RubinBrown Gaming Stats 2015

RACETRACK & VLT MARKETS Ohio Three new racinos open in 2014. Pinnacle Entertainment Inc. opened the Belterra Park Gaming & Entertainment Center just southeast of Cincinnati on May 1, 2014. The racino features live racing and 1,500 video lottery terminals. Penn National opened Hollywood Gaming at Dayton Raceway on August 28, 2014. The facility features live racing and 1,000 video lottery terminals. Penn National also opened Hollywood Gaming at Mahoning Valley Race Course in northeast Ohio on September 17, 2014. The racino features live racing and 850 gaming terminals. Pennsylvania New casino coming to south Philadelphia. In November 2014, the Pennsylvania Gaming Control Board awarded the final category 2 casino license available in the state to Stadium Casino, LLP. A category 2 license allows a stand-alone casino to operate up to 5,000 slot machines and 250 table games. Stadium Casino, LLP is a joint venture between Greenwood Gaming & Entertainment and the Cordish Companies. The group will construct and operate their new casino in southern Philadelphia. Rhode Island Voters in Newport say “No” to the addition of table games at Newport Grand Casino. In November 2014, voters rejected a referendum permitting table games at the Newport Grand Slots facility. The referendum’s defeat comes at a critical time as Rhode Island casinos will face competition from Massachusetts in 2015. Massachusetts residents that were traveling to Rhode Island are expected to stay in their home state once the new casinos open. West Virginia State considers online gaming in response to falling racino revenues. As a result of decreasing revenue due to increased competition, the West Virginia Lottery Commission is looking into allowing its four racinos to operate online gaming websites. The commission met with representatives from the state’s casinos to discuss online gaming in late 2014. Any measure on online gaming would need state legislative approval.

OTHER MARKETS Colorado

New Mexico Commercial racinos join the fight against gaming control board over free play credits. Five New Mexico racinos filed a lawsuit against the state’s gaming board and its promotional credits policy. The basis of the lawsuit is similar to the debate between tribal governments and the state’s gaming control board regarding promotional credits given to patrons (“free play”) being taxed as revenue. Oklahoma Tax revenues at racinos have been cut in half over last decade. While Oklahoma’s tribal gaming industry has exploded over the last 10 years, racinos have seen their revenues drop over the same time period. Since 2004, the tax revenues generated by Oklahoma’s two racinos have declined by almost 50%. South Dakota Passage of state amendment will allow new games in casinos. In November 2014, South Dakota voters passed Amendment Q, allowing the state legislature to consider adding craps, keno and roulette to casino floors in Deadwood. In February 2015, the South Dakota legislature passed legislation paving the way for craps, keno and roulette to be introduced in Deadwood casinos by July 2015.

Amendment 68 proposing the creation of a casino at the Arapahoe Park and two horse tracks is voted down. Voters in Colorado did not approve the proposal that would have raised an estimated $114 million annually for K-12 education. This should benefit the state’s mountain casinos. It was estimated that the mountain casinos would have seen their revenues plunge by an estimated 30% if a casino opened in Arapahoe Park. southeast Kansas. After Kansas legislature reduced the minimum investment for a casino in southeast Kansas from $225 million to $50 million, the state began accepting applications for new casino development. Four applications were submitted by the January 31, 2015 deadline. Michigan Deadbeat dads may no longer win in Michigan. In May 2014, the Michigan House committee approved legislation requiring casinos to withhold jackpot winnings from patrons that owe back due child support. This bill ultimately did not move forward; however, the state did pass legislation that requires the state lottery to withhold winnings in excess of $1,000. Changes in legislation would not apply to tribal casinos regulated by tribal- state gaming compacts. Kansas Gaming expansion moves forward in

Massachusetts | The public vote silences gaming industry opponents, while three companies win the battle for new casino licenses.

In November 2014, Massachusetts voters voted “no” on an effort to repeal the state’s Expanded Gaming Act, originally approved by voters in 2011.

As a result, MGM Resorts International, Wynn Resorts and Penn National will retain the gaming licenses awarded to them earlier in 2014. The three companies were awarded gaming licenses after an enduring, politically charged and well-publicized selection process. MGM will build a casino-resort in Springfield, Wynn will build a casino-resort in Everett (located outside Boston, across the Charles River) and Penn National will construct a slot parlor at the Plainridge Park raceway in Plainville.

Commercial Gaming | 13