RubinBrown Gaming Stats 2014

COMMERCIAL GAMING ANALYSIS

The United States commercial casino industry generated $37.83 billion in 2013, expanding by 1.3 percent. The growth in gaming revenue was the result of gaming expansion in new markets, but was tempered by existing markets experiencing declining revenue and market cannibalization. In 2013, there were 23 states with commercial gaming operations. Of these states, six expanded gaming in 2013. Gaming expansion is defined as the opening of new casinos or expanding casino game offerings, such as table games. Ohio had the largest increase in gaming revenues (149.1 percent), as the market benefitted from the existing casinos operating for a full twelve-month period (Ohio’s first casino opened in May 2012) and the opening of three new “slot-only” racinos and one new full-service casino in 2013. Maryland was second to Ohio, with a 98.2 percent increase in gaming revenues. Maryland’s growth is contributed to the state legalizing table games—boosting existing casino revenue more than 46.5 percent, the benefit of a twelve-month period for its largest casino, Maryland Live, and the opening of Rocky Gap Casino, a small resort casino in the western part of the state. Collectively, Ohio and Maryland generated $1.01 billion more in gaming revenues during 2013. With gaming expansion leading to exponential revenue growth in states like Ohio and Maryland, state legislatures often view gaming expansion as a magic formula for increasing tax revenues. However, this formula is no longer holding true as markets are reaching the point of saturation and states are increasingly cannibalizing gaming revenues from neighboring gaming jurisdictions. Casino Gaming Grows, but Regional Revenues Lag (As published in the April 2014 issue of Casino Journal)

Top 20 United States Commercial Gaming Markets

Las Vegas Strip, NV $6,508.08M

Atlantic City, NJ $2,928.36M

Chicago, (IL & IN) $2,102.12M

Detroit, MI $1,349.41M

New York, NY $1,345.08M

Philadelphia, PA $1,160.64M

St. Louis, (MO & IL) $1,038.27M

Biloxi, MS $806.75M

Boulder Strip, NV $786.95M

Kansas City, (MO & KS) $778.51M

Tunica/Lula, MS $735.11M

Shreveport/Bossier City, LA $727.81M

Baltimore, MD & Washington D.C. $673.53M

Reno/Sparks, NV $670.89M

Cincinnati Vicinity (OH & IN) $652.50M

Pittsburg, PA $616.31M

New Orleans, LA $604.88M

Black Hawk, CO $553.08M

Providence, CT $511.71M

Lake Charles, LA $490.22M

Reaching the point of market saturation was most notable in Pennsylvania. In June 2013, Pennsylvania opened its twelfth casino (a

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2 | 2014 Commercial & Tribal Gaming Stats