RubinBrown Gaming Stats 2019

’19

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 ▶ Diverse and Inspired Team ▶ 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.

www.RubinBrown.com

WELCOME

Welcome to the 2019 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 4.0% this year (nine years of consecutive growth), with all four segments growing at a rate faster than both the U.S. inflation rate of 1.9% and annual real GDP of 2.9%.

The most impressive statistic of 2018 is every state experienced an increase in gaming revenues when all forms of gaming are combined. This fact is unprecedented in the history of RubinBrown’s Gaming Statistics, which has been tracking gaming data since 2007. The only state-wide declines that you will observe are the Illinois and West Virginia casino segments; however, when combining the respective limited stakes gaming revenues both states produced revenue growth. The headline of the year (and most likely decade) was the U.S. Supreme Court’s decision in the Murphy v. National Collegiate Athletic Association case which overturned the Professional and Amateur Sports Protection Act of 1992 (PASPA). This landmark case for the gaming industry has opened the door to states dictating the legality and limits placed on sports wagering. Throughout our report, there will be regular discussion of how this decision is having an impact on the industry. Beyond the discussion on sports wagering, we encourage you to look at how the Midwest commercial casino industry has been impacted by limited stakes gaming, how the iGaming industry will be impacted by the DOJ’s most recent position on The Interstate Wire Act of 1961, and how tribal nations are continuing to invest and develop world-class resort destinations. This year we have displayed the growth of the industry from 2008. The use of 2008 provides historical context to the industry’s performance since the beginning of the Great Recession. Of the regions covered, there are only two regions, the Nevada Commercial Casinos region and the South Commercial Casinos region, that have not surpassed their pre-recession peaks. Since 2008, the collective casino industry (Tribal and Commercial) welcomed more than 100 new casinos and increased its combined casino revenues by $11.5 billion. During that same time, the Limited Stakes gaming industry saw the birth of the Illinois video gaming and its rapid ascent to a $1.5 billion market that is now larger than the traditional Illinois casino market. 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

2018 COMMERCIAL GAMING REVENUES

$41.28B

3.4%

52.0%

ALL 2018 GAMING REVENUES

24 STATES

579 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

As featured in the March 2019 Edition of Casino Journal

In 2018, the United States commercial gaming industry generated $41.3 billion dollars in gaming revenues, up 3.4% from 2017. Over the past five years the growth in gaming has originated primarily from market expansion and the opening of new casinos. Historically, the geographic expansion has led to neighboring states seeing year-over-year decline in revenues. However, 2018 was unique in the fact that the new casino openings (Occurring in New York, New Jersey, and Massachusetts) did not lead to reduced gaming revenues in the neighboring states. The only two states that saw a revenue decline in the traditional brick and mortar casinos, Illinois (-2.5%) and West Virginia (-1.8%), still experienced overall growth in gaming revenues when factoring in the States’ respective limited stakes video gaming markets. When combining the limited stakes video gaming revenues, Illinois’ gaming market increased by 6.0% and West Virginia’s gaming market increased by 1.8%. The nation-wide growth in gaming is primarily being attributed to the increased disposable income from the Tax Cuts and Jobs Act , which lowered the typical employee’s tax withholdings throughout 2018, and strong consumer confidence. In October 2018, the consumer confidence index hit 137.9 the highest reading since 2000.

$11.92B 28.9%

$1.22 2.9%

$5.27B 12.8%

$12.28B 29.7%

$10.59B 25.7%

Nevada

South Region Northeast Region

Midwest Region

Other

In addition to strong economic conditions, five states quickly capitalized on the ability to offer sports wagering after the U.S. Supreme Court’s overturned the Professional and Amateur Sports Protection Act . These five states (MS, NJ, PA, RI, and WV) generated an additional $128.2 million in gaming revenues from sports wagering. When combining Nevada’s pre-existing sports wagering market, the total net commercial gaming revenue generated from sports wagering totaled $472.3 million in 2018. Looking forward, the industry is poised for future growth as the economy remains strong and numerous states continue to explore the legalization of sports wagering. However, the industry also faces increasing headwinds. Most notably, the lower tax withholdings that originated from the Tax Cuts and Jobs Act is also resulting in a reduction in the average federal tax refund. The reduction in the average refund check will likely lead to a reduction in March and April gaming revenues.

Commercial Gaming

3

† see statistical note on page 25

COMMERCIAL GAMING REVENUES

NEVADA

ALL GAMING REVENUES 15.0%

GAMING REVENUE $11,917.37M

NEVADA

28.9% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 327

3.0%

NORTHEAST REGION

ALL GAMING REVENUES 1.7% ALL GAMING REVENUES 2.7% ALL GAMING REVENUES 1.8% ALL GAMING REVENUES 0.5% ALL GAMING REVENUES 1.8% ALL GAMING REVENUES 2.2% ALL GAMING REVENUES 2.3% ALL GAMING REVENUES 0.1% ALL GAMING REVENUES 0.7% ALL GAMING REVENUES 3.2% 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 4.1% ALL GAMING REVENUES 3.3% ALL GAMING REVENUES 3.3% ALL GAMING REVENUES 0.3% ALL GAMING REVENUES 0.5% ALL GAMING REVENUES 0.2% ALL GAMING REVENUES 2.2%

GAMING REVENUE $416.96M

DELAWARE

CASINO OPERATIONS 3

1.0% COMMERCIAL GAMING REVENUES

0.7%

GAMING REVENUE $143.91M

MAINE

CASINO OPERATIONS 2

0.2% COMMERCIAL GAMING REVENUES

5.3%

GAMING REVENUE $1,746.36M

MARYLAND

CASINO OPERATIONS 6

4.2% COMMERCIAL GAMING REVENUES

8.2%

GAMING REVENUE $273.07M

MASSACHUSETTS

CASINO OPERATION 2

0.7% COMMERCIAL GAMING REVENUES

65.7%

GAMING REVENUE $2,604.77M

NEW JERSEY

6.3% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 9

7.9%

GAMING REVENUE $2,587.87M

NEW YORK

6.3% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 14

10.2%

GAMING REVENUE $3,250.00M

PENNSYLVANIA

CASINO OPERATIONS 12

7.9% COMMERCIAL GAMING REVENUES

0.7%

GAMING REVENUE $645.85M

RHODE ISLAND

1.6% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 2

3.4%

GAMING REVENUE $615.42M

WEST VIRGINIA

CASINO OPERATIONS 5

1.5% COMMERCIAL GAMING REVENUES

-1.8%

MIDWEST REGION

GAMING REVENUE $1,373.46M

ILLINOIS

3.3% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 10

-2.5%

GAMING REVENUE $2,170.23M

INDIANA

CASINO OPERATIONS 13

5.3% COMMERCIAL GAMING REVENUES

0.8%

GAMING REVENUE $1,467.33M

IOWA

3.6% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 19

0.3%

GAMING REVENUE $408.57M

KANSAS

1.0% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 4

4.9%

GAMING REVENUE $1,444.10M

MICHIGAN

3.5% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 3

3.1%

GAMING REVENUE $1,754.47M

MISSOURI

CASINO OPERATIONS 13

4.3% COMMERCIAL GAMING REVENUES

1.0%

GAMING REVENUE $1,863.90M

OHIO

4.5% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 11

4.9%

GAMING REVENUE $106.31M

SOUTH DAKOTA

0.3% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 28

0.8%

SOUTH REGION

GAMING REVENUE $569.02M

FLORIDA

CASINO OPERATIONS 8

1.4% COMMERCIAL GAMING REVENUES

4.1%

MINIMAL INCREASE

GAMING REVENUE $2,562.09M

LOUISIANA

6.2% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 20

GAMING REVENUE $2,141.84M

MISSISSIPPI

5.2% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 28

3.1%

OTHER

GAMING REVENUE $841.67M

COLORADO

2.0% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 33

1.6%

GAMING REVENUE $235.45M

NEW MEXICO

0.6% COMMERCIAL GAMING REVENUES

CASINO OPERATIONS 5

3.5%

GAMING REVENUE $139.61M

OKLAHOMA

CASINO OPERATIONS 2

0.3% COMMERCIAL GAMING REVENUES

11.8%

4

RubinBrown Gaming Stats 2019

COMMERCIAL GAMING REVENUES

NEVADA

REVENUE PER EGDPERDAY $149.81

REVENUE PER TG PER DAY $2,134.04

$7,712.89M EGD REVENUE

$3,860.42M TABLE GAMES REVENUE

NEVADA

3.8%

0.4%

NORTHEAST REGION

REVENUE PER EGD PER DAY $85.28 REVENUE PER EGD PER DAY $234.88 REVENUE PER EGD PER DAY $245.33 REVENUE PER EGD PER DAY $192.18 REVENUE PER EGD PER DAY $218.85 REVENUE PER EGD PER DAY $270.59 REVENUE PER EGD PER DAY $300.44 REVENUE PER EGDPERDAY $300.87 REVENUE PER EGDPERDAY $493.33 REVENUE PER EGDPERDAY $296.67 REVENUE PER EGD PER DAY $261.97 REVENUE PER EGD PER DAY $242.86 REVENUE PER EGD PER DAY $253.24 REVENUE PER EGDPERDAY $263.52 REVENUE PER EGDPERDAY $192.31 REVENUE PER EGDPERDAY $155.33

REVENUE PER TG PER DAY $423.38 REVENUE PER TG PER DAY $1,812.86 REVENUE PER TG PER DAY $1,296.65 REVENUE PER TG PER DAY $1,047.26 REVENUE PER TG PER DAY $840.33 REVENUE PER TG PER DAY $1,415.17 REVENUE PER TG PER DAY $2,614.08 REVENUE PER TG PER DAY $1,888.24 REVENUE PER TG PER DAY $1,393.79 REVENUE PER TG PER DAY $2,254.38 REVENUE PER TG PER DAY $2,777.52 REVENUE PER TG PER DAY $1,092.82 REVENUE PER TG PER DAY $2,252.72 REVENUE PER TG PER DAY $2,979.17 REVENUE PER TG PER DAY $1,527.26 REVENUE PER TG PER DAY $1,385.87

$352.36M EGD REVENUE

$55.64M TABLE GAMES REVENUE

DELAWARE

-0.5%

1.8%

$118.08M EGD REVENUE

$25.83M TABLE GAMES REVENUE

MAINE

6.9%

-1.8%

$653.86M TABLE GAMES REVENUE

$1,092.50M EGD REVENUE

MARYLAND

9.3%

6.4%

$33.73M TABLE GAMES REVENUE

$239.34M EGD REVENUE

MASSACHUSETTS

N/A

45.2%

$1,800.89M EGD REVENUE

$709.85M TABLE GAMES REVENUE

NEW JERSEY

4.7%

2.3%

$2,428.63M EGD REVENUE

$159.23M TABLE GAMES REVENUE

NEW YORK

72.6%

7.6%

$2,369.89M EGD REVENUE

$877.60M TABLE GAMES REVENUE

PENNSYLVANIA

1.4%

-1.5%

$504.58M EGD REVENUE

$140.24M TABLE GAMES REVENUE

RHODE ISLAND

4.9%

-2.5%

$504.80M EGD REVENUE

$104.07M TABLE GAMES REVENUE

WEST VIRGINIA

-2.8%

-2.9%

MIDWEST REGION

$1,072.82M EGD REVENUE

$300.63M TABLE GAMES REVENUE

ILLINOIS

-2.9%

-0.9%

$1,821.14M EGD REVENUE

$349.09M TABLE GAMES REVENUE

INDIANA

-0.1%

5.4%

$1,310.52M EGD REVENUE

$156.81M TABLE GAMES REVENUE

IOWA

3.0%

NO CHANGE

$357.73M EGD REVENUE

$50.84M TABLE GAMES REVENUE

KANSAS

6.0%

-2.5%

MICHIGAN

EGD REVENUE NOT REPORTED

TABLE GAMES REVENUE NOT REPORTED

$1,501.51M EGD REVENUE

$252.97M TABLE GAMES REVENUE

MISSOURI

2.1%

0.8%

$1,595.59M EGD REVENUE

$268.32M TABLE GAMES REVENUE

OHIO

6.0%

-1.1%

$93.12M EGD REVENUE

$13.20M TABLE GAMES REVENUE

SOUTH DAKOTA

-0.3%

9.9%

SOUTH REGION

REVENUE PER EGD PER DAY $216.06

$569.02M EGD REVENUE

FLORIDA

4.1%

STATE LIMITED TO SLOTS-ONLY FACILITIES

LOUISIANA

EGD REVENUE NOT REPORTED

TABLE GAMES REVENUE NOT REPORTED

REVENUE PER EGD PER DAY $178.58

REVENUE PER TG PER DAY $1,139.68

$1,755.27M EGD REVENUE

$371.39M TABLE GAMES REVENUE

MISSISSIPPI

8.7%

1.1%

OTHER

REVENUE PER TG PER DAY $1,165.99

REVENUE PER EGD PER DAY $158.21 REVENUE PER EGD PER DAY $227.83 NUMBER OF EGDs NOT REPORTED

$731.61M EGD REVENUE

$110.10M TABLE GAMES REVENUE

COLORADO

1.3%

4.2%

$235.45M EGD REVENUE

NEW MEXICO

3.5%

STATE LIMITED TO SLOTS-ONLY FACILITIES

$139.61M EGD REVENUE

OKLAHOMA

11.8%

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 7.1%

GAMING LEGALIZED 1931 EFFECTIVE TAX RATE 7.1%

GAMING TAX REVENUE $850.62M

NEVADA

-1.9%

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

NORTHEAST REGION

EFFECTIVE TAX RATE 35.5%

2009 GAMING LEGALIZED 33.4% EFFECTIVE TAX RATE 1989 GAMING LEGALIZED 14.7% EFFECTIVE TAX RATE 1993 GAMING LEGALIZED 25.5% 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 27.4% EFFECTIVE TAX RATE 1991 GAMING LEGALIZED 23.2% EFFECTIVE TAX RATE 2006 GAMING LEGALIZED 35.0% EFFECTIVE TAX RATE 1990 GAMING LEGALIZED 11.8% EFFECTIVE TAX RATE GAMING LEGALIZED 1990 33.7% EFFECTIVE TAX RATE 2004 GAMING LEGALIZED 20.6% EFFECTIVE TAX RATE 1997 GAMING LEGALIZED 26.0% EFFECTIVE TAX RATE 1990 GAMING LEGALIZED 14.9% EFFECTIVE TAX RATE 2004 GAMING LEGALIZED 41.7% EFFECTIVE TAX RATE 2008 GAMING LEGALIZED 37.8% EFFECTIVE TAX RATE 1994 GAMING LEGALIZED 37.1% EFFECTIVE TAX RATE 2011 GAMING LEGALIZED 34.4% EFFECTIVE TAX RATE 1976 GAMING LEGALIZED 9.1% EFFECTIVE TAX RATE 2001 GAMING LEGALIZED 42.5% EFFECTIVE TAX RATE 2004 GAMING LEGALIZED 42.4% EFFECTIVE TAX RATE 1992 GAMING LEGALIZED 51.9% EFFECTIVE TAX RATE 1994 GAMING LEGALIZED 54.8% EFFECTIVE TAX RATE

GAMING TAX REVENUE $154.75M

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 $60.03M

MAINE

10.0%

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

GAMING TAX REVENUE $660.54M

MARYLAND

5.1%

SLOTS ONLY CASINOS TAX RATE: 49.0% RESORT CASINOS TAX RATE: 25.0%

GAMING TAX REVENUE $94.01M

MASSACHUSETTS

42.6%

GAMING TAX REVENUE $236.50M

NEW JERSEY

10.8%

STRAIGHT-LINE TAX RATE: 8.0% OR 10.25%

GAMING TAX REVENUE $1,101.11M

NEW YORK

7.8%

STRAIGHT-LINE TAX RATE: 64.0%

GAMING TAX REVENUE $1,377.06M

PENNSYLVANIA

3.4%

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

GAMING TAX REVENUE $335.49M

RHODE ISLAND

4.1%

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 $337.27M

WEST VIRGINIA

0.9%

MIDWEST REGION

EFFECTIVE TAX RATE 26.9%

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 $462.17M

ILLINOIS

-2.8%

GAMING TAX REVENUE $594.74M

INDIANA

-1.3%

GAMING TAX REVENUE $321.87M

IOWA

0.6%

GAMING TAX REVENUE $110.33M

KANSAS

4.9%

STRAIGHT-LINE TAX RATE: 27.0%

GAMING TAX REVENUE $274.38M

MICHIGAN

3.1%

STRAIGHT-LINE TAX RATE: 19.0%

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

GAMING TAX REVENUE $446.55M

MISSOURI

0.2%

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

GAMING TAX REVENUE $622.62M

OHIO

4.7%

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

GAMING TAX REVENUE $15.60M

SOUTH DAKOTA

-1.6%

SOUTH REGION

EFFECTIVE TAX RATE 19.8%

GAMING TAX REVENUE $199.20M

FLORIDA

4.1%

STRAIGHT-LINE TAX RATE: 35.0%

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

GAMING TAX REVENUE $593.47M

LOUISIANA †

0.7%

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

GAMING TAX REVENUE $253.15M

MISSISSIPPI

0.4%

OTHER

EFFECTIVE TAX RATE 17.7%

GAMING TAX REVENUE $125.52M

COLORADO

3.7%

GRADUATED TAX RATE: 0.25% - 20.0%

GAMING TAX REVENUE $61.22M

NEW MEXICO

3.5%

RACINOS STRAIGHT-LINE TAX RATE: 26.0%

GAMING TAX REVENUE $28.83M

OKLAHOMA

17.8%

RACINOS GRADUATED TAX RATE: 10.0% - 30.0%

6

RubinBrown Gaming Stats 2019

† see statistical note on page 25

COMMERCIAL GAMING NEVADA

$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

350

343

342

340

339

339

336

335

334

329

327

NO. CASINO OPERATIONS

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

GAMING REVENUES

$12.07B

$10.45B

$10.33B3

$10.79B

$10.86B

$11.14B

$10.98B

$11.11B

$11.26B6

$11.57B

$11.92B

2008

2009

2010

2016

2017

2018

2011

2012

2013

2014

2015

REVENUE FROM ELECTRONIC GAMING DEVICES 64.7% REVENUE FROM TABLE GAMES 32.4% REVENUE FROM SPORTS WAGERING 2.9%

15.0% OF ALL GAMING REVENUES 28.9% COMMERCIAL GAMING REVENUES

GAMING REVENUE $11.92B

GAMING REV $12.2

$36.44M AVERAGE REVENUE PER CASINO

327

CASINO OPERATIONS

3.0%

TOP 10 NEVADA MARKETS (revenue increased in all markets in 2018)

In 2018, the Nevada gaming market grew at a rate of 3.0%. Most notably, all of Nevada’s gaming markets posted year-over-year increases in gaming revenues, with the northern part of the State (including the Reno, Carson City and Lake Tahoe markets) leading the way. The strong revenue growth in the northern markets (collectively 4.6%) is attributed to the population and housing boom. The Reno-Carson City markets experienced a population increase of 3.7%, as job growth within technology, manufacturing and distribution industries continued to be strong. Las Vegas Construction is Gaining Momentum: In 2018, Genting Berhad finally began substantial construction on its Resorts World Las Vegas Casino, now scheduled to open in 2020 on the former site of the Stardust. Wynn Resorts continued to push forward with its new Convention Center facility behind its existing Encore and Wynn hotel towers. Las Vegas Sands, in a partnership with the Madison Square Garden Company, began construction on a revolutionary new entertainment arena known as the Sphere. Meanwhile, MGM completed the transformation of the old Monte Carlo resort into the new Park MGM. Corporate Transitions Take Center Stage: 2018 may become known as the year of change within Las Vegas gaming companies, starting with Golden Entertainment completing its acquisition of American Casino & Entertainment Properties in January. Eleven days later, the Wall Street Journal’s article broke open Steve Wynn’s history of alleged sexual misconduct leading to a complete transformation of Wynn Resorts’ Board of Directors and executive leadership team. Later in 2018, Las Vegas based Pinnacle Entertainment was acquired by Pennsylvania based Penn National Gaming, MGM began implementing its MGM 2020 plan which is aimed at reducing costs and increasing profitability in preparation for the next economic downturn, and Caesars’ became an acquisition target.

LAS VEGAS STRIP

ATLANTIC CIT

# 1 NATIONAL RANK

GAMING REVENUE $6,588.24M

2.0%

BOULDER STRIP

WASHINGTON

# 10 NATIONAL RANK

GAMING REVENUE $856.98M

5.4%

RENO / SPARKS

NEW YORK CI

# 13 NATIONAL RANK

GAMING REVENUE $772.18M

4.4%

LAS VEGAS DOWNTOWN

PHILADELPHIA

# 17 NATIONAL RANK

GAMING REVENUE $649.93M

3.0%

LAUGHLIN

BETHLEHEM /

# 25 NATIONAL RANK

GAMING REVENUE $508.73M

3.2%

NORTH LAS VEGAS

PITTSBURGH,

# 32 NATIONAL RANK

GAMING REVENUE $297.67M

3.4%

LAKE TAHOE

PROVIDENCE,

# 35 NATIONAL RANK

GAMING REVENUE $258.10M

4.2%

WENDOVER

CHARLESTON,

# 41 NATIONAL RANK

GAMING REVENUE $201.07M

6.5%

MESQUITE

ALBANY / SA

# 48 NATIONAL RANK

GAMING REVENUE $130.32M

4.6%

CARSON VALLEY

HARRISBURG,

# 51 NATIONAL RANK

GAMING REVENUE $110.78M

6.1%

Commercial Gaming

7

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

COMMERCIAL GAMING MIDWEST 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

NO. CASINO OPERATIONS

$10.59B

$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

$8.98B

$8.84B

$8.80B

$8.78B

GAMING REVENUES

102

101

101

101

101

100

99

93

90

89

89

2008

2009

2010

2016

2017

2018

2011

2012

2013

2014

2015

13.3% OF ALL GAMING REVENUES 25.7% COMMERCIAL GAMING REVENUES

GAMING REVENUE $10.59B

GAMING REV $5.27

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

$223.35M VERAGE REVENUE PER CASINO

$104.84M AVERAGE REVENUE PER CASINO

101

CASINO OPERATIONS

1.5%

TOP 10 MIDWEST REGION MARKETS (revenue increased in 7 of 10 markets in 2018)

Gaming revenues in the Midwest region increased by 1.5% in 2018. The revenue increase was the smallest increase compared to the other four commercial gaming regions. The Midwest region’s revenue increase was primarily driven by strong growth in Ohio (4.9%) and Michigan (3.1%), which both set all-time highs in gaming revenues generated. The MGM Grand – Detroit led the region in total revenues, generating $619.2 million in gaming revenues, an increase of $27.1 million from 2017. Casinos are No Longer King in Illinois: The Illinois casino industry endured its sixth consecutive year of declining casino revenues ($1.4 billion) and was surpassed by the rapidly growing video gaming (limited stakes) industry ($1.5 billion). For those states looking to expand gaming, the Illinois case study should not be overlooked. The headline number of increased total gaming tax revenues available to Illinois and local governments is eye-catching, as the gaming expansion has increased total gaming tax revenues by 58.8% or $337.8 million. However, the increase hasn’t been a uniform economic boost to the State. Since 2012, when video gaming began, the casino industry has reduced its employee base by 19.0% (1,461 jobs) and local municipalities hosting casinos have experienced, on average, a 28.4% decline in casino gaming tax revenues. Indiana Casinos Move On Land: The benefits of a 2016 law, permitting existing casinos to build land base facilities, began paying off in 2018. The Tropicana Evansville Casino, in southern Indiana, reported its first full year of gaming revenues from its new $50 million land based facility. In 2018, the new facility reported a $15.9 million or 12.3% increase in gaming revenues. To the north, similar investment returns are appearing. In May 2019, the Ameristar in East Chicago completed a $22 million casino refresh that included a land based high-limit room. The investment led to 2018 gaming revenues increasing by $15.8 million or 7.8%.

CHICAGO (IN & IL)

BILOXI, MS

# 2 NATIONAL RANK

# 3 NATIONAL RANK

GAMING REVENUE $1,907.57M

-0.9%

DETROIT, MI

LAKE CHARLE

# 4 NATIONAL RANK

# 6 NATIONAL RANK

GAMING REVENUE $1,444.10M

3.1%

ST. LOUIS (MO & IL)

SHREVEPORT

# 5 NATIONAL RANK

# 8 NATIONAL RANK

GAMING REVENUE $1,037.98M

1.2%

KANSAS CITY (MO & KS)

TUNICA / LUL

# 7 NATIONAL RANK

# 12 NATIONAL RANK

GAMING REVENUE $795.98M

0.4%

MIAMI / FT. L

CINCINNATI (OH & IN)

# 9 NATIONAL RANK

# 14 NATIONAL RANK

GAMING REVENUE $766.41M

2.2%

CLEVELAND, OH

NEW ORLEAN

# 19 NATIONAL RANK

# 21 NATIONAL RANK

GAMING REVENUE $588.18M

5.7%

CENTRAL INDIANA

BAY ST. LOUIS

# 22 NATIONAL RANK

# 26 NATIONAL RANK

GAMING REVENUE $475.94M

0.9%

SOUTHERN INDIANA

BATON ROUG

# 31 NATIONAL RANK

# 27 NATIONAL RANK

GAMING REVENUE $461.66M

-0.3%

COUNCIL BLUFFS, IA

# 34 NATIONAL RANK

# 28 NATIONAL RANK

GAMING REVENUE $413.85M

-1.4%

COLUMBUS, OH

# 37 NATIONAL RANK

# 30 NATIONAL RANK

GAMING REVENUE $401.51M

5.3%

Commercial Gaming

9

COMMERCIAL GAMING SOUTH 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

NO. CASINO OPERATIONS

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

GAMING REVENUES

$5.53B

$5.28B

$5.27B

$5.20B

$5.19B

$5.14B

$5.09B

$5.08B

$5.05B

$5.04B

$5.00B

56

56

56

56

55

55

54

53

53

52

51

2008

2009

2010

2016

2017

2018

2011

2012

2013

2014

2015

REVENUE FROM ELECTRONIC GAMING DEVICES 85.7% REVENUE FROM TABLE GAMES 14.0% REVENUE FROM SPORTS WAGERING 0.3%

12.8% COMMERCIAL GAMING REVENUES

GAMING REVENUE $5.27B

GAMING REV $1.22

$104.84M VERAGE REVENUE PER CASINO

$94.16M AVERAGE REVENUE PER CASINO

56

CASINO OPERATIONS

1.7%

6.6% OF ALL GAMING REVENUES

TOP 8 SOUTH REGION MARKETS (revenue increased in 6 of 8 markets in 2018)

The South region remained relatively steady in 2018, with a 1.7% increase in gaming revenues. All three states within the region posted revenue increases. While year-over-year revenue gains were posted, the Baton Rouge market continues to bring the region down. In 2018, the Baton Rouge gaming market saw revenues decline by 14.8% and in December 2018 the market posted its sixteenth-consecutive month of year-over-year revenue declines. The decline in the Baton Rouge market is being attributed the pro-longed effects of the historic 2016 floods and the declining population base. Mississippi Introduced Sports Wagering: Mississippi was one of the quickest states to respond to the U.S. Supreme Court’s decision that overturned PASPA. By August 2018, the State successfully legalized, regulated, and began offering sports wagering. However, unlike other states that legalized sports wagering, the industry is limited to retail only transactions, whereby a patron must physically go to a casino’s sports book to place a bet. With this limitation, $15.2 million was still generated from sports wagering. Most notably, since casinos began accepting sports wagers, the industry experienced a 6.3% increase in year-over-year gaming revenue (August – December). This boost further supports the belief that sports wagering is another casino amenity that will drive growth in other areas of the casino. Florida’s Racetracks Casinos Led the Region: The Florida racetrack casino industry posted revenue growth of 4.1% in 2018. However, revenues could have been higher had the State been operating at full capacity. In late 2017, Hurricane Irma devastated the Mardi Gras Casino in Hallandale Beach, requiring the casino to undergo a complete remodel. The damage was so severe, the casino was not up and running until May 2018, at which time only half of the pre-existing casino was reopened. Without this negative impact, the State likely would have seen revenue growth of 6.5%.

BILOXI, MS

BLACKHAWK, CO

3 NATIONAL RANK

# 11 NATIONAL RANK

GAMING REVENUE $851.99M

3.6%

LAKE CHARLES, LA

NEW MEXICO RACINOS

6 NATIONAL RANK

# 15 NATIONAL RANK

GAMING REVENUE $753.83M

4.7%

OKLAHOMA RACINOS

SHREVEPORT / BOSSIER CITY, LA

8 NATIONAL RANK

# 16 NATIONAL RANK

GAMING REVENUE $677.13M

-0.3%

CRIPPLE CREEK, CO

TUNICA / LULA, MS

12 NATIONAL RANK

# 20 NATIONAL RANK

GAMING REVENUE $589.50M

1.1%

MIAMI / FT. LAUDERDALE, FL

CENTRAL CITY, CO

# 23 NATIONAL RANK

14 NATIONAL RANK

GAMING REVENUE $569.02M

4.1%

NEW ORLEANS, LA

21 NATIONAL RANK

# 24 NATIONAL RANK

GAMING REVENUE $562.43M

0.7%

BAY ST. LOUIS / GULFPORT, MS

26 NATIONAL RANK

# 29 NATIONAL RANK

GAMING REVENUE $406.36M

7.1%

BATON ROUGE, LA

27 NATIONAL RANK

# 36 NATIONAL RANK

GAMING REVENUE $255.89M

-14.8%

28 NATIONAL RANK

30 NATIONAL RANK

10

RubinBrown Gaming Stats 2019

COMMERCIAL GAMING OTHER

$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

NO. CASINO OPERATIONS

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

GAMING REVENUES

$1.14B 22

$1.18B

$1.16B

$1.16B

$1.12B

$1.11B $1.11B

$1.11B $1.11B

$1.11B

$1.10B

49 $1.07B

$1.07B

48

47

46

46

46

43

42

42

40

40

2008

2009

2010

2016

2017

2018

2011

2012

2013

2014

2015

2.9% COMMERCIAL GAMING REVENUES

GAMING REVENUE $1.22B

REVENUE FROM ELECTRONIC GAMING DEVICES 91.0% REVENUE FROM TABLE GAMES 9.0%

$94.16M VERAGE REVENUE PER CASINO

$30.42M AVERAGE REVENUE PER CASINO

40

CASINO OPERATIONS

3.1%

1.5% OF ALL GAMING REVENUES

TOP 5 OTHER MARKETS (revenue increased in all markets in 2018)

The Other region, comprising the racetrack casinos in New Mexico and Oklahoma and the limited wagering casinos in Colorado, generated revenue growth of 3.1%. Similar to the Nevada and South regions, all of the markets experienced year-over-year increases in gaming revenues. Oklahoma Racetrack Casinos Post Double Digit Growth in 2018, Amidst Strong Competition: The Oklahoma commercial gaming market is limited to two racetrack slot-only casinos that compete against more than 130 tribal gaming casinos that also operate within the State. In 2018, the two casinos posted a combined growth rate of 11.8%. Remington Park was the top performer of the two casinos, with revenues of $119.1 million, growing at a rate of 12.6%. Colorado Leads the Region in Total Revenues, but Growth is Not Keeping Pace: Of the three states within the Other region, Colorado generates 69.2% of the region’s commercial gaming revenues. However, many in the industry do not see Colorado keeping pace in terms of growth. In 2018, the State’s projected job growth of 2.4% outperformed the State’s gaming revenue growth of 1.6%. The reasons behind the lagging growth in gaming are being attributed to the limitations that have been placed on the industry. The two primary limitations include casinos only operating in three historic mining towns, located away from the major metropolitan centers and limiting the industry’s patrons to a maximum single bet of $100.

BLACKHAWK, CO

# 11 NATIONAL RANK

# 18 NATIONAL RANK

GAMING REVENUE $623.25M

0.3%

NEW MEXICO RACINOS

# 15 NATIONAL RANK

# 38 NATIONAL RANK

GAMING REVENUE $235.45M

3.5%

OKLAHOMA RACINOS

# 46 NATIONAL RANK

# 16 NATIONAL RANK

GAMING REVENUE $139.61M

11.8%

CRIPPLE CREEK, CO

# 47 NATIONAL RANK

# 20 NATIONAL RANK

GAMING REVENUE $139.44M

3.5%

CENTRAL CITY, CO

# 23 NATIONAL RANK

# 58 NATIONAL RANK

GAMING REVENUE $78.98M

9.9%

# 24 NATIONAL RANK

# 29 NATIONAL RANK

# 36 NATIONAL RANK

Commercial Gaming

11

2018 iGAMING REVENUES ( EXCLUDING NV )

$0.30B

21.4%

0.4%

ALL 2018 GAMING REVENUES

3 STATES

11 OPERATORS t

NJ

DE

NV

iGAMING

GAMING REVENUES BY OPERATOR †

The U.S. iGaming industry segment completed its fifth full year of operations in 2018. Overall, iGaming produced strong revenue growth in 2018 due to the 21.6% increase in New Jersey revenues; however, the industry continues to represent less than 0.5% of total U.S. Gaming industry. At the end of 2018, the industry was anticipating 2019 to provide a significant boost to its revenues and availability. The optimism was predicated on several Pennsylvania operators going live with online gaming platforms looking to capitalize on the State’s 2017 gaming expansion law. The addition of Pennsylvania would double the industry’s market potential, as Pennsylvania's population of 12.8 million people is equal to the existing populations of Nevada, Delaware, and New Jersey combined. Beyond Pennsylvania, the iGaming industry had additional optimism as the industry saw the desire to legalize sports wagering as a vehicle that could also be leveraged into the legalization of online wagering. While the industry started 2019 with optimism, the industry is now looking to take a step back on its future expansion plans. In early 2019, the Department of Justice (DOJ) released a new opinion on The Interstate Wire Act of 1961 (Wire Act) that put the existing and future iGaming industry into question. The new opinion essentially was a reversal of the 2011 DOJ opinion. Under the most recent position, the DOJ states that the Wire Act applies to any form of gambling that crosses lines, including sports wagering, online gaming and online lottery sales. The impact of the new opinion has not been fully understood, as the industry has until June 2019 to comply with the new position. However, compliance with the position will challenge the status quo, as the three existing iGaming markets all operate with an interstate compact that permits people to place wagers across the respective state jurisdictions. Within Pennsylvania, the optimism has waned as the State’s regulator has asked potential operators to explain how they will abide by the most recent Wire Act interpretation. This additional step has caused a delay to the industry’s expansion. Beyond iGaming, the new Wire Act interpretation is also creating confusion in the lottery markets. Based on the DOJ’s opinion, one could argue that the existing interstate lottery games, such as the highly popular and profitable Mega Millions and Power Ball games, are deemed illegal.

$45.31M $5.12M $2.76M $41.06M $2.60M $0.51M $1.19M $54.09M $45.56M $104.79M

Borgata (NJ)

Caesars (NJ)

Golden Nugget (NJ)

Hard Rock Atlantic City (NJ)

Ocean Resort (NJ)

Resorts Digital Gaming (NJ)

Tropicana (NJ)

Delaware Park (DE)

Dover Downs (DE)

Harrington (DE)

GAMING REVENUES BY STATE ( excluding nv )

$298.70M

$4.29M

2018

$245.61M

$2.39M

2017

$196.71M

$3.02M

2016

$148.88M

$1.81M

2015

$2.09M

$122.88M

2014

Delaware

New Jersey

The potential for this type of interpretation has resulted in the New Hampshire Lottery filing a lawsuit against the DOJ in attempt to stop the DOJ’s enforcement of their new interpretation on a law that has been around for 58 years.

Looking forward, the DOJ’s change in position has created uncertainty within the iGaming market, as the prospect of additional state expansion under the current DOJ’s position is unlikely. Furthermore, the preservation of the current iGaming markets will likely lead to a protracted legal battle over the new position. Many anticipate the legal battle playing out in a similar manner to the Murphy v. National Collegiate Athletic Association lawsuit that ultimately led to PASPA being overturned on the basis of states' rights.

iGaming

13

† see statistical note on page 25

2018 LIMITED STAKES GAMING REVENUES

$4.04B

7.5%

5.1%

ALL 2018 GAMING REVENUES

6 STATES t

16,231 LOCATIONS

MT

OR

SD

IL

WV

LA

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