kept We are a large purchaser of local and PA products $2.4M In-State Spend in 2014 $8.SM In Delaware County in 2014 $3.2M in Philadelphia in 2014 $1 Min Chester in % Increase in Total Spend in Increase in In-State Spend in minority spend in FY 13/14 - :r. -,../. - i ;:; ,., ;:.: -,,.,,. _,,. /._, ;.-._, i,,.- 6

8 .c. (f ); "''"" --- " Community Commitment - A Promise Kept Economic Impact Through Sustained Employment Opened with 1, 123 employees which grew to 1,442 employees Total Salaries & Wages Paid Since Opening: $25M Total Payroll Tax Dollars Paid Since Opening: $35M Total Employee Benefits Paid Since Opening: $125M Total Service Bonuses to Team Members in 2104: $4,000 Total Service Bonuses to Team Members Since Open: $2.3M --._;. - /J "/. ī... /J --.!. ;:::::.,,. -/J./ _;,, ;(../ ",J --

9 tf \ '"e Community Commitment - A Promise I<ept Unwavering commitment to the workforce and the community 533 of our employees are minorities 433 of our employees are female 393 of our Supervisors and above are minorities 383 of our Professional positions are held by females 433 of our employees are Delaware County residents 53 of our employees are Pennsylvania residents 403 of our Team are Union Affiliated,,... :J.. N './. - ). ;::::; _.. ; ;::;...:..,, - -- / ::::: _.. 8

10 !f t t\'-..1ll "' How We Make a Difference S 1.6M in Charitable Contributions since opening Workforce Investment Board Delaware County Community College Education Fund Alheimer's Association United Way of Delaware County {Scholarship Fund) Chester Resident Scholarship Fund DCCC Stem Center YWCA Computer Lab College Resource Center at Chester High School Chester Education Foundation Walk to Work Program 583 Of Our Employees Are Community Volunteers Harrah's Employees Reaching Out (HERO) Program In 2014, over 200 hours volunteered to 125 organiations leadership Team Serves on Many local Community Organiations and Boards City Team, Croer Library, Chester Education Foundation, Delco Chamber of Commerce, Institute of Economic Development, Boys and Girls Club of Chester 9.- :;, "/; --- i ""..> "-- ;:;: ::; -;. v i. _.,.

11 , '--'t.. Harrah's Philadelphia Focused on Responsible Gaming Procedures designed to prevent underage gaming: Identification is requested from all persons who appear to be younger than ;:::; the age of ,500-3,000 patrons are turned away each year for failure to produce proper ; Identification Wristbands are used to identify patrons who have been "carded" and provided adequate identification Signage at each entrance stating "No one under the age of 21 is permitted" Traffic flow directs patrons through two main points of entry with Security Officers present Each point of entry is equipped with electronic ID verification systems to scan and determine the validity of a patron's identification,--. '!'J - N './. j - v /o - _.,.,(, J. -..J i -- 10

12 ff\ t\'"..,e ---" Harrah's Philadelphia Alcohol Awareness Controlling Alcohol Risks Effectively C CARE) Caesars Entertainment provides alcohol awareness training to educate our staff about their role in preventing underage drinking and overconsumption CARE is effective for 2 years and is refreshed bi-annually - i - / J '/. Z',,., --. ;>' y Responsible Alcohol Management Program CRAMP) ;g Harrah's Philadelphia also complies with Pennsylvania's state mandated _ alcohol training required for employees that directly service alcohol and their leaders s _, RAMP is effective for 2 years and is refreshed bi-annually.: :s:. ::::;,,,.. I I

13 . 6 (f '); "-\..II Casino Industry Alcohol Policies As a long-standing service to our customers, casinos offer low-cost or free drinks, depending on state regulations. Some customers choose non-alcoholic beverages, while others choose to drink alcohol. The gaming industry is committed to safe and responsible consumption of alcoholic beverages and has extensive policies and programs to protect the safety of customers and the community while still allowing adults to drink responsibly /. :;:; ' /. - ) ;::; --,,. ;::;,., -.,..,., {.. _.; :::::. _... 12

14 ' t '... " '"""" Facts About The Casino Industry Alcohol Policies Not all casinos provide free alcohol to their customers. Of the 23 states with commercial casino gaming, casinos in only 13-Colorado, Florida, Iowa, Louisiana, Michigan, Mississippi, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, South Dakota and West Virginia-are permitted to offer free alcohol to their patrons. However, even though they can offer free alcohol, not all casinos in those states do. Casinos in other states must charge for alcoholic beverages. The AGA Code of Conduct for Responsible Gaming. includes provisions for alcohol. The vast majority of guests consume alcohol responsibly or choose not to drink ; at all. Avid casino players like to be at the top of their game and therefore avoid the consumption of alcohol..j Patrons come to casinos for an overall entertainment experience, not for free ;.. drinks. Like other liquor license holders, casino companies adhere to strict policies regarding alcohol service. Most casinos either have implemented voluntary responsible alcohol service programs, such as TIPS (Training for Intervention Procedures), or are required by the state to adhere to such programs, which include intoxication recognition training as well as ongoing employee awareness training and certification. L,..,>.::::,,.. ;;.-; _,,..- ;(.J -;!.- 13

15 ... <f );... 3 "'--'-" Facts About the Casino Industry Alcohol Policies A combination of regulatory requirements and company programs are in place to prevent customers who are visibly intoxicated from entering or remaining in a casino or from being served more alcohol. The gaming industry understands the dangers of drinking and driving and recognies its responsibility to address this issue. Casino employees are trained 2 to encourage those customers who are obviously impaired to either take a cab or ride with a designated driver. If an impaired guest insists on driving, i personnel are trained to involve local police. Studies show that the presence of riverboat casinos does not generate a corresponding increase in vehicular accidents caused by drunk driving. -,,_./ The responsible service of alcohol, including cutting off people who appear to -; be intoxicated, is not only the right thing to do, but it makes the best business sense. Intoxicated patrons are not good customers; there is no evidence that they spend more money, and they spoil the experience for other patrons. i -- Like other establishments that serve alcohol, casinos are businesses that provide-safely and responsibly-goods and services that customers want. _,. ;r...,., './. 14

16 .&. a (f '); er'"' "''"" Pennsylvania's Regional Competitors Hours of Service Atlantic City - allows 24 hour alcoholic beverage service, New Jersey state law. /. allows alcoholic beverage service until 2:00 a.m. throughout the state and until 3:00a.m. at larger cities such as Jersey City and Newark. Maryland - allows 24 hour alcoholic beverage service at its casinos and allows local authorities to regulate hours of service. h New York - allows alcoholic beverage service until 4:00 a.m. - ;;:;:; Ohio - allows alcoholic beverage service until 2:30 a.m. West Virginia - allows alcoholic beverage service until 2:00 a.m. - -:;. -; Delaware - allows alcoholic beverage service until 1 :00 a.m..- Connecticut - allows alcoholic beverage service until 2:00 a.m. on Friday and Saturday; 1 :00 a.m. from Sunday through Thursday Also note under the PA Liquor Code licensure for clubs and catering club liquor licensees are private or fraternal organiations. They are allowed to serve alcoholic beverages to its members until 3:00 a.m. and must collect all unfinished beverages and have patrons depart by 3:30 a.m. - :r. - - "" - ;='. ::::: 15

ac. }; "-,, PA Senate Legislative Budget and Finance Committee Report on May 201 4 stated: PA Alcohol Sales End at 2:00 a m.

17 ac. }; "-,, PA Senate Legislative Budget and Finance Committee Report on May stated: PA Alcohol Sales End at 2:00 a m. Casinos cannot serve alcohol after 2:00, which is consistent with closing times at Pennsylvania taverns. Some Pennsylvania casinos, particularly those in urban areas, report a sharp decline in patronage at 2:00, as gamers leave the?j. facility. O.ther casinos are ih locations where most customers have left by 2:00,.. anyway, or have decided for business purposes that they do not want to serve -- ' alcohol after 2:00. Alcohol in Pennsylvania is completely controlled by the Liquor Control Board. By the statutes in the Gaming Act, any Pennsylvania Casino is considered a : restaurant establishment for the purposes of the Liquor Control Board. Casinos must, therefore, stop any alcohol sales by 2am. This regulatory model is not 2 the most commonly taken approach among states with casinos. For almost every state, the requirements and rules governing alcohol sales in casinos are ; '-' specific to casinos. In Maryland, Mississippi, and Louisiana, for instance, casinos i have no "last call", though most other establishments are required to stop - serving alcohol at certain times. 16

18 a.. (( l} OJ "''"" PA Senate Legislative Budget and Finance Committee Report on May 2014 stated:.- :;-; Regulatory impact type: 2) increase demand (direct GGR and tax increase) Potential impact: not quantified '-,.,,,.. _,.,,.. - v. ::::; i :::::

19 -. 9 """ Pennsylvania Casino Industry Recommendations PA Industry Position on Expanded Alcohol Service: In order to make our facilities more attractive to gaming patrons, we seek adjustments to the Liquor Code. Seek authoriation that allows for their either 24 hour service or extended I flexible hours of service. In addition, we seek authoriation to provide complimentary drinks to patrons regardless of whether they are engaged in gaming....-?...- ;;;:; f. / )'. i.....;' _,, {.._,.: ::::'

20 !f t t\'-t!ip Streamline PA Casino Alcohol Regulatory Process Caesars Supports Regulation of Sale and Service of Liquor. Currently the Pennsylvania Liquor Control Board has jurisdiction over the sale and service of liquor in casino properties. We propose that regulation of casino-related liquor matters be reassigned to the Pennsylvania Gaming Control Board. Allow greater ability for sponsorship opportunities Ability /flexibility to offer differentiated prices and specials in unique outlets. This will provide for a more unit orm system of regulation and enforcement.,,.- '.i: :... ;:::: "/: - /... ;:::;,,.-. 3:: '..., ;::;..., ;;:; _. - _,. _,, L J ::::; i. _. 19

POLICY STATEMENT 78 Serving, Possessing, and Consuming of Alcoholic Beverages

POLICY STATEMENT 78 Serving, Possessing, and Consuming of Alcoholic Beverages POLICY DIGEST Monitoring Unit: Office of Academic Affairs Initially Issued: August 15, 2005 Last Revised: July 10, 2018 I.