RubinBrown Gaming Stats 2019

LIMITED STAKES GAMING

GAMING REVENUES BY STATE †

In 2018, the limited stakes gaming segment generated $4.0 billion, an increase of 7.5% when compared to 2017 revenues. The increase in gaming revenues was primarily driven by the continued proliferation of limited stakes gaming throughout Illinois, which saw limited stakes gaming revenues increase by 15.1% to $1.5 billion. It was an impressive year for the overall industry as revenues increased for every state jurisdiction offering limited stakes wagering. This marks the second consecutive year that every state offering limited stakes gaming experienced a year-over-year increase in gaming revenues. However, the most notable impact of the limited stakes gaming market is how it impacted the overall gaming industry in 2018. When combining the limited stakes gaming revenues with the casino revenues, all 26 states offering commercial gaming experienced an increase in gaming revenues. Illinois continues to lead the limited stakes gaming segment, posting another year of double digit growth. The State’s limited stakes gaming segment also surpassed the casino industry in total gaming revenues generated. However, the hyper-growth produced by Illinois appears to be waning as the market is reaching a point of maturation. The slowing growth was most notable in Bloomington, IL as the City imposed a one-year moratorium on new video gaming machines. The City’s ban on new machines was implemented to provide the city council time to evaluate the impact the gaming machines are having on the community and if there is the need for new locally imposed gaming regulations.

$1,499.99M 37.1%

$382.92M 9.5%

$595.75M 14.7%

$225.30M 5.6%

$402.12M 10.0%

$933.98M 23.1%

Illinois Oregon

Louisiana

West Virginia Montana

South Dakota

Outside of Illinois, the West Virginia limited stakes market continued to gain momentum in 2018, posting a year-over-year revenue increase of 8.1%. The strong growth was a welcomed change to West Virgina, which saw its limited stakes gaming revenues decline from 2014 through 2016. Looking forward, the limited stakes gaming industry is expected to continue to see strong growth as Pennsylvania is getting closer to rolling out video gaming terminals after its legalization in 2017. The Pennsylvania limited stakes industry will not be as pervasive as the Illinois industry, as the law restricts the industry to truck stops and certain geographic areas. Beyond Pennsylvania, there is a growing belief that Missouri will soon pass legislation allowing limited stakes wagering. The topic is currently being debated by the Missouri Senate, as they are looking to combine the legalization of sports wagering and limited stakes gaming into the same bill.

LIMITED STAKES GAMING REVENUES †

ALL GAMING REVENUES 1.9% 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%

$139.29 REVENUE PER

GAMING REVENUE $1,499.99M

ILLINOIS

LOCATIONS 6,560

4.6%

15.1%

MACHINE PER DAY

$126.21 REVENUE PER

GAMING REVENUE $595.75M

LOUISIANA

LOCATIONS 1,691

3.4%

4.2%

MACHINE PER DAY

$74.67 REVENUE PER

GAMING REVENUE $402.12M

MONTANA

LOCATIONS 1,418

0.8%

2.1%

MACHINE PER DAY

$217.92 REVENUE PER

GAMING REVENUE $933.98M

OREGON

LOCATIONS 3,923

2.2%

2.8%

MACHINE PER DAY

$67.96 REVENUE PER

GAMING REVENUE $225.30M

SOUTH DAKOTA

LOCATIONS 1,336

6.1%

5.9%

MACHINE PER DAY

$156.61 REVENUE PER

GAMING REVENUE $382.92M

WEST VIRGINIA

LOCATIONS 1,303

8.1%

1.2%

MACHINE PER DAY

Limited Stakes Gaming

15

† see statistical note on page 25