RubinBrown Gaming Stats 2018

iGAMING

GAMING REVENUES BY OPERATOR †

The United States iGaming segment completed its fourth full year of operations in 2017. It should be noted, the market’s first online gaming operator closed operations at the end of 2014 leaving only two operators in Nevada. At that time, the state stopped reporting the results of its online gaming market and is therefore not included in the analysis of this segment. New Jersey continues to be the proof of concept for online gaming. In 2017, New Jersey generated $245.6 million in iGaming revenues, a 24.9% increase over 2016. While the revenue growth is impressive, New Jersey’s online poker (peer-to-peer wagering) revenues declined by 8.5%. New Jersey was not the only state to see a downturn in peer-to-peer revenues. Delaware’s year-over-year online poker revenues dropped by 38.5% in 2017. The decline in online poker revenues is attributed to the lack of market liquidity. The number and style of games were limited by the quantity of online patrons. Delaware and Nevada have shared their respective pools of online poker patrons since the two states enacted an interstate compact in 2015. In October 2017, New Jersey joined Nevada and Delaware through another interstate compact, by which player liquidity will be shared across the three states. With a combined population of almost four million, Nevada and Delaware will likely see the most benefit to New Jersey, with a population of nine million, joining the compact.

$1.19M $48.54M $43.00M $68.57M $42.95M $42.55M $0.72M $0.49M

Borgata (NJ)

Caesars (NJ)

Golden Nugget (NJ)

Resorts Digital Gaming (NJ)

Tropicana (NJ)

Delaware Park (DE)

Dover Downs (DE)

Harrington (DE)

Thanks to Pennsylvania’s gaming expansion law, the iGaming segment is positioned for a significant boom in the in the coming years. The law legalizes online gaming for existing casino operators. The online wagering market potential will double with the addition of Pennsylvania to iGaming. The population of Pennsylvania is equal to the populations of Nevada, Delaware and New Jersey combined.

GAMING REVENUES BY STATE ( excluding nv )

$245.61M

$150 M $165 M $180 M $210 M $195 M $240 M $255 M $225 M

Delaware

New Jersey

$196.71M

$148.88M

$135 M

$122.88M

$120 M

GAMING REVENUES $105 M

$30 M

$8.37M

$15 M

$3.02M

$2.39M

$2.09M

$1.81M

$0.25M

$0 M

2016

2017

2014

2015

2013

iGaming

13

† see statistical note on page 25