Fall 2013 Issue of Horizons

GAMING

located on the former Stardust site, and is developing a $2 - 7 billion dollar casino.

∙ A private group of investors is renovating the shuttered Sahara Casino and developing the SLS Casino and Hotel . When examining the Las Vegas Strip market, Las Vegas Sands President of Global Gaming Operations, Rob Goldstein, put it best in his second quarter earnings release, “...the Las Vegas market was challenging” in 2012 but will “slowly get better” in 2013 and the coming years.” Local Growth Regionally, growth continues to be the byproduct of states expanding gaming, as illustrated in RubinBrown’s 2013 Gaming Stats . Even during the recession, the industry continued to open new casinos in the regional gaming markets. This helped increase regional gaming revenues during a time when the Las Vegas Strip was down in the number of visitors, conventions and gaming revenues. It also ensured the overall gaming industry would grow when Las Vegas bounced back. Below is a summary of regional gaming expansion efforts and projects that have contributed (or are poised to contribute) to the growth of the gaming industry since the beginning of the recession in 2007: ∙ Pennsylvania has seen the opening of seven casinos, the legalization of table games in July 2009, and the rapid growth in gaming revenues allowing the state to surpass New Jersey as the second largest gaming market. ∙ Maryland saw the legalization of gaming in 2008, the opening of four casinos, the ongoing development of a fifth casino in downtown Baltimore, and the expansion of gaming in 2012 to include table games. A sixth license will be awarded in the next 12 months.

As the proxy to the U.S. gaming industry, the Las Vegas Strip is showing signs of strength and continued optimism toward the overall economic recovery. Net gaming revenue for companies on the Las Vegas Strip grew 5.6%, increasing by $345.7 million, in the second quarter of 2013. With the overall economy recovering, the Las Vegas Strip is starting to see large construction projects again. It is estimated there is approximately $5 - 10 billion in planned construction activity on the Las Vegas Strip, including: ∙ Caesars Entertainment is developing the Linq retail center next to the Flamingo and constructing the world’s largest observation wheel. ∙ MGM Resorts International is developing an arena behind the Monte Carlo and New York, New York casinos.

∙ Resorts World acquired Boyd Gaming’s stalled (since 2007) Echelon project,

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