RubinBrown Gaming Stats 2015

Internet Gaming Enforcement Act of 2006 and to avoid becoming the target of a federal investigation, financial institutions and credit card processors began prohibiting the processing of online gaming transactions. This restriction on processing credit card transactions made it difficult for patrons to move money into or out of their online gaming accounts. The solution for online gaming relies upon action from financial institutions and credit card processors, which have been reluctant to change their existing policies. Opportunities The most significant opportunity for online gaming is the expansion into new jurisdictions, as only 4.0% of the United States population lives in states that offer online gaming. The most targeted state for online gaming expansion is California. California is a key target for online gaming operators, as its population of 38.8 million people is more than three times the combined population of all three regulated online gaming markets.

In December 2014, California assemblyman Mike Gatto introduced an online gaming bill (known as AB 9) to be discussed in 2015. The AB 9 bill is similar to previously unsuccessful legislation with a few key changes. First, the bill includes a proposed “bad actor” clause that would limit the entry of online gaming operators (PokerStars) that previously violated or ignored the Federal Unlawful Internet Gambling Enforcement Act of 2006. The bill would also require a one-time $5M fee for a license to operate within the state for ten years. While many proponents believe this bill will ultimately be successful, it will also need to satisfy the interest of California’s horse racing industry, card rooms and the 61 federally recognized tribes operating traditional brick-and- mortar casinos. Outside California, there are numerous other states that continue to consider online gaming. Most notable, West Virginia continues to explore online gaming to offset the declining revenues from both traditional brick-and-mortar casino operations and limited stakes gaming.

$13.01M

$12.46M

$13.50M

$12.75M

$11.51M

$11.51M

$11.46M

$11.20M

$11.09M

$11.88M

$12.00M

$10.73M

$10.28M

$11.25M

$11.43M

$9.56M

$10.50M

$10.74M

$10.55M

$10.47M

$10.25M

$10.07M

$9.75M

$9.51M

$9.48M

$9.00M

$8.74M

$8.25M

$7.50M

$6.75M

$6.00M

$5.25M

$4.50M

$3.75M

$3.00M

$2.25M

$1.50M

$1.04M

$0.96M

$0.93M

$0.86M

$0.79M

$0.74M

$0.69M

$0.67M

$0.64M

$0.60M

$0.75M

$0.21M

$0.24M

$0.19M

$0.18M

$0.18M

$0.17M

$0.17M

$0.17M

$0.15M

$0.13M

$0.00M

JUL 2014

JUN 2014

APR 2014

SEPT 2014

DEC 2014

OCT 2014

MAY 2014

MAR 2014

AUG 2014

NOV 2014

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