RubinBrown Gaming Stats 2019

COMMERCIAL GAMING NORTHEAST REGION

$11.0B $9.0B $10.0B $8.0B $12.0B $14.0B $13.0B

25 OPS 75 OPS 50 OPS 125 OPS 100 OPS 150 OPS 175 OPS 200 OPS 250 OPS 275 OPS 225 OPS 300 OPS 325 OPS 375 OPS 350 OPS

$8.84B $12.28

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

GAMING REVENUES

55

49

48

47

47

46

43

41

38

36

35

2008

2009

2010

2016

2017

2018

2011

2012

2013

2014

2015

REVENUE FROM ELECTRONIC GAMING DEVICES 76.6% REVENUE FROM TABLE GAMES 22.5%

15.5% OF ALL GAMING REVENUES 29.7% COMMERCIAL GAMING REVENUES

GAMING REVENUE $12.28B

GAMING REV $10.5

$36.44M VERAGE REVENUE PER CASINO

$223.35M AVERAGE REVENUE PER CASINO

55

CASINO OPERATIONS

6.2%

REVENUE FROM SPORTS WAGERING 0.9%

TOP 10 NORTHEAST REGION MARKETS (revenue increased in 6 of 10 markets in 2018)

The Northeast region continues to be the fastest growing region for commercial gaming. In 2018, the region grew at a rate of 6.2%. The growth was led by the expansion of gaming through four new casino openings and the legalization of sports wagering in five of the region’s nine gaming states. While the region led the nation in increased revenues, the growth was not experienced by all of the region’s casinos, as 26 of the 51 casinos (51.0%) operating in 2017 and 2018 experienced a decline in 2018 gaming revenues. Differing Views on Taxing Sports Wagering: While five of the nine states legalized sports wagering quickly, the approaches have varied widely between the states. Pennsylvania levied a 36% tax rate on sports wagering gaming revenues, which led to many industry veterans speaking out against the State’s ability to successfully eliminate the black market or support job growth. Meanwhile, New Jersey established a tiered tax rate, charging a 9.75% revenue tax on the more employment intensive casino based (retail) sports books and a higher 13% revenue tax on the online sports books. The success of these markets will be watched closely, as other states will be looking to understand how tax rates, online wagering, and retail kiosks impact the size of the sports wagering industry. Possibly Approaching Market Saturation: Amidst the growth in the Northeast region’s gaming revenues, there were two indicators that suggest the market may be approaching saturation. In January 2019, Empire Resorts, Inc. announced the closure of the casino at the Monticello Raceway as the casino has been averaging monthly losses in excess of $10 million since the opening of the nearby Resorts World Catskills Casino. Meanwhile, in Pennsylvania the Las Vegas Sands Corporation has been working to sell its Sands Bethlehem property. During the 2019 Winter NCLGS meetings, a Sands executive cited the over expansion of gaming within Pennsylvania as one of the primary reasons the company was looking to exit the market.

ATLANTIC CITY, NJ

CHICAGO (IN & IL)

1 NATIONAL RANK

# 2 NATIONAL RANK

GAMING REVENUE $2,560.95M

6.1%

GAMING REVENUE $1,615.78M 7.8% WASHINGTON D.C. / BALTIMORE, MD # 4 NATIONAL RANK

DETROIT, MI

10 NATIONAL RANK

NEW YORK CITY, NY

ST. LOUIS (MO & IL)

13 NATIONAL RANK

# 5 NATIONAL RANK

GAMING REVENUE $1,496.46M

3.3%

PHILADELPHIA, PA

KANSAS CITY (MO & KS)

17 NATIONAL RANK

# 7 NATIONAL RANK

GAMING REVENUE $1,296.74M

4.2%

BETHLEHEM / SCRANTON, PA

CINCINNATI (OH & IN)

25 NATIONAL RANK

# 9 NATIONAL RANK

GAMING REVENUE $942.56M

-4.8%

PITTSBURGH, PA

CLEVELAND, OH

32 NATIONAL RANK

# 19 NATIONAL RANK

GAMING REVENUE $605.14M

3.2%

PROVIDENCE, RI

CENTRAL INDIANA

35 NATIONAL RANK

# 22 NATIONAL RANK

GAMING REVENUE $574.27M

-0.8%

CHARLESTON, WV

SOUTHERN INDIANA

41 NATIONAL RANK

# 31 NATIONAL RANK

GAMING REVENUE $335.42M

-2.3%

ALBANY / SARATOGA, NY

COUNCIL BLUFFS, IA

48 NATIONAL RANK

# 34 NATIONAL RANK

GAMING REVENUE $280.72M

5.7%

HARRISBURG, PA

COLUMBUS, OH

51 NATIONAL RANK

# 37 NATIONAL RANK

GAMING REVENUE $243.41M

-0.6%

8

RubinBrown Gaming Stats 2019