RubinBrown Gaming Stats 2018

’18

GAMING STATISTICS

A publication by RubinBrown LLP

Contents

RubinBrown’s Gaming Services Group adds value to clients through an understanding of gaming regulations and focus on efficient, effective and sustainable compliance programs. We are nationally known for leadership within the gaming industry. Our success and reputation is a byproduct of our commitment to the following:

2 Commercial Gaming 12 iGaming 14 Limited Stakes Gaming 16 Tribal Gaming 25 Notes, Sources & Acknowledgments

▶ Excellence in Quality and Client Service

▶ Thought Leadership

▶ Strategic Partnerships

Gaming Services Practice Leaders

▶ Diverse and Inspired Team

Brandon Loeschner, CPA, CISA, CGMA Gaming Practice Leader 314.290.3324 brandon.loeschner@rubinbrown.com

▶ Integrated Approach and Technical Expertise Across Service Lines

Disclaimer: Gaming Statistics, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matter covered. Although prepared by professionals, its content should not be construed as the rendering of advice regarding specific situations. If accounting, legal, or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions.

Daniel Holmes, CPA, CIA, CGMA Gaming Practice Leader 702.579.7034 daniel.holmes@rubinbrown.com

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

1

2017 COMMERCIAL GAMING REvENUES

$39.94B

3.3%

52.2%

ALL 2017 GAMING REvENUES

24 STATES

577 CASINOS t

ME

MA

NY

RI

SD

MI

PA

NJ

IA

OH

NV

MD

IL IN

WV

DE

CO

MO

KS

OK

NM

MS

LA

FL

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

COMMERCIAL GAMING REVENUES

NEVADA

ALL GAMING REVENUES 15.1%

GAMING REVENUE $11,571.13M

29.0% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 329

NEVADA

2.8%

NORTHEAST REGION

ALL GAMING REVENUES 1.8% ALL GAMING REVENUES 2.8% ALL GAMING REVENUES 1.9% ALL GAMING REVENUES 0.5% ALL GAMING REVENUES 1.8% ALL GAMING REVENUES 2.3% ALL GAMING REVENUES 2.3% ALL GAMING REVENUES 0.1% ALL GAMING REVENUES 0.7% ALL GAMING REVENUES 3.3% ALL GAMING REVENUES 2.7% ALL GAMING REVENUES 1.1% ALL GAMING REVENUES 0.3% ALL GAMING REVENUES 0.2% ALL GAMING REVENUES 0.8% ALL GAMING REVENUES 0.8% ALL GAMING REVENUES 4.2% ALL GAMING REVENUES 3.1% ALL GAMING REVENUES 3.2% ALL GAMING REVENUES 0.2% ALL GAMING REVENUES 0.5% ALL GAMING REVENUES 0.2% ALL GAMING REVENUES 2.1%

GAMING REVENUE $414.10M

CASINO OPERATIONS 3

1.0% COMMERCIAL GAMING REVENUES

DELAWARE

3.4%

GAMING REVENUE $136.71M

CASINO OPERATIONS 2

0.3% COMMERCIAL GAMING REVENUES

MAINE

2.7%

GAMING REVENUE $1,614.34M

CASINO OPERATIONS 6

4.0% COMMERCIAL GAMING REVENUES

MARYLAND

34.2%

GAMING REVENUE $164.79M

CASINO OPERATION 1

0.4% COMMERCIAL GAMING REVENUES

MASSACHUSETTS

6.3%

GAMING REVENUE $2,413.41M

6.0% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 7

NEW JERSEY

0.3%

GAMING REVENUE $2,348.85M

5.8% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 13

NEW YORK

16.4%

GAMING REVENUE $3,226.91M

CASINO OPERATIONS 12

8.1% COMMERCIAL GAMING REVENUES

PENNSYLVANIA

0.4%

GAMING REVENUE $624.85M

1.6% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 2

RHODE ISLAND

0.9%

GAMING REVENUE $626.52M

CASINO OPERATIONS 5

1.6% COMMERCIAL GAMING REVENUES

WEST VIRGINIA

-4.5%

MIDWEST REGION

GAMING REVENUE $1,407.99M

3.5% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 10

ILLINOIS

-0.4%

GAMING REVENUE $2,153.49M

CASINO OPERATIONS 13

5.4% COMMERCIAL GAMING REVENUES

INDIANA

1.4%

GAMING REVENUE $1,462.92M

3.7% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 19

IOWA

1.2%

GAMING REVENUE $389.66M

1.0% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 4

KANSAS

7.0%

GAMING REVENUE $1,400.54M

3.5% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 3

MICHIGAN

1.1%

GAMING REVENUE $1,737.70M

CASINO OPERATIONS 13

4.4% COMMERCIAL GAMING REVENUES

MISSOURI

1.3%

GAMING REVENUE $1,776.36M

4.4% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 11

OHIO

5.0%

GAMING REVENUE $105.45M

0.3% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 29

SOUTH DAKOTA

0.8%

SOUTH REGION

GAMING REVENUE $546.59M

CASINO OPERATIONS 7

1.4% COMMERCIAL GAMING REVENUES

FLORIDA

0.1%

GAMING REVENUE $2,561.26M

6.4% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 20

LOUISIANA

0.9%

GAMING REVENUE $2,077.25M

5.2% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 28

MISSISSIPPI

-2.0%

OTHER

GAMING REVENUE $828.05M

2.1% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 33

COLORADO

2.1%

GAMING REVENUE $227.50M

0.6% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 5

NEW MEXICO

-2.1%

GAMING REVENUE $124.87M

CASINO OPERATIONS 2

0.3% COMMERCIAL GAMING REVENUES

OKLAHOMA

10.2%

4

RUBINBROWN GAMING STATS 2018

COMMERCIAL GAMING REVENUES

NEVADA

REVENUE PER EGD PER DAY $143.08

REVENUE PER TG PER DAY $1,934.99

$7,431.84M EGD REVENUE

$3,846.35M TABLE GAMES REVENUE

NEVADA

3.8%

0.5%

NORTHEAST REGION

REVENUE PER EGD PER DAY $82.46 REVENUE PER EGD PER DAY $220.53 REVENUE PER EGD PER DAY $240.52 REVENUE PER EGD PER DAY $192.64 REVENUE PER EGD PER DAY $215.48 REVENUE PER EGD PER DAY $262.12 REVENUE PER EGD PER DAY $302.30 REVENUE PER EGD PER DAY $335.60 REVENUE PER EGD PER DAY $368.55 REVENUE PER EGD PER DAY $275.84 REVENUE PER EGD PER DAY $248.23 REVENUE PER EGD PER DAY $236.69 REVENUE PER EGD PER DAY $246.45 REVENUE PER EGD PER DAY $238.82 REVENUE PER EGD PER DAY $186.18 REVENUE PER EGD PER DAY $156.18

REVENUE PER TG PER DAY $300.73 REVENUE PER TG PER DAY $1,769.17 REVENUE PER TG PER DAY $1,262.27 REVENUE PER TG PER DAY $1,142.31 REVENUE PER TG PER DAY $818.33 REVENUE PER TG PER DAY $1,327.49 REVENUE PER TG PER DAY $2,766.81 REVENUE PER TG PER DAY $1,814.61 REVENUE PER TG PER DAY $1,154.09 REVENUE PER TG PER DAY $3,311.98 REVENUE PER TG PER DAY $1,079.00 REVENUE PER TG PER DAY $1,963.60 REVENUE PER TG PER DAY $2,866.72 REVENUE PER TG PER DAY $1,566.09 REVENUE PER TG PER DAY $1,325.75

$353.98M EGD REVENUE

$54.68M TABLE GAMES REVENUE

DELAWARE

2.3%

3.9%

$110.41M EGD REVENUE

$26.29M TABLE GAMES REVENUE

MAINE

1.9%

6.2%

$999.67M EGD REVENUE

$614.67M TABLE GAMES REVENUE

MARYLAND

30.5%

40.5%

$164.79M EGD REVENUE

MASSACHUSETTS

6.3%

STATE LIMITED TO SLOTS-ONLY FACILITIES

$1,719.76M EGD REVENUE

$693.64M TABLE GAMES REVENUE

NEW JERSEY

0.4%

NO CHANGE

$92.28M TABLE GAMES REVENUE

$2,256.57M EGD REVENUE

NEW YORK

11.9%

11,897.2% †

$2,336.26M EGD REVENUE

$890.64M TABLE GAMES REVENUE

PENNSYLVANIA

-1.0%

4.4%

$481.00M EGD REVENUE

$143.86M TABLE GAMES REVENUE

RHODE ISLAND

-0.6%

6.5%

$519.36M EGD REVENUE

$107.16M TABLE GAMES REVENUE

WEST VIRGINIA

-2.2%

-13.9%

MIDWEST REGION

$1,104.52M EGD REVENUE

$303.47M TABLE GAMES REVENUE

ILLINOIS

-1.3%

2.9%

$1,822.15M EGD REVENUE

$331.34M TABLE GAMES REVENUE

INDIANA

1.2%

2.4%

$1,310.74M EGD REVENUE

$152.18M TABLE GAMES REVENUE

IOWA

0.9%

3.6%

$337.54M EGD REVENUE

$52.12M TABLE GAMES REVENUE

KANSAS

8.0%

0.9%

MICHIGAN

EGD REVENUE NOT REPORTED

TABLE GAMES REVENUE NOT REPORTED

$1,489.82M EGD REVENUE

$247.87M TABLE GAMES REVENUE

MISSOURI

4.2%

0.9%

$1,505.15M EGD REVENUE

$271.21M TABLE GAMES REVENUE

OHIO

5.4%

3.0%

$93.44M EGD REVENUE

$12.01M TABLE GAMES REVENUE

SOUTH DAKOTA

0.9%

NO CHANGE

SOUTH REGION

REVENUE PER EGD PER DAY $206.32

$546.59M EGD REVENUE

FLORIDA

0.1%

STATE LIMITED TO SLOTS-ONLY FACILITIES

LOUISIANA

EGD REVENUE NOT REPORTED

TABLE GAMES REVENUE NOT REPORTED

REVENUE PER EGD PER DAY $174.29

REVENUE PER TG PER DAY $1,178.58

$1,735.72M EGD REVENUE

$341.53M TABLE GAMES REVENUE

MISSISSIPPI

-10.1%

-0.3%

OTHER

REVENUE PER EGD PER DAY $156.26 REVENUE PER EGD PER DAY $212.95

REVENUE PER TG PER DAY $996.17

$722.46M EGD REVENUE

$105.60M TABLE GAMES REVENUE

COLORADO

1.8%

4.7%

$227.50M EGD REVENUE

NEW MEXICO

-2.1%

STATE LIMITED TO SLOTS-ONLY FACILITIES

NUMBER OF EGDs NOT REPORTED

$124.87M EGD REVENUE

OKLAHOMA

10.2%

STATE LIMITED TO SLOTS-ONLY FACILITIES

EGD = Electronic Gaming Devices

TG = Table Games

Commercial Gaming

5

† see statistical note on page 25

COMMERCIAL GAMING STATE GAMING TAX REVENUES

NEVADA

EFFECTIVE TAX RATE 7.5%

GAMING LEGALIZED 1931 EFFECTIVE TAX RATE 7.5%

GAMING TAX REVENUE $867.19M

NEVADA

-1.4%

GRADUATED TAX RATE: 3.5% - 6.75% (PLUS ADMINISTRATIVE FEES)

NORTHEAST REGION

EFFECTIVE TAX RATE 35.7%

2009 GAMING LEGALIZED 33.5% EFFECTIVE TAX RATE 1989 GAMING LEGALIZED 15.0% EFFECTIVE TAX RATE 1993 GAMING LEGALIZED 25.7% EFFECTIVE TAX RATE 2007 GAMING LEGALIZED 27.0% EFFECTIVE TAX RATE 1996 GAMING LEGALIZED 19.0% EFFECTIVE TAX RATE 1989 GAMING LEGALIZED 21.9% EFFECTIVE TAX RATE 1993 GAMING LEGALIZED 28.0% EFFECTIVE TAX RATE 1991 GAMING LEGALIZED 23.0% EFFECTIVE TAX RATE 2006 GAMING LEGALIZED 35.0% EFFECTIVE TAX RATE 1990 GAMING LEGALIZED 12.1% EFFECTIVE TAX RATE GAMING LEGALIZED 1990 33.8% EFFECTIVE TAX RATE 2004 GAMING LEGALIZED 17.0% EFFECTIVE TAX RATE 1997 GAMING LEGALIZED 26.0% EFFECTIVE TAX RATE 1990 GAMING LEGALIZED 14.6% EFFECTIVE TAX RATE 2004 GAMING LEGALIZED 39.9% EFFECTIVE TAX RATE 2008 GAMING LEGALIZED 38.9% EFFECTIVE TAX RATE 1994 GAMING LEGALIZED 38.3% EFFECTIVE TAX RATE 2011 GAMING LEGALIZED 40.0% EFFECTIVE TAX RATE 1976 GAMING LEGALIZED 8.8% EFFECTIVE TAX RATE 2001 GAMING LEGALIZED 43.5% EFFECTIVE TAX RATE 2004 GAMING LEGALIZED 41.3% EFFECTIVE TAX RATE 1992 GAMING LEGALIZED 51.6% EFFECTIVE TAX RATE 1994 GAMING LEGALIZED 53.4% EFFECTIVE TAX RATE

GAMING TAX REVENUE $158.73M

DELAWARE

2.5%

BLENDED TAX RATE: 59.5% EGD & 33.9% TABLE GAMES

CASINOS BLENDED TAX RATE: 46.0% EGD & 16.0% TABLE GAMES RACINOS BLENDED TAX RATE: 40.0% EGD & 16.0% TABLE GAMES

GAMING TAX REVENUE $54.57M

MAINE

2.2%

BLENDED TAX RATE: 50.0%, 57.0% or 67.0% EGD & 20.0% TABLE GAMES

GAMING TAX REVENUE $628.78M

MARYLAND

18.4%

SLOTS ONLY CASINOS TAX RATE: 49.0% RESORT CASINOS TAX RATE: 25.0% (ONCE OPEN)

GAMING TAX REVENUE $65.91M

MASSACHUSETTS

6.3%

GAMING TAX REVENUE $213.36M

NEW JERSEY

1.2%

STRAIGHT-LINE TAX RATE: 8.0% OR 10.25%

GAMING TAX REVENUE $1,021.55M

NEW YORK

11.1%

STRAIGHT-LINE TAX RATE: 64.0%

GAMING TAX REVENUE $1,332.19M

PENNSYLVANIA

-4.0%

BLENDED TAX RATE: 55.0% EGD & 16.0% TABLE GAMES

GAMING TAX REVENUE $322.28M

RHODE ISLAND

0.9%

BLENDED TAX RATE: 60.0% EGD & 18.0% TABLE GAMES

RACINOS BLENDED TAX RATE: 54.9% EGD & 35.0% TABLE GAMES HISTORIC RESORTS TAX RATE: 57.7% EGD & 35.0% TABLE GAMES

GAMING TAX REVENUE $334.41M

WEST VIRGINIA

-0.8%

MIDWEST REGION

EFFECTIVE TAX RATE 27.1%

CASINOS GRADUATED TAX RATE: 5.0% - 22.0% RACINOS GRADUATED TAX RATE: 22.0% OR 24.0% RIVERBOAT GRADUATED TAX RATE: 5.0% - 40.0% (PLUS $3 ADMISSION FEE PER PATRON PER DAY) RACINOS GRADUATED TAX RATE: 25.0% - 35.0% GRADUATED TAX RATE: 15.0% - 50.0% (PLUS $2-3 ADMISSION FEE PER PATRON PER DAY)

GAMING TAX REVENUE $475.45M

ILLINOIS

-0.1%

GAMING TAX REVENUE $602.66M

INDIANA

0.9%

GAMING TAX REVENUE $319.83M

IOWA

0.7%

GAMING TAX REVENUE $105.21M

KANSAS

8.0%

STRAIGHT-LINE TAX RATE: 27.0%

GAMING TAX REVENUE $266.10M

MICHIGAN

1.1%

STRAIGHT-LINE TAX RATE: 19.0%

STRAIGHT-LINE TAX RATE: 21.0% (PLUS $2 ADMISSION FEE PER PATRON PER 2 HOURS)

GAMING TAX REVENUE $445.73M

MISSOURI

0.1%

CASINOS STRAIGHT-LINE TAX RATE: 33.0% RACINOS STRAIGHT-LINE TAX RATE: 33.5%

GAMING TAX REVENUE $594.58M

OHIO

5.2%

STRAIGHT-LINE TAX RATE: 8.0% (PLUS $2,000 ANNUAL FEE PER GAMING DEVICE)

GAMING TAX REVENUE $15.86M

SOUTH DAKOTA

0.7%

SOUTH REGION

EFFECTIVE TAX RATE 19.9%

GAMING TAX REVENUE $191.34M

FLORIDA

-0.2%

STRAIGHT-LINE TAX RATE: 35.0%

CASINOS STRAIGHT-LINE TAX RATE: 21.5% RACINOS STRAIGHT-LINE TAX RATE: 33.17%

GAMING TAX REVENUE $589.48M

LOUISIANA †

0.6%

GRADUATED TAX RATE AND VARIES BY LOCATION: 4.4% - 12.0% (PLUS ADMINISTRATIVE FEES)

GAMING TAX REVENUE $252.09M

MISSISSIPPI

-0.7%

OTHER

EFFECTIVE TAX RATE 17.1%

GAMING TAX REVENUE $121.03M

COLORADO

3.0%

GRADUATED TAX RATE: 0.25% - 20.0%

GAMING TAX REVENUE $59.15M

NEW MEXICO

-2.1%

RACINOS STRAIGHT-LINE TAX RATE: 26.0%

GAMING TAX REVENUE $21.24M

OKLAHOMA

15.8%

RACINOS GRADUATED TAX RATE: 10.0% - 30.0%

6

RUBINBROWN GAMING STATS 2018

† see statistical note on page 25

COMMERCIAL GAMING NEVADA

$14.0B

375 OPS

350

343

342

340

340

339

339

336

335

334

329

$13.0B

350 OPS

$12.0B

325 OPS

$11.0B

300 OPS

$9.0B $10.0B $8.0B

125 OPS 100 OPS 75 OPS 50 OPS 175 OPS 200 OPS 250 OPS 275 OPS 225 OPS 150 OPS

NO. CASINO OPERATIONS

$0.0B $4.0B $3.0B $2.0B $1.0B $5.0B $6.0B $7.0B

GAMING REVENUES

25 OPS

$12.77B

$12.07B

$10.45B

$10.33B3

$10.79B

$10.86B

$11.14B

$10.98B

$11.11B

$11.26B6

$11.57B

2007

2008

2009

2015

2016

2017

2010

2011

2012

2013

2014

REVENUE FROM ELECTRONIC GAMING DEVICES 64.2% REVENUE FROM TABLE GAMES 33.2% REVENUE FROM SPORTS WAGERING 2.5%

29.0% COMMERCIAL GAMING REVENUES

GAMING REVENUE $11.57B

GAMING REV $11.5

$35.17M AVERAGE REVENUE PER CASINO

329

CASINO OPERATIONS

2.8%

15.1% OF ALL GAMING REVENUES

TOP 10 NEVADA MARKETS (revenue increased in all 10 markets in 2017)

In 2017, Nevada generated revenue growth of 2.8%. While the increase was less than the overall growth in commercial gaming, the gain was notable given the adverse impact of 1 October on the state-wide tourism (including gaming revenues). Prior to 1 October, the region was on pace to record revenue growth of 3.9%. With continued growth in gaming revenues, the state’s gaming industry is beginning to see a resurgence in construction. • The expanded Las Vegas Convention Center is leading to a resurgence in growth along the Strip’s north corridor. Planning and pre-construction site work has started for four large casino projects along the famed Las Vegas Strip, all of which are located between Spring Mountain and Sahara. The projects include Genting Gaming’s Resorts World (the site of the stalled Echelon project), the Drew Casino (the site of the stalled Fountainbleu project), and two Wynn Casino projects (one on the grounds of the old Wynn Country Club and the other on the grounds of the old Frontier Casino). If all four projects are successful, the expansion will reconnect the Stratosphere, Circus Circus and the old Sahara (now SLS) to the heavily trafficked Las Vegas Strip corridor. • Nevada joins the major sports leagues. In 2017, the NHL expanded to Las Vegas with the Golden Knights. However, before the first puck dropped, the NFL announced its plans to move the Oakland Raiders (formerly Los Angeles Raiders) to Las Vegas by 2020. The instant success of the Golden Knights has proven professional sports can be a success in southern Nevada. With the Las Vegas Sands publicly talking about building another 20,000-seat arena, speculation has begun on the timing of an NBA expansion team.

LAS VEGAS STRIP

ATLANTIC CIT

# 1 NATIONAL RANK

GAMING REVENUE $6,461.05M

1.3%

BOULDER STRIP

WASHINGTON

# 11 NATIONAL RANK

GAMING REVENUE $812.95M

3.2%

RENO / SPARKS

NEW YORK CI

# 14 NATIONAL RANK

GAMING REVENUE $739.46M

2.2%

LAS VEGAS DOWNTOWN

PHILADELPHIA

# 17 NATIONAL RANK

GAMING REVENUE $631.22M

11.8%

LAUGHLIN

BETHLEHEM /

# 25 NATIONAL RANK

GAMING REVENUE $492.81M

4.3%

NORTH LAS VEGAS

PITTSBURGH,

# 34 NATIONAL RANK

GAMING REVENUE $287.83M

4.6%

LAKE TAHOE

PROVIDENCE,

# 36 NATIONAL RANK

GAMING REVENUE $247.62M

2.0%

WENDOVER

CHARLESTON,

# 41 NATIONAL RANK

GAMING REVENUE $188.88M

7.4%

MESQUITE

ALBANY / SA

# 49 NATIONAL RANK

GAMING REVENUE $124.54M

5.8%

CARSON VALLEY

HARRISBURG,

# 52 NATIONAL RANK

GAMING REVENUE $104.38M

4.0%

Commercial Gaming

7

COMMERCIAL GAMING NORTHEAST REGION

$14.0B

375 OPS

$13.0B

350 OPS

$12.0B

325 OPS

$11.0B

300 OPS

$9.0B $10.0B $8.0B

125 OPS 100 OPS 75 OPS 50 OPS 175 OPS 200 OPS 250 OPS 275 OPS 225 OPS 150 OPS

NO. CASINO OPERATIONS

$11.57B

$10.80B

$10.65B

$10.57B

$10.49B

$10.39B

$9.84B

$0.0B $4.0B $3.0B $2.0B $1.0B $5.0B $6.0B $7.0B

$9.17B

$9.11B

$8.88B

$8.84B

GAMING REVENUES

51

49

48

47

47

46

43

41

38

36

35

25 OPS

2007

2008

2009

2015

2016

2017

2010

2011

2012

2013

2014

REVENUE FROM ELECTRONIC GAMING DEVICES 77.3% REVENUE FROM TABLE GAMES 22.7%

28.8% COMMERCIAL GAMING REVENUES

GAMING REVENUE $11.57B

GAMING REV $10.4

$35.17M VERAGE REVENUE PER CASINO

$226.87M AVERAGE REVENUE PER CASINO

51

CASINO OPERATIONS

7.1%

REVENUE FROM SPORTS WAGERING 0.05%

15.1% OF ALL GAMING REVENUES

TOP 10 NORTHEAST REGION MARKETS (revenue increased in 8 of 10 markets in 2017)

The Northeast led the commercial gaming industry in revenue growth, producing a 7.1% increase in gaming revenues. The revenue growth was primarily due to expansion efforts in Maryland and New York. The growth in gaming will continue in the near term, as Massachusetts will be welcoming new casinos in both 2018 and 2019. • New casinos have a limited impact on neighboring jurisdictions. The revenue growth in the Northeast is attributed to the opening of four new casinos in New York plus Maryland’s MGM National Harbor opening in late 2016. While these new casinos adversely impacted competing casinos in New York and Maryland, they did not have a significant impact on casinos located in neighboring jurisdictions. In 2017, 72.7% of Northeast casinos located outside of New York and Maryland experienced revenue increases. which will determine the legality of the Professional and Amateur Sports Protection Act. The federal statute currently prohibits the expansion of sports wagering. Most analysts believe the Court will rule in favor of New Jersey (Christie), which will open the doors to legalized sports wagering. While New Jersey has led the charge, four other states in the Northeast (Connecticut, New York, Pennsylvania and West Virginia) have already enacted laws that would permit sports wagering if New Jersey prevails. • New Jersey leads the charge towards legalized sports wagering. On December 4, 2017, the U.S. Supreme Court heard Christie vs. NCAA ,

ATLANTIC CITY, NJ

CHICAGO (IN & IL)

# 1 NATIONAL RANK

# 2 NATIONAL RANK

GAMING REVENUE $2,413.41M

0.3%

WASHINGTON D.C. / BALTIMORE, MD

DETROIT, MI

11 NATIONAL RANK

# 4 NATIONAL RANK

GAMING REVENUE $1,499.51M

37.0%

NEW YORK CITY, NY

ST. LOUIS (MO & IL)

14 NATIONAL RANK

# 5 NATIONAL RANK

GAMING REVENUE $1,448.76M

0.2%

PHILADELPHIA, PA

KANSAS CITY (MO & KS)

17 NATIONAL RANK

# 7 NATIONAL RANK

GAMING REVENUE $1,244.87M

0.7%

BETHLEHEM / SCRANTON, PA

CINCINNATI (OH & IN)

25 NATIONAL RANK

# 9 NATIONAL RANK

GAMING REVENUE $990.50M

0.9%

PITTSBURGH, PA

CLEVELAND, OH

34 NATIONAL RANK

# 19 NATIONAL RANK

GAMING REVENUE $586.44M

-0.1%

PROVIDENCE, RI

CENTRAL INDIANA

36 NATIONAL RANK

# 21 NATIONAL RANK

GAMING REVENUE $578.69M

1.0%

CHARLESTON, WV

SOUTHERN INDIANA

41 NATIONAL RANK

# 31 NATIONAL RANK

GAMING REVENUE $343.29M

-7.3%

ALBANY / SARATOGA, NY

COUNCIL BLUFFS, IA

49 NATIONAL RANK

# 35 NATIONAL RANK

GAMING REVENUE $265.66M

58.9%

HARRISBURG, PA

COLUMBUS, OH

52 NATIONAL RANK

# 37 NATIONAL RANK

GAMING REVENUE $244.77M

0.2%

8

RUBINBROWN GAMING STATS 2018

COMMERCIAL GAMING MIDWEST REGION

$14.0B

375 OPS

$13.0B

350 OPS

$12.0B

325 OPS

$11.0B

300 OPS

$9.0B $10.0B $8.0B

125 OPS 100 OPS 75 OPS 50 OPS 175 OPS 200 OPS 250 OPS 275 OPS 225 OPS 150 OPS

NO. CASINO OPERATIONS

$10.43B

$9.92B

$10.24B

$9.90B

$10.20B

$9.78B

$0.0B $4.0B $3.0B $2.0B $1.0B $5.0B $6.0B $7.0B

$9.00B

$8.98B

$8.84B

$8.80B

$8.78B

GAMING REVENUES

102

101

101

101

100

99

93

90

89

89

88

25 OPS

2007

2008

2009

2015

2016

2017

2010

2011

2012

2013

2014

26.2% COMMERCIAL GAMING REVENUES

GAMING REVENUE $10.43B

GAMING REV $5.19

REVENUE FROM ELECTRONIC GAMING DEVICES 84.8% REVENUE FROM TABLE GAMES 15.2%

$226.87M VERAGE REVENUE PER CASINO

$102.30M AVERAGE REVENUE PER CASINO

102

CASINO OPERATIONS

1.8%

13.6% OF ALL GAMING REVENUES

TOP 10 MIDWEST REGION MARKETS (revenue increased in 9 of 10 markets in 2017)

In 2017, the Midwest gaming market generated a 1.8% increase in revenues. This represents the eighth consecutive year of revenue growth for the region. The growth was spurred by a 5.0% increase in Ohio gaming revenues. However, the region’s three-year compounded annual growth rate (CAGR) of 1.7% fell below the national three-year CAGR of 2.2%. There will be opportunities for future growth, as Indiana’s riverboat casinos capitalize on the state’s land-based casino legislation. • Tropicana Evansville revenue soars in the casino’s first month on land. Gross revenue for Indiana’s first land-based casino rose to $11.9 million in November 2017, up from $8.8 million in November 2016. The $50 million land-based casino opened on October 20, 2017, replacing the old Tropicana Evansville riverboat casino which opened in 1995. Indiana passed legislation in 2016 enabling riverboat casinos to move onto land. The Tropicana Evansville was the first casino to utilize the new law. • Hollywood Casino Columbus is the gaming leader in Ohio and is working to keep it that way. Hollywood Casino’s 2017 adjusted gross receipts totaled $220.9 million, up 3.4% from 2016. The newest property in Ohio, which opened in 2012, accounted for 27.0% of the state’s 2017 adjusted gross receipts across five casinos; which was $19.5 million more than the next highest casino, the Jack Cleveland Casino. Hollywood Columbus intends to add a hotel alongside the casino in the future, which will further boost the casino's revenues.

CHICAGO (IN & IL)

BILOXI, MS

# 2 NATIONAL RANK

# 3 NATIONAL RANK

GAMING REVENUE $1,925.72M

-0.1%

DETROIT, MI

LAKE CHARLE

# 4 NATIONAL RANK

# 6 NATIONAL RANK

GAMING REVENUE $1,400.54M

1.1%

ST. LOUIS (MO & IL)

SHREVEPORT

# 5 NATIONAL RANK

# 8 NATIONAL RANK

GAMING REVENUE $1,025.38M

1.2%

KANSAS CITY (MO & KS)

TUNICA / LUL

# 7 NATIONAL RANK

# 12 NATIONAL RANK

GAMING REVENUE $792.54M

1.1%

CINCINNATI (OH & IN)

NEW ORLEAN

# 9 NATIONAL RANK

# 13 NATIONAL RANK

GAMING REVENUE $750.00M

3.4%

CLEVELAND, OH

MIAMI / FT. L

# 19 NATIONAL RANK

# 23 NATIONAL RANK

GAMING REVENUE $556.34M

2.6%

CENTRAL INDIANA

BAY ST. LOUIS

# 21 NATIONAL RANK

# 26 NATIONAL RANK

GAMING REVENUE $471.78M

3.6%

SOUTHERN INDIANA

BATON ROUG

# 31 NATIONAL RANK

# 27 NATIONAL RANK

GAMING REVENUE $463.23M

5.8%

COUNCIL BLUFFS, IA

# 35 NATIONAL RANK

# 28 NATIONAL RANK

GAMING REVENUE $419.82M

0.9%

COLUMBUS, OH

# 37 NATIONAL RANK

# 29 NATIONAL RANK

GAMING REVENUE $381.32M

5.0%

Commercial Gaming

9

COMMERCIAL GAMING SOUTH REGION

$14.0B

375 OPS

$13.0B

350 OPS

$12.0B

325 OPS

$11.0B

300 OPS

$9.0B $10.0B $8.0B

125 OPS 100 OPS 75 OPS 50 OPS 175 OPS 200 OPS 250 OPS 275 OPS 225 OPS 150 OPS

NO. CASINO OPERATIONS

$0.0B $4.0B $3.0B $2.0B $1.0B $5.0B $6.0B $7.0B

GAMING REVENUES

$5.66B

$5.53B

$5.28B

$5.20B

$5.19B

$5.14B

$5.09B

$5.08B

$5.05B

$5.04B

$5.00B

56

56

56

55

55

54

53

53

52

51

50

25 OPS

2007

2008

2009

2015

2016

2017

2010

2011

2012

2013

2014

13.0% COMMERCIAL GAMING REVENUES

GAMING REVENUE $5.19B

GAMING REV $1.18

REVENUE FROM ELECTRONIC GAMING DEVICES 85.3% REVENUE FROM TABLE GAMES 14.7%

$102.30M VERAGE REVENUE PER CASINO

$94.27M AVERAGE REVENUE PER CASINO

55

CASINO OPERATIONS

-0.4%

6.8% OF ALL GAMING REVENUES

TOP 8 SOUTH REGION MARKETS (revenue increased in 5 of 8 markets in 2017)

As the commercial gaming segment saw 3.3% revenue growth, the South was the only region to experience a decline in revenues. With 40.1% of the region’s revenue coming from Mississippi, the 2.0% decline in Mississippi revenues was enough to result in the overall 0.4% decrease for the South region. Even though both Louisiana and Florida experienced growth despite enduring both Hurricane Harvey (impacting Louisiana’s Lake Charles market) and Hurricane Irma (impacting Florida racinos), it was not enough to off-set the downturn in Mississippi revenues. • By October 2017, 600,000 Florida voters had already signed a petition for “Voter Control of Gambling.” To make the 2018 ballot, 766,200 signatures were required. Florida voters rose to the occasion, reaching 843,312 signatures. As a result, Florida will include a “Voter Control of Gambling” constitutional amendment on the November 2018 ballot. The name is telling, as the amendment would give voters control to approve casino-style games in the state, leaving legislature with little to no say in the process. If the amendment passes, significant changes will be coming to the Florida gaming market. • Lawmakers may bring the lottery to Mississippi. According to the National Conference of State Legislatures, there are only six states, including Mississippi, that do not have a lottery. During 2017, a special committee was created to research the pros and cons of state lotteries. Currently, Mississippi residents travel to neighboring states to buy lottery tickets. The committee estimates that Mississippi residents spend between $5 and $10 million in Arkansas and approximately $30 million in Louisiana purchasing lottery tickets.

BILOXI, MS

BLACKHAWK, CO

# 3 NATIONAL RANK

# 10 NATIONAL RANK

GAMING REVENUE $822.09M

-0.7%

LAKE CHARLES, LA

NEW MEXICO RACINOS

# 6 NATIONAL RANK

# 15 NATIONAL RANK

GAMING REVENUE $720.31M

1.3%

SHREVEPORT / BOSSIER CITY, LA

CRIPPLE CREEK, CO

# 8 NATIONAL RANK

# 16 NATIONAL RANK

GAMING REVENUE $678.92M

-1.4%

TUNICA / LULA, MS

OKLAHOMA RACINOS

12 NATIONAL RANK

# 20 NATIONAL RANK

GAMING REVENUE $582.83M

-6.5%

NEW ORLEANS, LA

CENTRAL CITY, CO

13 NATIONAL RANK

# 22 NATIONAL RANK

GAMING REVENUE $558.30M

3.8%

MIAMI / FT. LAUDERDALE, FL

23 NATIONAL RANK

# 24 NATIONAL RANK

GAMING REVENUE $546.59M

0.1%

BAY ST. LOUIS / GULFPORT, MS

26 NATIONAL RANK

# 30 NATIONAL RANK

GAMING REVENUE $379.36M

3.1%

BATON ROUGE, LA

27 NATIONAL RANK

# 32 NATIONAL RANK

GAMING REVENUE $300.34M

2.4%

28 NATIONAL RANK

29 NATIONAL RANK

10

RUBINBROWN GAMING STATS 2018

COMMERCIAL GAMING OTHER

$14.0B

375 OPS

$13.0B

350 OPS

$12.0B

325 OPS

$11.0B

300 OPS

$9.0B $10.0B $8.0B

125 OPS 100 OPS 75 OPS 50 OPS 175 OPS 200 OPS 250 OPS 275 OPS 225 OPS 150 OPS

NO. CASINO OPERATIONS

$0.0B $4.0B $3.0B $2.0B $1.0B $5.0B $6.0B $7.0B

GAMING REVENUES

$1.18B

$1.16B

$1.16B

$1.14B

$1.12B

$1.11B $1.11B

$1.11B $1.11B

$1.11B

$1.10B

$1.07B

$1.07B

49

49

48

47

46

46

46

43

42

42

40

25 OPS

2007

2008

2009

2015

2016

2017

2010

2011

2012

2013

2014

3.0% COMMERCIAL GAMING REVENUES

GAMING REVENUE $1.18B

REVENUE FROM ELECTRONIC GAMING DEVICES 91.1% REVENUE FROM TABLE GAMES 8.9%

$94.27M VERAGE REVENUE PER CASINO

$29.51M AVERAGE REVENUE PER CASINO

40

CASINO OPERATIONS

2.1%

1.5% OF ALL GAMING REVENUES

TOP 5 OTHER MARKETS (revenue increased in 4 of 5 markets in 2017)

The Other gaming jurisdiction – comprised of Colorado, New Mexico and Oklahoma – generated positive revenue growth of 2.1%. The growth was primarily driven by the Colorado market, which represents 70.1% of the Other region’s revenues. • Growth in Colorado gaming revenues continues to slow for the third consecutive year. In 2017, the Colorado gaming market produced revenue growth of 2.1%, which was down from the 2.6% and 5.9% growth seen in 2016 and 2015 respectively. The decreasing revenue growth coincides with the slow-down in Denver’s growth spurt. In 2017, Denver grew at a rate of 1.9%, which was the first time this decade that the city did not post population growth in excess of 2.0%. It is not surprising that Blackhawk, the closest market to the Denver metropolitan area and Colorado’s largest market, has also experienced stunted growth rates. • New Mexico revenues decline for the third consecutive year. As New Mexico’s population continues to stagnate, the state’s gaming industry continues to suffer from declining revenues. Since 2010, New Mexico’s population has only grown by 45,000 people for an average annual population increase of 0.3%. Despite gaming revenue growth since 2010, the state has seen a decline in a key gaming patron demographic as the number of working professionals between the ages of 40 and 54 goes down each year. The stagnate growth and outward migration of middle-aged working professionals has led to a decline in overall gaming revenues.

BLACKHAWK, CO

# 10 NATIONAL RANK

# 18 NATIONAL RANK

GAMING REVENUE $621.43M

1.9%

NEW MEXICO RACINOS

# 15 NATIONAL RANK

# 38 NATIONAL RANK

GAMING REVENUE $227.50M

-2.1%

CRIPPLE CREEK, CO

# 16 NATIONAL RANK

# 46 NATIONAL RANK

GAMING REVENUE $134.74M

2.5%

OKLAHOMA RACINOS

# 20 NATIONAL RANK

# 48 NATIONAL RANK

GAMING REVENUE $124.87M

10.2%

CENTRAL CITY, CO

# 22 NATIONAL RANK

# 60 NATIONAL RANK

GAMING REVENUE $71.89M

3.2%

# 24 NATIONAL RANK

# 30 NATIONAL RANK

# 32 NATIONAL RANK

Commercial Gaming

11

2017 iGAMING REVENUES ( EXCLUDING NV )

$0.25B

24.2%

0.3%

ALL 2017 GAMING REVENUES

3 STATES

9 OPERATORS t

NJ

DE

NV

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

2017 LIMITED STAKES GAMING REVENUES

$3.76B

6.9%

4.9%

ALL 2017 GAMING REVENUES

6 STATES t

15,941 LOCATIONS

MT

OR

SD

IL

WV

LA

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

2017 TRIBAL GAMING REVENUES

$32.64B

4.6%

42.6%

ALL 2017 GAMING REVENUES

28 STATES

485+ CASINOS

WA

ND

MT

CT

OR

NY

MN

WI

ID

SD

MI

WY

IA

NE

NV

CO

KS

CA

NC

OK

AZ

NM

MS AL

TX

LA

AK

FL

TRIBAL GAMING

2017 GAMING REVENUES BY REGION ACCORDING TO RUBINBROWN'S ESTIMATE

In 2017, the tribal gaming industry segment generated an estimated $32.6 billion, growing at a rate of 4.6%. The continued growth marks the eighth consecutive year of growth for the segment. The growth experienced in 2017 is primarily attributed to improving economic conditions throughout the U.S., plus the continued expansion of resort amenities and services offered at existing casinos. There are limited opportunities for new market expansion efforts near large population centers, which makes the 2017 growth notable. Unlike the commercial gaming segment, which saw revenue growth from market expansion efforts in the Northeastern United States, the tribal gaming revenue growth is considered organic growth. Since the passage of the Indian Gaming Regulatory Act (1988), the tribal gaming segment has grown to encompass more than 240 individual tribal nations operating more than 480 casinos. The development of these casinos has led to the creation of more than 200,000 jobs on tribal lands and generated billions of dollars for neighboring state governments, which have benefited from revenue sharing agreements outlined in various tribal-state gaming compacts. Between 1988 and 2006, the industry consistently generated double-digit growth rates. Since 2006, the tribal gaming industry segment has reached a point of maturity, where there have been limited opportunities to expand into new markets. During the past 10 years, the tribal gaming industry segment has only seen revenue growth at an annualized rate of 2.0% while welcoming more than 90 new casinos, a 23.3% increase in the number of casinos.

$8.92B 27.3%

$3.06B 9.4%

$3.34B 10.2%

$4.97B 15.2%

$7.54B 23.1%

$2.41B 7.4%

$2.40B 7.4%

Portland

Sacramento

Phoenix

Tulsa

Oklahoma City

St. Paul

Washington D. C.

Looking forward, tribal casino revenue growth is expected to continue from economic growth and limited expansion. The expansion will come from the development of resort-destination casinos, acquisition of new lands or commercial gaming entities.

One of the more notable expansion efforts has been the Pokagon Band of Potawatomi Indians (Pokagon), located along the southeastern shores of Lake Michigan. In January 2018, the nation opened a new casino in South Bend, Indiana, with the support of local government officials. The expansion was notable as it demonstrates a tribal nation’s ability to acquire new lands and new economic opportunities in markets that have previously been inaccessible to tribal gaming. Outside the Pokagon’s expansion, other tribal expansion efforts are blurring the lines between commercial and tribal gaming. In early 2018, the Poarch Band of Creek Indians announced plans to acquire the Sands Bethlehem Casino in Pennsylvania from the Las Vegas Sands Corporation. The acquisition of the commercial casino will provide the Poarch Band of Creek Indians access to a new gaming market while also providing them the opportunity to enter the iGaming industry with Pennsylvania’s latest gaming expansion efforts. While tribal gaming has provided significant economic benefits to over 240 tribes, less than 45% of federally recognized tribes offer gaming. For those tribal nations not positioned to developed large-scale destination-resort casinos, the diversification of revenues away from gaming will be critical to further the trends of economic development. Tribal Gaming Statistical Notes The 2017 revenues is estimated by using the National Indian Gaming Commission’s (NIGC’s) prior year (2016) data as a baseline and then projecting the growth rates experienced in each of the seven tribal gaming regions. The calculation of the regional growth rates utilize numerous short-term and long-term metrics monitored by RubinBrown on a monthly basis. The tribal gaming regional summaries included on the subsequent pages (18 to 24), utilizes the NIGC’s revenue data released in July 2017 † . The data represents gaming revenue information collected from all tribes reporting audited financial statements to the NIGC and is a collection of data with varying fiscal year ends occurring within the 2016 calendar year.

Tribal Gaming

17

† see statistical note on page 25