RubinBrown Gaming Stats 2013

2013 Industry Forecast In 2013, gaming operators will see additional gaming expansion challenges with Massachusetts issuing three full-scale casino licenses and one slots-only license, Maryland legalizing table games, Florida continuing to look at gaming expansion, and countless other states looking to expand gaming. Existing properties will also face increased challenges with more states legalizing video lottery games at local truck stops, restaurants, and bars. Beyond the traditional “brick-and-mortar” casino expansion, 2013 is expected to usher in a new era for the U.S. gaming industry with the operation of legalized interactive gaming (igaming or internet gaming). In 2011, Nevada became the first state to legalize igaming and immediately began the regulating process. Delaware legalized igaming in 2012 and began drafting the regulation and licensing processes. In early 2013, New Jersey became the third state to legalize internet gaming. Throughout 2013, numerous other state legislatures are expected to consider the legalization of internet gaming. The legalization of igaming at the state level has created even greater challenges for tribal gaming operations. Without federal legislation, tribes will be forced to wait on their respective state legislatures before entering the internet gaming industry. With the continued gridlock in Washington D.C. the prospects of federal internet gaming legislation remain dim. Even though existing commercial and tribal casinos will continue to see increasing gaming competition, the United States gaming industry, as a whole, will continue to experience year- over-year increases in gaming revenue. Statistical Notes Gaming Revenue – For purposes of this report, the term gaming revenue is intended to be an all-encompassing term for the various definitions of gaming proceeds as defined by the individual regulatory authorities (e.g. AGR, AGP, and Net Win) and should not be interpreted to equal the American Institute of Certified Public Accountants definition of revenue. Commercial Casinos – Commercial casinos include all “brick-and-mortar” casinos, including dockside casinos, riverboat casinos, land-based casinos, and racinos (slots-only facilities located at racetracks). Other forms of gaming such as card rooms, lotteries, and video lottery terminals located in restaurants and bars have been excluded from the analysis. Tribal Casinos – Tribal casinos are defined as Class II or Class III gaming casinos that operate under the Indian Gaming Regulatory Act or a State-Tribal Gaming Compact. Other forms of tribal gaming, such as gaming machines in truck stops, restaurants, or bars have been excluded from the analysis. Electronic Gaming Devices (EGDs) – Electronic gaming devices include both the traditional slot machines and video lottery terminals (VLTs) located inside a brick-and-mortar casino. VLTs differ from traditional slot machines, as they are connected to a network overseen by the respective state’s lottery commission. The connection to the lottery commission’s network does not impact the game performance or patron experience. Table Games – Table games are defined as live table games that require casino personnel to conduct the game. Electronic table games are included in the electronic gaming machines. When reporting on table games revenue, we have included both house-banked (when a player bets against the casino) and player-banked (when the players bets against an opposing patron) games. For the win per table and table game hold statistics, we excluded player-banked games from the analysis.

2013 Commercial & Tribal Gaming Stats | 3