RubinBrown Gaming Stats 2013

COMMERCIAL GAMING HEADLINES

Colorado Colorado Gaming Commission increases taxes by 5%. On July 1, 2012, the gaming commission reversed last year’s decision to decrease taxes by increasing casino taxes this year. State analysts suggest that the 5% tax increase will generate an additional $6 million in revenue for the state during the fiscal year. Delaware Delaware becomes the first state to legalize full-scale internet gambling and the second to legalize online poker. Lottery tickets, casino games, and poker will be offered on gaming websites for the three racinos in the state. Once licensed, the new sites are expected to generate an additional $7.75 million in revenue for Delaware. Florida Casino expansion comes to a standstill in the Florida House. In January, the hopes of legalizing three full-scale commercial resort casinos was close to becoming a reality with the Senate in favor of expansion. When the topic was addressed in the House, the expansion efforts hit a dead end for 2012. Industry titans, including the Genting Group and Las Vegas Sands, have backed off their petitions for gaming expansion while waiting for lawmakers to analyze the effects of commercial gaming on Florida’s future.

Illinois Employees buy Casino Queen. The Illinois Gaming Board approved the sale through an employee stock ownership plan on December 20, 2012. The general manager and president believe it is the first ESOP in gaming industry history. Still no more casinos in Chicago as lawmakers fail to overturn the Governor’s veto. The plan for five more casinos and a racetrack in the state remains on the voting block for the year. According to estimates, state revenue would increase by $104 million annually if the plan passed. Had the plan passed, existing casinos could have increased the number of gaming positions from 1,200 to 1,600 and the maximum tax rate would have decreased to 40%. Indiana Legislators continue to pursue initiatives to keep Indiana casinos competitive. Indiana casinos are facing an onslaught of competition with new casinos opening in Ohio, tribal casinos expanding in Michigan, and Illinois proposing additional gaming expansion. The state legislature proposed numerous bills to help Indiana casinos compete; the proposed bills included measures that legalize land- based casinos, remove taxes on free-play coupons, discontinue admissions taxes, and expand table games to race tracks.

Iowa Iowa riverboat casinos continue to move onto land. The Harrah’s casino in Council Bluffs is moving the casino floor from the riverboat to the convention center facility within the Harrah’s hotel. Penn National Gaming is bidding on the new land based casino license in Sioux City with the hopes to replace its existing Argosy casino. The city of Davenport is looking to enter the gaming business. In October, the city of Davenport announced plans to purchase the Rhythm City Casino from Isle of Capri for $46 million. The city established a non-profit entity to oversee the casino operations. However, before the deal is complete, the city and non-profit must be licensed by the Iowa Racing and Gaming Commission. If approved, Rhythm City Casino would join Prairie Meadows Racetrack as the only commercial casinos owned by local government.

12 | 2013 Commercial & Tribal Gaming Stats