ABOUT US
Golden Entertainment, Inc . . owns and operates gaming properties across two divisions
Distributed Gaming
• Establishments operating since the 1970's • We are one of the largest distributors in the country • Operating in Nevada and Montana with over 10,500 gaming devices • 51 taverns in Nevada
Casinos
• Four casinos; one in Maryland, three in Pahrump, NV • Award-winning properties • Hotel, golf, RV park, restaurants, event centers and more
OVERVIEW OF DISTRIBUTED GAMING
7 st.ates have permit limited device locations~<1 >
• Nevada (18, 751 restricted devices) • Illinois (22, 135 restricted devices) • Louisiana (16,698 restricted devices) • Montana (-16,000 restricted devices)
• Oregon (11,925 restricted devices) • West Virginia (-9,000 restricted devices)
" • South Dakota (3, 189 restricted devices)
Advantages of legalizing restricted gaming:
• Supplementary state revenues from implementation of gaming taxes and increased consumption resulting in additional sales taxes
• Private economy boost from local investment in VGT establishments yielding additional jobs and F&B retail sales
Source: (1) Various state gaming and lottery regulatory websites for the most recent available period.
GOLDEN ROUTE OPERATIONS
Description
• Largest distributed gaming
operator in Nevada; second
largest in Montana
• Largest operator of branded
taverns in Nevada
• Caters to local residents by
operating gaming devices at
restaurants, bars, grocery stores,
convenience stores, saloons and
liquor stores
Metrics
• Over 10,500 gaming devices in
980 locations
• Owns and operates 53 tavern
locations operating approximately
779 gaming devices
• Generally offers 15 gaming
devices per location in NV and 20
gaming devices per license in MT
RESPONSIBLE GAMING
At Golden Entertainment, we are committed to responsible gaming. As a result, every Golden Entertainment team member completes responsible gaming training as part of the new hire orientation process. In Maryland, this training is approved by the Maryland Lottery and Gaming Control Agency. And in Nevada, employee training is overseen by 'When the Fun Stops' as part of the Nevada Council on Problem Gambling.
We are also well aware that in many cases responsible gaming and responsible alcohol service go hand-in-hand, which is why every team member in a position responsible for the sale and service of alcohol also completes a responsible alcohol training program. In Nevada, these team members must possess a TAM (Techniques of Alcohol Management) card in order to work. And in Maryland, team members must complete TIPS {Training for Intervention Procedures) courses, as required by the state, to remain in service.
CENTRAL ACCOUNTING
• Full Functionality Slot Accounting and Player Tracking System
• Integrated Cash Safe Dispenser • Proprietary Software and Hardware • Centralized or Local Accounting Functionality • Full Suite of Accounting Auditing/Financial Software • Ticket In I Ticket Out Services • Automated Reports • Daily Win/Loss • MTD Win/Loss • Detail by Location and Individual Games • Fully Customizable
$102.00
NV/MT DISTRIBUTED GAMING MARKETS
Nevada Market <1>
• -1,981 licensed gambling establishments • -18,751 restricted gaming devices • Over 200,000 casino gaming devices
Montana Market <1>
• -1,400 licensed gambling establishments • -16,000 gaming devices • -$400M annual gaming revenues • 15 % gross income tax on license holders • Maximum $2 bet and $800 payout
MT - VGM Revenue Tax (in
Tax Type millions} 2012 2013 2014 2015
VGM Tax Collection $53.7 $57.0 $56.9 $59.7
YOY% £. 8.0% 5.8% -0.2% 4.7%
Source: (1) Various state gaming and lottery regulatory websites for the most recent available period.
2016
$60.4
1.1%
IL DISTRIBUTED GAMING MARKET
Description <1>
• Legislation passed in 2009 to operate up to 5 Video Gaming Terminals (VGTs) in licensed retail establishments
Metrics <1>
• -5, 726 licensed establishments
• -24,840 gaming devices
• First VGT machine was installed in September 2012
• $332M total gaming tax revenues 2016 <1)
• 30% NTI tax rate
• Currently 332 municipalities participating in VGT market out of 1,299
• Maximum $2 bet and $500 payout
Continues to show signs of growth, while co-existing with casino industry
• YTD gaming revenues up 7o/o YOY
• If all municipalities opted in, estimated pickup of $370M in Annual Gaming Tax Revenue <2)
Revenue Source
Casino
VGT Total Tax Rev
YOY% .A
IL Annual Gaming Revenue (in millions)
2011 2012 2013 2014
$1,478 $1,638 $1,551 $1,463
$0.0 $12.3 $300 $659.5 $1,478 $1,650 $1,626 $2,123 7.1% 10.5% -1.5% 23.4%
Sources: (1) Illinois Gaming Board; (2) Union Gaming IL VGT Publication
2015 2016
$1,438 $1,414
$913.6 $1,108 $2,352 $2,522 9.7% 7.2%
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PA/IL COMPARISON
Statistic Illinois Pennsylvania
Population <1) 12.6M 12.78M
Median Household Income <1) $57,574 $53,599
# Retail Establishments <1) 39,252 43,598
State Tax Revenues <2) $39.28 $34.28
# Casinos <2) 10 12
2016 Gaming Revenue <2) $1.48 $3.28
2016 Casino Gaming Tax <2) $478M $853M
2016 VGT Gaming Tax <2) $322M ****
Sources: (1) United States Census Bureau; (2) State gaming and lottery regulatory websites for the most recent available period.
ESTIMATED VGT CONTRIBUTION TO PENNSYLVANIA
Estimated # of Gray Market Gaming Devices in PA <1> 40,000
# of Games of Skill in PA <2> ? . ? .
Estimated VGT Gaming Revenue <3> $1.09 billion
Estimated # of VGT if legalized in PA 24,000
Estimated VGT Gaming Tax <4> $371, 138,424
Sources: (1) Spokesman for the Meadows Racetrack and Casino at a Senate Hearing on June 10, 2015; (2) Decision in Superior Court of Pennsylvania & Court of Common Pleas of Beaver County, Pennsylvania; (3) 24,000 x AWPU in Illinois* ($124.61) *2015 IGB Annual Report; (4) 34% of Estimated VGT Gaming Revenue