mass. gaming commission report on mgm springfield's finances and revenue projections

8/12/2019 Mass. Gaming Commission Report on MGM Springfield's Finances and Revenue Projections

1/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

"#$$#%&'$())$ *#+,-. /0++,$$,0-

12345 3667,%#),0- 1(8,(9

/#)(.0:; < =,%(-$( >0: /#$,-0? 1(.,0- @ A "*" B6:,-.>,(7C

"#$%&' '% '(# )%**+,,+%-#&, .%&/ )0'#1%&2 3 4 5 6+-0-7#

)%**+,,+%-#& 8-&+9:# ;:-+10

? 4>=@


2/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

:0+ B(%),0- 5 4 2,-#-%( 0> )&( 12345 #667,%#),0- 9(:( #770%#)(C #+0-. G ($)#J7,$&(C %:,)(:,# W2,-#-%,#7 /#6#J,7,);X L-8($)+(-) M7#-X "#:N()

3$$($$+(-)X #-C O6(:#),0-$ M7#-YZ

)&+'#&+0

B(%),0- 5 ,$ %0+6:,$(C 0> G /:,)(:,# #-C


4/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

D

"0'+-1 K2,'#*

/070: %0C,-. #-C :#),-. (P67#-#),0-

BTKU66B)B8TV 2#,7(C )0 6:($(-) # %7(#: 67#- )0 #CC:($$ )&( )06,%X 0: >#,7(C )0 +(() )&( +,-,+'+ #%%(6)#J7( %:,)(:,# 0> )&( /0++,$$,0-Z

KU66B)B8TV /0+6:(&(-$,J7( #-C +() )&( +,-,+'+ #%%(6)#J7( %:,)(:,# 0> )&( /0++,$$,0-b #-C`0: 6:08,C(C )&( :(V',:(C 0: :(V'($)(C

,->0:+#),0-Z

W8"X YDDM /0+6:(&(-$,8(X C(+0-$):#)($ %:(C,J7( (P6(:,(-%( #-C 67#-$X #-C `0: (P%(7$ ,- $0+( #:(#$Z

DUVKVOTMBTY a-,>0:+7; &,.& V'#7,);X #-C C(+0-$):#)($ %0-8,-%,-. (P6(:,(-%(X %:(#),8( )&,-N,-.X ,--08#),8( 67#-$ #-C # $'J$)#-),#77; '-,V'(#66:0#%&Z


5/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

G

Z:#,'+%- [+,'

54< 3667,%#),0- 2(( #-C /0++'-,); T,$J':$(+(-)$

545 =,%(-$,-. 2((

54D ",-,+'+ /#6,)#7 L-8($)+(-)

54G =#-C54H 3'C,)(C 2,-#-%,#7 B)#)(+(-)$

54I a-#'C,)(C 2,-#-%,#7$ #-C B^/ 2,7,-.$

54K 2,-#-%,-. B):'%)':(

54_ @'C.()

54[ B,.-,>,%#-) ^%0-0+,% T09-)':-

540: /0-$):'%),0-

54:0+ L-)(:-() *#+,-.

54DG "#:N(),-. M7#-

54DH d(9 1(8(-'(

54DI "#:N(),-. )0 O') 0> B)#)( g,$,)0:$ #-C '$( 0> c'-N()$

54DK "#:N(),-. )0 L-4B)#)( g,$,)0:$

54D_ B(%':( #-C 10J'$) *#+,-. "#:N()


6/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

H

4A DE#&0FF "0'+-1 GH&%E+,+%-0FI

56*+ +1,%*). +-77#"*81+ %61 )91"#33 "#%*.:+ "13#%1; %) (*.#.,1 )$ %61 ?(@A= #003*,#%*). ' ()" $-"%61" ;1%#*3 +11 (*.#.,*#3 @001.;*,1+

B(*.#.,*#3 C#0#D*3*%4E F.91+%71.% /3#.E G#"H1% @++1++71.%E #.; 201"#%*).+ /3#.I

WY

K$&+-1.+#FC\RYR

"*" $ C(+0-$):#)(C )) )&(; ( )&( >,-#-%,#7 %#6#J,7,),($ #-C C,:(%) #%%($$ )0 >'-C$ :(V',:(C )0 C(8(706 #-C 06(:#)( # $'%%($$>'7

/#)(.0:; < >#%,7,);Z U&(,: $'J+,$$,0- C(+0-$):#)(C )) )&(; >'77; '-C(:$)#-C )&( %'::(-) #-C >')':( "#$$#%&'$())$ %0+6(),),8( +#:N()67#%(Z

U&,$ '-C(:$)#-C,-. ,$ :(>7(%)(C ,- )&( %0-$,$)(-%; W#7,.-+(-)Y J()9((- )&(,: L-8($)+(-)X "#:N() #-C O6(:#),0-$ 67#-$ $'J+,))(CZ L-C,8,C'#77;X

)&(,: L-8($)+(-)X "#:N() #-C O6(:#),0-$ 67#-$ #:( 9(77 )&0'.&) 0') #-C $'660:) )&( ':J#- ,-)(.:#),0- )&(+( 0> )&( )0)#7 C(8(706+(-)

6:060$(CZ

h&,7( )&(:( #:( +#-; (P#+67($ 0> %#$,-0$ 70%#)(C ,- ':J#- (-8,:0-+(-)$X )&( 7(8(7 0> ,-)(.:#),0- )) $ J((- ,-%0:60:#)(C ,- "*"i$

6:0\(%) 67#- %#- J( %0-$,C(:(C #+J,),0'$Z "*" $ #%N-097(C.(C )) )&(,: B6:,-.>,(7C 67#- ,$ %0+67(P #-C (-)#,7$ # 7(8(7 0> ,-)(.:#),0- ))

)&(; ( -0) ,+67(+(-)(C ,- )&( 6#$) #-C )) )&(,: 67#- 9,77 7,N(7; :(V',:( +0C,>,%#),0-$ #$ ,) #C8#-%($ )&:0'.& )&( C(8(706+(-) 6:0%($$Z

20: ,-$)#-%(X # .(-(:#7 %0-):#%)0: $ -0) ;() J((- $(7(%)(CZ 3$ )&( C(8(706+(-) (8078($X %-.($`+0C,>,%#),0-$ 9,77 ( )0 J( #$$($$(C

9,)& :(.#:C )0 60)(-),#7 ,+6#%)$ 0- (P6(%)(C 06(:#),0-#7 :($'7)$ W(Z.Z #66(#7 0> )&( J:0#C(: $,)( )0 #)):#%) 60)(-),#7 %'$)0+(:$ #-C #J,7,); 0>

)&( $,)( )0 #%%0++0C#)( 8,$,)0: 807'+($Y #-C #66:06:,#)( :($60-$($ C(8(706(C #-C ,+67(+(-)(CZ

O8(:#77X "*"i$ 6:060$#7 ,$ 8(:; .00C 9,)& 0')$)#-C,-. (7(+(-)$Z


7/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

I

JA )&+'#&+0 "0'+-1 K:**0&2

)&+'#&+0 "0'+-1 K:**0&2

@(709 ,$ # $'++#:; 0> )&( :#),-.$ >0: )&( :(8,(9 C()#,7 #:(#$Z

K$&+-1.+#FC\RYR

)&+'#&+%- =/6+-0-7+0F )0$0Q+F+'2

W#&2 Y%%C

)&+'#&+%- 4/

B-E#,'*#-' HF0-W#&2 Y%%C\D:','0-C+-1

)&+'#&+%- J/

R0&S#' O,,#,,*#-'W#&2 Y%%C

)&+'#&+%- @/

D$#&0'+%-, HF0-W#&2 Y%%C


8/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

K

@A "#E+#L M#'0+F

)&+'#&+%- =/ 6+-0-7+0F )0$0Q+F+'2

2,-#-%,#7 %#6#J,7,); 0> 3667,%#-) )0 C(8(706 W%0-$):'%) #-C 06(-Y #-C 06(:#)( )&( 6:060$(C /#)(.0:; < >#%,7,);Z B6(%,>,% >0%'$ #:(#$ ,-%7'C(?

3J,7,); 0> 3667,%#-) )0 0J)#,- 6:0\(%) %#6,)#7Z /'::(-) >,-#-%,#7 $):(-.)& 0> 3667,%#-)Z 3667,%#-)i$ (P6(%)(C 6:0\(%) :()':- 08(: 7,%(-$(YZ

K$&+-1.+#FC\RYR

B)#)(+(-) 0>

2,-C,-.$

3J,7,); )0 OJ)#,- /#6,)#7

T(+0-$):#)(C )&( #8#,7#J,7,); 0> >,-#-%,-. >0: )&( 6:0\(%)?

O6),0- ,-#-%($ )&( ,-C(J)(C-($$ 09,-. 08(: )&( -(P) )&:(( ;(#:$X )&(:( 90'7C J( $'>>,%,(-) %#$& #8#,7#J7( )0>'-C )&( C(8(706+(-) >:0+ 06(:#),-. %#6,)#7Z

O6),0- 54 /0++,)+(-) 7())(:$ 6:08,C(C >:0+ )90 J#-N$ 9,)& 7,+,)(C %0-C,),0-$Z/'::(-) 2,-#-%,#7 B):(-.)&

h&,7( "*" 1($0:)$ L-)(:-#),0-#7i$ N(; >,-#-%,#7 :#),0$ C(+0-$):#)( >,-#-%,#7 $):(-.)&X )&(; %'::(-)7; ( # &,.&(: )- ,C(#76:060:),0- 0> C(J) :(7#),8( )0 (V',); W,> $0+( %0-8(:),J7( -0)($ C'( ,- 5Q,-#-%,#7 $):(-.)& )0 C(8(706 #-C 06(:#)( )&(,: 6:060$(C /#)(.0:; < >#%,7,);Z

)&+'#&+%- = "0'+-1 W#&2 Y%%C


9/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

_

=A= OQ+F+'2 %. O$$F+70-' '% DQ'0+- H&%]#7' )0$+'0F

^P6(%)#),0-$ 0>

3667,%#-)

^8,C(-%( 0> #%%($$ )0 %#6,)#7 :(V',:(C )0 >'-C 6:0\(%) %0$) #$ $'J+,))(CZ

3$$($$+(-)

366:0#%&

1(8,(9(C >,-#-%,-. 67#- #$ $'J+,))(C J; 3667,%#-) #$ 9(77 #$ #%%0+6#-;,-. J#%N.:0'-C +#)(:,#7$Z

K$&+-1.+#FC\RYRB'++#:; 0> 2#%)$ U0)#7 /#6,)#7 1(V',:(C4 k_5H +,77,0-

"*" 6:08,C(C 5 06),0-$ :(7#)(C )0 >'-C,-. )&( 6:0\(%)? O6),0- < 6:060$($ )0 >'-C )&( 6:0\(%) )&:0'.& ,)$ %0:60:#)( %:(C,) >#%,7,);X (P,$),-. %#$&X %#$& >:0+ (P,$),-. 06(:#),0-$ #$ 9(77 #$

C,$):,J'),0-$ :(%(,8(C >:0+ (P,$),-. $'J$,C,#:,($Z

O6),0- 5 6:060$($ "*" %0-):,J')($ 5Hj4HQj )0 )&( C(8(706+(-) 9,)& )&( :(+#,-C(: >,-#-%(C )&:0'.& 6:0\(%) >,-#-%,-.Z3$ #) T(%(+J(: D:0+ 06(:#),0-$Z

O6),0- 54 /0++,)+(-) 7())(:$ 6:08,C(C >:0+ )90 J#-N$ 9,)& 7,+,)(C %0-C,),0-$Z1#),-. W#&2 Y%%C


10/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

[

=A 4 ):&-' 6+-0-7+0F K'-1'( %. O$$F+70-'

^P6(%)#),0-$ 0>

3667,%#-)

B):0-. @#7#-%( B&(() W/'::(-) 1#),0X -() #$$() 60$,),0-Y1(#$0-#J7( 7(8(7$ 0> C(J) WT(J) ^V',); 1#),0YM0$,),8( 06(:#),-. :($'7)$ W/#6,)#7 3$$() U':-08(:X 1()':- 0- L-8($)+(-)Y

3$$($$+(-)

366:0#%&

1(8,(9(C >,-#-%,#7 $)#)(+(-)$ W9&(:( #667,%#J7(Y $'J+,))(C J; 3667,%#-)$ #-C 6(:>0:+(C >,-#-%,#7 :#),0 #-#7;$,$ )0 #$$($$ >,-#-%,#7

$):(-.)& 0> 3667,%#-)ZK$&+-1.+#FC\RYR

B'++#:; 0> 2#%)$ 2,-#-%,#7 B)#)(+(-)$ ^8#7'#)(C4 "*" 1($0:)$ L-)(:-#),0-#7 5Q,-#-%,#7 $):(-.)&X )&(; %'::(-)7; ( # &,.&(: )- ,C(#7 6:060:),0-

0> C(J) :(7#),8( )0 (V',); W,> $0+( %0-8(:),J7( -0)($ C'( ,- 5Q


11/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34


12/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

)&( 6:060$(C 6&;$,%#7 >#%,7,);`%0+67(P 67#- )0 %0+6()( ,- )&( +#:N() 08(: )&( 7,>( 0> )&( 7,%(-$(Z B6(%,>,% >0%'$ #:(#$ ,-%7'C(?

/0++,)+(-) )0 $6(-C :(V',:(C %#6,)#7Z U,+,-. 0> )0)#7 C(8(706+(-)Z /0-$,$)(-%; J()9((- V'#7,);`$%06( 0> 6:060$(C >#%,7,); #-C (P6(%)(C +#:N() 6(-():#),0- #-C >,-#-%,#7 :($'7)$Z

K$&+-1.+#FC\RYRB)#)(+(-) 0>

2,-C,-.$

/0++,)+(-) )0 B6(-C /#6,)#7

^7,.,J7( %#6,)#7 %0$)$ +(() +,-,+'+ %#6,)#7 ,-8($)+(-) :(V',:(+(-)ZU,+,-. 0> T(8(706+(-)

M:08,C(C # :(#$0-#J7( ),+(7,-( >0: 06(-,-. >#%,7,); .,8(- )&( $,e( #-C $%06( W%0+67(P,);Y 0> )&( C(8(706+(-) #-C )&( $,)( 70%#),0-Z L)+'$) J( -0)(C )) C(8(706+(-) 67#-$ ( -0) ;() J( >,-#7,e(C W(Z.Z # %0-):#%)0: $ -0) ;() J((- $(7(%)(CYZ

/0-$,$)(-%; @()9((- F'#7,);`B%06( #-C 1($'7)$

M:060$(C $,e( #-C $%06( 0> >#%,7,); ,$ %0-$,$)(-) 9,)& J'$,-($$ #-C >,-#-%,#7 67#-$ $'J+,))(CZ 2':)&(:X )&( 6:060$(C >#%,7,); ,$ %0-$,$)(-)9,)& # );6,%#7 d0:)& 3+(:,%#- :(.,0-#7 %#$,-0$ :(#7,e,-. ,) $ J((- C($,.-(C )0 R,-)(.:#)(S ,-)0 )&( 70%#7 %0++'-,);Z

O8(:#77 2,-C,-.$ M:060$(C # 9(77 )&0'.&) 0') >#%,7,); %0-%(6) 67#- )) R,-)(.:#)($S ,-)0 )&( 70%#7 +#:N()Z U&,$ 67#- ,$ 9(77 )&0'.&) 0')X ,) ,$ %0+67(P #-C-0) ;() >,-#7,e(C W(Z.Z # %0-):#%)0: $ ;() )0 J( $(7(%)(CYZ

)&+'#&+%- 4 "0'+-1 g(:; *00C`O')$)#-C,-.


13/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

3667,%#-)

M:08,C( (8,C(-%( )) %#6,)#7 J'C.() ,-%7'C($ (7,.,J7( %#6,)#7 (P6(-$($ 0> #) 7(#$) kHQQ +,77,0-Z

3$$($$+(-)

366:0#%&

1(8,(9(C 3667,%#-)i$ $'J+,))(C %#6,)#7 J'C.()$ #-C C()(:+,-(C (7,.,J7( #-C ,-(7,.,J7( (P6(-$($Z

K$&+-1.+#FC\RYRB'++#:; 0> 2#%)$ ^7,.,J7( /0-$):'%),0- /0$)? kGQ_ZD +,77,0-

^7,.,J7( 22m^ /0$)? k


14/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

3667,%#-)

M:08,C(C # :(#$0-#J7( C(8(706+(-) ),+(7,-( >0: 06(-,-. )&( 6(:+#-(-) >#%,7,);Z

3$$($$+(-)

366:0#%&

1(8,(9(C 67#--(C ),+(7,-($Z d0)(? U,+( )0 0J)#,- -(%($$#:; 6(:+,)$ -0) %0-$,C(:(CZ

K$&+-1.+#FC\RYRB'++#:; 0> 2#%)$ 3667,%#-) 6:060$(C %0-$):'%),0- ),+(7,-( 0> 5K +0-)&$ 9,)& 06(-,-. C#)( $'J\(%) )0 7,%(-$( #9#:CZB)#)(+(-) 0>

2,-C,-.$

M:08,C(C # :(#$0-#J7( ),+(7,-( >0: 06(-,-. >#%,7,); .,8(- )&( $,e( #-C $%06( W%0+67(P ,);Y 0> )&( C(8(706+(-) #-C )&( $,)( 70%#),0-Z L)

+'$) J( -0)(C )) C(8(706+(-) 67#-$ ( -0) ;() J((- >,-#7,e(C W(Z.Z # %0-):#%)0: $ -0) ;() J((- $(7(%)(CYZ

1#),-. W#&2 Y%%C


15/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

J:#-C(C :()#,7 #-C DHXQQQ $> 0')C00: :()#,7

B)#)(+(-) 0>

2,-C,-.$

M:060$(C $,e( #-C $%06( 0> >#%,7,); ,$ %0-$,$)(-) 9,)& J'$,-($$ #-C >,-#-%,#7 67#-$ $'J+,))(CZ 2':)&(:X )&( 6:060$(C >#%,7,); ,$ %0-$,$)(-)

9,)& );6,%#7 d0:)& 3+(:,%#- :(.,0-#7 %#$,-0$ :(#7,e,-. ,) $ J((- C($,.-(C )0 R,-)(.:#)(S ,-)0 )&( 70%#7 %0++'-,);Z

1#),-. D:','0-C+-1


16/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

,-(C +#:N() #:(# W,->709YZK$&+-1.+#FC\RYR

B)#)(+(-) 0>

2,-C,-.$

*#+,-. 1(8(-'( M:0\(%),0-$ #-C "#:N() B:(

n(#: D **1 W-() 0> >:(( 67#;Y? T(>,-(C +#:N() #:(#? kGDIZK +,77,0- O')$,C( )&( C(>,-(C +#:N() #:(# WL->709Y? kI5Z[ +,77,0- U0)#7? kG[[ZH +,77,0-

O8(:#77 2,-C,-.$ *#+,-. :(8(-'( 6:0\(%),0-$ #:( 9,)&,- )&( 7,N(7; +#:N() 6(:>0:+#-%( :#-.( 9,)& :(#$0-#J7( ,->709 (P6(%)#),0-$ )) #:( %0-$,$)(-)

9,)& )&( +#:N(),-. 6:0.:#+$ $'J+,))(C J; )&( 3667,%#-)Z

)&+'#&+%- J "0'+-1 W#&2 Y%%C


17/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

)&( 3667,%#-)i$ 06(:#),-. 67#- .,8(- )&( %'::(-) #-C 7,N(7; >')':( .#+,-. (-8,:0-+(-) ,- "#$$#%&'$())$Z B6(%,>,% >0%'$ #:(#$ ,-%7'C(?

3667,%#-)$ '-C(:$)#-C,-. 0> )&( ,+60:)#-%( 0> ,-)(:-#7 %0-):07$Z /0-$,$)(-%; 0> 06(:#),0- 67#-$ 9,)& (P6(%)(C >,-#-%,#7 :($'7)$Z

K$&+-1.+#FC\RYR

B)#)(+(-) 0>2,-C,-.$

a-C(:$)#-C,-. 0> L-)(:-#7 /0-):07$3667,%#-) :(%0.-,e($ )&( ,+60:)#-%( 0> ,-)(:-#7 %0-):07$ #-C $ (P6(:,(-%( 90:N,-. ,- # :(.'7#)(C (-8,:0-+(-)Z 2':)&(: )&(

3667,%#-) 6:08,C(C %(:)#,- C:#>) $)#-C#:C$ C0%'+(-)$ >0: "*/ )0 %0-$,C(:Z

/0-$,$)(-%; 0> @'$,-($$ M7#-`"#:N(),-. M7#- 9,)& ^P6(%)(C 1()':-$

377 06(:#),0-#7 #-C +#:N(),-. 67#-$ 9(:( %7(#:7; #:),%'7#)(C #-C :(6:($(-) # %0&($,8( $):#)(.; )) #7,.- 9,)& # d0:)& 3+(:,%#- :(.,0-#7

%#$,-0 >#%,7,); ,- B6:,-.>,(7CZ

B70) 6:0C'%) 67#- ,$ :(#$0-#J7(ZU#J7( 6:0C'%) 67#- ,$ :(#$0-#J7(ZB,e( #-C $%06( 0> >00C #-C J(8(:#.( 0>>(:,-.$ #:( ,- 7,-( 9,)& (P6(%)#),0-$ 0> # d0:)& 3+(:,%#- :(.,0-#7 %#$,-0Zf0)(7 67#- ,$ ,- 7,-( 9,)& (P6(%)#),0-$ 0> # d0:)& 3+(:,%#- :(.,0-#7 %#$,-0Z

1()#,7 67#- ,$ %0-$,$)(-) 9,)& )&( ':J#- ,-)(.:#),0- C($,.- 0> )&( 6:0\(%)ZM#:N,-. 67#- ,$ %0-$,$)(-) 9,)& )&( ':J#- ,-)(.:#),0- C($,.- 0> )&( 6:0\(%) W$6(%,>,% )0 B6:,-.>,(7CYZ"#:N(),-. #66:0#%& ,$ %0-$,$)(-) 9,)& )) 9&,%& 90'7C J( (+670;(C J; # );6,%#7 d0:)& 3+(:,%#- :(.,0-#7 %#$,-0 06(:#)0: 9,)& )&(

#CC(C 8#7'( 0> #%%($$,-. "4=,>( C#)#J#$( %'$)0+(:$Z

2,-#-%,#7 M:0\(%),0- 3-#7;$,$

2,-#-%,#7 6:0\(%),0-$ #:( %0-$,$)(-) 9,)& )&( 3667,%#-)i$ +#:N() (P6(%)#),0-$X ,)$ 6:060$(C >#%,7,); 67#-$ #-C )&( J'$,-($$`+#:N(),-.67#-$ $'J+,))(CZ

O8(:#77 2,-C,-.$ T(+0-$):#)(C # $0'-C 06(:#),0-$ 67#- >0: )&(,: /#)(.0:; < .#+,-. >#%,7,);Z

)&+'#&+%- @ "0'+-1 W#&2 Y%%C


18/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

3667,%#-)

3667,%#-) C(+0-$):#)($ #- '-C(:$)#-C,-. 0> )&( ,+60:)#-%( 0> # $):0-. ,-)(:-#7 %0-):07 (-8,:0-+(-)Z

3$$($$+(-)

366:0#%&

1(8,(9(C $'J+,))(C ,-)(:-#7 %0-):07 +#-'#7$ #-C &,$)0:; 0> (P6(:,(-%( 9,)& 0)&(: .#+,-. :(.'7#)0:$Z

K$&+-1.+#FC\RYRB'++#:; 0> 2#%)$ "*" 06(:#)($ ,- G \':,$C,%),0-$ Wd(8#C#X ",$$,$$,66,X ",%&,.#- #-C "#%#'YZ

/,)(C d(8#C# #$ RJ(-%&+#:NS >0: :(.'7#),0- C(8(706+(-) ,- "#$$#%&'$())$ZM:08,C(C C:#>) ,-)(:-#7 %0-):07 $)#-C#:C$ 6:060$(C >0: "#$$#%&'$())$ $6(%,>,% )0 $70)$X )#J7( .#+($X /#.( #-C /:(C,) #-C /'::(-%;

U:#-$#%),0- 1(60:),-.Z

M:08,C(C $(%':,); #-C $':8(,77#-%( $)#-C#:C$ #-C :07( 0> J0)& ,-)(:-#7 #-C (P)(:-#7 #'C,)0:$ )0 (-$':( $):0-. %0-):07 (-8,:0-+(-)ZM'J7,%#77; ):#C(C 0:.#-,e#),0-Z

B)#)(+(-) 0>

2,-C,-.$

3667,%#-) :(%0.-,e($ )&( ,+60:)#-%( 0> ,-)(:-#7 %0-):07$ #-C $ (P6(:,(-%( 90:N,-. ,- # :(.'7#)(C (-8,:0-+(-)Z 2':)&(: )&( 3667,%#-)

6:08,C(C %(:)#,- C:#>) $)#-C#:C$ C0%'+(-)$ >0: "*/ )0 %0-$,C(:Z

1#),-. D:','0-C+-1


19/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

#77

#C8(:),$,-. +(C,'+$X 7(8(:#.( (P,$),-. 67#;(: C#)#J#$(YZ

"4=,>( C#)#J#$( %'$)0+(:$ WIQ +,77,0- 90:7C9,C( #-C GDQN9,)&,- B6:,-.>,(7CYZ

B)#)(+(-) 0>

2,-C,-.$

377 06(:#),0-#7 #-C +#:N(),-. 67#-$ 9(:( %7(#:7; #:),%'7#)(C #-C :(6:($(-) # %0&($,8( $):#)(.; )) #7,.- 9,)& # d0:)& 3+(:,%#- :(.,0-#7

%#$,-0 >#%,7,); ,- B6:,-.>,(7CZ

B70) 6:0C'%) 67#- ,$ :(#$0-#J7(ZU#J7( 6:0C'%) 67#- ,$ :(#$0-#J7(Z200C #-C J(8(:#.( 67#- ,$ :(#$0-#J7(Zf0)(7 67#- ,$ :(#$0-#J7(Z1()#,7 67#- ,$ :(#$0-#J7(ZM#:N,-. 67#- ,$ :(#$0-#J7("#:N(),-. #66:0#%& ,$ %0-$,$)(-) 9,)& )) 9&,%& 90'7C J( (+670;(C J; # );6,%#7 d0:)& 3+(:,%#- :(.,0-#7 %#$,-0 06(:#)0: 9,)& )&(

#CC(C 8#7'( 0> #%%($$,-. "4=,>( C#)#J#$( %'$)0+(:$Z

1#),-. W#&2 Y%%C


20/138

!"#$% ' ()" !*+,-++*). /-"0)+1+ 2.34

7(%),8( 0> )&( 6:060$(C

J'$,-($$ 67#-Z

3$$($$+(-)

366:0#%&

3$$($$(C )&( >,-#-%,#7 6:0\(%),0-$ >0: %0-$,$)(-%; 9,)& ,-C'$):; -0:+$X #-C (8#7'#)(C )&( 6:0\(%),0-$ 9,)& )&( 6:060$(C J'$,-($$ 67#-ZZ

K$&+-1.+#FC\RYR

B'++#:; 0> 2#%)$ M:08,C(C >,-#-%,#7 6:0\(%),0-$ ,- )&( >0:+#) :(V'($)(CZB)#)(+(-) 0>

2,-C,-.$

2,-#-%,#7 6:0\(%),0-$ #:( %0-$,$)(-) 9,)& )&( 3667,%#-)i$ +#:N() (P6(%)#),0-$X ,)$ 6:060$(C >#%,7,); 67#-$ #-C )&( J'$,-($$`+#:N(),-. 67#-$

$'J+,))(CZ

1#),-. W#&2 Y%%C


21/138

Financial StrengthMassachusetts Gaming Commission

June 2014

Private + ConfidentialDraft for Internal Discussion Purposes Only

Draft for Internal DiscussionPurposes Only


22/138

Introduction

The financial strength and capacity of the Applicant to develop (construct andopen) and operate the proposed facility.

Key Considerations:

Ability of Applicant to obtain project capital.

Current financial strength of Applicant.

Applicants expected project return over 15 year term (term of license).

2Draft for Internal DiscussionPurposes Only


23/138

Ability to Obtain Capital: Introduction


Expectations of Applicant:

Evidence of access to capital required to fund project cost as submitted.

Assessment Approach:

Reviewed financing plan as submitted by Applicant as well as accompanyingbackground materials.


24/138

Springfield/MGM

Capital Required $825.0

Third Party Debt $412.5-$618.8

Equity $206.3-$412.5

Total $825.0

Project Financed by Debt 50%-75%Project Financed by Equity 25%-50%

Total 100%

Financing Structure ($Million)

Source: HLT Advisory Inc. based on Applicant's

submission.

Ability to Obtain Capital: Funding Structure


MGM provided 2 options related to funding the project:

Option 1 proposes to fund the project through its corporate credit facility,existing cash, cash from existing operations as well as distributions receivedfrom existing unrestricted subsidiaries.

Option 2 proposes MGM contributes 25%-50% to the development with theremainder financed through project financing. The following table summarizesMGM's Option 2.


25/138

Ability to Obtain Capital: Springfield/MGM

5

The legal name of the Applicant is Blue Tarp reDevelopment, LLC. Blue TarpreDevelopment, LLC is 99% owned by MGM International and 1% owned byPaul C. Picknelly.

MGM has suggested two financing alternatives for the development:

Option 1 Fund the development through its corporate credit facility, existingcash, cash flow from existing operations as well as distributions receivedfrom existing unrestricted subsidiaries.

Option 2 Fund the development through project financing comprised of

25% to 50% equity and the remainder obtained through project financing.

Option 1

Based on December 31, 2013 10-K As at December 31, 2013 MGM had $1.2 billion of available borrowing

capacity under its senior credit facility. MGM had $1.71 billion in EBITDA for the year ended December 31,2013. For

this same period they had $857 million in interest expense and $562 millionin capital expenditures.

Current assets at December 31, 2013 amounted to $2.7 billion while currentliabilities amounted to $2.2 billion.



26/138

Key Financial Factors

Annualized

Estimate

Three Year

Period

Working Capital $504

Existing Borrowing Capacity $1,200

EBITDA* $1,712 $5,137

Interest Expense* -$857 -$2,571

Capital Expenditures* -$562 -$1,686

Maryland Development** -$925

Cash Available Before Capital Mkt. Transactions $1,659

Capital Market Transactions*** -$1,050

Cash Available After Capital Mkt. Transactions $609

Source: HLT Advisory Inc. based on information from the Applicant's subm ission.

Projected Cash Available for MGM

Three Year Period ($Million)

*** Total of $2.5 b illion of capital market transactions to be completed over nextthree years related to refinancing existing indebtedness. Assumes convertible

notes of $1.45 billion will be converted into equity without additional capital

required.

* Based on MGM 2013 10K adjusted for non-controlling interest.

** Estimated development cost for recently awarded facility in Maryland, (MGM

press release).


6

Option 1 (Continued)

The following represents a high levelestimate of the next three yearsprojected cash availability for thedevelopment as contemplated underOption 1. This analysis contemplatesthat the only developments underconsideration during this period are the

recently awarded Maryland project andthe Massachusetts casino. The analysisassumes the Macau development ($2.9billion) is financed through projectfinancing.

In the event MGM refinances the

indebtedness owing over the next threeyears, there would be sufficient cashavailable to fund the development fromoperating capital.



27/138

Option 2

Option 2 contemplates MGM contributing 25% to 50% equity to the

development with the remainder financed through project financing.

Barclays confirmed in writing that they were highly confident they would be ableto arrange project financing up to $619 million with MGMs contributing thebalance in equity.

Deutsche Bank Securities confirmed in writing that they were highly confidentthey would be able to arrange project financing up to $770 million providingMGM contributed 25% to 35% equity. Their letter stated they understood thetotal project cost to equal $985 million.

Proposed Equity Equity Debt Total

Equity at 25% $206 $619 $825

Equity at 50% $413 $413 $825

Springfield/MGM Project Financing ($Million)

Source: HLT Advisory Inc. based on information from theApplicant's submission.




28/138

Financial Strength: Introduction



Strong balance sheet (current ratio and net asset position).

Reasonable levels of debt (debt/equity ratio).

Positive operating results (capital asset turnover and return on investment).


Reviewed financial statements (where applicable) submitted by the Applicant

and performed financial ratio analysis to assess financial strength ofApplicant.


29/138

Financial Strength: Definition of Ratios

9

Liquidity Ratios-Liquidity ratios are meant to provide information about anorganizations ability to meet its short-term financial obligations. Liquidity ratiosare not meant to assess the long-term sustainability of an organization, moreover,they are short-term in nature, defined within a one year time frame. In respect ofliquidity ratios we used the current ratio for our analysis.

Financial Leverage Ratios-Financial leverage ratiosprovide information aboutan organizations debt structure and its ability to repay long-term debt. In respectof financial leverage ratio, we used a debt/equity ratio in our analysis.

Asset Turnover Ratios-Asset turnover ratios provide information about howefficiently an organization is making use of its assets. The more times anorganization can turnover its assets (in terms of revenue) the greater theproductivity of the operation. In respect of asset turnover ratios we used thecapital asset turnover ratio in our analysis.

Profitability Ratios-Profitability ratios provide information about a companys

ability to generate profits. In respect of our profitability ratios we utilized a returnon investment (ROI) ratio and a times interest earned ratio in our analysis.



30/138

Las Vegas

Sands Corp.

Wynn Resorts

Ltd.*

MGM Resorts

International*

Caesars

Entertainment

Corporation

Penn National

Gaming, Inc.**

Mohegan

Tribal Gaming

Authority

Boyd Gaming

Corporation

Pinnacle

Entertainment,

Inc.***

Station

Casinos LLC

Current Assets ($Million) $5,516 $2,968 $2,719 $3,770 $487 $138 $335 $599 $221

Current Liabilities ($Million) $3,130 $1,455 $2,215 $2,531 $499 $244 $454 $372 $231

Current Ratio 1.76 2.04 1.23 1.49 0.98 0.57 0.74 1.61 0.96

Total Capital Assets (Net Book Value) ($Million) $15,359 $4,934 $14,055 $13,238 $2,730 $1,476 $3,506 $3,040 $2,163

Net Revenue ($Million) $13,770 $5,620 $9,810 $8,560 $2,899 $1,340 $2,894 $1,488 $1,261

Capital Asset Turnover 0.90 1.14 0.70 0.65 1.06 0.91 0.83 0.49 0.58

Long Term Debt ($Million) $9,383 $6,587 $13,447 $20,918 $2,649 $1,649 $4,353 $4,364 $2,128Total Shareholder Equity ($Million) $7,665 -$185 $4,231 -$3,122 $2,250 $199 $470 $214 $658

Debt Equity Ratio 1.22 N/M 3.18 N/M 1.18 8.29 9.26 20.42 3.23

EBITDA (excludes unusual items) ($Million) $4,416 $1,294 $1,712 $1,700 $687 $309 $573 $270 $328

Investment ($Million)*** $17,048 $6,086 $17,678 $17,796 $4,695 $1,848 $4,823 $4,578 $2,787

Return on Investment 26% 21% 10% 10% 15% 17% 12% 6% 12%

EBITDA (excludes unusual items) ($Million) $4,416 $1,294 $1,712 $1,700 $687 $309 $573 $270 $328

Interest Expense ($Million) $271 $299 $857 $2,253 $81 $170 $344 $170 $165

Times Interest Earned 16.28 4.33 2.00 0.75 8.44 1.82 1.66 1.59 1.99

Year End 12/31/2013 12/31/2013 12/31/2013 12/31/2013 12/31/2012 9/30/2013 12/31/2013 12/31/2013 12/31/2013

Source: HLT Advisory Inc. based on m ost recent annual audited financial statements from gam ing companies.

*Shareholder's equity excludes that amount attributable to non-controll ing interests. EBITDA excludes that amount attributable to non-controlling interests.

**Ratios used are for 2012, prior to Penn National Gaming splitting in to two entities (GLPI and Penn National Gaming).

***In August 2013, Pinnacle Entertainment Inc. acquired Ameristar Casinos, Inc.

****Investment is defined as long term deb t plus shareholder's equity.

N/M-Not m easurable.

Capital Assets > $4 billion Capital Assets < $4 billion

Financial Ratios - Publically Traded Gaming Companies


Financial Strength: Financial Ratios, Publically TradedGaming Companies


31/138

Financial Strength: Ratio Analysis

11

MGM Resorts International (MGM) Analysis

MGM has a satisfactory current ratio at greater than 1.

MGM has a capital asset turnover ratio of 0.7 which is line with other publicallytraded gaming companies with greater than $4 billion in capital assets.

MGM with a debt/equity ratio greater than 3 indicates they have a high proportionof debt relative to equity. It should be noted they do have $1.4 billion inconvertible notes due in 2015. At this time the stock is trading at over 50% of

the conversion price. If the notes were converted today, the debt/equity ratiowould decrease to just above 2.

MGM has a return on investment level of 10% and a times interest earned ratio of2.0. These two measures are satisfactory compared to a number of othercompanies.



32/138

Expected Project Return: Introduction



Earn a commercially reasonable return on investment.


Internal rate of return calculation based on Applicant submitted 15-yearEBITDA. In addition the internal rate of return was assessed under twoannual discount rates (4%-15%).

Expected Project Return: Applicants Internal Rate of


33/138

Springfield/

MGM

EBITDA ($Million)

Year 1 $97.4

Year 2 $148.6

Year 3 $155.4

Year 4 $159.6

Year 5 $163.9

Year 6 $168.3

Year 7 $172.8

Year 8 $177.0

Year 9 $181.2Year 10 $185.7

Year 11 $190.2

Year 12 $194.8

Year 13 $199.5

Year 14 $204.3

Year 15 $209.3

Total EBITDA ($Million) $2,608.0

Average EBITDA ($Million) $173.9

Development Budget ($Million)* $800.0

Internal Rate of Return** 19.5%

Internal Rate of Return (4% discount rate)** 15.0%

Internal Rate of Return (15% discount rate)** 4.1%

Internal rate of Return Calculation

Source: HLT Advisory Inc. based on App licant's subm ission.

**Calculation based on EBITDA, does not take into

consideration deb t versus equity financing, provides for

terminal value at end of 15 years based on earnings multiple of

5.

*Development b udget does not contain $25 million working

capital.

Expected Project Return: Applicant s Internal Rate ofReturn

Applicants expected project returns (15 years, length of license)


Applicants financial projections show a healthyfinancial return. Even applying a 15% discountrate to future earnings stream, the Applicantprojects a positive financial return, albeit belowthat of similar sized companies profiled on page10.


34/138

Investment PlanMassachusetts Gaming CommissionJune 2014




35/138

Investment Plan: Introduction

2

The suitability of the proposed physical facility/complex plan to compete in themarket over the life of the license.

Key issues to investigate:

Commitment to spend required capital.

Timing of total development.

Consistency between quality/scope of proposed facility and expected marketpenetration and financial results.



36/138

Required Capital: Introduction



Provide evidence that capital budget includes eligible capital expenses of at

least $500 million.


Reviewed Applicants submitted capital budgets and determined eligible andineligible expenses.


37/138

Springfield/

MGM

Construction

Building - Casino $65,757,000

Building - Hotel $83,032,000

Building - Retail/Entertainment $48,072,000

Building - Other $40,830,000

Architectural and Engineering $22,000,000

Fit-Out - F&B/Retail/Apartment $55,469,000

Parking Garage $93,132,000

Total Construction $408,292,000

FF&E

Gaming Equipment $82,000,000

Other FF&E $25,500,000Total FF&E $107,500,000

Other Costs

License and Application Fee $85,000,000

Start-up Capital and Cage Cash $25,000,000

Financing Costs $58,000,000

Project Contingencies $24,425,000

Land $50,133,000

Pre-opening Expenses $30,000,000

Host Community Payment $5,150,000

Operating Supplies $31,500,000Total Other Costs $309,208,000

Total Budgeted Cost $825,000,000

n/p- Not provided.

Category 1 Projected Development Budget


submission.

MGMs total development budget is$825 million.

4

Required Capital: Development Budget



38/138

Required Capital: Eligible Costs

MGMs eligible capital cost is $515.8 millionwhich meets the $500 million requirement.


Springfield/

MGM

Eligible Capital Costs

Construction

Building - Casino $65,757,000

Building - Hotel $83,032,000

Building - Retai l/Entertainment $48,072,000

Building - Other $40,830,000

Architectural and Engineering $22,000,000

Fit-Out - F&B/Retai l/Apartment $55,469,000

Parking Garage $93,132,000

Total Construction $408,292,000

FF&E

Gaming Equipment $82,000,000

Other FF&E $25,500,000

Total FF&E $107,500,000

Total Eligible Costs $515,792,000

n/p- Not provided.

Category 1 Projected Development

Budget- Eligible Costs

Source: HLT Advisory Inc. based on Applicant'ssubmission and HLT's interpretation of eligible capital

costs.


39/138

Springfield/

MGM

Total Eligible Costs $515,792,000

Ineligible Budgeted Costs

License and Applicat ion Fee $85,000,000

Start-up Capital and Cage Cash $25,000,000

Financing Costs $58,000,000

Project Contingencies $24,425,000

Land $50,133,000Pre-opening Expenses $30,000,000

Host Community Payment $5,150,000

Operating Supplies $31,500,000

Total Ineligible Costs $309,208,000

Total Budgeted Cost $825,000,000


submission and HLT's interpretation of eligible capital

costs.

Category 1 Projected Development

Budget- Ineligible Costs

Required Capital: Ineligible Costs

MGMs ineligible costs total $309.2million.



40/138

Project Timeline: Introduction



Provided a reasonable development timeline for opening the permanent

facility.


Reviewed planned timelines. Note: Time to obtain necessary permits notconsidered.


41/138

Project Timeline: Applicants Proposed Timing

MGM anticipates construction to be complete 27 months from the start ofconstruction.

Projected opening date is subject to license award date.

MGMs timeline is reasonable given the size and scope of the developmentand site location.


Springfield/

MGM*Category 1 License Awarded n/p

Start of Construction July-07-14

Construction Completion 27 months

Opening Date n/p

n/p- Not provided.

Category 1 Development Schedule

Source: HLT Advisory Inc. b ased on Applicant's

submission.

*MGM stated project opening date is subject to certainfactors including the license award.


42/138

Consistency with Financials: Introduction



Consistency between size and scope of facility and operating and financial

plans.


Reviewed capital budget and building renderings in connection with operatingand financial plans.


43/138

Consistency with Financials: Project Overview


10

Applicant

Springfield/

MGMName MGM Springfield

Location Springfield

Construction Period 27 months

Opening DateSubject to certain factors

including license award

Gaming

Slots 3,000

Table Games 100

Area (sf) 126,701

Non-Gaming

F&B Outlets 8

F&B Seats 2,065

Hotel (rooms) 250

EntertainmentBowling Alley, Cinema,

Radio/TV Studio

Exhibition/Meeting Space (sf) 19,388

Retail 8,000 sf branded retail35,000 sf outdoor retail

Parking (spaces) 3,853

Category 1 Applications- Project Summaries

Source: HLT Advisory Inc. based on Applicant's subm ission.


44/138

MGM Springfield

Wynn Resortin Everett

Mohegan Sun

Massachusetts

Consistency with Financials: Springfield/MGM



45/138

MGM Springfield

Wynn Resortin Everett

Mohegan Sun

Massachusetts


Located in theCity of

Springfield. Located on an

approximately14.5 acre sitebounded by:State Street to

the north, MainStreet to theeast, UnionStreet to thesouth, andColumbusAvenue to the

west.



46/138



13

Plan includes a 9-level (8-storey) 3,784 spotparking garage.

Additional 69 surface parking spots availableconsisting of:

47 spot Armory surface parking lot (30-minute parking).

7 spot E Columbus retail lot.

15 spot Daycare center lot.

Employee parking planned in parking garage,available offsite if necessary.


47/138



14

Basement Level

141,197 sf back ofhouse (yellow).

41,619 sf dock area(brown).

Basement level ofparking garage(grey).


48/138


15Draft for Internal Discussion

Purposes Only

Level 1

126,701 sf gamingarea (purple).

71,450 sf of food andbeverage and 22,000sf bowling alley (red).

40,982 sf of retail(orange).

Level 1 of parkinggarage containingvalet pick up/drop offand bus drop off andparking (grey).


49/138



Purposes Only

Level 2

45,859 sf of

convention space(19,388 sf rentablespace) located abovethe casino (lightorange).

45,000 sf cinema

(dark orange)adjacent to parkinggarage.

21,659 sf ofresidential apartments(dark pink). First level

of 64,800 sf, 4-storeyapartment building(54 apartmentsuites).


50/138


Draft for Internal Discussion

Purposes Only

17

Hotel (170,104 sf)

250 room four star

hotel located at westcorner of the complex(rooms range from400 sf to 900 sf).

Consistency with Financials: Scope of Core Gaming


51/138

Springfield/ MGM

Slot Machines 3,000Table Games* 100

Gaming Positions 3,600

Slot Machine Square Footage** 90,000

Table Machine Square Footage** 30,000

Total Gaming Square Footage 120,000

Proposed Gaming Square Footage (sf) 126,701

Difference (Estimated vs. Proposed sf) 6,701

F&B Seats 2,065

F&B Seats per Position 0.57

Total Parking Spaces 3,853

Total Parking per Position 1.07

* Assumes 6 positions per table game.

** Assumes 30 sf per slot machine and 300 sf per table game.

Proposed Facility Suitability

Source: HLT Advisory Inc. based on Applicant's submission and

HLT estimates.

y p gFacility Components


Purposes Only

Gaming square footage proposed atMGM is slightly greater than required

using square footage assumptions forslot machines and table games.

Proposed F&B seats per position of0.57 are reasonable given typicalindustry norms.

Proposed parking (on-site) spaces perposition of 1.07 are reasonable giventypical industry norms (1:1). There isalso the availability of additionalparking in the downtown area.


52/138


53/138

Introduction

As part of the evaluation of Category 2 applications, HLT prepared a maassessment that included revenue estimates for each the three proposedsites as well as for all Category 1 resort casinos (one in each of the permRegions). The complete market assessment was made public as part ofapplication evaluation process.

The remainder of this report and appendices (under separate cover) sum

sections of the full market assessment that are applicable to the Categoapplications. Components of the full market assessment that are not lonfor Category 1 casinos and as such were removed, include:

All No Competition Scenarios (i.e., Category 2 facilities before the inCategory 1 casinos).

Full Competition Scenarios (low and high market share estimates) founsuccessful Category 2 application sites.

Full Competition Scenario Low for Plainville/Penn. Note: the market the Category 1 casinos in Regions A and B did not change and the mperformance estimate for Region C did not materially change under thigh market share estimates.

In addition, some wording was modified to reflect the focus on Categoryopposed to Category 2 casinos.


54/138

Market Assessment: Introduction

Reasonableness of Applicants revenue projections given current ancompetitive marketplace. Category 1 casinos will have to generate vrevenue from the broad regional market area that is currently beingcasinos located in neighbouring states and that will also be served bCategory 2 casino located in Plainville, Massachusetts.

Key considerations:

Size of expected market (as measured by Gross Gaming Revenu

Individual facilitys gaming revenue projections and market shar-

An individual facility's gaming revenues (or market share) is dependboth the overall size of the gaming market and competition. The sizmarkets is a function of the adult population (and its propensity to ggaming supply available in the market. The size of a gaming marketstated in terms of GGR per adult (total GGR divided by adult popula

Competition is a function gaming supply (e.g. size and scope of facioperating characteristics) available in the market.


55/138


56/138

Applicants Projections: Introduction

The Applicants projections are summarized on the following page. Applicant retained a third party consultant to undertake a market asThe assessment was directly or indirectly used by the Applicant to aprojection estimates.

The projections summarized represent the base case scenario as co

the Applicants submission.

Note: The Applicant assumes a Category 1 casino was operational inthree designated Massachusetts casino regions and one Category 2 operational in Southeast Massachusetts.


57/138

Applicants Projections: First Five-Year Period

100 $

$600

$800

$1,000

GR($Million)

Total GGR* Projections for Springfield/MGM

Table Games

Slot Machines

$

$485$500

$512

$332$391 $402 $412

$

$80

$94

$0

$200

$400

Year 1 Year 2 Year 3 Year 4 Ye

T

otal

$412


58/138

Applicants Projections: Summary

With all in-state competition, total projected GGR for the Categoin Region B was estimated at $500 million.

Springfield/MGM (Region B) - $500.0 million (Year 3)


59/138

Market Area Extent: Introduction

Key factors in determining geographic extent of casino market areas

Size and scope of casino facilities (including number of devices, nogaming amenities, operating characteristics and tax rate)

Location of existing and future competitive facilities (including size

scope of the same)

Drive times (existing road networks) assumed 90 minutes from service casinos.


60/138

Market Area Extent: Geographic Extent

Red lines represent 90-minute drive timesfrom all full-servicecasinos (except theCategory 2 casino).

Blue line represents60-minute drive timesfrom the approvedCategory 2 casinoPlainville Penn

National).

Generally, the States ofMassachusetts, RhodeIsland and Connecticut(and Southern NewHampshire) are within

a 90-minute drive timefrom multiple casinos

Springfield

Casino

Mohegan SunMontville

Foxwoods

Twin RiverCasino

Plainville

Park Casino


61/138

Market Area Extent: Geographic Extent

Total market areaextent based onapproximately 90-minute drive timesfrom all existing

and potentialfuture facilities -includes all ofMassachusetts,Rhode Island andConnecticut as well

as the southgernportion of NewHampshire.


62/138

Market Area Extent: Sub-Market Areas

The total market area was divided into 24 sub-market areas to facilshare estimates. Each sub-market area has been delineated based oof existing and proposed facilities, existing road networks, and zip cboundaries.

Existing CasinosFuture Category 1Proposed Category 2


63/138


64/138

Size of Market: Introduction

The size of gaming markets is a function of the adult population (anpropensity to game) and gaming supply available in the market. Thgaming market can be stated in terms of GGR per adult (total GGRadult population).

Factors impacting size of market:

Adult population in market area

Number of facilities

Number of gaming devices

Scope of gaming facilities (amenities)

Acceptance of gaming as a form of entertainment

To determine the size of the market, HLT reviewed the market assereport prepared by the State when it was considering introducing creport did not include a Category 2 casino) and identified and assescomparable markets.


65/138

Size of Market: Spectrum 2010 Report PrepaState

Key Assumptions:

Three resort casinos locatedin the geographic centre ofthe identified MassachusettsRegions.

Market area for each casinobased on a 2-hour drivetime.

Given results and

Region 1 Region 2

Primary Presentation (Moderate Case)

Adult Population 7,938,447 7,186,209

Total GGR Captured by State Casinos $496,700,731 $488,999,275 $

GGR/Adult Captured by State Casinos $63 $68

State Share of total 20.0% 20.0%

Estimated Total Market GGR/Adult $313 $340

Secondary Presentation (Moderate Case)

Adult Population 7,867,726 7,030,110Total GGR Captured by State Casinos $492,275,818 $478,377,173 $


State Share of total 20.0% 20.0%

Estimated Total Market GGR/Adult $313 $340

Alternate Presentation (Moderate Case)

Adult Population 7,867,726 7,030,110

Win/Adult Estimates Based on Spectrum 2010 R

assumptions of the

Spectrum 2010 Report, thesize of identified gamingmarkets (excludingincremental from hotelrooms) ranges from $250 to

$350 GGR/adult, with anaverage of $300/Adult for Appendix A Contains a detailed summar

Total GGR Captured by State Casinos $989,474,395 $466,417,744 $


State Share of total 40.2% 19.5%Estimated Total Market GGR/Adult $313 $340

Note: Spectrum refers to Region 1, Region 2 and Region 3. Region 1 is locate

Massachusetts (currently known as Region A). Region 2 is located in southea

(currently known as Region C) and Region 3 is central/western Massachusetts

Region B).

Source: HLT Advisory Inc. based on Spectrum Gaming Group, Market Analysi

Projections: An Update (prepared for the Massachusetts Legislature), March 3

assumptions.


66/138

Size of Market: Comparison Markets

Key characteristics identified to determine comparable markets inc 3 to 5 main facilities

Urban core and suburban locations

Total market GGR~$1.0 billion

Comparison markets identified: Pittsburgh - Pennsylvania

Philadelphia Pennsylvania

,

estimated. Factors that were assessed included: A market area was defined based on a typical drive time (up to

and the location of competitive facilities.

Total adult population.

Gaming tax rates.

Current performance of market area facilities (revenue by type d b f d i )


67/138

Horseshoe

Cleveland

Market area de

on counties witapproximate 90drive time from(i.e., purple shdue to locationcompetitive cas

Slots/VLTs Tables

Pennsylvan ia 55.0% 16.0%

West Vi rg innia 53.0% 35.0%

State Gaming Taxes

Source: HLT Advisory Inc. based on information

from the American Gaming Association and/or

State data.

Size of Market: Comparison MarketsPittsburgh Pennsylvania

RiversCasino

The Meadows

MountaineerPark

WheelingIsland

HorseshoeCleveland

Lady LuckCasino

90-MinutesDrive Times

fromPittsburgh

& Cleveland

RiversCasino

TheMeadows

MountaineerPark

WheelingIsland

HollywoodC l b

Lady LCasin

Columbus

90-Minutes Drive

Times fromColumbus Rocky GapCasino

Slots/VLTs Tables

Pennsylvania 55.0% 16.0%

West Virginnia 53.0% 35.0%

State Gaming Taxes



68/138

Size of Market: Comparison MarketsPittsburgh Pennsylvania

Market area adult population (21+) estimated at 2.7 million.

Five casino within market area (three in Pennsylvania and two in generating currently total GGR of $919.1 million.

If all GGR generated at the identified facilities originates from witdefined market area, the Pittsburgh market has a captured GGR p

of ~$350.

That said, a substantial portionof the West Virginia casinosbusiness likely originates from

GGR

Adult Population 2,651,862

Pennsylvania Casinos

Pittsburgh Market Area GGR and GGR/Ad

o eyon e e ne

Pittsburgh market area). If halfof West Virginia casinos GGRoriginates outside the definedmarket area, the Pittsburghmarket area has a capturedGGR per adult rate of ~$300.

ot n , ,

Table Win $105,273,685

Subtotal Pennsylvania $629,458,580

West Virginia Casinos

Slot Win $259,719,313

Table Win $29,971,943

Subtotal West Virginia $289,691,257

Total Pittsburgh Market Area $919,149,837

Source: HLT Advisory Inc based on information from Pennsylvania


69/138

Size of Market: Comparison MarketsPhiladelphia Pennsylvania

SandsCasino

Market area deon counties witapproximate 60time from Philapurple shaded location of com

casinos.

SugarHouse

HarrahsPhiladelphia

ValleyForge

Sands

MountAiry

HollywoodCasino

ParxCasino

60-MinutesDriveTimes

ParCasi

SugarHouse

HarrahsPhiladelphia

ValleyForge

Hollywood

Casino

DelawareParkHollywood

Casino

Slots/VLTs Tables


Delaware 59.5% 35.0%

State Gaming Taxes

AtlanticCity

Casino

DelawarePark

Dover'sPark

HollywoodCasino

MarylandLive

60-MinutesDrive


70/138

Size of Market: Comparison MarketsPhiladelphia Pennsylvania

Market area adult population (21+) estimated at 4.6 million. Five casino within market area (four in Pennsylvania and one in D

Total current GGR $1.3 billion.

If all GGR generated at identified facilities originates from within market area, the Philadelphia market area has a captured GGR peof ~$300.

GGR

GGR %

Distribution

GGR/

Adult


Philadelphia Market Area GGR and GGR/Adult Estimates

ennsyvan a as nos

Slot Win $857,026,385 63.7% $188

Table Win $311,299,389 23.1% $68Subtotal Pennsylvania $1,168,325,773 86.8% $256

Delaware Casinos

Slot Win $148,339,200 11.0% $33

Table Win $29,066,199 2.2% $6

Subtotal Delaware $177,405,399 13.2% $39

Total Philadelphia Market Area $1,345,731,172 100.0% $295


71/138

Size of Market: Existing Market Area CompetRhode Island

Based on secondaryinformation sources, HLTestimates that 50% of casinosGGR originates from the Stateof Massachusetts.

Twin River Newport

Gaming Devices

Slots 4,500 1,000

Tables 66

F&B Facilities

Rhode Island Casinos - Characteristics

Twin RCas

Slots/VLTs Tables

Rhode Island 60.8% 18.0%

Connecticut 25% - 30%

State Gaming Taxes



State data.

F&B Outlets 2 1

Food Court 3

Other Ancillary Facilities

Entertainment Outlets 2 1

Entertainment 29,000 sf and

200 seats

400 seats

Other Characteristics

Smoking Allowed Yes Yes

Source: HLT Advisory Inc. based on data from casino annualreports, State gaming commission reports, and casino

websites

Mohegan SunCasino Foxwoods

Casino

Casino Name 2006 2007 2008 2009 2010 2011 201

Slot Revenue

Twin River* $329 $375 $407 $400 $424 $463 $4

Newport $77 $73 $68 $62 $53 $50 $

Rhode Island Casino Performance ($Millio


72/138

Size of Market: Existing Market Area CompetExisting Competitive Facilities Connecticut

Mohegan Sun Foxwoods

Gaming Devices

Slots* 5,559 6,229

Tables 330 350

F&B Facilities

F&B Outlets 17 17

Connecticut Casinos - Characteristics

Casino Name FY2007 FY2008 FY2009 FY2010 FY2011 FY201Slot Revenue

Mohegan Sun $922 $856 $780 $746 $711 $

Foxwoods $803 $748 $688 $650 $637 $

Subtotal Slot GGR $1,725 $1,604 $1,468 $1,396 $1,348 $1,

Table Revenue

Mohegan Sun $360 $375 $306 $296 $305 $

Foxwoods $342 $359 $355 $335 $312 $

Subtotal Table GGR $702 $734 $661 $631 $617 $

Total GGR

Mohegan Sun $1,282 $1,231 $1,086 $1,042 $1,016 $

Foxwoods $1,145 $1,107 $1,043 $985 $949 $

Total GGR $2,427 $2,338 $2,129 $2,027 $1,965 $1,

Connecticut Casino Performance ($Million)

Estimates for FY2012 and FY2013 based on data reported by the State of Connecticut, d

Mashantucket Pequot Tribal Nation Bondholder Presentation (Aug 2012) and HLT estima

Based on secondaryinformation sources, HLTestimates that 30% ofcasinos GGR originates fromthe State of Massachusetts.

Food Court 4 2

Other Ancillary FacilitiesEntertainment Outlets 3 2

Entertainment 10,000 seats

400 seats

350 seats

4,000 seats

1,500 seats

Additional Convention Space 100,000 sf 50,000 sf

Hotel Rooms 1,200 2,205


Smoking Allowed Yes Yes

Tax Rate

Source: HLT Advisory Inc. based on data from casino annual reports,

25%-30% of slot revenue

.

information from the State of Connecticut Department of Consumer Protection and HLT e

Slots/VLTs Tables

Rhode Island 60.8% 18.0%

Connecticut 25% - 30%

State Gaming Taxes



State data.


73/138

Size of Market: Existing Market Area CompetExisting Competitive Facilities - RI & CT

Category 1 & 2 casinos will have to compete with established RhodeConnecticut casinos for a share of the market.

Twin Rivers (Rhode Island) has a market competitive advantageCategory 2 casino due to its size and scope of gaming offering (4machines and 66 table games), and smoking. Its gaming tax raamenity offerings is similar to the Category 2 casino.

Category 1 casinos on the other hand will have a competitive adTwin Rivers casino due to its greater range of non-gaming amenlower tax rate.

The Connecticut casinos have a market competitive advantage oCategory 2 casino due to their size and scope of gaming offeringslot machines each and 300 table games each), their amenity faofferings (hotel rooms and meeting space, multiple food and bevoutlets, and multiple entertainment facilities), their tax rate and

The size and scope, amenities offering and tax rate (for slot gamCategory 1 casinos is very similar to Connecticut casinos (excep


74/138

Size of Market: Massachusetts Market AreaPotential GGR/Adult - Conclusions

Based on the review of the Spectrum Report and identified compamarkets, HLT believes that a GGR/adult level ranging between $3is appropriate to estimate the size of the Massachusetts casino ma

Connecticut and Rhode Island casinos currently penetrate the Masmarket (estimated at ~$750 million) and will compete with Massacasinos in the future for a share of the market (in total, the broadmarket will contain eight casinos when fully developed).

Both Rhode Island and Connecticut casinos have significant cadvanta es over the Cate or 2 casino.

Category 1 casinos have a competitive advantage over Rhodcasinos and the Category 2 casino, and will be able to effectiwith Connecticut casinos.


75/138


76/138

Market Shares: Introduction

The market performance of the proposed Category 1 facilities will bon:

Size and Scope of propose facility.

Operating environment compared to competitive casinos (e.g., type of gaming devices permitted including restrictions, tax rate

policy, amenity facilities and use of the same to drive visitation,

Proximity to competitive facilities.

Proximity to market area population.

Facilit ca acit constraints e. . number of ermitted amin parking, etc.).


77/138

Market Shares: Competitive Environment

Proposed Category 1facilities are similar in sizeand scope relative existingcompetitors:

Three of four existingcompetitive casinoscontain between 4,500and 6,300 slotmachines, offer tablegames and have various

Region B Category 2Springfield/

MGM

Revere/

Mohegan

Everett/

Wynn

Plainville/

Penn National Twin RiveGaming Devices

Slots* 3,000 4,240 3,072 1,250 4,500

Tables 100 120 150 66

F&B Facilities

F&B Outlets 7 20 9 2 2

Food Court 1 n/p n/p 1 3

Other Ancillary Facilities

Entertainment Outlets 1 2 1 2

Entertainment To partner with

existing centres

(e.g., Mass

Mutual &

Symphony

Hall/CityStage)

38,000 sf

(950 seat) multi-

purpose venue

1,000 seat multi-

purpose venue,

500 seat outdoor

amphitheatre

< 100

seats

29,000 sf a

200 seats

Additional Convention

Space

19,388 sf

Hotel Rooms 1 Hotel

(250 rooms)

2 Hotels

(325 and 175

1 Hotel

(500 rooms)

Proposed Category 1 and Competitive Casino Characteristics

Massachusetts Rhod

Region A

anc ary ac es.

Category 1 facilities areproposed to offerbetween 3,000 and4,240 slots and between100 to 150 table games.

Retail 8,000 sf branded

retail 35,000 sf

outdoor retail

Sub-contracted

the Retail, Dining

& Entertainment("RDE") complex

is 150,000 sf

89,140 sf in retail

corridor (premium

retail stores andrestaurants)

2 retail

outlets


Smoking Allowed No No No No Yes

Tax Rate 25% of total

GGR

25% of total

GGR

25% of total

GGR

49% of slot

revenue

Source: HLT Advisory Inc. Based on casino annual reports, state gaming commission reports, individual casino websites and Applic

n/p: not provided.

* Connecticut slot machines totals based on December 2012 as reported by the State of Connecticut.

60.8% of

18% of ta

The Category 1 facilities will operate in an environment similar to competitors (i e similar tax rates on slot gaming) However unli


78/138

Market Shares: Full Competition

Key Assumption/Notes:1. Size of market under full competition (i.e., including the awarded

casino) has been estimated based on a $300 GGR/adult, a $350 as well as on a blended GGR/adult level. The blended GGR/adultbeen generally based on the following assumptions:

$375 for areas with a casino. $325 for areas adjacent to casino markets.

$275 for all other areas.

Note: GGR adult includes both slot and table GGR.

2. Three Category 1 facility locations assumed for the proposed of assessment: Boston (Region A), Springfield (Region B) and TaunC).

3. Inflow from beyond the defined market area has not be estimateCategory 1 facilities.

4. For the purposes of this analysis, timing (i.e. when a facility will operational) was not factored into the analysis, nor was potentia


79/138


80/138

Market Shares: Full CompetitionRegion B (Springfield) Market Shares Resul

Market Areas

Market

Shares

At $300/

Adult

Blended

Ad

Massachusetts South Central - Springfield 80.0% $104,408,400 $13

Connecticut North Central 30.0% $66,092,940 $7

Markets Within 0-30 Minutes $170,501,340 $20

Worcester/Milford 25.0% $29,623,800 $3

Massachusetts North Central 80.0% $26,854,080 $2

Massachusetts West 80.0% $26,297,520 $2

Connecticut East 5.0% $7,032,915 $

Connecticut West 10.0% $41,485,170 $3


Leominster 25.0% $11,258,550 $1

Boston Suburbs - Northwest 15.0% $14,190,975 $1

Boston Suburbs - Southwest 15.0% $8,451,000 $

Springfield (Region B) Category 1 Casino - Summary of GGR EsSub-market areas havebeen organized(generally) by drivetimes for illustrationpurposes only.

. , ,

Rhode Island North 5.0% $8,692,800 $1

New Hampshire Southwest 20.0% $16,098,600 $1


Central Boston 5.0% $11,724,375 $1

Central Boston - North 5.0% $5,798,625 $

Central Boston - South 5.0% $3,426,630 $

Rhode Island South 5.0% $2,839,665 $

Raynham 5.0% $2,169,870 $

Massachusetts Southwest 5.0% $4,762,275 $

Massachusetts Southeast 5.0% $3,459,285 $

Cape Cod 5.0% $2,915,850 $

Boston Suburbs - North 5.0% $7,598,640 $

Boston Suburbs - South 5.0% $2,690,055 $

New Hampshire East 5.0% $6,802,395 $


81/138

45%

35%

75%

75%

75%

50%25%

Market Shares: Full CompetitionRegion A (Boston) Market Shares Results

50%

5%

5%35%

30, 60minute d

are incillus

purpo

10%

5%

5%

5%

5%

5% 5% 5%

10%

10%

10%


82/138

Market Shares: Full CompetitionRegion A (Boston) GGR Estimates

Market Areas

Market

Shares

At $300/

Adult

Blen

Central Boston 75.0% $175,865,625 $

Central Boston - North 75.0% $86,979,375

Central Boston - South 50.0% $34,266,300


Boston Suburbs - South 20.0% $10,760,220

Markets Within 0-30 Minutes $421,851,120 $

New Hampshire East 50.0% $68,023,950

Boston Suburbs - Northwest 45.0% $42,572,925

Boston Suburbs - Southwest 25.0% $14,085,000

Raynham 10.0% $4,339,740

Plainville 10.0% $3,084,900

Massachusetts Southwest 5.0% $4,762,275

Massachusetts Southeast 10.0% $6,918,570

Boston (Region A) Category 1 Casino - Summary of GGR ESub-market areas havebeen organized(generally) by drivetimes for illustrationpurposes only.

. , ,


New Hampshire Southwest 35.0% $28,172,550Leominster 35.0% $15,761,970

Worcester/Milford 25.0% $29,623,800

Rhode Island North 5.0% $8,692,800

Rhode Island South 5.0% $2,839,665

Markets Within 60-90 Minutes $85,090,785

Massachusetts North Central 5.0% $1,678,380

Massachusetts South Central - Springfield 5.0% $6,525,525

Massachusetts West 5.0% $1,643,595

Connecticut East 5.0% $7,032,915

Connecticut North Central 5.0% $11,015,490Connecticut West 5.0% $20,742,585

Markets Beyond 90-Minutes $48 638 490


83/138


84/138

Market Shares: Full CompetitionRegion C (Taunton) GGR Estimates

Market Areas

Market

Shares

At $300/

Adult

Blende

A

Raynham 47.5% $20,613,765 $

Massachusetts Southwest 50.0% $47,622,750 $


Central Boston 5.0% $11,724,375 $

Central Boston - North 5.0% $5,798,625

Central Boston - South 15.0% $10,279,890 $Boston Suburbs - South 25.0% $13,450,275 $

Boston Suburbs - Southwest 20.0% $11,268,000 $

Plainville 20.0% $6,169,800

Massachusetts Southeast 60.0% $41,511,420 $

Cape Cod 60.0% $34,990,200 $

Rhode Island North 10.0% $17,385,600 $

Rhode Island South 10.0% $5,679,330

Taunton (Region C) Category 1 Casino - Summary of GGR EsSub-market areas havebeen organized(generally) by drivetimes for illustrationpurposes only.



Boston Suburbs - Northwest 15.0% $14,190,975 $Leominster 15.0% $6,755,130

Worcester/Milford 15.0% $17,774,280 $

Connecticut East 5.0% $7,032,915


New Hampshire East 10.0% $13,604,790 $

New Hampshire Southwest 5.0% $4,024,650

Massachusetts North Central 5.0% $1,678,380

Massachusetts South Central - Springfield 5.0% $6,525,525

Massachusetts West 5.0% $1,643,595

Connecticut North Central 5.0% $11,015,490 $Connecticut West 5.0% $20,742,585 $


85/138

R bl f A li t R P j


86/138

Reasonableness of Applicants Revenue ProjeSpringfield/MGM

At $300 Blended At $350

HLT's Defined Market Area* $416.2 $452.9 $485.6

Other Sources of Revenue

Outside HLT's Defined Market Area** n.a. n.a. n.a.

Projected GGR for Springfield Category 1 Casino

HLT Estimates vs. MGM Financial Projections

Gaming Revenues by Areas

HLT Estimate

MGMs casino will generate $436.7 million or 87.4% of its total reveHLTs defined market area. This amount is similar to HLTs estimatblended GGR/adult level.

In addition, MGMs casinocould also generate inflow ofabout $62.9 million or12.6% of total revenue.

Note: while some of the

MassMutuel Centre n.a. n.a. n.a.

Hall of Fame n.a. n.a. n.a.

Traffic Counts n.a. n.a. n.a.Tourist n.a. n.a. n.a.

Hotel n.a. n.a. n.a.

Total Other Sources n.a. n.a. n.a.

Total GGR $416.2 $452.9 $485.6

n.a.: Not available

Source: HLT Advisory Inc. based on information from Union Gaming Analytics, MGM Re

Springfield Market Study - Appendix Update, November 2013 and HLT estimates.

* $436.7 million in GGR for Year 3 are estimated to come from within the defined HLT ma

information provided in MGM's third party market assessment and HLT estimates

likely will be generated byresidents of the definedmarket area, HLT hasassumed that these othersources represent inflow forthe purposes of this

assessment.

R bl f A li t R P j


87/138

Reasonableness of Applicants Revenue ProjeSummary

MGMs revenue projections are consistent with HLTs market assesFurther, MGMs inflow estimates are reasonable and consistent witmarketing program submitted (i.e., leverage existing visitation to Springfield area and New York State given Springfields location reNew York).


88/138

Market AssessmentAppendices


Massachusetts Gaming Commission

June 2014


89/138

Table of Contents

Appendix A: Summary of Spectrum 2010 Report

Appendix B: Comparison Markets

Appendix C: Full Competition Detailed Tables


90/138

Appendix A: Spectrum 2010 Report

In February 2008, Spectrum was retained by the Commonwealth oMassachusetts to analyze the proposal to authorize three commercdestination casino resorts in the State and to project its potential imreport was titled Comprehensive Analysis: Projecting and PreparinPotential Impact of Expanded Gaming on Commonwealth of Massacand dated August 1, 2008 (Spectrum 2008 Report).

In 2010, Spectrum updated the original estimates prepared in 2008updated report was titled Market Analysis, Gross Gaming Revenue

An Update and dated March 31, 2010 (Spectrum 2010 Report).

It should be noted, that Spectrum did not consider the introduction

Category 2 (slots only) facility in the State in both of their reports.

The following pages provide a summary of the Spectrum 2010 Rep


91/138



92/138

Appendix A: Spectrum 2010 ReportAssumptions

Each set of projections/presentations can be summarized as follo

1. Primary Presentation assumes the following:

Two-hour drive time population estimates based on county geography.

Year three (stabilized year) each facility will capture 20.0visits generated from market area.

Each casino with 3,000 slots, 100 tables, 40 poker tables aroom hotel.

2. Secondary Presentation assumes the following:

Two-hour drive time population estimates based on zip codgeography.

Year three (stabilized year) each facility will capture 20.0visits generated from market area.

Each casino with 3,000 slots, 100 tables, 40 poker tables aroom hotel


93/138



94/138

Appendix A: Spectrum 2010 ReportAssumptions

Key revenue modeling assumptions:

Adult population: 73.2% of total population (US Census Burea

Gaming Incidence Rate: 28.0% (Harrahs National Survey)

Avg. Annual Trips: 6.7 (Harrahs National Survey)

Regions Share of Visits: 20.0% for each region for primary anprojections. Alternative projection estimated at 40.2% for Re19.5% for Region 2 and 20.7% for Region 3

Gaming Value of Visits: $150 (based on Atlantic City Model), b

Gross Slot Win: 68.1% of total GGR (Atlantic City Average) Gross Table Win: 29.9% of total GGR (Atlantic City Average)

Gross Poker Win: 2.0% of total GGR (Atlantic City Average)

Tax Rate: 27.0% of GGR after $100,000 minimum

Incremental GGR from hotel estimated based on:* Casino to capture 36 0% of total hotel visitors


95/138


96/138



97/138

Appendix A: Spectrum 2010 ReportAlternate Projections - Results

Table below presents the results for Year Three (2016) under the moderate c

Region 1 Region 2 Region 3

Market Area Win

Adult Population 7,867,726 7,030,110 7,769,099

Gaming Participation Rate 28% 28% 28%

Gaming Population 2,202,963 1,968,431 2,175,348

Avg. Visits/Gaming Pop 6.7 6.7 6.7Total Gaming Visits 14,759,854 13,188,486 14,574,830

Region's Share of Total 40.2% 19.5% 20.7%

Total Region's Visit 5,933,461 2,571,755 3,016,990

Gaming Value/Visit $167 $181 $136

GGR from Market $989,474,395 $466,417,744 $411,490,946 $1

Alternate Presentation (Moderate Scenario) - Year 3

Incremental Win

Number of Rooms 2,000 1,500 1,500 Available Room Nights 730,000 547,500 547,500

Incremental Room Nights Capture Rate Beyond 2 hrs. 37% 37% 37%

Incremental Room Nights Captured Beyond 2 hrs. 270,100 202,575 202,575

Gaming Value/Room $339 $339 $339

Incremental GGR from Hotel $109,716,982 $82,287,736 $82,287,736

Total GGR $1,099,191,377 $548,705,480 $493,778,682 $2

Source: Spectrum Gaming Group, Market Analysis, Gross Gaming Revenue Projections: An Update (prepared


98/138


99/138



100/138

90-MinDrive T

Rivers

MountaineerPark

HorseshoeCleveland

Appendix B: Comparison MarketsPittsburgh

Slots/VLTs Tables


West Virginnia 53.0% 35.0%

State Gaming Taxes



State data.

asno

TheMeadows

WheelingIsland

HollywoodColumbus

Market area defined based on counties

Lady LuckCasino


101/138



102/138

Appendix B: Comparison MarketsPittsburgh

$1.00

$1.25

$1.50

n($Billion)

Pittsburgh Area Casino Gross Gaming Revenue Trends

Casinos in West Virginia

Casinos in Pennsylvania

The Meadows

Tables GamesIntroduced inWest Virginia

(Fall 2007)

Rivers CasinoOpened in

Pennsylvania(Aug 2009)

La

OPen

(Ju

$0.83

Tables GamesIntroduced inPennsylvania

(Jul 2010)

$0.93$0.99

CasinosIntroduced in

Ohio(May 2012)

$0.25

$0.50

.

CasinoWi

Pennsylvania(Jun 2007)

0.70

$0.46

$0.65


103/138

d k


104/138

GGR D


Pittsburgh Market Area GGR and GGR/Adult

Appendix B: Comparison MarketsPittsburgh - Captured GGR/Adult Estimate

If we assumed all GGR generated at the identified facilities originatethe defined market area (~90 minute drive-time from Pittsburgh urthe Pittsburgh market has a captured GGR per adult rate of ~$350.substantial portion of the West Virginia casinos business likely origiOhio (beyond the defined Pittsburgh market area).

If we assumed that halfof West Virginia casinos


Slot Win $524,184,895Table Win $105,273,685

Subtotal Pennsylvania $629,458,580

West Virginia Casinos

Slot Win $259,719,313

Table Win $29,971,943

Subtotal West Virginia $289,691,257

Total Pittsburgh Market Area $919,149,837

the defined market area,the Pittsburgh marketarea has a captured GGRper adult rate of ~$300.



105/138

Appendix B: Comparison MarketsPhiladelphia

Parx

Sands

Mount Airy

HollywoodCasino

60-MinutesDrive Times

Casino

SugarHouse

HarrahsPhiladelphia

a eyForge

DelawarePark

Hollywood

Casino



106/138


ParxCasino

SugarHouse

ValleyForge

SandsCasino

Hollywood

Casino

Slots/VLTs Tables


Delaware 59.5% 35.0%

State Gaming Taxes



State data.

Market area definecounties within a 6drive time from Ph

HarrahsPhiladelphia

DelawarePark

HollywoodCasino



107/138


State County

Total

population

GamerPopulation

21+

GamerPopulation %

of Total

Pennsylvania Bucks 627,053 465,150 74%

Pennsylvania Chester 506,575 361,632 71%

Pennsylvania Delaware 561,098 403,686 72%

Pennsylvania Montgomery 808,460 597,409 74%

Pennsylvania Philadelphia 1,547,607 1,112,813 72%

Subtotal Pennsylvania 4,050,793 2,940,690 73%

Delaware New Castle 546,076 391,477 72%Subtotal Delaware 546,076 391,477 72%

New Jersey Burlington 451,336 332,574 74%

New Jersey Camden 513,539 370,772 72%

New Jersey Gloucester 289,586 209,074 72%

New Jersey Mercer 368,303 266,737 72%

New Jersey Salem 65,774 48,250 73%

Pittsburgh Market Area Population by County

Population and Gaming Supply Market Area Adult Population (2

at 4.6 million.

Five casino within market area Pennsylvania and one in Delaw

Total current GGR $1.3 billion.

Casinos Slots Tables To


Philadelphia Market Area

Existing Casino Facilities

Current Performance*

Subtotal New Jersey 1,688,538 1,227,406 73%

Total Philadelphia 6,285,407 4,559,573 73%

Source: HLT Advisory Inc. based on US Census Bureau and HLT estimates.

Parx Casino $373,491,166 $116,073,435

Harrah's Philadelphia $240,437,437 $78,189,710

SugarHouse Casino $183,028,836 $84,520,980Valley Forge Casino Resort $60,068,946 $32,515,263

Subtotal $857,026,385 $311,299,389 $1

Delaware Casinos

Delaware Park $148,339,200 $29,066,199

Subtotal $148,339,200 $29,066,199

Total Philadelphia $1,005,365,585 $340,365,588 $1

* Twelve months ending September 2013.

Source: HLT Advisory Inc. based on the Pennsylvania Gaming Control Board



108/138


$6.0

$8.0

$10.0

ues($Billion)

Casino Revenue Performance in the BroaderRegional Casino Market Area

Maryland Hollywood Park

Sands Casino Resort Bethlehem

Philadelphia

Delaware Park

Atlantic City

$5.5$5.8

$5.5

$5.0$5.1

$5.0 $5.1

$2.0

$4.0

GamingReve

.


mass. gaming commission report on mgm springfield's finances and revenue projections

Documents