RubinBrown Gaming Stats 2018

COMMERCIAL GAMING

GAMING REVENUES BY REGION

In 2017, the commercial gaming industry segment generated $39.9 billion, up 3.3% from 2016. The revenue also established a new all-time high for commercial gaming. The commercial gaming segment consists of 577 † casinos operating in 24 state gaming jurisdictions. When comparing the commercial gaming market to the overall industry, it accounts for 52.2% of the United States gaming industry. The commercial gaming segment recorded its highest growth rate since 2012. The 3.3% revenue growth recorded in 2017 also marked the first time since 2012 that the commercial gaming segment grew at a rate that outpaced both the U.S. inflation rate (2.1%) and real GDP (2.3%). The strengthening revenue performance within the commercial gaming segment is due to the growth in the Northeastern U.S., while the other markets continue to produce nominal growth. The Northeastern U.S. experienced strong revenue growth of 7.1%, which is attributed to new casinos in New York and Maryland. Most importantly, with the exception of West Virginia, the new casinos did not lead to statewide revenue declines in the neighboring gaming jurisdictions. The ability for the region to welcome new casinos, while maintaining growth in the neighboring jurisdictions, is a welcome change to a region that has been facing increasing competition. The Las Vegas Strip contributed annual revenue growth while enduring the tragic events of 1 October. The ability for the Strip, which represents 16.2% of the U.S. gaming market, to produce an annual growth in revenues is key the overall growth in commercial gaming.

$11.57B 29.0%

$1.18B 3.0%

$5.19B 13.0%

$11.57B 28.8%

$10.43B 26.2%

Nevada

South Region Northeast Region

Midwest Region

Other

In 2017, the Las Vegas Strip generated revenue growth of 2.8%. Through the first three quarters of 2017, the Strip was on pace for a 3.6% increase in gaming revenues; however, the events of 1 October halted growth. During the fourth quarter of 2017, the Las Vegas Strip saw revenue decline by 5.1% compared to 2016. Early 2018 data indicates that the Strip has been able to regain positive growth in gaming revenues. The prospects for increased revenues are strong for 2018. The gaming industry will continue to benefit from recently opened New York casinos, which will complete their first full calendar year of operations in 2018. The industry will also benefit from the opening of the MGM Springfield in Massachusetts, which is scheduled for September 2018. Outside new casino openings, the industry is looking to capitalize on the increase in disposable income that the Tax Cuts and Jobs Act will provide casino patrons.

Commercial Gaming

3

† see statistical note on page 25