1. business and industrial
2. company
3. earnings

’15
GAMING STATISTICS
A Publication of RubinBrown LLP
RubinBrown’s Gaming Services Group
adds value to clients through an
understanding of gaming regulations
and focus on efficient, effective and
sustainable compliance programs.
Contents
We are nationally known for leadership within the gaming
industry. Our success and reputation is a byproduct of our
commitment to the following:
2 United States Gaming Industry Overview
▶ Excellence in Quality and Client Service
6 Commercial Gaming
▶ Thought Leadership
▶ Strategic Partnerships
14iGaming
▶ Diverse and Inspired Team
18 Limited Stakes Gaming
20 Tribal Gaming
29 Notes, Sources & Acknowledgments
▶ 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.
Gaming Services Practice Leaders
Brandon Loeschner, CPA, CISA
Partner & Gaming Practice Leader
314.290.3324
brandon.loeschner@rubinbrown.com
Daniel Holmes, CPA, CIA
Manager & Gaming Practice Leader
314.290.3346
daniel.holmes@rubinbrown.com
WELCOME
Welcome to the 2015 edition of RubinBrown’s Gaming Statistics. We are excited to provide
you with the only comprehensive review of the United States gaming industry. This publication
includes statistical data from over 1,000 gaming operations, spanning across 39 states and
incorporating all four segments of the U.S. gaming industry.
When reading this publication you will learn how the overall gaming industry increased
revenues by 0.5% in 2014, generating a record high $68.7 billion in total gaming revenue. Within
each segment of the industry you will also learn about the challenges facing gaming operators
and opportunities for future growth. Throughout the publication, the most notable trend will be
the increase in competition and the impact of new casinos. Overall, the United States gaming
industry is growing as the number of gaming operations continues to increase; however, the
revenues generated by new gaming operations are also taking away from long-established
gaming operations.
New to this year’s edition of Gaming Statistics, we have expanded our analysis beyond the
traditional brick-and-mortar casinos. Our analysis now includes all four distinct segments of
the U.S. gaming industry. For purposes of our report, we have defined the four segments as
Commercial Gaming, iGaming, Limited Stakes Gaming and Tribal Gaming. For a more detailed
explanation of each segment, please see the statistical notes on page 29.
The expansion beyond the traditional brick-and-mortar casinos reflects the continued
integration of the gaming industry and provides a more complete understanding of the U.S.
gaming industry. For example, focusing only on Illinois riverboat casinos would suggest the state
has experienced a decline in gaming activity; however, when incorporating the limited stakes
gaming, it becomes evident the state’s gaming revenues have increased state-wide and
revenues have shifted away from traditional riverboat casinos.
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
UNITED STATES GAMING INDUSTRY OVERVIEW
(Originally published in the March 2015 issue of Casino Journal)
Gaming revenues hit an all-time high in 2014 while the
number of casinos declined for the first time in the
modern era of gaming.
In 2014 the United States gaming industry set a new record for gaming revenues, generating
$68.7 billion in revenue, an increase of 0.5% over the previous record set in 2013. For purposes of
this analysis, the U.S. gaming industry includes commercial and tribal brick-and-mortar casinos,
iGaming and limited stakes gaming.
While the increase in gaming revenues set a new record, the give and take of gaming
revenues continues to place pressure on existing operators. For the first time in the modern era
of gaming (starting in 1989) the number of casinos operating declined during the calendar
year. At the end of 2014 there were 941 brick-and-mortar commercial and tribal casinos, which
was four less than the 945 casinos operating at the end of 2013.
The revenue growth seen in 2014 is largely attributed to the growth in iGaming and limited
stakes gaming. These two segments of the industry saw a combined increase in gaming
revenues of $479.5 million.
Commercial Gaming
After achieving record gaming revenues
in 2013, the commercial gaming segment
PERCENTAGE OF GAMING REVENUES BY GAMING SEGMENT
could not sustain the growth in 2014.
iGaming
The overall commercial gaming
market declined 0.6% in 2014,
generating $37.5 billion. Of the 23
states that have commercial gaming,
only 8 states saw an increase in
4.4%
gaming revenues.
Limited Stakes
Gaming
0.2%
The decline in commercial
gaming revenues does not come
as a surprise to the industry, as
the 2014 news headlines were
focused on the closure of four
Atlantic City casinos and the
impending bankruptcy of Caesar’s
Entertainment (eventually
occurring on January 15, 2015).
Beyond these headlines, there
were two important trends that go
beyond the 2014 numbers.
54.6%
Commercial Gaming
40.8%
Tribal Gaming
Overview | 3
UNITED STATES GAMING INDUSTRY OVERVIEW
First, the Pennsylvania gaming market finally stalled in 2014,
casino closures and overall market saturation continue to
with overall gaming revenue declining 1.4%. However, this
bring down the local economy, the market produced the
decline was not felt by the gaming operators as the revenue
two fastest growing casinos in 2014. The Golden Nugget
retained by the casinos (after paying state gaming taxes)
and Tropicana were able to capitalize on the reduced
remained unchanged when compared to 2013. The casinos’
competition and experienced revenue growth rates of 30.4%
ability to retain the same amount of revenue after gaming
and 16.5%, respectively.
taxes, was due to the mix of gaming revenue shifting towards
table games. As the percentage of revenue generated from
table games increased, the casino operators were able to
benefit from a lower tax rate as the Pennsylvania gaming tax
applied to table games revenue is 39.0% less than the tax
rate applied to gaming machines revenues.
iGaming
The United States iGaming segment completed its first full
calendar year of activity in 2014, generating $134.7 million.
New Jersey led the industry, generating 91.2% of the iGaming
revenues. However, the success in New Jersey was tempered
The trend of revenue shifting from gaming machines to table
games is expected to continue across the nation. In 2015,
we are already seeing this trend emerge in Maryland where
both Maryland Live! and Horseshoe – Baltimore are replacing
gaming machines with table games to accommodate the
increased demand.
as the iGaming revenue was less than 50.0% of the low-end
estimates and well short of the $1.2 billion cited in the New
Jersey FY 2014 budget.
Looking towards 2015, the future growth of iGaming remains
uncertain. Many supporters claim California will legalize
online poker, removing the player liquidity constraint in
One hour away from the Pennsylvania border, we saw
another important trend emerge in Atlantic City. In 2014
continued market saturation in Atlantic City, resulted in
today’s market. However, opponents to online gaming see
the expansion into California as a near impossible feat due to
the diverse political interests that exist within the state.
four casinos closing their doors during 2014. While the
Commercial Gaming
$37.49B
GAMING
REVENUES
23 STATES
4 | RubinBrown 2015 Gaming Stats
-0.6%
514 CASINOS
iGaming
$0.13B
3 STATES
iGAMING
REVENUES
777.2%
8 OPERATORS
77.2%
Limited Stakes Gaming
While the growth was limited in 2014, the segment had a
The video lottery terminals offered in restaurants, truck stops
favorable legislative year, which will continue to support
and taverns was the fastest growing segment (excluding
the overall development of tribal gaming and protection
iGaming, which completed its first full calendar year of
of tribal sovereignty. Specifically, in May 2014, the United
legalized operations) during 2014. In 2014, revenue from
States Supreme Court ruled in favor of the Bay Mills Indian
limited stakes gaming increased by 13.9% to $2.95 billion.
Community, upholding tribal sovereignty. Later in the
year, the Tribal General Welfare Exclusion Act was passed,
The increase in this segment was solely due to the continued
providing Indian Country greater protection from the
expansion in Illinois. When removing the growth seen in
IRS efforts to tax tribal government programs, providing
Illinois, the revenues generated by the five other states only
education and housing to tribal members.
increased by $1.3 million, or 0.06%.
Looking Forward
Tribal Gaming
Overall, the U.S. gaming industry will continue to see a
In 2014, tribal gaming revenues remained relatively flat,
redistribution of gaming revenue as new regional gaming
increasing by an estimated 0.2%. When examining the
markets emerge. The most notable expansions to watch will
regional growth, the tribal nations within the Oklahoma
be in Massachusetts as the state’s first casino, Penn National
region continue to see the most growth; however, the rate
Gaming’s Plainridge Park Casino, is schedule to open in
of growth has slowed dramatically from double-digit growth
2015. Beyond Massachusetts, expansion will continue in the
rates seen in 2008 and 2009. The continued slow-down in
New York, Philadelphia and Washington D.C. markets, with
growth is attributed to the tribal segment reaching a point
opening dates extending beyond 2015. Amidst the market
of maturation, where there are fewer opportunities for
expansion, existing operators will continue to focus on cost
expansion.
reduction efforts and diversifying revenues away from the
gaming floor to other amenities.
Limited Stakes Gaming
$2.95B
6 STATES
GAMING
REVENUES
13.9%
13,312 LOCATIONS
Tribal Gaming
$28.10B
28 STATES
GAMING
REVENUES
0.2%
449 CASINOS
Overview | 5
2014 COMMERCIAL GAMING REVENUES
$37.49B
-0.6%
54.6%
ALL 2014 GAMING REVENUES
ME
NY
SD
PA
IA
NV
IL
CO
NM
RI
MI
KS
IN
OH
NJ
DE
WV
MD
MO
OK
MS
LA
FL
COMMERCIAL GAMING
GAMING REVENUES BY MARKET
In 2014, the commercial gaming segment generated $37.5 billion, down
0.6% from the segment’s peak established in 2013. The past year also
$13.64B
36.4%
marked the first time the industry experienced an overall decline in the
number of commercial gaming operations since the modern era of
gaming started in 1989. While segment-wide revenues are declining,
the decline is not expected to last long, with gaming expansion moving
forward in Massachusetts and New York.
$2.91B
7.7%
There are 23 states offering commercial casinos. Of these states, 15
experienced declines in revenues, while 8 benefited from revenue
increases. Seven of the eight states with positive revenue growth also
benefited from gaming expansion in 2013 or 2014.
Overall, the commercial gaming segment contributed $8.6 billion in
$11.22B
29.9%
$9.73B
26.0%
gaming taxes to state and local governments. It is important to note that
the gaming taxes exclude sales, hotel, employment and income taxes,
also paid by commercial gaming operators.
Challenges
Early Adopters
Racetrack & VLT Markets
Within the commercial gaming segment there are two primary challenges
Riverboat Markets
Other Markets
facing the industry that include increased competition and an aging
entertainment offering.
TOP 5 COMMERCIAL GAMING MARKETS
BASED ON REVENUE (BILLIONS)
The increased competition was highlighted in 2014 by the closures of four
Atlantic City casinos. However, similar challenges were seen nationwide
as casinos in Illinois, Indiana and Pennsylvania also faced increased
LAS VEGAS STRIP, NV
$6.32B
competition from new gaming jurisdictions opening in the Illinois limited
stakes gaming market and the Ohio commercial casino market.
ATLANTIC CITY, NJ
$2.62B
The segment is also challenged by technological advancement and
CHICAGO (IL & IN)
$1.99B
the slot machine becoming an aging form of entertainment. Gaming
operators, manufacturers and regulators throughout the nation are
working to develop new casino games that provide more entertainment
$1.35B
NEW YORK CITY, NY
$1.33B
DETROIT, MI
B
$7
B
$6
B
$5
B
$4
B
$3
B
$2
$1
gaming patrons. In New Jersey, casinos are introducing games of skill,
$0
technologies on gaming and identify technologies that will attract future
B
legislature formed a committee designed to study the impact of new
B
than the traditional three-reeled slot machine. In Nevada, the state
such as free-throw shooting contests.
TOP 5 COMMERCIAL GAMING MARKETS
BASED ON GROWTH (PERCENTAGE)
but they will also open up new regional gaming markets.
8.1% MIAMI / FT. LAUDERDALE, FL
10.0% PROVIDENCE, RI
SIOUX CITY, IA
CLEVELAND, OH
50
%
40
%
30
0%
are constructed, they will not only compete with existing gaming markets,
11.7%
awarded between New York and Massachusetts. Once these new casinos
24.1%
opportunity for gaming operators. In 2014, six new gaming licenses were
47.8%
While also a challenge for existing casinos, expansion remains a significant
%
machines with table games.
20
growing popularity of table games, casinos have been replacing gaming
%
games revenues, 64.7% reported an increase in revenues. With the
10
that offer gaming, 19 offer table games. Of the 17 states reporting table
%
gaming revenues, the table games market is on the rise. Of the 23 states
BALTIMORE, MD
60
Even though the commercial gaming market saw a decline in total
%
Opportunities
Commercial Gaming | 7
COMMERCIAL GAMING REVENUES
EARLY ADOPTERS
NEVADA
NEW JERSEY
$11,018.69M
GAMING REVENUE
-0.1%
29.4% COMMERCIAL GAMING REVENUES
16.0% OF ALL GAMING REVENUES
$2,619.25M
GAMING REVENUE
-10.6%
7.0% COMMERCIAL GAMING REVENUES
3.8% OF ALL GAMING REVENUES
RIVERBOAT MARKETS
ILLINOIS
$1,463.42M
GAMING REVENUE
-5.7%
3.9% COMMERCIAL GAMING REVENUES
2.1% OF ALL GAMING REVENUES
INDIANA
$2,156.75M
GAMING REVENUE
-7.5%
5.8% COMMERCIAL GAMING REVENUES
3.1% OF ALL GAMING REVENUES
IOWA
$1,396.00M
GAMING REVENUE
-1.5%
3.7% COMMERCIAL GAMING REVENUES
2.0% OF ALL GAMING REVENUES
LOUISIANA
$2,472.50M
GAMING REVENUE
1.1%
6.6% COMMERCIAL GAMING REVENUES
3.6% OF ALL GAMING REVENUES
MISSISSIPPI
$2,067.88M
GAMING REVENUE
-3.2%
5.5% COMMERCIAL GAMING REVENUES
3.0% OF ALL GAMING REVENUES
MISSOURI
$1,660.25M
GAMING REVENUE
-2.8%
4.4% COMMERCIAL GAMING REVENUES
2.4% OF ALL GAMING REVENUES
RACETRACK & VLT MARKETS
DELAWARE
$409.52M
GAMING REVENUE
-6.3%
1.1% COMMERCIAL GAMING REVENUES
0.6% OF ALL GAMING REVENUES
FLORIDA
$505.49M
GAMING REVENUE
8.1%
1.3% COMMERCIAL GAMING REVENUES
0.7% OF ALL GAMING REVENUES
MAINE
$127.27M
GAMING REVENUE
0.8%
0.3% COMMERCIAL GAMING REVENUES
0.2% OF ALL GAMING REVENUES
MARYLAND
$931.08M
GAMING REVENUE
24.4%
2.5% COMMERCIAL GAMING REVENUES
1.4% OF ALL GAMING REVENUES
NEW YORK
$1,898.34M
GAMING REVENUE
-1.4%
5.1% COMMERCIAL GAMING REVENUES
2.8% OF ALL GAMING REVENUES
OHIO
$1,450.53M
GAMING REVENUE
35.5%
3.9% COMMERCIAL GAMING REVENUES
2.1% OF ALL GAMING REVENUES
PENNSYLVANIA
$3,069.08M
GAMING REVENUE
-1.4%
8.2% COMMERCIAL GAMING REVENUES
4.5% OF ALL GAMING REVENUES
RHODE ISLAND
$616.19M
GAMING REVENUE
10.4%
1.6% COMMERCIAL GAMING REVENUES
0.9% OF ALL GAMING REVENUES
WEST VIRGINIA
$722.17M
GAMING REVENUE
-10.9%
1.9% COMMERCIAL GAMING REVENUES
1.1% OF ALL GAMING REVENUES
COLORADO
$745.90M
GAMING REVENUE
-0.4%
2.0% COMMERCIAL GAMING REVENUES
1.1% OF ALL GAMING REVENUES
KANSAS
$353.54M
GAMING REVENUE
-3.2%
0.9% COMMERCIAL GAMING REVENUES
0.5% OF ALL GAMING REVENUES
$1,332.78M
GAMING REVENUE
-1.2%
3.6% COMMERCIAL GAMING REVENUES
1.9% OF ALL GAMING REVENUES
NEW MEXICO
$257.66M
GAMING REVENUE
6.5%
0.7% COMMERCIAL GAMING REVENUES
0.4% OF ALL GAMING REVENUES
OKLAHOMA
$111.37M
GAMING REVENUE
-1.3%
0.3% COMMERCIAL GAMING REVENUES
0.2% OF ALL GAMING REVENUES
SOUTH DAKOTA
$104.06M
GAMING REVENUE
1.0%
0.3% COMMERCIAL GAMING REVENUES
0.2% OF ALL GAMING REVENUES
OTHER MARKETS
MICHIGAN
8 | RubinBrown 2015 Gaming Stats
EARLY ADOPTERS
$6,746.84M
EGD REVENUE
-0.1%
$1,874.72M
EGD REVENUE
-9.2%
$120.43
REVENUE PER
EGD PER DAY
$235.17
REVENUE PER
EGD PER DAY
$4,271.85M
TABLE GAMES REVENUE
2.1%
$744.54M
TABLE GAMES REVENUE
-10.3%
$1,915.81
NEVADA
REVENUE PER
TG PER DAY
$1,761.13
NEW JERSEY
REVENUE PER
TG PER DAY
RIVERBOAT MARKETS
$1,192.56M
EGD REVENUE
-7.1%
$1,813.51M
EGD REVENUE
-8.9%
$1,258.50M
EGD REVENUE
-2.0%
$301.67
REVENUE PER
EGD PER DAY
$243.69
REVENUE PER
EGD PER DAY
$198.91
REVENUE PER
EGD PER DAY
$270.86M
TABLE GAMES REVENUE
1.1%
$343.23M
TABLE GAMES REVENUE
0.4%
$137.50M
TABLE GAMES REVENUE
3.8%
EGD REVENUE NOT REPORTED
$1,754.14M
EGD REVENUE
-3.0%
$1,450.86M
EGD REVENUE
-3.1%
$2,645.05
ILLINOIS
REVENUE PER
TG PER DAY
$1,369.96
INDIANA
REVENUE PER
TG PER DAY
$772.48
IOWA
REVENUE PER
TG PER DAY
LOUISIANA
TABLE GAMES REVENUE NOT REPORTED
$160.51
REVENUE PER
EGD PER DAY
$214.35
REVENUE PER
EGD PER DAY
$313.74M
TABLE GAMES REVENUE
NO CHANGE
$209.39M
TABLE GAMES REVENUE
NO CHANGE
$1,039.17
MISSISSIPPI
REVENUE PER
TG PER DAY
$1,053.64
MISSOURI
REVENUE PER
TG PER DAY
RACETRACK & VLT MARKETS
$352.15M
EGD REVENUE
-5.8%
$505.49M
EGD REVENUE
8.1%
$104.78M
EGD REVENUE
-0.8%
$628.79M
EGD REVENUE
8.4%
$1,898.34M
EGD REVENUE
-1.4%
$1,176.73M
EGD REVENUE
$2,319.53M
EGD REVENUE
-2.7%
$516.31M
EGD REVENUE
-0.1%
$578.84M
EGD REVENUE
-8.2%
43.7%
$147.56
REVENUE PER
EGD PER DAY
$51.30M
$184.31
$165.47
$239.49
REVENUE PER
EGD PER DAY
$22.49M
$302.29M
$287.72
$192.54
$240.17
REVENUE PER
EGD PER DAY
$251.08
REVENUE PER
EGD PER DAY
NUMBER OF EGDs
NOT REPORTED ON
MONTHLY BASIS
$1,232.77
DELAWARE
REVENUE PER
TG PER DAY
FLORIDA
TABLE GAMES REVENUE
8.9%
TABLE GAMES REVENUE
79.1%
$1,467.12
MAINE
REVENUE PER
TG PER DAY
$3,388.61
MARYLAND
REVENUE PER
TG PER DAY
NEW YORK
STATE LIMITED TO SLOTS-ONLY FACILITIES
REVENUE PER
EGD PER DAY
REVENUE PER
EGD PER DAY
-11.6%
STATE LIMITED TO SLOTS-ONLY FACILITIES
REVENUE PER
EGD PER DAY
REVENUE PER
EGD PER DAY
TABLE GAMES REVENUE
$273.80M
TABLE GAMES REVENUE
8.7%
$749.54M
TABLE GAMES REVENUE
2.7%
$99.89M
TABLE GAMES REVENUE
141.7%
$143.32M
TABLE GAMES REVENUE
-20.1%
$1,738.79
OHIO
REVENUE PER
TG PER DAY
$1,867.41
PENNSYLVANIA
REVENUE PER
TG PER DAY
$3,420.79
RHODE ISLAND
REVENUE PER
TG PER DAY
NUMBER OF TGs
NOT REPORTED ON
MONTHLY BASIS
WEST VIRGINIA
OTHER MARKETS
$661.76M
EGD REVENUE
-0.9%
$301.44M
EGD REVENUE
-2.8%
$130.23
REVENUE PER
EGD PER DAY
NUMBER OF EGDs
NOT REPORTED ON
MONTHLY BASIS
$84.14M
TABLE GAMES REVENUE
4.1%
$52.05M
TABLE GAMES REVENUE
-5.0%
EGD REVENUE NOT REPORTED
$257.66M
EGD REVENUE
6.5%
$111.37M
EGD REVENUE
-1.3%
$92.91M
EGD REVENUE
0.2%
EGD = Electronic Gaming Devices $241.64
REVENUE PER
EGD PER DAY
NUMBER OF EGDs
NOT REPORTED ON
MONTHLY BASIS
$75.37
REVENUE PER
EGD PER DAY
$11.15M
$779.63
REVENUE PER
TG PER DAY
NUMBER OF TGs
NOT REPORTED ON
MONTHLY BASIS
COLORADO
KANSAS
TABLE GAMES REVENUE NOT REPORTED
MICHIGAN
STATE LIMITED TO SLOTS-ONLY FACILITIES
NEW MEXICO
STATE LIMITED TO SLOTS-ONLY FACILITIES
OKLAHOMA
TABLE GAMES REVENUE
7.9%
$318.54
REVENUE PER
TG PER DAY
SOUTH DAKOTA
TG = Table Games
Commercial Gaming | 9
STATE GAMING TAX REVENUES
EARLY ADOPTERS
NEVADA
1931
NEW JERSEY
1976
8.3%
9.2%
8.4%
GAMING LEGALIZED
EFFECTIVE TAX RATE
GAMING LEGALIZED
EFFECTIVE TAX RATE
GRADUATED TAX RATE: 3.5% - 6.75% (PLUS ADMINISTRATIVE FEES)
$909.88M
GAMING TAX REVENUE
0.7%
STRAIGHT-LINE TAX RATE: 8.0% OR 10.25%
$241.16M
GAMING TAX REVENUE
-0.2%
RIVERBOAT MARKETS
ILLINOIS
1990
GAMING LEGALIZED
34.2%
EFFECTIVE TAX RATE
INDIANA
1993
GAMING LEGALIZED
28.8%
EFFECTIVE TAX RATE
IOWA
1989
GAMING LEGALIZED
22.1%
EFFECTIVE TAX RATE
LOUISIANA 1
1991
GAMING LEGALIZED
23.3%
EFFECTIVE TAX RATE
MISSISSIPPI
1990
GAMING LEGALIZED
11.9%
EFFECTIVE TAX RATE
MISSOURI
1993
GAMING LEGALIZED
26.3%
EFFECTIVE TAX RATE
24.0%
1994
GAMING LEGALIZED
40.1%
EFFECTIVE TAX RATE
FLORIDA
2006
GAMING LEGALIZED
35.1%
EFFECTIVE TAX RATE
MAINE
2004
GAMING LEGALIZED
40.3%
EFFECTIVE TAX RATE
MARYLAND
2008
GAMING LEGALIZED
52.4%
EFFECTIVE TAX RATE
NEW YORK
2001
GAMING LEGALIZED
45.5%
EFFECTIVE TAX RATE
OHIO
2009
GAMING LEGALIZED
33.6%
EFFECTIVE TAX RATE
PENNSYLVANIA
2004
GAMING LEGALIZED
43.9%
EFFECTIVE TAX RATE
RHODE ISLAND
1992
GAMING LEGALIZED
53.1%
EFFECTIVE TAX RATE
WEST VIRGINIA
1994
GAMING LEGALIZED
41.0%
EFFECTIVE TAX RATE
$500.60M
GAMING TAX REVENUE
-6.7%
RIVERBOAT GRADUATED TAX RATE: 5.0% - 40.0%
(PLUS $3 ADMISSION FEE PER PATRON PER DAY)
RACINOS GRADUATED TAX RATE: 25.0% - 35.0%
$622.14M
GAMING TAX REVENUE
-11.4%
CASINOS GRADUATED TAX RATE: 5.0% - 22.0%
RACINOS GRADUATED TAX RATE: 22.0% OR 24.0%
$307.87M
GAMING TAX REVENUE
-5.0%
CASINOS STRAIGHT-LINE TAX RATE: 21.5%1
RACINOS STRAIGHT-LINE TAX RATE: 33.17%
$575.78M
GAMING TAX REVENUE
0.7%
GRADUATED TAX RATE AND VARIES BY LOCATION: 4.4 % - 12.0%
(PLUS ADMINISTRATIVE FEES)
$246.56M
GAMING TAX REVENUE
-4.3%
STRAIGHT-LINE TAX RATE: 21.0%
(PLUS $2 ADMISSION FEE PER PATRON PER 2 HOURS)
$436.83M
GAMING TAX REVENUE
-3.4%
43.2%
$164.26M
GAMING TAX REVENUE
-8.2%
STRAIGHT-LINE TAX RATE: 35.0%
$177.37M
GAMING TAX REVENUE
8.4%
$51.35M
GAMING TAX REVENUE
-0.2%
BLENDED TAX RATE: 50.0%, 57.0% or
67.0% EGD & 20.0% TABLE GAMES
$487.55M
GAMING TAX REVENUE
17.2%
STRAIGHT-LINE TAX RATE: 64.0%
$864.18M
GAMING TAX REVENUE
-1.5%
CASINOS STRAIGHT-LINE TAX RATE: 33.0%
RACINOS STRAIGHT-LINE TAX RATE: 33.5%
$487.10M
GAMING TAX REVENUE
36.6%
BLENDED TAX RATE: 55.0% EGD & 16.0% TABLE GAMES
$1,347.67M
GAMING TAX REVENUE
-2.7%
BLENDED TAX RATE: 60.0% EGD & 18.0% TABLE GAMES
$327.25M
GAMING TAX REVENUE
2.7%
RACINOS BLENDED TAX RATE: 54.9% EGD & 35.0% TABLE GAMES
HISTORIC RESORTS TAX RATE: 57.7% EGD & 35.0% TABLE GAMES
$295.95M
GAMING TAX REVENUE
-9.2%
CASINOS BLENDED TAX RATE: 46.0% EGD & 16.0% TABLE GAMES
RACINOS BLENDED TAX RATE: 40.0% EGD & 16.0% TABLE GAMES
19.2%
COLORADO
1990
14.2%
EFFECTIVE TAX RATE
KANSAS
2007
GAMING LEGALIZED
27.0%
EFFECTIVE TAX RATE
MICHIGAN
1996
GAMING LEGALIZED
19.0%
EFFECTIVE TAX RATE
NEW MEXICO
1997
GAMING LEGALIZED
25.9%
EFFECTIVE TAX RATE
OKLAHOMA
2004
GAMING LEGALIZED
18.5%
EFFECTIVE TAX RATE
SOUTH DAKOTA
1989
GAMING LEGALIZED
15.2%
EFFECTIVE TAX RATE
1
EFFECTIVE TAX RATE
BLENDED TAX RATE: 59.5% EGD & 33.9% TABLE GAMES
OTHER MARKETS
GAMING LEGALIZED
EFFECTIVE TAX RATE
GRADUATED TAX RATE: 15.0% - 50.0%
(PLUS $2-3 ADMISSION FEE PER PATRON PER DAY)
RACETRACK & VLT MARKETS
DELAWARE
EFFECTIVE TAX RATE
EFFECTIVE TAX RATE
$106.13M
GAMING TAX REVENUE
2.5%
STRAIGHT-LINE TAX RATE: 27.0%
$95.46M
GAMING TAX REVENUE
-3.5%
STRAIGHT-LINE TAX RATE: 19.0%
$253.23M
GAMING TAX REVENUE
-1.2%
RACINOS STRAIGHT-LINE TAX RATE: 26.0%
$66.64M
GAMING TAX REVENUE
6.1%
RACINOS GRADUATED TAX RATE: 10.0% - 30.0%
$20.63M
GAMING TAX REVENUE
STRAIGHT-LINE TAX RATE: 8.0%
(PLUS $2,000 ANNUAL FEE PER GAMING DEVICE)
$15.86M
GAMING TAX REVENUE
GRADUATED TAX RATE: 0.25% - 20.0%
NO CHANGE
-2.3%
Louisiana casinos include riverboat and land-based operations. Land-based operations are subject to a minimum tax of $60 million, regardless of revenues.
10 | RubinBrown 2015 Gaming Stats
COMMERCIAL GAMING HEADLINES
COMMERCIAL GAMING MARKETS
RIVERBOAT MARKETS
ME
NY
SD
PA
IA
NV
IL
CO
NM
RI
MI
KS
IN
OH
NJ
DE
WV
MD
MO
OK
MS
Early Adopters
Riverboat Markets
LA
FL
Racetrack & VLT Markets
Other Markets
EARLY ADOPTERS
Nevada
New Jersey
Political debate over online gaming
continues as gaming industry increases
spending on lobbying. Nevada’s 2013
legalization of online poker could be
challenged by a congressional measure
looking to reestablish a federal ban
on online gaming. The measure, titled
the Restoration of America’s Wire Act,
is largely funded by Las Vegas Sands
Chairman Sheldon Adelson. The industry
finds itself split with some casinos in
support of an online gaming ban and
others in opposition of such legislation.
Four Atlantic City casinos close in 2014.
Showboat Casino, Revel Casino, Trump
Plaza Hotel and Casino and the Atlantic
Club Casino Hotel all ceased operations
in 2014. Casino revenues in Atlantic City
have declined approximately 50% since
2006 as competition from new casinos
in neighboring states has taken a toll on
Atlantic City gaming.
Blackstone doubles down on The
Cosmopolitan of Las Vegas. Deutsche
Bank sold The Cosmopolitan of Las Vegas
to the Blackstone Group for $1.73 billion.
The Cosmopolitan of Las Vegas has been
a fixture of debate since opening along
Las Vegas Boulevard in December 2010.
Proponents for the casino cite it as a
model for future casino developments as
its design caters to the next generation of
casino patrons. Meanwhile, opponents
cite the casino’s earnings as an example
of how stand-alone casinos cannot exist
along the Las Vegas Strip.
The Taj Mahal Casino attempting to
remain open through 2015. The Trump
Taj Mahal Casino in Atlantic City filed for
bankruptcy on September 9, 2014, and
was facing closure in December before
Carl Icahn lent the casino an additional
$20 million. The loan will allow the Taj
Mahal to continue operations into 2015
while it attempts to exit bankruptcy and
resolve a dispute with its employees’
union over health and pension benefits.
Illinois
Four Illinois casinos are awarded in an
$82 million verdict. The $82 million verdict
was the result of a racketeering suit
focused on political bribes paid to pass
legislation that benefited the state’s horse
racing industry. The four casinos awarded
damages include what is now Hollywood
Casino Joliet, Harrah’s Joliet Casino and
Hotel, Hollywood Casino Aurora and
Grand Victoria Casino in Elgin.
Limited stakes gaming is hurting Illinois
casinos’ bottom line. As the state’s
gaming revenue continues to drop, Illinois
officials say they underestimated the
impact of limited stakes gaming (known
within the state as video gaming) on
the state’s existing riverboat casinos.
Every month, approximately 850 new
slot machines are added. At the end
of 2014, the number of video gaming
terminals was 19,182 positions, which
was more than 1.5 times the number of
riverboat casino gaming positions legally
permitted.
Indiana
Indiana’s gaming industry receives
continued support from the state’s
legislature. The Indiana House Committee
approved legislation that would allow
existing riverboat casinos to relocate on
land. The legislation would also allow
horse-track casinos to offer live table
games and provide tax incentives for
casinos to develop new land-based
facilities or renovate current facilities.
Beyond the proposed legislation, the
committee is looking for ways to replace
the current $3 per person admission tax.
Iowa
The state of Iowa grants a license for a
$40 million casino in Jefferson. The first
casino to be granted a license by the
Iowa Racing and Gaming Commission
since 2010 was approved by a 3-2 vote in
favor of the casino. The Wild Rose Casino
in Jefferson is expected to be completed
in August 2015. The property will create
an estimated 275 new jobs and include
slot machines, table games, an events
center and a 71 room hotel. This will be
the 19th state-regulated casino in Iowa.
Commercial Gaming | 11
COMMERCIAL GAMING HEADLINES
RIVERBOAT MARKETS
Louisiana
Mississippi
Third time is a charm for The Golden
Nugget in Lake Charles. The casino
project adjacent to Pinnacle
Entertainment’s L’Auberge Casino finally
opened after its third ownership group in
less than four years. The casino project,
originally called Mojito Pointe, was
started by Daniel Lee’s Creative Casinos,
LLC in 2011. In 2012, Ameristar acquired
the project and had plans to name it
Ameristar Lake Charles. After Pinnacle
Entertainment’s acquisition of Ameristar in
late 2012, the project was sold to Landry’s
Inc. Under its third ownership, the casino
was finally completed in December 2014
and includes a 740 room hotel, 70 table
games and 1,600 slot machines. Total
construction costs exceeded $700 million.
Mississippi endures the ying and yang
of gaming in 2014. During the past year,
two casinos closed their doors, while
construction moved forward on two new
gaming operations. On June 2, 2014,
Harrah’s Tunica closed its doors due to
declining business levels and increased
competition, according to its parent
company Caesar’s Entertainment.
The Margaritaville Casino in Biloxi also
closed its doors on September 15, 2014.
Meanwhile, construction progressed on
two new casinos set to open on the Gulf
Coast in 2015. Scarlet Pearl Casino Resort
is under construction in D’Iberville and
Rotate Black’s Hemingway Resort Casino
is being built in Gulfport.
Revenue increases from Gulf Coast
casinos cannot offset state-wide
decreases in revenues. Casino revenues
in Mississippi have been down 25 of the
previous 29 months heading into the end
of 2014. While Gulf Coast casinos have
shown slight increases in revenue over the
last year, Mississippi River casinos suffered
decreased revenues in 2014.
Missouri
Missouri looks to boost gaming revenues
by extending credit to high-rollers. In
2014, the Missouri General Assembly
approved legislation that permits casino
patrons to take out credit in excess
of $10,000. The legislation is aimed at
boosting revenues by making it easier for
high-rollers to place bets.
RACETRACK & VLT MARKETS
Delaware
Maine
Lawmakers look to change the
distribution of gaming revenue to support
the state’s gaming industry. In 2013,
the state provided a $9.9 million relief
package for the industry and throughout
2014 lawmakers worked to provide a
more permanent solution. While there is
minimal public support for a reduction
in casino taxes, Delaware is once again
the first state (within the VLT and racino
market) to focus on stabilizing its gaming
industry through tax reductions.
Recent study claims that Maine’s
economy could sustain a third casino. The
WhiteSand study suggests that a casino
could join the Bangor Hollywood Casino
and Oxford Casino in the state as long
as it is located in southern Maine. Due to
concerns of market cannibalization, the
state continues to carefully move forward
with gaming expansion plans.
Florida
Gaming expansion in Florida is heating
up… once again. With the Seminole
Nation’s gaming compact set to
expire on July 31, 2015, the debate on
commercial gaming expansion is heating
up. Racino operators in the southern part
of the state are lobbying for the right to
offer blackjack and other table games,
breaking the Seminole Nation’s exclusive
right to offer blackjack. Meanwhile, in
central and northern Florida, lobbyists are
pushing for the expansion of commercial
gaming to include two large integrated
resorts.
12 | RubinBrown 2015 Gaming Stats
Bangor’s casino joins Oxford Casino
in around-the-clock operations. The
casino located in Bangor stayed open 24
hours a day from December 26, 2014 to
January 3, 2015, to test the feasibility of
expanded hours. As long as the security
requirements are maintained, there is
no state restriction on how long a casino
floor can stay open.
Maryland
Hollywood Casino – Perryville continues
to reduce the number of slot machines
amidst increasing competition. The
casino received approval from the
Maryland Lottery and Gaming Control
Agency to reduce its number of slot
machines from 1,158 to 850. Many of
the less popular slot machines are being
removed and the casino is investing over
$1 million on new machines. The space
currently holding the outgoing machines
will likely be converted into private rooms.
Gaming expansion moves forward at full
speed in Maryland. On August 26, 2014,
Horseshoe Casino – Baltimore welcomed
its first patrons. The casino is a $400 million
joint venture between Dan Gilbert’s Rock
Gaming and Caesar’s Entertainment.
As the Horseshoe – Baltimore opened its
doors, the countdown to the opening of
Maryland’s largest casino development,
MGM National Harbor, began. Under
Maryland law, the Baltimore casino must
operate for at least 24 months before
MGM can open the National Harbor
Casino, to be located less than 10 miles
from the nation’s capitol.
New York
Gaming Facility Location Board selects
three winning bids for casinos in upstate
New York. After the state passed a
referendum in 2013 to expand casino
gaming, 16 applicants placed bids for
one of four new casino licenses to be
issued by the Gaming Facility Location
Board. The board picked three winners in
December 2014. The winning applicants
included the Montreign Resort Casino
in Thompson, Sullivan County, Rivers
Casino & Resort at Mohawk Harbor in
Schenectady and the Lago Resort &
Casino in Tyre, Seneca County. The three
casinos must receive final approval
from New York’s Gaming Commission to
receive their gaming licenses.
RACETRACK & VLT MARKETS
OTHER MARKETS
Ohio
Colorado
New Mexico
Three new racinos open in 2014. Pinnacle
Entertainment Inc. opened the Belterra
Park Gaming & Entertainment Center
just southeast of Cincinnati on May 1,
2014. The racino features live racing
and 1,500 video lottery terminals. Penn
National opened Hollywood Gaming at
Dayton Raceway on August 28, 2014.
The facility features live racing and 1,000
video lottery terminals. Penn National also
opened Hollywood Gaming at Mahoning
Valley Race Course in northeast Ohio on
September 17, 2014. The racino features
live racing and 850 gaming terminals.
Amendment 68 proposing the creation
of a casino at the Arapahoe Park and
two horse tracks is voted down. Voters in
Colorado did not approve the proposal
that would have raised an estimated
$114 million annually for K-12 education.
This should benefit the state’s mountain
casinos. It was estimated that the
mountain casinos would have seen their
revenues plunge by an estimated 30% if a
casino opened in Arapahoe Park.
Commercial racinos join the fight against
gaming control board over free play
credits. Five New Mexico racinos filed a
lawsuit against the state’s gaming board
and its promotional credits policy. The
basis of the lawsuit is similar to the debate
between tribal governments and the
state’s gaming control board regarding
promotional credits given to patrons
(“free play”) being taxed as revenue.
Pennsylvania
New casino coming to south Philadelphia.
In November 2014, the Pennsylvania
Gaming Control Board awarded the final
category 2 casino license available in the
state to Stadium Casino, LLP. A category
2 license allows a stand-alone casino to
operate up to 5,000 slot machines and
250 table games. Stadium Casino, LLP
is a joint venture between Greenwood
Gaming & Entertainment and the Cordish
Companies. The group will construct and
operate their new casino in southern
Philadelphia.
Rhode Island
Voters in Newport say “No” to the
addition of table games at Newport
Grand Casino. In November 2014, voters
rejected a referendum permitting table
games at the Newport Grand Slots
facility. The referendum’s defeat comes
at a critical time as Rhode Island casinos
will face competition from Massachusetts
in 2015. Massachusetts residents that
were traveling to Rhode Island are
expected to stay in their home state
once the new casinos open.
West Virginia
State considers online gaming in
response to falling racino revenues.
As a result of decreasing revenue due
to increased competition, the West
Virginia Lottery Commission is looking
into allowing its four racinos to operate
online gaming websites. The commission
met with representatives from the state’s
casinos to discuss online gaming in late
2014. Any measure on online gaming
would need state legislative approval.
Kansas
Gaming expansion moves forward in
southeast Kansas. After Kansas legislature
reduced the minimum investment for a
casino in southeast Kansas from $225 million
to $50 million, the state began accepting
applications for new casino development.
Four applications were submitted by the
January 31, 2015 deadline.
Michigan
Deadbeat dads may no longer win in
Michigan. In May 2014, the Michigan
House committee approved legislation
requiring casinos to withhold jackpot
winnings from patrons that owe back
due child support. This bill ultimately did
not move forward; however, the state
did pass legislation that requires the state
lottery to withhold winnings in excess of
$1,000. Changes in legislation would not
apply to tribal casinos regulated by tribalstate gaming compacts.
Oklahoma
Tax revenues at racinos have been cut in
half over last decade. While Oklahoma’s
tribal gaming industry has exploded
over the last 10 years, racinos have seen
their revenues drop over the same time
period. Since 2004, the tax revenues
generated by Oklahoma’s two racinos
have declined by almost 50%.
South Dakota
Passage of state amendment will allow
new games in casinos. In November
2014, South Dakota voters passed
Amendment Q, allowing the state
legislature to consider adding craps,
keno and roulette to casino floors in
Deadwood. In February 2015, the South
Dakota legislature passed legislation
paving the way for craps, keno and
roulette to be introduced in Deadwood
casinos by July 2015.
Massachusetts | The public vote silences gaming industry opponents,
while three companies win the battle for new casino licenses.
In November 2014, Massachusetts voters voted “no” on an effort to repeal
the state’s Expanded Gaming Act, originally approved by voters in 2011.
As a result, MGM Resorts International, Wynn Resorts and Penn National
will retain the gaming licenses awarded to them earlier in 2014. The three
companies were awarded gaming licenses after an enduring, politically
charged and well-publicized selection process.
MGM will build a casino-resort in Springfield, Wynn will build a casino-resort in
Everett (located outside Boston, across the Charles River) and Penn National
will construct a slot parlor at the Plainridge Park raceway in Plainville.
Commercial Gaming | 13
2014 iGAMING REVENUES
$0.13B
777.2%
0.2%
ALL 2014 GAMING REVENUES
NJ
DE
NV
iGAMING
GAMING REVENUES BY STATE
The United States legalized online gaming market completed its first full
year of operations in 2014, generating $134.7 million. The current online
gaming segment includes three state jurisdictions and eight operators.
$2.09M
1.6%
The three states that permit online gaming are Nevada, New Jersey and
Delaware, with Nevada’s online gaming being restricted to online poker.
$9.72M
7.2%
As the online gaming segment works to establish itself in the U.S., it achieved
a significant milestone early in 2014. In February, Delaware and Nevada
entered into the first-ever state-to-state internet gaming compact. The
compact allows poker players from Delaware and Nevada to play
against each other, effectively allowing internet gaming companies to
solicit players across state lines. The agreement was made to increase
the pool of online poker players (player liquidity) in an effort to increase
the wagering activity in both states. While the compact increases player
liquidity between states, the compact’s more meaningful impact is the
$122.88M
91.2%
establishment of a precedent for conducting interstate online gaming.
Consistent with the development of any new industry, there were also
numerous setbacks to online gaming in 2014. The most notable was the
closure of online gaming websites in both New Jersey and Nevada.
Delaware
Nevada
New Jersey
In New Jersey, regulation requires online gaming servers to be located
within a New Jersey brick-and-mortar casino. To achieve this requirement,
the brick-and-mortar casino operators formed partnerships with
established online gaming companies operating internationally. As a
result of these partnerships, two of New Jersey’s five original online gaming
providers faced significant setbacks in 2014 when their partner casinos
endured financial difficulties.
Betfair, a London based online gaming company, was forced to look
elsewhere as their partner, Trump Plaza, closed its doors on September 15,
2014. In the search for a new partner, the company initially partnered with
Caesar’s Interactive Entertainment, which had already partnered with
Betfair’s competitor 888 Holdings. In November, Betfair changed partners
again, ultimately settling with The Golden Nugget.
Ultimate Gaming ran into similar issues in 2014; however, their hand in
online gaming was not as lucky. Ultimate Gaming had also formed a
partnership with Trump Entertainment to operate the Trump Taj Mahal
online gaming platform. After months of alleged contract breaches
stemming from Trump Entertainment’s financial difficulties, Ultimate
Gaming became the first online gaming operator to pull the plug on
online gaming.
NOTE: Caesar’s Interactive operates in both Nevada and New Jersey
iGAMING REVENUES
DELAWARE
$2.09M
iGAMING REVENUE
732.3%
0.0% OF ALL GAMING REVENUES
$174,360
AVERAGE MONTHLY
REVENUE IN 2014
3 OPERATORS
NEVADA
$9.72M
iGAMING REVENUE
44.3%
0.0% OF ALL GAMING REVENUES
$809,750
AVERAGE MONTHLY
REVENUE IN 2014
2 OPERATORS
$122.88M
iGAMING REVENUE
1368.3%
0.2% OF ALL GAMING REVENUES
$10,239,734
AVERAGE MONTHLY
REVENUE IN 2014
4 OPERATORS
NEW JERSEY
iGaming | 15
iGAMING
Following the closure of its New Jersey website, Ultimate
regulations in Nevada, Delaware and New Jersey. However,
Gaming closed its Nevada based Ultimate Poker website
should public policy change, the Department of Justice could
in late 2014. The closure of the Ultimate Poker website also
once again reverse its opinion on the Wire Act, which would
marked the end of the industry’s first legal online gaming
effectively lead to a ban on online gaming.
website in the U.S.
Another threat is the growing opposition to online gaming
within the United States Congress. Online gaming opponents
Challenges
have successfully lobbied Congress to introduce a bill titled
There are two primary challenges facing the online gaming
the “Restoration of America’s Wire Act.” While the effort first
segment that include threats of regulatory changes and
appeared to be a long-shot, the bill is gaining momentum in
difficulty in processing customer payments (buy-ins) from
Washington D.C.
financial institutions.
The other major challenge facing the segment is the
The threat of regulatory changes originates from how the
processing of customer payments through financial
online gaming segment was legalized in the United States. Prior
institutions. This challenge is considered one of the leading
to December 2011, online gaming was prohibited based on
reasons why the New Jersey market did not achieve Governor
the Department of Justice’s interpretation of the Wire Act of
Chris Christie’s often quoted $1 billion revenue projection.
1961. In December 2011, the legal status of online gaming was
reversed as the Department of Justice changed its position
Up until 2011, the federal government was very active in
on the interpretation of the Wire Act. This reversal effectively
targeting online gaming operators soliciting patrons in the
allowed for the development of state-by-state online gaming
United States. After the implementation of the Unlawful
iGAMING REVENUES BY MONTH
$13.50M
$12.75M
$11.30M
$12.00M
$10.58M
$11.25M
$10.31M
$10.50M
$9.75M
$8.37M
$9.46M
$9.00M
$8.25M
$7.50M
Delaware
All iGaming
Nevada
New Jersey
$7.39M
$6.75M
$6.00M
$5.25M
$4.50M
$3.75M
$2.20M
$3.00M
$1.25M
$0.76M
16 | RubinBrown 2015 Gaming Stats
$0.14M
$0.15M
20
1
D
EC
20
V
O
N
$0.98M
3
13
3
O
C
T2
01
3
PT
20
1
13
20
A
UG
$0.84M
$0.82M
$0.17M
20
14
$0.98M
$0.11M
$0.76M
$0.68M
13
20
L
JU
JU
N
20
13
13
20
AY
M
$0.86M
$0.64M
$0.58M
$0.00M
SE
$0.75M
FE
B
$1.11M
$1.25M
14
$0.68M
20
$0.64M
$0.58M
$1.50M
$0.86M
JA
N
$2.25M
Internet Gaming Enforcement Act of 2006 and to avoid
In December 2014, California assemblyman Mike Gatto
becoming the target of a federal investigation, financial
introduced an online gaming bill (known as AB 9) to
institutions and credit card processors began prohibiting
be discussed in 2015. The AB 9 bill is similar to previously
the processing of online gaming transactions. This restriction
unsuccessful legislation with a few key changes. First, the bill
on processing credit card transactions made it difficult for
includes a proposed “bad actor” clause that would limit the
patrons to move money into or out of their online gaming
entry of online gaming operators (PokerStars) that previously
accounts. The solution for online gaming relies upon action
violated or ignored the Federal Unlawful Internet Gambling
from financial institutions and credit card processors, which
Enforcement Act of 2006. The bill would also require a
have been reluctant to change their existing policies.
one-time $5M fee for a license to operate within the state
for ten years. While many proponents believe this bill will
ultimately be successful, it will also need to satisfy the interest
Opportunities
of California’s horse racing industry, card rooms and the 61
The most significant opportunity for online gaming is the
federally recognized tribes operating traditional brick-and-
expansion into new jurisdictions, as only 4.0% of the United
mortar casinos.
States population lives in states that offer online gaming.
Outside California, there are numerous other states that
The most targeted state for online gaming expansion is
continue to consider online gaming. Most notable, West
California. California is a key target for online gaming
Virginia continues to explore online gaming to offset the
operators, as its population of 38.8 million people is more than
declining revenues from both traditional brick-and-mortar
three times the combined population of all three regulated
casino operations and limited stakes gaming.
online gaming markets.
$13.01M
$12.46M
$13.50M
$11.51M
$11.46M
$11.20M
$11.88M
$10.73M
$11.51M
$11.09M
$12.00M
$10.28M
$11.43M
$11.25M
$9.56M
$10.74M
$10.55M
$10.47M
$10.25M
$10.07M
$9.51M
$12.75M
$10.50M
$9.75M
$9.48M
$9.00M
$8.74M
$8.25M
$7.50M
$6.75M
$6.00M
$5.25M
$4.50M
$3.75M
$3.00M
$2.25M
$0.93M
$0.21M
$0.24M
$1.04M
$0.86M
$0.79M
$0.18M
$0.19M
$1.50M
$0.96M
$0.17M
$0.74M
$0.17M
$0.69M
$0.15M
$0.67M
$0.13M
$0.64M
$0.18M
$0.60M
$0.75M
$0.17M
20
1
4
14
EC
D
N
O
V
20
01
4
T2
PT
SE
O
C
20
14
14
A
UG
20
20
14
L
JU
4
20
1
N
JU
20
14
AY
M
PR
A
M
A
R
20
20
1
14
4
$0.00M
iGaming | 17
2014 LIMITED STAKES GAMING REVENUES
$2.95B
13.9%
4.4%
ALL 2014 GAMING REVENUES
MT
OR
SD
IL
LA
WV
LIMITED STAKES GAMING
GAMING REVENUES BY STATE
During 2014, the limited stakes gaming segment of the U.S. gaming
industry operated in six states and generated $2.95 billion in revenues, up
$360.1 million from 2013. For purposes of our analysis, limited stakes gaming
is defined as video gaming or video lottery terminals offered in restaurants,
$659.51M
22.3%
travel centers and taverns that are legalized and state regulated,
$591.56M
20.0%
excluding sweepstakes and grey (illegal or unregulated) gaming activities.
The growth in the limited stakes gaming segment was attributed to expansion
within the state of Illinois. When Illinois is removed from the industry’s data, the
overall segment experienced flat revenue growth in 2014.
The Illinois market provides a great example of how a state has been able
$373.91M
12.7%
$385.27M
13.0%
to overcome grey gaming. Prior to the passage of the Illinois Video Gaming
Act in 2009, grey gaming was wide-spread in Illinois restaurants and taverns.
$185.25M
6.3%
In September 2012, the first legal limited stakes gaming operation opened
$757.85M
25.7%
in Illinois. Since the first operation opened, the number of operations
has expanded to over 4,675 individual locations, with more than 19,100
machines. Since inception, the Illinois limited stakes gaming market has
generated $291.8 million in cumulative gaming tax revenues. In 2014
alone, the market generated $197.9 million in gaming tax revenues.
Illinois
Louisiana
Montana
West Virginia
South Dakota
Oregon
Challenges
The challenges facing limited stakes gaming operators continue to center
around competition. The average state has over 12,800 gaming positions
and 2,200 locations. Gaming operators are focusing on differentiation in
game titles and types, while catering to the interest of the local communities.
Opportunities
The greatest opportunity for the limited stakes gaming segment is
expansion into new geographic markets and transforming grey gaming
into regulated gaming. For example, Georgia is working to transfer the
grey gaming into a regulated industry by connecting gaming operators to
the Georgia Lottery network in an effort to provide greater transparency.
NOTE: Revenues generated by Nevada’s restricted licenses have
been incorporated into the overall Nevada commercial gaming
revenues. At the end of 2014, the state had approximately 1,900
restricted license locations.
LIMITED STAKES GAMING REVENUES
ILLINOIS
$659.51M
GAMING REVENUE
119.3%
1.0% OF ALL GAMING REVENUES
$94.20
REVENUE PER
MACHINE PER DAY
-5.9%
LOUISIANA
$591.56M
GAMING REVENUE
-1.3%
0.9% OF ALL GAMING REVENUES
$117.37
REVENUE PER
MACHINE PER DAY
0.6%
MONTANA
$385.27M
GAMING REVENUE
1.6%
0.6% OF ALL GAMING REVENUES
$67.05
REVENUE PER
MACHINE PER DAY
1.6%
OREGON
$757.85M
GAMING REVENUE
2.4%
1.1% OF ALL GAMING REVENUES
$173.74
REVENUE PER
MACHINE PER DAY
3.1%
SOUTH DAKOTA
$185.25M
GAMING REVENUE
0.3%
0.3% OF ALL GAMING REVENUES
$56.11
REVENUE PER
MACHINE PER DAY
1.3%
WEST VIRGINIA
$373.91M
GAMING REVENUE
-3.8%
0.5% OF ALL GAMING REVENUES
$142.80
REVENUE PER
MACHINE PER DAY
-0.2%
Limited Stakes Gaming | 19
2014 TRIBAL GAMING REVENUES
$28.10B
0.2%
40.8%
ALL 2014 GAMING REVENUES
WA
ND
MT
CT
OR
MN
ID
SD
NY
WI
MI
WY
IA
NE
NV
CO
CA
KS
NC
AZ
OK
NM
MS
TX
AK
AL
LA
FL
TRIBAL GAMING
GAMING REVENUES BY REGION
In 2014, Indian gaming generated an estimated $28.1 billion, growing at
an annual rate of 0.2%. The estimated growth in gaming revenues, marks
$6.99B
24.9%
five years of consecutive growth for the tribal gaming segment.
Note, throughout the remainder of this section, the revenue information
presented uses 2013 data, as the 2014 data will not be released until
$2.90B
10.3%
August 2015. The challenges and opportunities included within this section
$2.74B
9.8%
are focused on the trends currently impacting Indian gaming.
The continued growth in revenue is a product of overall market expansion.
New tribal casinos are effectively redistributed existing revenues between
tribes, while providing a minimal increase to overall revenues. Looking
forward, a similar trend has been observed in 2014 and will continue for
$4.75B
16.9%
$6.76B
24.1%
the next several years.
$2.03B
7.3%
Challenges
Market saturation and increased competition is becoming the leading
challenge for existing Indian gaming operations. Across the nation, tribes
are working to develop more resort-destination casinos that provide
patrons with more amenities and service offerings outside the gaming floor.
$1.87B
6.7%
Portland
Sacramento
Phoenix
Tulsa
Oklahoma City
St. Paul
Washington D. C.
Beyond increased competition, state governments are placing greater
pressures on tribal governments through the renewal of tribal-state
gaming compacts. The challenges are centered around states seeking
INDIAN GAMING FACILITIES BY STATE
more revenue sharing with tribal nations. As Indian gaming continues
to prosper and provide for tribal nations, state governments are looking
for new revenue sources to overcome budget shortfalls. As a result,
state governments are attempting to collect more revenue through the
compact renewal process.
Opportunities
With an increase in competition comes an opportunity to further
differentiate. Nationwide, tribal nations are working to renovate and
develop their existing casino operations to provide greater differentiation
within the industry and their respective geographic markets. Outside new
construction efforts, tribal nations have also seen an opportunity to further
ALASKA
2
TRIBES
2
CASINOS
IDAHO
4
TRIBES
7
CASINOS
OREGON
8
TRIBES
9
CASINOS
WASHINGTON
23
TRIBES
33
CASINOS
CALIFORNIA
61
TRIBES
66
CASINOS
ARIZONA ‡
16
TRIBES
23
CASINOS
COLORADO
2
TRIBES
2
CASINOS
NEVADA ‡
2
TRIBES
2
CASINOS
NEW MEXICO ‡
14
TRIBES
21
CASINOS
IOWA ‡
3
TRIBES
3
CASINOS
MICHIGAN
12
TRIBES
23
CASINOS
MINNESOTA
11
TRIBES
36
CASINOS
MONTANA
7
TRIBES
12
CASINOS
NEBRASKA ‡
3
TRIBES
4
CASINOS
educate their neighboring communities on the economic benefits tribal
NORTH DAKOTA
‡
5
TRIBES
8
CASINOS
gaming provides.
SOUTH DAKOTA ‡
9
TRIBES
13
CASINOS
WISCONSIN
11
TRIBES
25
CASINOS
WYOMING
2
TRIBES
4
CASINOS
throughout tribal communities nationwide. The success of tribal gaming
OKLAHOMA
17
TRIBES
59
CASINOS
has resulted in millions of patrons visiting tribal lands each year. Tribes are
TEXAS
1
TRIBE
1
CASINO
KANSAS ‡
5
TRIBES
5
CASINOS
OKLAHOMA ‡
14
TRIBES
63
CASINOS
ALABAMA
1
TRIBE
3
CASINOS
CONNECTICUT
2
TRIBES
2
CASINOS
FLORIDA
2
TRIBES
8
CASINOS
LOUISIANA
4
TRIBES
4
CASINOS
MISSISSIPPI
1
TRIBE
3
CASINOS
NEW YORK
4
TRIBES
6
CASINOS
NORTH CAROLINA
1
TRIBE
2
CASINOS
Expansion beyond the gaming operation is also becoming more prevalent
working to develop new industries and business that will further capture the
interest of these guests. Examples of these developments have included
shopping centers, entertainment venues and cultural centers.
Looking forward, tribal gaming operators will need to continue to find
ways to further enhance the individual customer experience through
the refinement of marketing programs and guest service standards.
Concurrently, gaming operators will also need to find innovative ways to
reduce costs through more efficient and effective compliance programs.
‡
There are 240 tribes operating casinos within the United States. Of those,
7 tribes operate casinos in multiple states.
Tribal Gaming | 21
PORTLAND REGION
WA
OR
ID
AK
$2.90B
Growth
GAMING
REVENUE
1.0%
ALL TRIBAL CASINO REVENUES
10.3%
4.2% OF ALL 2013 GAMING REVENUES
THREE YEAR
FIVE YEAR
3.0% COMPOUND
ANNUAL
4.1% COMPOUND
ANNUAL
GROWTH RATE
GROWTH RATE
Challenges
The past year has presented mixed results for gaming operators nationwide
and the Portland region was no different. Specifically, tribal gaming
operations in Oregon continue to face increasing competition as the
Oregon lottery’s video lottery terminals (limited stakes gaming segment)
continues to expand. In 2014, the limited stakes gaming market continued
to take market share from existing casinos as the segment increased
revenue by 2.4%, generating over $757 million in revenues in Oregon.
Opportunities
$3.25B
$2.88B
$3.00B
$2.75B
Portland is one of only three regions to have never seen a region-wide
decline in gaming revenues. However, the revenue growth appears to be
slowing down for the region as it only produced revenue growth of 1.0%
in 2013, which is significantly less than 5-year compounded annual growth
rate of 4.1%.
$2.66B
$2.90B
$2.76B
$2.52B
$2.50B
$2.25B
Investment and expansion in existing facilities continues to be the trend within
the Portland region. The region’s continued development of full-service
hotels, spas, golf courses and restaurants has made the Portland region the
leader in the number of resort style casino destinations. Opportunities within
the Portland region continue to be centered on the expansion of existing
amenities and diversification of revenue streams beyond the gaming floor.
Region Specific News
20
13
FY
20
12
FY
20
11
FY
20
10
FY
FY
20
09
$2.00B
37 TRIBES
51
CASINO
OPERATIONS
$56.92M
AVERAGE REVENUE
PER CASINO
ALL TRIBAL CASINO OPERATIONS
11.4%
22 | RubinBrown 2015 Gaming Stats
Development and property expansion continues to lead headlines within
the Portland region. In 2014 some of the more notable developments
included:
• The new hotel and casino expansion at the Angel of the Winds Casino
located in Arlington, WA was completed in mid-December 2014. The
$27 million casino expansion and hotel project increased the size of
the casino floor, remodeled the entrance and added a five-story hotel.
• In August 2014, construction began on the Legends Casino after
The Yakima Nation received financing for the $90 million project. This
expansion will include a full-service spa, expanded dining and gaming
space, a renovated events center and a new six-story 200-unit hotel.
Outside existing casino expansion, the development of new casinos
continues to be challenged:
• In Washington, the Spokane Tribe’s development of the West Plains
casino continues to be opposed by Spokane County government
officials. In the past 18 months the county has paid a law firm $300,000
to fight the “Spokane Tribe Economic Project.”
• Also in Washington, the Cowlitz Indian tribe’s effort to obtain land just
across the river from Portland continues to face legal challenges.
SACRAMENTO REGION
NV
CA
$6.99B
24.9%
10.2% OF ALL 2013 GAMING REVENUES
THREE YEAR
1.0% COMPOUND
ANNUAL
GROWTH RATE
Opportunities
The rejection of Proposition 48 created additional obstacles for the North
Fork Rancheria of Mono Indians’ development of a tribal casino. However,
the tribe continues to fight for its tribal sovereignty and is moving forward
with development as the land had already been placed in trust by the
Bureau of Indian Affairs.
$6.97B
$7.00B
$6.90B
$6.96B
$6.99B
$6.79B
$6.75B
$6.50B
20
13
FY
20
12
FY
20
11
$6.25B
FY
In November 2014, California’s Attorney General filed a lawsuit against
the Iipay Nation of Santa Ysabel aiming to prevent the operation of an
online Class II (bingo and poker) gaming website. The tribe cited its ability
to operate online gaming, using Class II games, under the Indian Gaming
Regulatory Act (IGRA). The Iipay Nation filed a counter-suit against the
state in defense of its tribal sovereignty and rights under IGRA.
GROWTH RATE
$7.25B
20
09
Region Specific News
FIVE YEAR
-1.0% COMPOUND
ANNUAL
$7.50B
FY
California is the state that provides the greatest opportunity for online
gaming. Proponents for online gaming believe 2015 will be the year online
gaming finally becomes legalized. California assemblyman Mike Gatto
claims to have a bill that addresses the concerns of both the critics and
proponents of online gaming. If California legalizes online gaming, the U.S.
population with legal access to online gaming would more than triple. If
legislation is passed, Indian gaming operations in California would be well
positioned to lead the development of the U.S. online gaming industry.
0.5%
ALL TRIBAL CASINO REVENUES
Challenges
In 2014, the further expansion of tribal gaming in California experienced
yet another roadblock. In November, Proposition 48 was voted down by
voters. The “no” vote has stalled the expansion efforts of two tribes that
had already agreed on a tribal-state gaming compact with California
Governor Jerry Brown. The referendum, which allowed voters to approve
or reject a tribal-state gaming compact, established a new precedent for
government-to-government negotiations and has presented yet another
challenge for the continued expansion of Indian gaming.
GAMING
REVENUE
FY
The Sacramento region generated revenue growth of 0.5% in 2013, which
was consistent with the nation-wide growth rate. The region’s growth is
largely attributed to the addition of two new casinos in 2013.
20
10
Growth
61 TRIBES
66
CASINO
OPERATIONS
$105.95M
AVERAGE REVENUE
PER CASINO
ALL TRIBAL CASINO OPERATIONS
14.7%
The Graton Casino, located 50 miles outside of San Francisco, completed
a strong first year of operations in November 2014. The casino had minimal
impact on Sonoma County and exceeded revenue expectations.
The casino’s first year revenues have placed it in the top five revenue
producing casinos in California.
Tribal Gaming | 23
PHOENIX REGION
CO
NV
AZ
$2.74B
Growth
GAMING
REVENUE
0.8%
ALL TRIBAL CASINO REVENUES
9.8%
4.0% OF ALL 2013 GAMING REVENUES
THREE YEAR
2.6% COMPOUND
ANNUAL
GROWTH RATE
FIVE YEAR
-0.3% COMPOUND
ANNUAL
GROWTH RATE
$3.25B
$3.00B
$2.72B
$2.75B
$2.60B
$2.54B
$2.74B
$2.61B
$2.25B
20
13
FY
20
12
FY
20
11
FY
20
10
FY
FY
20
09
$2.00B
32 TRIBES
CASINO
OPERATIONS
In 2013, the Phoenix region experienced its third consecutive year of
region-wide revenue growth. The region’s 48 casinos generated over
$2.7 billion in 2013 with the average casino generating $57.0 million. While
the region continued to see growth in 2013, the state revenue share
contributions in both New Mexico and Arizona declined in 2014, indicating
the growth may have stalled at the end of 2013.
Challenges
In New Mexico, 5 of the 14 tribes continue to renegotiate their gaming
compact with the state. Early in 2015 the five tribes appear to have
reached an agreement with the state. However, the final compact terms
are still subject to final approval by the state and the Department of
Interior. With the outcome still being several months away, uncertainty on
obtaining final approval prior to June 2015 remains prevalent. Outside the
compact negotiations, the region has been one of the hardest hit by a
reduction in government spending and employment. At the end of 2014,
governmental jobs accounted for 23.3% of New Mexico’s employment
population and 15.8% of Arizona’s employment population.
Opportunities
$2.50B
48
NM
$57.04M
AVERAGE REVENUE
PER CASINO
ALL TRIBAL CASINO OPERATIONS
10.7%
Amidst uncertainty in state gaming and compact negotiations, the
region has seen an opportunity to highlight the positive contributions and
economic impact that tribal gaming brings to surrounding communities.
Under the leadership of the Arizona Indian Gaming Association, the
Arizona tribal nations have provided a unified voice on the importance of
tribal gaming, making it widely known that tribal gaming has contributed
over $1 billion to the state of Arizona since 2002, created over 15,000 jobs
and has built a platform for tribal nations to achieve self-sufficiency. This
effort has provided greater recognition for tribal communities and the
need for continued to support from the Arizona state government.
Region Specific News
The largest casino in New Mexico, Sandia Casino and Resort, is getting
even bigger. In 2014, the Pueblo of Sandia began expansion efforts to
increase the size of its gaming floor, number of hotel rooms and resort
amenities. The first phase is scheduled for completion in early 2015 and
includes a remodeled restaurant space, new four-story parking garage,
expanded casino floor and new spa.
The Tohono O’odham Nation began site-work on a new $400 million
casino in Glendale, Arizona. The construction follows a lengthy multi-year
political debate on the tribe’s right to build the casino. Barring any further
delays, the casino will be completed in 2016.
24 | RubinBrown 2015 Gaming Stats
MT
ST. PAUL REGION
ND
MN
SD
WI
MI
WY
Growth
After four years of consecutive revenue growth, the St. Paul region
experienced a 1.1% decline in gaming revenues in 2013. Of the seven
regions, the St. Paul region was the only one to experience a region-wide
decline in revenues in 2013. In spite of declining revenues, new casinos
continue to open.
$4.75B
GAMING
REVENUE
-1.1%
ALL TRIBAL CASINO REVENUES
16.9%
Challenges
Market saturation continues to be the primary challenge for the St. Paul
region. In 2013, the region gave rise to eight new casinos. This increase
occurred while revenue for the overall region is down. Furthermore, tribes
in Michigan and Wisconsin are looking to increase the number of casinos
in their respective states despite the diminished growth.
The Little River Band of Ottawa Indians is moving forward with plans to
develop a $180 million casino at a racetrack in Muskegon, Michigan. The
nation has received the support of the local township, as they continue
to work on placing the land into trust, securing it for the development of a
full-scale casino and resort.
$5.00B
$4.80B
$4.75B
$4.50B
$4.75B
$4.57B
$4.38B
$4.45B
$4.25B
FY
20
12
FY
FY
20
11
$4.00B
20
10
On September 26, 2014, President Obama signed the Gun Lake Trust Land
Reaffirmation Act (Senate Bill 1603). The act reaffirmed the land upon
which the Gun Lake Casino is established and removes the potential for
future challenges stemming from the Patchak decision.
GROWTH RATE
$5.25B
FY
Region Specific News
FIVE YEAR
1.5% COMPOUND
ANNUAL
GROWTH RATE
20
09
With the market saturation being a challenge, it sheds light on the
opportunity to pursue new revenues streams. Within the St. Paul region,
tribes have been working to reclaim land closer to large metropolitan
areas to develop new casinos. Outside the traditional brick-and-mortar
gaming operations, the region is home to the founding members of the
Tribal Internet Gaming Alliance. The alliance is working to develop an
online gaming site that caters to the global online gaming market, as
the member tribes see their competitors as local but their customer base
being global.
THREE YEAR
2.2% COMPOUND
ANNUAL
FY
Opportunities
6.9% OF ALL 2013 GAMING REVENUES
20
13
NE
IA
59 TRIBES
128
CASINO
OPERATIONS
$37.07M
AVERAGE REVENUE
PER CASINO
ALL TRIBAL CASINO OPERATIONS
28.5%
Tribal Gaming | 25
OKLAHOMA CITY REGION
OK
TX
$1.87B
Growth
GAMING
REVENUE
3.6%
ALL TRIBAL CASINO REVENUES
6.7%
2.7% OF ALL 2013 GAMING REVENUES
THREE YEAR
FIVE YEAR
5.6% COMPOUND
ANNUAL
6.7% COMPOUND
ANNUAL
GROWTH RATE
GROWTH RATE
$2.25B
$2.00B
$1.75B
$1.80B
$1.87B
$1.70B
$1.51B
$1.58B
$1.50B
$1.25B
20
13
FY
20
12
FY
20
11
FY
20
10
FY
FY
20
09
$1.00B
18 TRIBES
The Oklahoma City region experienced the largest growth in 2013 with the
opening of seven new casinos. The addition of these new casinos helped
the region generate revenue growth of 3.6%; however, the new casinos
also placed greater pressure on existing Indian gaming operations. In
2013, the region also experienced the largest decline in average revenue
per casino with average revenues declining 8.5%.
Challenges
With an increasing number of casinos and gaming terminals, market
saturation is a challenge for tribal casinos in Oklahoma. According to
a report by the Gaming Compliance Unit of the Oklahoma Office of
Management and Enterprise Services, exclusivity payments from 21
of 30 tribes dropped in 2014. As a whole, exclusivity fees in Oklahoma
declined in the state's 2014 fiscal year by 4.0%. The decline in exclusivity
fee payments marks the first decline in the state’s 10 year history of Class III
gaming operations.
Opportunities
As market saturation threatens the revenues of many casinos,
diversification beyond the gaming floor will be critical for tribal
communities. The 2014 Comanche Nation’s Fair illustrates the economic
development effort of numerous tribal communities within the Oklahoma
City region. In 2014, the Comanche Nation significantly increased its
marketing of the Comanche Nation Fair through television, radio, print
and social media campaigns. The efforts made the fair the largest event
in southwestern Oklahoma, increasing revenue for the nation’s business
enterprises while also further educating the public on the history and
traditions of the Comanche Nation.
Region Specific News
60
CASINO
OPERATIONS
$31.10M
AVERAGE REVENUE
PER CASINO
ALL TRIBAL CASINO OPERATIONS
13.4%
26 | RubinBrown 2015 Gaming Stats
An expanded gaming bill was introduced to Texas legislators in late 2014.
While the bill did not pass during the legislative session, it highlights the
threat commercial gaming in Texas would create for Oklahoma tribes. The
bill would have allowed commercial casinos at established racetracks
located within population centers with more than 650,000 people.
Expansion continues in Oklahoma as the Kaw Nation opens a new casino
in Braman, Oklahoma. The casino will be constructed over three phases.
The second phase, which includes a permanent facility, over 300 slot
machines and table games will open in 2015. The final phase of the
project will commence in 2016 and add a restaurant, off-track betting,
additional table games and 500 slot machines.
TULSA REGION
KS
OK
The Tulsa region continued to experience revenue growth, as the region’s
revenues increased 0.9% in 2013. However, similar to the Oklahoma City
region, the growth was the result of new gaming operations, as the
majority of existing casino operators saw a decline in gaming revenues.
Individual casinos located in the Tulsa region experienced, on average, a
5.0% decline in gaming revenues.
$2.03B
GAMING
REVENUE
0.9%
ALL TRIBAL CASINO REVENUES
7.3%
Challenges
FIVE YEAR
3.6% COMPOUND
ANNUAL
GROWTH RATE
GROWTH RATE
$2.50B
$2.25B
$2.02B
$2.03B
$1.89B
$2.00B
$1.72B
$1.77B
$1.75B
$1.50B
FY
20
12
FY
20
11
FY
20
10
$1.25B
FY
As competition in the region intensifies, casinos are diversifying their
operations to include new entertainment options. Gaming facilities are
expanding to include hotels, retail outlets, restaurants, live-music venues,
bars, spas, convention centers and other attractions. This has been most
notable with the Quapaw Nation, which continues its efforts to expand
its Downstream Casino, located in Oklahoma at the intersection of the
Kansas, Missouri and Oklahoma borders.
THREE YEAR
4.7% COMPOUND
ANNUAL
FY
Opportunities
3.0% OF ALL 2013 GAMING REVENUES
20
09
Tribal nations within the Tulsa region are facing increased competition
from the development of new tribal gaming casinos and commercial
casinos. In 2014, the state of Kansas lowered the minimum investment
for the southeastern Kansas commercial gaming zone from $250 million
to $50 million. The lowered minimum investment has renewed interest
in the development of a commercial casino in southeastern Kansas.
The expansion of gaming in southeastern Kansas will create even more
competition in a market that is already reaching a point of saturation.
20
13
Growth
Region Specific News
The Cherokee Nation is opening a new casino in South Coffeyville,
Oklahoma, in 2015. The 17,000 square foot facility is located one mile south
of the Kansas-Oklahoma border and will feature 300 gaming terminals. This
gaming operation will compete directly with the proposed commercial
gaming developments in the southeastern Kansas gaming zone.
The Cherokee Nation is also working on replacing two of its existing
casinos. In Roland, Oklahoma, the Cherokee Nation is replacing its existing
casino with an $80 million facility that includes new table game offerings,
850 electronic games and a six-story hotel. In Tahlequah, the Cherokee
Nation is exploring the development of a new gaming facility that would
be adjacent to the Cherokee Springs Golf Course.
18 TRIBES
68
CASINO
OPERATIONS
$29.89M
AVERAGE REVENUE
PER CASINO
ALL TRIBAL CASINO OPERATIONS
15.1%
The Wyandotte Nation of Oklahoma is spending $30 million to expand
and renovate their casino in Wyandotte, Oklahoma. The first phase of
the project opened in December of 2014 and added a new nightclub,
bowling alley, billiards room and entertainment venue.
Tribal Gaming | 27
WASHINGTON D.C. REGION
NY
CT
NC
MS
AL
LA
FL
$6.76B
Growth
GAMING
REVENUE
0.2%
ALL TRIBAL CASINO REVENUES
24.1%
9.9% OF ALL 2013 GAMING REVENUES
THREE YEAR
0.2% COMPOUND
ANNUAL
GROWTH RATE
FIVE YEAR
-0.1% COMPOUND
ANNUAL
GROWTH RATE
$7.25B
$7.00B
$6.78B
$6.75B
$6.71B
$6.72B
$6.74B
$6.76B
$6.50B
$6.25B
20
13
FY
20
12
FY
20
11
FY
20
10
FY
FY
20
09
$6.00B
15 TRIBES
28
CASINO
OPERATIONS
The Washington D.C. region was able to record its third consecutive
year of positive revenue growth. While the 2013 revenue growth only
amounted to 0.2%, the overall region continues to hold steady amidst
the increasing pressure from commercial gaming expansion in New York,
Pennsylvania, Rhode Island and Florida (racinos).
Challenges
While the region has already absorbed the impact of increased
commercial gaming competition, additional competition is on the
horizon in both Massachusetts and New York. In December 2014, the New
York Gaming Facility Location Board selected three bids from sixteen
applicants looking for casino licenses. These bidders will construct casinos
throughout upstate New York. In addition, Massachusetts awarded fullscale gaming licenses for casinos to be built in both Springfield and Everett
and a slots-only gaming license for a casino at the Plainridge Racecourse
in Plainville.
Opportunities
The state of Alabama has begun to change its position on tribal gaming,
providing a long awaited opportunity for the Poarch Band of Creek
Indians (Poarch Creek Band) to negotiate, in-good-faith, a tribal-state
gaming compact. Historically, the state of Alabama has attempted to
infringe on the nation’s right to offer Class II gaming on their tribal lands.
After Alabama Attorney General Luther Strange lost his final attempt,
through the federal courts, to close the Poarch Creek Band’s casinos,
Alabama State Governor Robert Bentley stated that he is open to the
negotiation of a tribal-state gaming compact.
Region Specific News
$241.29M
AVERAGE REVENUE
PER CASINO
In advance of gaming expansion in Massachusetts, the Foxwoods Resort
Casino in Connecticut is expected to reduce the number of slot machines
from 5,800 to 4,800 and table games from 350 to 250. The casino plans to
utilize the freed up floor space to add new restaurants, nightclubs and
retail space.
ALL TRIBAL CASINO OPERATIONS
6.2%
The Poarch Band of Creek Indians is expanding and upgrading its Creek
Casino in Montgomery, Alabama. The $65 million dollar project will include
a new five-story hotel, 2,100 electronic bingo machines, a salon and new
restaurants.
The Golden Moon Hotel and Casino, owned by the Mississippi Band of
Choctaw Indians, completed a $70 million renovation in January 2015. The
renovation project added 1,150 slot machines, 25 table games, a 14-table
poker room, among other upgrades to the casino and hotel.
28 | RubinBrown 2015 Gaming Stats
NOTES, SOURCES & ACKNOWLEDGMENTS
Statistical Notes
Sources
Gaming Revenue – For purposes of this report, the term
gaming revenue is intended to be an all-encompassing term
for the various definitions of gaming proceeds as defined by
the individual regulatory authorities (e.g. AGR, AGP and Net
Win) and should not be interpreted to equal the American
Institute of Certified Public Accountants definition of revenue.
Colorado Department of Revenue – Division of Gaming
Commercial Gaming – Encompasses traditional brick-andmortar casinos, racinos and slot parlors regulated by state
gaming boards or state lotteries. Within this segment, the
revenues reported include amounts generated from gaming
machines, table games, poker and sport books. We have
excluded revenues from pari-mutual racing activities.
Indiana Gaming Commission
Delaware Lottery
Florida Division of Pari-Mutuel Wagering
Illinois Gaming Board
Iowa Racing and Gaming Commission
Kansas Racing and Gaming Commission
Louisiana Gaming Control Board
Maine Gambling Control Board
• Electronic Gaming Devices (EGDs) – Includes both the
traditional slot machines and video lottery terminals (VLTs)
located inside a brick-and-mortar casino. VLTs differ
from traditional slot machines, as they are connected
to a network overseen by the respective state’s lottery
commission. The connection to the lottery commission’s
network does not impact the game performance or
patron experience.
• Table Games – Defined as live table games that require
casino personnel to conduct the game. Electronic table
games are included in the electronic gaming machines.
When reporting on table games revenue, we have
included both house-banked (when a player bets against
the casino) and player-banked (when the players bets
against an opposing patron) games. For the win per table
and table game hold statistics, we excluded playerbanked games from the analysis.
iGaming – Includes Interactive Gaming, as defined under
Nevada law, iGaming as reported by the Delaware Lottery
and Internet Gaming as defined under New Jersey law.
Limited Stakes Gaming – Includes video gaming, video
lottery terminals and limited gaming operations offered in
restaurants, travel centers and taverns. The revenues exclude
amounts generated from ‘grey markets.’
Tribal Gaming – Includes Class II and Class III casinos built and
regulated by tribal nations, operating in accordance with
the Indian Gaming Regulatory Act (IGRA) or a tribal-state
gaming compact.
Maryland Lottery
Michigan Gaming Control Board
Mississippi Gaming Commission
Missouri Gaming Commission
Montana Department of Justice – Gambling Control Division
National Indian Gaming Commission
Nevada Gaming Control Board
New Jersey Gaming Control Board
New Mexico Gaming Control Board
New York Lottery
Ohio Casino Control Commission
Ohio Lottery
Oklahoma Horse Racing Commission
Oregon Lottery
Pennsylvania Gaming Control Board
Rhode Island Lottery
South Dakota Gaming Commission
South Dakota Lottery
West Virginia Lottery
Acknowledgments
Contributing Authors
Allison Long
John Stewart
Shane Conezelman
Anne Herr
Jonathan Ahrens
Shaun O’Rourke
John Drury
Ross Paczkowski
Creative Director
Senior Data Analyst
Jen Chapman
Kathy Lee
RubinBrown 2015 Gaming Stats | 29
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