RubinBrown Gaming Stats 2018

LIMITED STAKES GAMING

GAMING REVENUES BY STATE †

In 2017, the limited stakes gaming segment generated $3.8 billion, an increase of 6.9% when compared to 2016 revenues. The increase in gaming revenues was primarily due to the continued proliferation of limited stakes gaming throughout Illinois, which saw limited stakes gaming revenues increase by 17.6% to $1.3 billion. While Illinois continues to be the leader in the limited stakes gaming market, 2017 was an impressive year for the segment overall as revenues increased for every state offering limited stakes wagering. West Virginia’s modest 1.1% increase in limited stakes revenues was a welcome change after enduring three straight years of declining gaming revenues in both commercial and limited stakes gaming. While commercial gaming revenues continued to decline in West Virginia in 2017, the uptick in limited stakes may indicate the decline in the state’s gaming revenues is bottoming out. Growth in the limited stakes gaming segment is not expected to slow down in the near term, as the Illinois market continues to grow at a double-digit growth rate. Once the Illinois market reaches a point of maturation, Pennsylvania will be the catalyst for future growth in limited stakes gaming.

$1,302.75M 34.7%

$354.27M 9.4%

$575.93M 15.3%

$212.38M 5.7%

$399.03M 10.6%

$914.07M 24.3%

Illinois

Louisiana

Montana

Oregon

West Virginia

South Dakota

In 2017, Pennsylvania passed one of the most comprehensive gaming expansion laws the United States has ever seen, which includes the

legalization of limited stakes gaming in the state. The new law permits airports and certain truck stops (businesses with over 50,000 gallons of monthly diesel sales, three acres of land, plus meeting other detailed requirements) to operate five video gaming terminals. The Pennsylvania limited stakes gaming restrictions to truck stops and certain geographic areas will prevent expansion from becoming as widespread as the Illinois limited stakes expansion. However, the legislation will surely be a boom for video lottery terminal manufacturers that are looking to capitalize on the next ‘new’ limited stakes gaming market.

LIMITED STAKES GAMING REVENUES †

ALL GAMING REVENUES 1.7% ALL GAMING REVENUES 0.8% ALL GAMING REVENUES 0.5% ALL GAMING REVENUES 1.2% ALL GAMING REVENUES 0.3% ALL GAMING REVENUES 0.5%

$133.12 REVENUE PER

GAMING REVENUE $1,302.75M

LOCATIONS 6,097

ILLINOIS

4.1%

17.6%

MACHINE PER DAY

$121.13 REVENUE PER

GAMING REVENUE $575.93M

LOCATIONS 1,741

LOUISIANA

0.02%

0.4%

MACHINE PER DAY

$73.15 REVENUE PER

GAMING REVENUE $399.03M

LOCATIONS 1,504

MONTANA

0.1%

1.4%

MACHINE PER DAY

$211.92 REVENUE PER

GAMING REVENUE $914.07M

LOCATIONS 3,932

OREGON

4.3%

5.4%

MACHINE PER DAY

$64.17 REVENUE PER

GAMING REVENUE $212.38M

LOCATIONS 1,343

SOUTH DAKOTA

2.3%

1.8%

MACHINE PER DAY

$154.78 REVENUE PER

GAMING REVENUE $354.27M

LOCATIONS 1,325

WEST VIRGINIA

1.1%

2.8%

MACHINE PER DAY

Limited Stakes Gaming

15

† see statistical note on page 25