RubinBrown Gaming Stats 2015

Limited Stakes Gaming The video lottery terminals offered in restaurants, truck stops and taverns was the fastest growing segment (excluding iGaming, which completed its first full calendar year of legalized operations) during 2014. In 2014, revenue from limited stakes gaming increased by 13.9% to $2.95 billion. The increase in this segment was solely due to the continued expansion in Illinois. When removing the growth seen in Illinois, the revenues generated by the five other states only increased by $1.3 million, or 0.06%. Tribal Gaming In 2014, tribal gaming revenues remained relatively flat, increasing by an estimated 0.2%. When examining the regional growth, the tribal nations within the Oklahoma region continue to see the most growth; however, the rate of growth has slowed dramatically from double-digit growth rates seen in 2008 and 2009. The continued slow-down in growth is attributed to the tribal segment reaching a point of maturation, where there are fewer opportunities for expansion.

While the growth was limited in 2014, the segment had a favorable legislative year, which will continue to support the overall development of tribal gaming and protection of tribal sovereignty. Specifically, in May 2014, the United States Supreme Court ruled in favor of the Bay Mills Indian Community, upholding tribal sovereignty. Later in the year, the Tribal General Welfare Exclusion Act was passed, providing Indian Country greater protection from the IRS efforts to tax tribal government programs, providing education and housing to tribal members. Looking Forward Overall, the U.S. gaming industry will continue to see a redistribution of gaming revenue as new regional gaming markets emerge. The most notable expansions to watch will be in Massachusetts as the state’s first casino, Penn National Gaming’s Plainridge Park Casino, is schedule to open in 2015. Beyond Massachusetts, expansion will continue in the New York, Philadelphia and Washington D.C. markets, with opening dates extending beyond 2015. Amidst the market expansion, existing operators will continue to focus on cost reduction efforts and diversifying revenues away from the gaming floor to other amenities.

Limited Stakes Gaming

Tribal Gaming

$28.10B

7.2% $2.95B

0.2%

13.9%

GAM I NG REVENUES

GAM I NG REVENUES

6 STATES

13,312 LOCATIONS

28 STATES

449 CASINOS

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