RubinBrown Gaming Stats 2018

WELCOME

Welcome to the 2018 edition of RubinBrown’s Gaming Statistics publication, which provides a comprehensive review of the United States gaming industry. This publication includes statistical data from over 1,000 gaming operations, spanning 40 states and incorporating all four of the U.S. gaming segments we track – commercial casinos, iGaming, limited stakes gaming and tribal casinos. Refer to page 25 for a detailed definition of each gaming segment. Overall, the collective gaming industry grew at an annual rate of 4.1% this year (eight years of consecutive growth), with all four segments growing at a rate faster than both the U.S. inflation rate of 2.1% and annual real GDP of 2.3%. The iGaming segment continues to be the fastest growing segment, as online wagering in New Jersey rose the segment’s overall revenues by 24.2%. It is expected this gaming segment will continue to grow as it remains an emerging industry within the United States. However, there was a notable shift in 2017, as both Delaware’s and New Jersey’s peer-to-peer online wagering posted a decline in year-over-year activity. The downturn in peer-to-peer wagering indicates that the popularity of online poker is declining under the current market structure, which is restricted to individuals physically located in Delaware, Nevada and New Jersey. Throughout this publication, we report on the growth of the industry from 2007, to show the industry’s performance since the Great Recession. During this period, the industry has opened approximately 100 new casinos, created a $1.3 billion limited stakes gaming market in Illinois, and both outlawed and subsequently legalized an iGaming market that produces approximately $250 million in annual revenues. Regionally, we see the overall gaming industry continuing to strengthen after adjusting to the impact of new competition. In 2017, 8% of the 150 individual casinos tracked by RubinBrown generated a double-digit growth rate in revenues and over 60% saw a year-over-year increase in gaming revenues. In 2016, only 3% of the 150 casinos produced a double-digit growth rate and only 48% of the casinos produced year-over-year revenue growth. As we have done in the past, we provide a summary of industry news and highlights by segment. We try to look beyond the national headlines - which have focused on gaming expansion, online gaming, sports wagering and daily fantasy sports - to provide some regional headlines for specific casinos we track. As with every year, we welcome your feedback and inquiries for additional analysis. We have a deep passion for the industry and our team is always looking for an opportunity to talk ‘gaming’ – gaining insights and perspectives from others while also sharing our own. After all, this publication would not be possible without the support of the gaming industry’s leaders, regulators and professionals that we are able to work with throughout the nation. We thank you for your continued support and we hope RubinBrown’s Gaming Statistics continues to be a valuable tool to you and your respective teams.

Sincerely,

Brandon Loeschner

Daniel Holmes

Overview

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