1. Casinos 2014: Expansion, Absorption and Impacts NCLGS 2014 Winter Meeting January 10-12, 2014 0

2. 1 AGENDA The Innovation Group – Company Overview State of the Industry Year of Expansion and Absorption Casino Tax Revenue Uses Commercial Casino Industry Impact

3. 2 AGENDA The Innovation Group – Company Overview State of the Industry Year of Expansion and Absorption Casino Tax Revenue Uses Commercial Casino Industry Impact

4. 3 THE INNOVATION GROUP OF COMPANIES THE INNOVATION GROUP Feasibility Studies, Due Diligence, Economic Impact Analyses, Strategy, Site Analysis INNOVATION CAPITAL Financial Advisory Services, Equity and Debt Placement INNOVATION PROJECT DEVELOPMENT Construction Project Management, Owner Representation, Capital Costing INNOVATION MARKETING Marketing Research, Strategic Marketing Plans, Agency Services INNOVATION MANAGEMENT SERVICES Property Management, Operations Analysis, Crisis Management INNOVATION FOOD & BEVERAGE / INNOVATION SPORTS & ENTERTAINMENT Dedicated amenity advisory practices supporting all of the TIGOC affiliates

5. THE INNOVATION GROUP 4 Algeria Antigua Argentina Aruba Australia Bahamas Barbados Belize Bermuda Cambodia Canada Chile China Colombia Costa Rica Croatia Cyprus Czech Republic Egypt El Salvador Estonia France Germany Greece Guam Guatemala Hungary India Ireland Isle of Man Israel Italy Jamaica Japan Jordan Kazakhstan Korea Kurdistan Laos Latvia Lebanon Macau Mexico Micronesia Monaco Mongolia Morocco Nicaragua Nigeria N. Mariana Islands Panama Peru Philippines Poland Puerto Rico Russia Scotland Singapore Slovak Republic South Africa Spain Sri Lanka St. Croix St. Lucia Switzerland Taiwan Tanzania Trinidad Tunisia Turkey Turks and Caicos Ukraine United Kingdom United States Uruguay Venezuela Vietnam Virgin Islands

6. 5 AGENDA The Innovation Group – Company Overview State of the Industry Year of Expansion and Absorption Casino Tax Revenue Uses Commercial Casino Industry Impact

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8. 7 STATE OF THE INDUSTRY – Casino Gaming Gross Gaming Revenue Commercial casino revenue rose 4.8% in 2012 to $37.3 billion Gaming Taxes Contributed $8.6 billion in direct gaming taxes, an increase of 8.5% Employment Over 330,000 people employed, $13.2 billion in wages Equipment Manufacturers: 31,200 workers, $2.3 billion in wages Source: 2013 State of the States: The AGA Survey of Casino Entertainment

9. 8 AGENDA The Innovation Group – Company Overview State of the Industry Year of Expansion and Absorption Casino Tax Revenue Uses Commercial Casino Industry Impact

10. 9 Expansion and Absorption Absorption Maryland – Strong start with additional developments pending Ohio – Midwestern market impacts Michigan, Oklahoma, California, other Tribes Expansion New York – RFP for additional licenses in three zones Pennsylvania, Florida, Illinois – Studying additional licenses Iowa – Ad hoc redistribution and additional licenses New Emerging Markets Massachusetts – 4 licenses with possible Tribal approvals New Hampshire – RFP process under development

11. 10 Northeast Casino Absorption Period Total NE Casino Revenue ($ Mil.) New Jersey Connecticut Rhode Island Delaware New York MainePennsylvaniaMaryland 2000$6,30568.2%20.7%3.3%7.7% 2001$6,48566.3%21.6%3.9%8.1% 2002$6,76664.8%22.5%4.4%8.4% 2003$6,91065.0%22.9%4.8%7.3% 2004$7,58263.4%21.7%5.1%7.3%2.5% 2005$7,98862.8%21.1%5.1%7.3%3.7%0.1% 2006$8,46861.3%20.4%4.8%7.7%5.0%0.4% 2007$9,53351.4%17.6%4.7%6.4%8.6%0.5%10.9% 2008$9,74346.4%16.0%4.9%6.0%9.7%0.5%16.5% 2009$9,40141.7%15.3%4.9%6.0%10.8%0.6%20.8% 2010$9,60137.0%14.3%4.9%5.8%11.3%0.6%25.7% 2011$10,08432.5%13.3%5.1%5.2%11.9%0.6%29.8%1.5% 2012$10,65728.4%11.4%4.9%4.7%16.8%0.9%29.4%3.5% Northeast Casino Revenue Market Share by State

12. 11 AGENDA The Innovation Group – Company Overview State of the Industry Year of Expansion and Absorption Casino Tax Revenue Uses Commercial Casino Industry Impact

13. 12 CASINO GAMING TAX REVENUE USES Proceeds dedicated to a wide range of uses, including: Education Economic development The environment Programs for senior citizens Health care Sports facilities Capital construction projects Cultural activities Tax relief Other

14. 13 COMMERCIAL CASINO TAX REVENUE USES Source: AGA 2013 State of States: Survey of Casino Entertainment *Tax Revenues placed in the General Fund column are not specified and disbursed throughout different funds & programs in the budget

15. 14 COMMERCIAL CASINO INDUSTRY IMPACT Source: 2013 State of States: Survey of Casino Entertainment; The Innovation Group

16. 15 COMMERCIAL CASINO INDUSTRY IMPACT Types of Gaming TaxationRanges Tax Rates on GGR8% - 63% Admissions Tax$2 - $3 per head Tax on handle1% Licenses & feesVaries by state Source: 2013 State of States: Survey of Casino Entertainment *Outlier: Nevada GGR $10.9 billion Tax Revenue $868.6 million

17. 16 COMMERCIAL CASINO INDUSTRY IMPACT National Association of State Budget Officers, 2013 State of States: Survey of Casino Entertainment *Outlier: Nevada Gaming Tax Revenue is 27.1% of General Fund

18. Casinos 2014: Expansion, Absorption and Impacts NCLGS 2014 Winter Meeting January 10-12, 2014 17