RubinBrown Gaming Stats 2013

ELECTRONIC GAMING DEVICES

When examining Electronic Gaming Device (EGD) revenues by state, the growth trends in EGD revenues are generally consistent with the overall gaming revenue growth trends. Maine was the only state to go against this trend, with total gaming revenue growth of 66.9%, as compared to EGD revenue growth of 44.8%. The variance between the growth rates is due to Maine expanding gaming in 2012 to include table games. Other states that had noticeable differences between overall gaming growth and EGD growth were Kansas and Illinois. The two states’ EGD revenue growth rates trailed overall gaming revenue growth by 290 and 265 basis points, respectively. These variances were the result of casino expansions in larger metropolitan areas, which traditionally have increased table game revenues. When analyzing EGD revenues as a percentage of total revenues, the states with fewer large metropolitan areas have a higher percentage. For those states analyzed, EGD revenues represent 77.9% of all comparable total gaming revenues. The states with the highest percentage (excluding states that only offer EGD gaming) were Iowa and South Dakota. Iowa EGD revenues represented 90.9% of all gaming revenues, while South Dakota EGD revenues represented 90.3%. The states where EGD revenues represented the lowest percentage of gaming revenues were Nevada and New Jersey, at 62.5% and 71.8%, respectively. Notably, in 2012, EGDs on the Las Vegas Strip only accounted for 46.9% of the $6.2 billion in gaming revenues. Analyzing the 2012 change in revenue per EGD per day there were several notable fluctuations. In Missouri, the daily EGD win per machine increased by $4.61 even though the state’s EGD gaming revenues declined by 2.4%. The positive increase in daily win per machine was the result of casino operators reducing the number of machines offered. Between January and August, Missouri casinos reduced the number of EGDs by 700 machines, from 19,100 to 18,400. Other significant increases in daily win per machine were experienced in Maine, New York, Pennsylvania, and Rhode Island. The increases in Maine, New York, and Pennsylvania were the result of continued gaming expansion into new markets, while the increase in Rhode Island’s daily win per EGD was organic growth. For states that report coin-in, the average EGD hold percentage was 8.2%, with a range from 6.3% to 9.4%. Nevada continues to have the lowest hold percentage at 6.3%. We continue to see the lack of a statistical correlation between the tax rate and EGD hold

EGD GRAPHS NOTES * Louisiana and Michigan were

excluded from the analysis as gaming revenue is not split between electronic gaming devices and table games. † Kansas, Maryland, Oklahoma, and West Virginia were excluded as the number of gaming machines is not reported on a monthly basis. ‡ Kansas, Maine, Maryland, New Mexico, Oklahoma, and West Virginia were excluded as the Coin-In is not reported.

8 | 2013 Commercial & Tribal Gaming Stats