RubinBrown Gaming Stats 2011

National Comparison

Commercial Overall, the U.S. gaming industry continues to suffer, but stabilized in 2010 with a slight increase in adjusted gross receipts of .34% over 2009. The industry has not seen an increase in revenue in the past three years. However, as gaming revenues continue to stabilize, its popularity within state legislatures has increased. In 2010, numerous states have pushed for the expansion of gaming including such states as Ohio, Pennsylvania, and Maryland. While states see casinos as a path to balancing state budgets, existing commercial gaming operators have been challenged to find new ways to invest in their properties, amidst reduced revenues and burdensome tax rates that in some jurisdictions exceed 50% of gross gaming revenue. 2011 Industry Forecast Although not recession proof, the gaming industry is resilient. Improved economic conditions are predicted to trigger a recovery in late 2011. The industry will continue to see mergers, a strong focus on customer loyalty programs, and the expansion of non-gaming amenities such as entertainment venues, restaurants, spas, and golf courses to attract patrons to the casinos’ complete destination experience. Properties will rely on advances in technology such as server- based gaming, promotional coupons, and hand held wagering devices to appeal to Generation Y patrons. The consensus is that 2011 will be a turning point for the industry; however, the U.S. gaming industry will soon face a major challenge with the legalization of internet gaming in the U.S. on the rise.

Adjusted Gross Receipts by State (Millions)

2009

2010

% Change

Colorado

735

760

3.40% -4.06% -1.30% -1.59%

Illinois Indiana

1,429 2,379

1,371 2,348

Iowa

945

930

Kansas* Louisiana

2

38

1,800.00%

2,053

1,986

-3.26%

Maryland** Michigan Mississippi

NA

28

NA

1,339 2,465 1,730

1,378 2,390 1,788

2.91% -3.04% 3.35% 0.12% -9.59% 26.51% 3.92% 0.34%

Missouri Nevada

10,393

10,405

New Jersey Pennsylvania South Dakota

3,943 1,965

3,565 2,486

102

106

Total

$29,480

$29,579

*The first commercial Kansas Casino opened on December 15, 2009, therefore the percentage increase is not representative of a full year’s operations. **The first commercial Maryland casino opened September 27, 2010, therefore no information to report prior to 2010.

National – Percentage of Commercial Gaming Industry

MI 5%

IL 5%

IA 3%

CO 3%

MO 6%

KS, MD & SD <1%

PA 8%

LA 7%

NV 35%

IN 8%

MS 8%

NJ 12%

3 | Raise Your Expectations