MarketLine Industry Profile

Casinos & Gaming in the United States

April 2022

Reference Code: 0072-2019

Publication Date: April 2022

Primary NAICS: 721120

Secondary NAICS: 713210,713290

WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

 Casinos & Gaming in the United States

Industry Profiles

1. Executive Summary

1.1. Market value

The United States casinos & gaming sector grew by 22.1% in 2021 to reach a value of $156.4 billion.

1.2. Market value forecast

In 2026, the United States casinos & gaming sector is forecast to have a value of $224.5 billion, an increase
of 43.6% since 2021.

1.3. Category segmentation

Lotteries is the largest segment of the casinos & gaming sector in the United States, accounting for 66.6%
of the sector's total value.

1.4. Geography segmentation

The United States accounts for 37.6% of the global casinos & gaming sector value.

1.5. Market rivalry

The presence of large incumbents in the US casinos & gaming sector mean the degree of rivalry is assessed
as moderate.

1.6. Competitive Landscape

The US sector consists of four leading players, MGM Resorts International, Caesars Entertainment
Corporation, New York State Lottery and Florida State Lottery. The main sector players are based in the US,
which indicates the strong presence of US companies in the sector. Players are focused on serving a broad
client base and mitigating the risk of operating in a single market by operating a broad product portfolio.
The recent outbreak of coronavirus has led to either the cancellation or postponement of a number of
major sporting events globally, which has disrupted growth in the casinos & gaming sector significantly. In
addition, the coronavirus outbreak has forced businesses to shut down and implement new health and
safety measures in order to keep consumers and staff safe. This has reduced profits for the market players
to a great extent, especially the ones with no online presence already established.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Casinos & Gaming in the United States

Industry Profiles

TABLE OF CONTENTS
1. Executive Summary2

1.1. Market value .............................................................................................................................................. 2

1.2. Market value forecast ................................................................................................................................ 2

1.3. Category segmentation .............................................................................................................................. 2

1.4. Geography segmentation .......................................................................................................................... 2

1.5. Market rivalry ............................................................................................................................................ 2

1.6. Competitive Landscape .............................................................................................................................. 2

2. Market Overview7

2.1. Market definition ....................................................................................................................................... 7

2.2. Market analysis .......................................................................................................................................... 7

3. Market Data9

3.1. Market value .............................................................................................................................................. 9

4. Market Segmentation10

4.1. Category segmentation ............................................................................................................................ 10

4.2. Geography segmentation ........................................................................................................................ 12

5. Market Outlook13

5.1. Market value forecast .............................................................................................................................. 13

6. Five Forces Analysis14

6.1. Summary .................................................................................................................................................. 14

6.2. Buyer power............................................................................................................................................. 15

6.3. Supplier power ......................................................................................................................................... 17

6.4. New entrants ........................................................................................................................................... 18

6.5. Threat of substitutes ................................................................................................................................ 19

6.6. Degree of rivalry ...................................................................................................................................... 20

7. Competitive Landscape21

7.1. Who are the leading players? .................................................................................................................. 21

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

Casinos & Gaming in the United States

Industry Profiles

7.2. What strategies do the leading players follow? ...................................................................................... 21

7.3. What has been the recent M&A activity? ................................................................................................ 22

8. Company Profiles23

8.1. MGM Resorts International ..................................................................................................................... 23

8.2. New York State Lottery ............................................................................................................................ 26

8.3. Caesars Entertainment, Inc. ..................................................................................................................... 28

9. Macroeconomic Indicators32

9.1. Country data ............................................................................................................................................ 32

Appendix 34

Methodology ........................................................................................................................................................... 34

9.2. Industry associations ............................................................................................................................... 35

9.3. Related MarketLine research ................................................................................................................... 35

About MarketLine .................................................................................................................................................... 36

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Casinos & Gaming in the United States

Industry Profiles

LIST OF TABLES
Table 1: United States casinos & gaming sector value: $ billion, 2017–21 9

Table 2: United States casinos & gaming sector category segmentation: % share, by value, 2017–2021 10

Table 3: United States casinos & gaming sector category segmentation: $ billion, 2017-2021 10

Table 4: United States casinos & gaming sector geography segmentation: $ billion, 2021 12

Table 5: United States casinos & gaming sector value forecast: $ billion, 2021–26 13

Table 6: MGM Resorts International: key facts 23

Table 7: MGM Resorts International: Annual Financial Ratios 24

Table 8: MGM Resorts International: Key Employees 25

Table 9: New York State Lottery: key facts 26

Table 10: New York State Lottery: Key Employees 27

Table 11: Caesars Entertainment, Inc.: key facts 28

Table 12: Caesars Entertainment, Inc.: Annual Financial Ratios 30

Table 13: Caesars Entertainment, Inc.: Key Employees 31

Table 14: United States size of population (million), 2017–21 32

Table 15: United States gdp (constant 2005 prices, $ billion), 2017–21 32

Table 16: United States gdp (current prices, $ billion), 2017–21 32

Table 17: United States inflation, 2017–21 32

Table 18: United States consumer price index (absolute), 2017–21 33

Table 19: United States exchange rate, 2017–21 33

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Casinos & Gaming in the United States

Industry Profiles

LIST OF FIGURES
Figure 1: United States casinos & gaming sector value: $ billion, 2017–21 9

Figure 2: United States casinos & gaming sector category segmentation: $ billion, 2017-2021 11

Figure 3: United States casinos & gaming sector geography segmentation: % share, by value, 2021 12

Figure 4: United States casinos & gaming sector value forecast: $ billion, 2021–26 13

Figure 5: Forces driving competition in the casinos & gaming sector in the United States, 2021 14

Figure 6: Drivers of buyer power in the casinos & gaming sector in the United States, 2021 15

Figure 7: Drivers of supplier power in the casinos & gaming sector in the United States, 2021 17

Figure 8: Factors influencing the likelihood of new entrants in the casinos & gaming sector in the United States,
2021 18

Figure 9: Factors influencing the threat of substitutes in the casinos & gaming sector in the United States, 202119

Figure 10: Drivers of degree of rivalry in the casinos & gaming sector in the United States, 2021 20

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 6

 Casinos & Gaming in the United States

Industry Profiles

2. Market Overview

2.1. Market definition

The casinos and gaming market consists of all forms of betting and gaming. All values are stated in terms of gross
gaming win (GGR). This is the total amount waged by customers minus the total amount paid out to customers as
winnings, but before the payment of any applicable taxes, disbursements to charitable or other causes by games
established for those purposes, or other expenses.
The casinos segment covers all gambling activities carried out within casino establishments, such as card games,
roulette, and slot machines located in casinos; tips and admission fees are included, but additional revenues such
as sales of food, drink, and accommodation are excluded.
The lotteries segment covers all state, private, and charitable lotteries, and includes traditional draws, scratchcard
games, and similar products offered by lottery operators.
The sports betting and related segment covers gambling on the outcome of horse races, football matches, and
other events, and includes gambling services offered by bookmakers and also pari-mutuel/totalisator operators.
The other segment covers bingo, slot machines located outside casinos, pachinko, etc. In North America, so-called
'Indian casinos' are covered in this segment, not the casino segment.
Online casino and gaming activity, with the exception of online purchases of lottery entry, is not included.
Recreation-only slot machines that do not pay out any form of prize are excluded.
The report only includes gaming activities that are legal in the country where they are offered.
All market data and forecasts are represented in nominal terms (i.e. without adjustment for inflation) and all
currency conversions used in the creation of this report have been calculated using constant 2021 annual average
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.

2.2. Market analysis

Following decline in 2019 and 2020, the US casinos & gaming sector recovered to post strong growth in 2021. The
sector looks set to grow at a healthy rate throughout the forecast period.
Growth in the casinos & gaming sector is highly correlated with regulations concerning gambling. Geographic areas
with relatively loose regulations would experience higher growth than areas with stricter regulation. The sector
has experienced huge disruption from online betting. The online gambling industry continues to go from strength
to strength and is now a major threat to casinos. Customers are now able to play the same games, and have the

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 7

Casinos & Gaming in the United States

Industry Profiles

same chances of winning, from the comfort of their own home. This has left traditional casino chains vulnerable to
online specialists such as Bet365. Online operators offer online casino games which reduces footfall into casinos.
Casinos rely on food and drinks sales to generate additional revenue, and lower footfall will reduce this revenue
stream.
The US casinos & gaming sector had total gross gaming win of $156.4bn in 2021, representing a compound annual
growth rate (CAGR) of 4.3% between 2017 and 2021. In comparison, the European and Asia-Pacific sectors
declined with compound annual rates of change (CARCs) of -1.4% and -3.2% respectively, over the same period, to
reach respective values of $87.6bn and $141.2bn in 2021.
The casino gaming sector witnessed significant revenue growth in 2018, after several major American commercial
casino states implemented new policies. Pennsylvania underwent an important policy development last year.
States such as New Jersey, Nevada, Oklahoma, Maryland, and Louisiana took actions in order to remove hidden
restrictions that limit growth and boost the implementation of new technologies. In 2017, the U.S. Supreme Court
called the Professional and Amateur Sports Protection Act (PASPA), authored by the former U.S. Senator Dennis
DeConcini of Arizona, unconstitutional. The Supreme court ruling paved the way for individual states to control
sports betting within their jurisdiction.
The COVID-19 outbreak impacted the sector greatly in 2020. Casinos were forced to shut their business for most of
the year due to the ongoing coronavirus restrictions and lockdowns. Many games provided by the casino require
attendants to be close to each other or being played between groups of people. Thus, when casinos were open,
they needed to adjust their games and follow the government’s coronavirus safety measures, decreasing demand
for the sector in general.
The lotteries segment was the sector's most lucrative in 2021, with total gross gaming win of $93.8bn, equivalent
to 60% of the sector's overall value. The casinos segment contributed gross gaming win of $43.3bn in 2021,
equating to 27.7% of the sector's aggregate value.
Due to lockdowns and casinos being shut during the pandemic, consumers had easier and faster access than
before to lotteries, as they are often available in many different retail establishments, rather than specialist
facilities.
The performance of the sector is forecast to accelerate, with an anticipated CAGR of 7.5% for the five-year period
2021 - 2026, which is expected to drive the sector to a value of $224.5bn by the end of 2026. Comparatively, the
European and Asia-Pacific sectors will grow with CAGRs of 5.8% and 5.1% respectively, over the same period, to
reach respective values of $116.3bn and $181.0bn in 2026.
As the COVID-19 vaccine has been rolled out successfully, a return to normality has been evident. As casinos &
gaming establishments continue to open to the public without restrictions, a return to the growth levels seen prior
to the pandemic will be evident.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 8

 Casinos & Gaming in the United States

Industry Profiles

3. Market Data

3.1. Market value

The United States casinos & gaming sector grew by 22.1% in 2021 to reach a value of $156.4 billion.
The compound annual growth rate of the sector in the period 2017–21 was 4.3%.

Table 1: United States casinos & gaming sector value: $ billion, 2017–21
Year $ billion € billion % Growth
2017 132.0 111.6
2018 143.5 121.3 8.6%
2019 143.0 120.8 (0.4%)
2020 128.0 108.2 (10.4%)
2021 156.4 132.2 22.1%

CAGR: 2017–21 4.3%

SOURCE: MARKETLINE MARKETLINE

Figure 1: United States casinos & gaming sector value: $ billion, 2017–21

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 9

 Casinos & Gaming in the United States

Industry Profiles

4. Market Segmentation

4.1. Category segmentation

Lotteries is the largest segment of the casinos & gaming sector in the United States, accounting for 66.6% of the
sector's total value.
The Casinos segment accounts for a further 30.7% of the sector.

Table 2: United States casinos & gaming sector category segmentation: % share, by value, 2017–2021

Category 2017 2018 2019 2020 2021

Lotteries 69.7% 66.2% 63.7% 71.4% 66.6%
Casinos 30.1% 33.5% 35.6% 27.4% 30.7%
Sports Betting And 2.6%
0.2% 0.3% 0.7% 1.2%
Related

Total 100% 100% 100% 100% 99.9%

SOURCE: MARKETLINE MARKETLINE

Table 3: United States casinos & gaming sector category segmentation: $ billion, 2017-2021
Category 2017 2018 2019 2020 2021 2017-21
CAGR(%)
Lotteries 80,774.7 84,596.2 81,182.4 80,152.9 93,778.9 3.8%
Casinos 34,945.8 42,763.5 45,422.7 30,811.5 43,267.8 5.5%
Sports Betting And 96.3%
248.8 429.1 905.6 1,319.1 3,693.6
Related

Total 115,969.3 127,788.8 127,510.7 112,283.5 140,740.3 5%

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 10

 Casinos & Gaming in the United States

Industry Profiles

Figure 2: United States casinos & gaming sector category segmentation: $ billion, 2017-2021

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 11

 Casinos & Gaming in the United States

Industry Profiles

4.2. Geography segmentation

The United States accounts for 37.6% of the global casinos & gaming sector value.
The Asia-Pacific accounts for a further 34% of the global sector.

Table 4: United States casinos & gaming sector geography segmentation: $ billion, 2021
Geography 2021 %
United States 156.4 37.6
Asia-Pacific 141.2 34.0
Europe 87.6 21.1
Rest of the World 30.2 7.3

Total 415.4 100%

SOURCE: MARKETLINE MARKETLINE

Figure 3: United States casinos & gaming sector geography segmentation: % share, by value, 2021

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 12

 Casinos & Gaming in the United States

Industry Profiles

5. Market Outlook

5.1. Market value forecast

In 2026, the United States casinos & gaming sector is forecast to have a value of $224.5 billion, an increase of
43.6% since 2021.
The compound annual growth rate of the sector in the period 2021–26 is predicted to be 7.5%.

Table 5: United States casinos & gaming sector value forecast: $ billion, 2021–26

Year $ billion € billion % Growth

2021 156.4 132.2 22.1%
2022 165.4 139.8 5.8%
2023 175.3 148.2 6.0%
2024 191.4 161.8 9.2%
2025 208.4 176.2 8.9%
2026 224.5 189.7 7.7%

CAGR: 2021–26 7.5%

SOURCE: MARKETLINE MARKETLINE

Figure 4: United States casinos & gaming sector value forecast: $ billion, 2021–26

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 13

 Casinos & Gaming in the United States

Industry Profiles

6. Five Forces Analysis

The casinos & gaming market will be analyzed taking operators of casinos, gaming machines, lotteries, and betting
(commercial, state-run and charitable operations) as players. The key buyers will be taken as individual customers,
and companies providing gaming machines, equipment, services, and real estate as the key suppliers.

6.1. Summary

Figure 5: Forces driving competition in the casinos & gaming sector in the United States, 2021

SOURCE: MARKETLINE MARKETLINE

The presence of large incumbents in the US casinos & gaming sector mean the degree of rivalry is assessed as
moderate.
While the activities in this sector are non-essential leisure activities, this is complicated by the possibility of gambling
addictions. These forms of behavior result in consumers not making economic or rational decisions which in turn
weaken buyer power.
Larger suppliers dominate the sector. Participants also benefit from regulatory barriers to entry, which makes it difficult
for new players to enter the sector and gain sector share.
The main substitute for gambling is online gambling, however almost any leisure activity can act as a substitute. As a
result, the threat of substitutes is strong.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 14

 Casinos & Gaming in the United States

Industry Profiles

6.2. Buyer power

Figure 6: Drivers of buyer power in the casinos & gaming sector in the United States, 2021

SOURCE: MARKETLINE MARKETLINE

The popularity of different gambling activities means the number of buyers is large. The wide variety of potential
customers weakens buyer power in this sector considerably. Activities within this sector are non-essential leisure
activities, and consequently it should be expected that these activities are not vital to buyers. However, this issue is
complicated by gambling addictions. The existence of addictive gambling behavior indicates that some consumers are
not making rational economic decisions and can become dependent on gambling. Such patterns are evident in many
regions and weaken buyer power accordingly.
Consumers can choose from a wide range of gaming activities such as lotteries, gaming machines, poker, blackjack, and
sports betting. There are also several different methods of distribution (online, outlets, casinos etc.) However, casinos
tend to all possess the same activities, particularly in terms of the games that individuals can play and the rewards they
will receive for winning. Additionally, bar those who spend a substantial sum of money and gain loyalty gifts (such as a
free hotel suite for the biggest gamblers in Las Vegas) customers typically do not have any particular loyalty to a casino
brand. As such, buyer power is increased as there is no incentive to stick with a particular brand.
Sports betting offers a wide range of betting opportunities. The advent of bet-in-play options has seen sports betting
revenues grow significantly. Sports and events provide outcomes that gamers can wager on in the hope of picking the
correct result. The increasing popularity and coverage of sports is helping to drive interest as players feel better
informed and therefore more confident in their bets. Large events such as the FIFA World Cup attract greater-than-
normal volumes.
Casino games like roulette and blackjack have been around for many years, but remain exciting to gamblers. Some of
these games, such as roulette, are games of chance, whereas poker requires a high level of skill to be highly successful.
This is normally played in a tournament rather than against the house, but casinos often serve as venues for these
competitions and if they provide prize money, they need to be aware of the skill levels present.
Within the US, the availability of casinos varies significantly, due to discrepancies in state regulation. For instance,
buyers in Hawaii and Utah would have to cross state lines to gamble due to a complete ban on a local level. Therefore,
buyer power is somewhat reduced as the lack of choices increases customer loyalty. Buyer power is strengthened as
forwards integration is very unlikely in this sector.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 15

Casinos & Gaming in the United States

Industry Profiles

Switching costs for consumers vary according to the type of gambling. For example, many casinos require annual
membership fees; thus constituting a switching cost should a consumer change to a different casino before the annual
membership expires. Generally switching costs remain minimal, particularly in the case of betting shops. This
strengthens buyer power.
The legal minimum age for gambling varies between states. Typically, consumers will be legally allowed to place bets on
sports such as horse racing at 18, while entering casinos is restricted to 21 and above. As younger consumers have less
choice, this will weaken buyer power.
Overall, there is a moderate degree of buyer power within the casinos & gaming sector.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 16

 Casinos & Gaming in the United States

Industry Profiles

6.3. Supplier power

Figure 7: Drivers of supplier power in the casinos & gaming sector in the United States, 2021

SOURCE: MARKETLINE MARKETLINE

Suppliers to the casinos & gaming sector vary according to the player. Gaming machines and related equipment and
services are vital for some players.
Companies that supply equipment, machinery, or services are integral to the success of players. There is a low
bargaining power of suppliers in the casinos & gaming sector because casinos often require furnishing and food
supplies, which are typically undifferentiated between rival suppliers. Large casino chains can exert pressure on small
suppliers to take advantages of pricing. Some large supply companies may offer equipment that has high consumer
demand, such as certain gaming machines. In many cases companies establish successful niches, creating lottery
machines and networks. There is a rare chance of backwards integration, as manufacturing these machines requires a
different level of expertise than operating casinos and gambling services. This enhances supplier power.
Casinos have very specific equipment due to the nature of the games they offer. Tables for games such as craps and
Baccarat are necessary and a high level of craftsmanship is required to achieve the required quality and aesthetic.
Casinos also need electronic and mechanical machines. Electronic versions of casino games are popular, particularly
among less affluent gamblers. For table games and roulette wheels, specialists such as Cammegh and TCSJOHNHUXLEY
have forged a strong reputation, enhancing their power in this sector. Lotteries also have strong incumbents, such as
Smartplay International, which serves over 400 organizations in more than 85 countries.
Larger suppliers diversify geographically to guard against over-dependence on just one particular sector. However,
most manufacturers of gaming machines tend to be specialized in this sector. Since the gaming industry is highly
important to their survival, this weakens supplier power.
Overall, supplier power is assessed as moderate.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 17

 Casinos & Gaming in the United States

Industry Profiles

6.4. New entrants

Figure 8: Factors influencing the likelihood of new entrants in the casinos & gaming sector in the United States, 2021

SOURCE: MARKETLINE MARKETLINE

The casinos & gaming sector operates differently from country to country, according to regulatory and legislative
barriers, which often reflect the cultural acceptance of gambling in a particular country.
Historically, gambling has been more widely accepted in the US than in Europe. However, with regards to sports
betting, this form of gambling is only allowed in certain states. As of March 2022, 30 states and Washington, D.C. have
operational legalized sports betting, while an additional four states have legalized it, but have not yet launched legal
sportsbooks. The opening of this particular segment has provided opportunities to new entrants.
Government regulation in the US differs from state to state. As late as 1985, casinos were legal only in Nevada and
Atlantic City (New Jersey), but today 25 states allow commercial land-based casinos, while 28 states have Native
American reservation casinos (often referred to as 'Indian casinos') in operation. 'Indian' reservation casinos are always
located on lands set aside by the government for the use of specific Native American tribes. These are a major factor
within the sector, and account for a significant percentage of total revenue. Potential new entrants must acknowledge
these establishments as serious competition.
Most states have state-sponsored and multi-state lotteries. There are only five states that do not sell lottery tickets:
Alabama, Alaska, Hawaii, Nevada, and Utah. The Mega Millions and Powerball games are the biggest lotteries in terms
of numbers of participating states.
Tax rates in the US vary by state. For example, Nevada's tax rate is graduated, starting at 6.75%, while in Michigan, the
tax rate is set at 4.25%.
Players have to adhere to codes of practice which ensure that their marketing operations are socially responsible by not
glamorizing gambling, as well as offering help to people who have gambling addiction problems.
A new company attempting to enter this sector would require large amounts of capital to establish a casino or gaming
operation, employ staff, and acquire gaming equipment. However, the willingness of customers to switch from one
gaming company to another coupled with easy access to suppliers, are conducive to the entry of new players.
The likelihood of new entrants to this sector is assessed as moderate overall.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 18

 Casinos & Gaming in the United States

Industry Profiles

6.5. Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the casinos & gaming sector in the United States, 2021

SOURCE: MARKETLINE MARKETLINE

For the casinos & gaming sector as a whole, almost any leisure activity can act as a substitute. These activities have
minimal switching costs and may also be cheaper than gambling for consumers.
The threat of substitutes is increasing. Low restrictions have resulted in the legalization of many forms of gambling.
Other forms of gambling such as tribal land casinos, internet-based casinos, and waterborne casinos may be attractive
to customers of traditional casinos. Aside from cost advantages, some customers may value the social aspect of non-
gambling forms of gaming facilities.
The global online gambling industry had a total gross gaming win of $74.9bn in 2020, representing a compound annual
growth rate (CAGR) of 13.6% between 2016 and 2020. This is a major, and growing, threat to bookmakers and casinos
as players are able to gamble in the same way, and have the same chances of winning, from the comfort of their own
home. This has left traditional bookmaker chains vulnerable to online specialists like Bet365. These operators offer
online casino games which may reduce the footfall in casinos. This is a particular problem as casinos make money from
food and drinks sales and need people in their establishments to do so. Furthermore, many online gambling companies
saw a boost during the COVID-19 lockdown and stay at home restrictions, prompting many casino owners to pivot their
businesses towards online. Entain for instance has continued with a strong trading performance despite the impact of
COVID-19, demonstrating the resilience of the highly diversified business model by product, brand, territory and
channel.
The threat of substitutes in this sector is very strong.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 19

 Casinos & Gaming in the United States

Industry Profiles

6.6. Degree of rivalry

Figure 10: Drivers of degree of rivalry in the casinos & gaming sector in the United States, 2021

SOURCE: MARKETLINE MARKETLINE

Generally, the casinos & gaming sector within the global market remains fragmented. However, in some countries, it is
dominated by a few large entities in specific segments, such as horse race betting, or state-owned lottery monopolies.
Additionally, high fixed costs and exit barriers (major tangible assets are specific to the sector, and thus harder to
divest) make competition even stronger.
For many players, gaming is their sole or principal activity, so it is vital that they maintain their gaming revenues. Some
companies, however, have a more diverse offering, which weakens rivalry somewhat. For example, casinos may be
incorporated into a more general leisure facility, such as a hotel. Some state lotteries are single-state while others have
multi-state range. Multi-state lotteries generally have larger jackpots due to the greater number of tickets sold.
Many players have the ability to differentiate their offerings through additional services, such as entertainment
(concerts, special events), reward programs, tournaments, or non-gaming facilities (restaurants, arcades, spas).
Cultural acceptance and gaming formats differ in particular countries. In the US, casinos and gambling machines are the
prevalent gambling formats, with sports betting limited to just four states, while in Japan, pachinko machines dominate
and casino gambling is yet to come to fruition. In Europe, lotteries remain the dominant revenue source for the sector.
These differing gambling formats equate to different degrees of rivalry.
The COVID-19 outbreak alongside with the imposed lockdowns had a great impact on the casino & gaming market,
boosting the market’s rivalry. Players in their market were forced to shut down businesses decreasing revenues to a
great extent. On the other hand, players who had already online betting established, had to compete fiercely with
already established online betting companies. In addition, The COVID-19 pandemic has led to either the cancellation or
postponement of a number of major sporting events globally, which disrupted the sector significantly. The decrease of
games & events available to bet on had a negative impact on players in the sector.
Overall, rivalry within this sector is assessed as moderate.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 20

 Casinos & Gaming in the United States

Industry Profiles

7. Competitive Landscape
The US sector consists of four leading players, MGM Resorts International, Caesars Entertainment Corporation,
New York State Lottery and Florida State Lottery. The main sector players are based in the US, which indicates the
strong presence of US companies in the sector. Players are focused on serving a broad client base and mitigating
the risk of operating in a single market by operating a broad product portfolio. The recent outbreak of coronavirus
has led to either the cancellation or postponement of a number of major sporting events globally, which has
disrupted growth in the casinos & gaming sector significantly. In addition, the coronavirus outbreak has forced
businesses to shut down and implement new health and safety measures in order to keep consumers and staff
safe. This has reduced profits for the market players to a great extent, especially the ones with no online presence
already established.

7.1. Who are the leading players?

MGM Resorts International (MGM Resorts) is the largest provider of casino & gaming services in the US. The
company is based in Las Vegas, the US and owns and operates casino and non-casino resort projects across the
world. Its major business operations include gaming, hospitality and entertainment activities. The company’s
portfolio of destination resorts comprises of Bellagio, The Signature, MGM Grand, Mandalay Bay, The Mirage,
Monte Carlo, Luxor, Excalibur, New York-New York, Gold Strike Tunica, MGM Grand Detroit, MGM Springfield,
Beau Rivage and Circus Circus Las Vegas. MGM Resorts owns and operates properties in Nevada, Mississippi, New
Jersey and Michigan. Its operations are spread across the US, the UAE, China, and Vietnam.
Caesars Entertainment Corporation (Caesars or 'the company') is the second largest provider of casino & gaming
services in the US. The company is based in Las Vegas, the US and is a provider of hospitality and entertainment
services. Caesars also offers non-gaming entertainment options, beverage and food outlets, hotel and convention
space, gaming offerings. Caesars provides table games and slot machines. It also provides race and sports books;
keno, poker and restaurants, bars, buffets, nightclubs, and lounges. Caesars also operates a gaming online division
that provides mobile and social offerings and games with real money. Through subsidiaries, it operates in the US.
The company operates through Caesars Growth Properties and Entertainment Resort Properties.
New York State Lottery (NY Lottery) is the third largest provider of casino & gaming services in the US. The
company is based in New York, the US and is a provider of lottery gaming services with products such as lotto,
mega millions, numbers, win 4, Powerball, take 5, numbers, quickdraw and pick 10. NY Lottery also offers instant
games, such as loose change, $2 and $3 games, $5 games, New York poker, instant millionaire, and set for life. In
addition, the company also operates Resorts World Casino New York City as well as casinos in Yonkers, Saratoga
and six other locations in New York.
Florida State Lottery (The Lottery) is the fourth largest provider of casino & gaming services in country. The
company is based in Tallahassee, the US and is a government-run organization with numerous on-line and scratch-
off games available, players have a wide variety of prize levels to choose from. The lottery has experimented with
higher price points, enhanced traditional games, and introduced seasonal promotional games. With the goal of the
Florida Lottery being to enhance public education in the state, the lottery has become not only an education
partner but a distinguished business enterprise as well. In the 2011-12 fiscal year, Florida Lottery donated $1.31bn
to the Educational Enhancement Trust Fund, surpassing the $1bn mark for the 11th time in its history and
expanding its all-time donation total to over $25bn.

7.2. What strategies do the leading players follow?

MGM owns and operates resorts in the US and Macau. In Las Vegas, the company owns Bellagio, with 3,933
guestrooms and suites, 1,415 slots and 148 gaming tables; MGM Grand Las Vegas (including The Signature) with
6,071 rooms, 1,270 slot machines and 98 gaming tables; Mandalay Bay with 4,750 guestrooms and suites, 1,117
slot machines and 60 gaming tables; The Mirage with 3,044 guestrooms and suites, 819 slots and 69 gaming table;

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 21

 Casinos & Gaming in the United States

Industry Profiles

and Luxor with 4,397 guestrooms and suits, 859 slots with 48 gaming tables. New York-New York offers 2,024
guestrooms and 992 slots with 51 gaming tables, Excalibur with 3,981 guestrooms and suits, 927 slots and 41
gaming tables and Park MGM offers 2,898 guestrooms with 766 suits and 58 gaming tables.
Its regional properties include MGM Grand Detroit with 400 guest rooms, 3,079 slots, and 127 gaming tables; Beau
Rivage with 1,740 guest rooms, 1,681 slots, and 75 gaming tables; Gold Strike with 1,133 guest rooms, 948 slots,
and 66 gaming tables; Borgata with 2,767 guest rooms, 2,856 slots, and 189 gaming tables, MGM National Harbor
with 308 guestrooms, 2,603 slots, and 171 gaming tables, MGM Springfield with 240 guest rooms, 1,841 slots, and
38 gaming tables. Its MGM Northfield Park and Empire City had 1,869 and 4,693 slots, respectively. Furthermore,
MGM Macau had approximately 279 gaming tables and over 1,079 slots, and around 582 guest rooms and suites.
MGM Cotai had 1,390 guestrooms, 1,098 slots, and 273 gaming tables. The company’s 50% owned CityCenter
includes 120 gaming tables, 1,344 slots and 5,499 guest rooms and suites.
Caesars has strong presence in casino operations. A strong business presence in the casino entertainment market
gives the company a distinct advantage over its peers. The different types of casinos operated by Caesars include
land-based casinos, riverboat casinos, harness racing facility casinos, greyhound racing facility casinos and
thoroughbred racing facility casinos. In FY2020, Caesars had 47,700 Hotel Rooms and Suites, 3,200 table games
and 54,600 slot machines. As of December 2020, the company operated 54 domestic properties in 16 states with
20 casinos and leased 29 casinos in the U.S. The company had 47,700 hotel rooms and 3,200 table games and
54,600 slot machines.

7.3. What has been the recent M&A activity?

In September 2020, Caesars entered into an agreement to acquire William Hill, one of the world's leading betting
and gambling companies. William Hill's sports betting expertise would complement the company’s offering, which
enables both the companies to serve its customers in the fast-growing US sports betting and online market. This
acquisition would enable the company to provide its customers with a comprehensive and superior experience
across all areas of sports betting, gaming, and entertainment. In July 2020, the company acquired Caesars
Entertainment Corporation (CEC). This transformative merger creates the largest casino and entertainment
company in the US. This acquisition enhances the company’s position as the leading destination and regional
gaming operator in the US. Through this transaction, the company owns and operates over 55 casino properties
globally, comprising an iconic portfolio of eight casino hotel properties on the Las Vegas Strip. The company also
owns or operates casinos in 16 US states including Missouri, Iowa, Nevada, Colorado, Florida, Mississippi, Illinois,
Indiana, Louisiana, Ohio, New Jersey, North Carolina, California, Pennsylvania, Arizona, and Maryland.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 22

 Casinos & Gaming in the United States

Industry Profiles

8. Company Profiles

8.1. MGM Resorts International

8.1.1. Company Overview

MGM Resorts International (MGM Resorts) is a global hospitality company. The company owns and operates
casino and non-casino resort projects across the world. Its major business operations include gaming,
hospitality, and entertainment activities. The company’s portfolio of destination resorts comprises Aria, Vdara,
Bellagio, MGM Grand Las Vegas, Borgata, Empire City, MGM Macau, MGM Cotai, MGM National Harbor, MGM
Northfield Park, Mandalay Bay, The Mirage, Luxor, Excalibur, New York-New York, Gold Strike Tunica, MGM
Grand Detroit, MGM Springfield, Park MGM, and Beau Rivage. MGM Resorts owns and operates properties in
Nevada, Mississippi, New Jersey, and Michigan. Its operations are spread across the US and China. MGM
Resorts is headquartered in Las Vegas, Nevada, the US.
The company reported revenues of (US Dollars) US$9,680.1 million for the fiscal year ended December 2021
(FY2021), an increase of 87.5% over FY2020. The operating profit of the company was US$2,278.7 million in
FY2021, compared to an operating loss of US$642.4 million in FY2020. The net profit of the company was
US$1,254.4 million in FY2021, compared to a net loss of US$1,032.7 million in FY2020.

8.1.2. Key Facts

Table 6: MGM Resorts International: key facts

Head office: 3600 Las Vegas Blvd S , Las Vegas, Nevada, United States
Telephone: 17026937120
Fax: 13026365454
Number of Employees: 42000
Website: www.mgmresorts.com
Financial year-end: December
Ticker: MGM
Stock exchange: New York Stock Exchange
SOURCE: COMPANY WEBSITE MARKETLINE

8.1.3. Business Description

MGM Resorts International (MGM Resorts) owns and operates casino and non-casino destination resorts primarily
in the US. It offers gaming, hotel, dining, entertainment, retail and other resort amenities. The company owns or
invest in various finest casino resorts across the world and reinvests in its own resorts to maintain its competitive
position.
The company classifies its operations into four reportable segments: Las Vegas Strip Resorts, Regional Operations,
MGM China, and Corporate and Other.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 23

 Casinos & Gaming in the United States

Industry Profiles

Table 7: MGM Resorts International: Annual Financial Ratios

Key Ratios 2017 2018 2019 2020 2021
Growth Ratios
Sales Growth % 13.92 8.94 9.66 -59.98 87.52
EBITDA Growth % -7.57 -2.16 98.10 -89.17 503.62
Net Income Growth % 77.39 -76.09 339.00 -150.40 221.46
EPS Growth % -35.59 -11.57 -42.74 -882.51
Working Capital Growth % 1093.63 -44.60 -293.38 401.56 -27.36
Equity Ratios
EPS (Earnings per Share) USD 0.93 0.83 0.47 -3.70 0.17
Dividend per Share USD 0.44 0.48 0.52 0.16 0.01
Dividend Cover Absolute 2.12 1.72 0.91 -23.49 17.27
Book Value per Share USD 13.38 12.35 15.36 13.16 13.38
Profitability Ratios
Gross Margin % 42.64 41.18 41.06 33.11 48.03
Operating Margin % 15.86 12.49 30.55 -12.45 23.54
Net Profit Margin % 18.08 3.97 15.89 -20.01 12.96
Profit Markup % 74.35 70.01 69.65 49.51 92.42
PBT Margin (Profit Before Tax) % 8.90 5.39 22.07 -29.28 15.10
Return on Equity % 25.76 7.17 26.52 -15.88 20.66
Return on Capital Employed % 6.58 5.39 12.84 -1.85 6.08
Return on Assets % 6.81 1.57 6.39 -2.94 3.24
Return on Working Capital % -224.76 -348.13 482.71 -15.69 76.62
Operating Costs (% of Sales) % 84.14 87.51 69.45 112.45 76.46
Administration Costs (% of Sales) % 18.85 19.85 19.95 50.03 30.32
Liquidity Ratios
Current Ratio Absolute 0.76 0.86 1.26 3.21 1.86
Quick Ratio Absolute 0.72 0.82 1.22 3.16 1.84
Cash Ratio Absolute 0.48 0.52 0.73 2.75 1.37
Leverage Ratios
Debt to Equity Ratio Absolute 1.70 2.32 1.46 1.94 2.13
Net Debt to Equity Absolute 1.51 2.09 1.16 1.15 1.36
Debt to Capital Ratio Absolute 0.63 0.70 0.59 0.66 0.68
Efficiency Ratios
Asset Turnover Absolute 0.38 0.40 0.40 0.15 0.25
Fixed Asset Turnover Absolute 0.57 0.58 0.59 0.23 0.40
Inventory Turnover Absolute 61.92 64.93 71.15 36.11 54.47
Current Asset Turnover Absolute 4.69 4.80 3.95 1.04 1.57
Capital Employed Turnover Absolute 0.41 0.43 0.42 0.15 0.26
Working Capital Turnover Absolute -14.17 -27.87 15.80 1.26 3.26
SOURCE: COMPANY FILINGS MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 24

 Casinos & Gaming in the United States

Industry Profiles

Table 8: MGM Resorts International: Key Employees

Name Job Title Board

Alexis Margaret Herman Director Non Executive Board
Barry Diller Director Non Executive Board
Corey I. Sanders Chief Operating Officer Senior Management
Daniel J. Taylor Director Non Executive Board
Gregory M. Spierkel Director Non Executive Board
Jan G. Swartz Director Non Executive Board
Senior Vice President Corporate
Jeff Mochal Senior Management
Communications
Joey Levin Director Non Executive Board
John M. McManus Executive Vice President Senior Management
John M. McManus General Counsel Senior Management
John M. McManus Secretary Senior Management
Jonathan S. Halkyard Chief Financial Officer Senior Management
Jonathan S. Halkyard Treasurer Senior Management
Chief People, Inclusion, and Sustainability
Jyoti Chopra Senior Management
Officer
Jyoti Chopra Senior Vice President Senior Management
Keith A. Meister Director Non Executive Board
Mary Chris Jammet Director Non Executive Board
Paul Salem Chairman Executive Board
Rose McKinney-James Director Non Executive Board
Sommelier Douglas Kim Director Wine Senior Management
Steven J. Zanella Chief Commercial Officer Senior Management
Chief Strategy, Innovation and Technology
Tilak Mandadi Senior Management
Officer
William J. Hornbuckle Chief Executive Officer Executive Board
William J. Hornbuckle Director Executive Board
William J. Hornbuckle President Executive Board
SOURCE: COMPANY FILINGS MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 25

 Casinos & Gaming in the United States

Industry Profiles

8.2. New York State Lottery

8.2.1. Company Overview

New York State Lottery (NY Lottery) is a provider of lottery gaming services. The company's lottery games
include lotto, mega millions, numbers, win 4, Powerball, take 5, numbers, quickdraw, and pick 10. NY Lottery
also offers instant games, such as loose change, $2 and 3 games, $5 games, New York poker, instant millionaire,
and set for life. In addition, the company also operates Resorts World Casino New York City as well as casinos in
Yonkers, Saratoga, and six other locations in New York. NY Lottery is headquartered in Schenectady, New York,
the US.

8.2.2. Key Facts

Table 9: New York State Lottery: key facts

Head office: P.O. Box 7500 One Broadway Center, Schenectady, New York, United States
Number of Employees: 411
Website: www.nylottery.ny.gov
Financial year-end: March
SOURCE: COMPANY WEBSITE MARKETLINE

8.2.3. Business Description

New York State Lottery (NY Lottery) offers lottery games. The company is administered by the New York State
Gaming Commission, which regulates all aspects of gaming in the state, including horse racing and pari-mutuel
wagering, Indian gaming, charitable gaming, video lottery gaming at racetracks, and traditional lottery gaming. The
company operates in the US.
The company operates through five business lines: jackpot games, daily games, video lottery games, instant
games, and social games.
NY Lottery’s jackpot games include mega millions, Powerball, lotto, and cash4life. Its daily games include numbers,
win 4, take 5, numbers, quickdraw, and pick 10. The company's casinos offer video lottery games through its
gaming destinations, including Resorts World Casino New York City, Empire City Casino at Yonkers Raceway,
Saratoga Casino and Raceway, Finger Lakes Casino and Racetrack, Monticello Casino and Raceway, Hamburg
Casino at The Fairgrounds, Tioga Downs Casino, Vernon Downs Casino and Hotel, and Batavia Downs Casino.
The company offers a range of instant games, such as $1 games including action jackson, loose change, rapid
refund, instant take 5 and lucky 7s; $2 and 3 games, such as 40X your money, blackout bingo, cashword, cashword
doubler, bingo doubler, bonus keno, cashword tripler, cool 50s, happy birthday, hit $50,000, lucky streak, slingo,
the walking dead, win for life 1124 and words with friends; $5 games, such as $1,000,000 winner, $2,500 a week
for life, 777 jackpot, big bucks multiplier, cadillac and cash, cash deluxe, double triple cashword, extreme 8s, hit
$1,000,000, ice bank, million dollar winner, New York poker, royal riches and ruby 2s; $10 games, such as
$1,000,000 cashword, $3,000,000 supercash, 100 million payout, franklin's fortunes, hit $5,000,000, instant
millionaire, set for life, $10,000 a week for life, the $7,000,000, golden ticket, and win 1,000,000 a year for life.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 26

 Casinos & Gaming in the United States

Industry Profiles

Table 10: New York State Lottery: Key Employees

Name Job Title Board

Gweneth Dean Director Senior Management
Maggie Fuller Director Digital Senior Management
SOURCE: COMPANY FILINGS MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 27

 Casinos & Gaming in the United States

Industry Profiles

8.3. Caesars Entertainment, Inc.

8.3.1. Company Overview

Caesars Entertainment, Inc. (Caesars or 'the company') is a provider of hospitality and entertainment services.
The company also offers non-gaming entertainment options, beverage and food outlets, hotel and convention
space, gaming offerings. Caesars provides table games and slot machines. It also provides race and sports
books, keno, poker and restaurants, bars, buffets, nightclubs, and lounges. Caesars also owns gaming online
division that provides mobile and social offerings and games with real money. Through subsidiaries, it operates
in the US. The company operates through Caesars Growth Properties and Entertainment Resort Properties. The
company is headquartered in Las Vegas, Nevada, the US.
The company reported revenues of (US Dollars) US$9,570 million for the fiscal year ended December 2021
(FY2021), compared to a revenue of US$3,628 million in FY2020. The operating profit of the company was
US$1,224 million in FY2021, compared to an operating loss of US$580 million in FY2020. The net loss of the
company was US$1,019 million in FY2021, compared to a net loss of US$1,757 million in FY2020.

8.3.2. Key Facts

Table 11: Caesars Entertainment, Inc.: key facts

Head office: 12th Floor 100 West Liberty Street, Reno, Nevada, United States
Number of Employees: 23000
Website: www.caesars.com
Financial year-end: December
Ticker: CZR
Stock exchange: NASDAQ
SOURCE: COMPANY WEBSITE MARKETLINE

8.3.3. Business Description

Caesars Entertainment, Inc. (Caesars or ‘the company’), formerly Eldorado Resorts, Inc., provides hospitality and
entertainment services. The company provides gaming offerings, food and beverage outlets, convention space and
hotel, and non-gaming entertainment options. Caesars also owns gaming online division that provides mobile and
social offerings and games with real money.
The company’s business is classified into four segments: Casino and Pari mutuel commission, Hotels, Food and
Beverages and All Other.
In FY2020, the Casino and Pari mutuel commission segment generated revenue of US$2,337 million, which
accounted for 67.2% of the company’s revenue.
In FY2020, the Food and beverage segment generated revenue of US$337 million, which accounted for 9.7% of the
company’s revenue.
In FY2020, the Hotels segment generated revenue of US$450 million, which accounted for 12.9% of the company’s
revenue.
In FY2020, the All-Other segment generated revenue of US$350 million, which accounted for 10.0% of the
company’s revenue.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 28

Casinos & Gaming in the United States

Industry Profiles

The company’s properties include The LINQ Hotel & Casino, Paris Las Vegas, Planet Hollywood Resort & Casino,
Bally's Las Vegas, The Cromwell, Flamingo Las Vegas, Harrah's Las Vegas, Rio All-Suites Hotel & Casino, Caesars
Palace Las Vega and LINQ Promenade/High Roller.
In FY2020, Caesars had 47,700 Hotel Rooms and Suites, 3,200 table games and 54,600 slot machines. Caesars’s
other properties include Harrah's Gulf Coast, Harrah's Joliet, Harrah's Lake Tahoe, Harrah's Laughlin, Harrah's
Louisiana Downs, Bally's Atlantic City, Caesars Atlantic City, Harrah's Atlantic City, Harrah's Council Bluff, Harrah's
Philadelphia, Harrah's Metropolis, Harrah's New Orleans and Harrah's North Kansas City. It also includes Horseshoe
Bossier City, Harrah's Reno, Harveys Lake Tahoe, Horseshoe Tunica, Horseshoe Baltimore, Horseshoe Southern
Indiana, Tunica Roadhouse, Horseshoe Council Bluff, and Horseshoe Hammond. The company offers provides
online, mobile, and social gaming services through Caesars Interactive Entertainment (CIE). Its International
properties includes Alea Glasgow; Alea Nottingham; The Casino at the Empire; Emerald Safari; Manchester235;
Playboy Club London; Rendezvous Brighton; Rendezvous Southend-On-Sea and The Sportsman. The segment’s
managed companies include Caesars Cairo; Caesars Windsor; Harrah's Ak-Chin; Harrah's Cherokee; Harrah's
Cherokee Valley River; Harrah's Resort Southern California; Horseshoe Baltimore; and The London Clubs Cairo-
Ramses. As of December 2020, the company operated 54 domestic properties in 16 states with 20 casinos and
leased 29 casinos in the U.S.

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 29

 Casinos & Gaming in the United States

Industry Profiles

Table 12: Caesars Entertainment, Inc.: Annual Financial Ratios

Key Ratios 2017 2018 2019 2020 2021
Growth Ratios
Sales Growth % 65.84 38.84 22.97 43.50 163.78
EBITDA Growth % 6.47 188.02 33.51 -99.52 78233.33
Net Income Growth % 195.86 29.78 -14.95 -2269.11 42.00
EPS Growth % 30.76 72.88 -6.70 -816.05
Working Capital Growth % -9605.92 526.86 -149.00 -4336.13 -81.21
Equity Ratios
EPS (Earnings per Share) USD 0.86 1.49 1.39 -9.95 -3.20
Book Value per Share USD 12.26 13.33 14.45 24.14 20.99
Profitability Ratios
Gross Margin % 42.98 46.39 50.47 43.74 48.21
Operating Margin % 3.81 15.07 15.92 -15.99 12.79
Net Profit Margin % 4.96 4.63 3.20 -48.43 -10.65
Profit Markup % 75.37 86.53 101.91 77.76 93.10
PBT Margin (Profit Before Tax) % -2.93 6.60 4.94 -44.27 -13.26
Return on Equity % 7.79 9.25 7.25 -35.03 -22.75
Return on Capital Employed % 1.70 5.63 8.13 -1.71 3.74
Return on Assets % 3.03 2.01 1.40 -8.36 -2.74
Return on Working Capital % 206.66 181.23 -480.25 -16.34 183.51
Operating Costs (% of Sales) % 96.19 84.93 84.08 115.99 87.21
Administration Costs (% of Sales) % 21.89 22.17 23.97 24.86 18.62
Liquidity Ratios
Current Ratio Absolute 1.12 1.43 0.88 2.41 1.13
Quick Ratio Absolute 1.05 1.37 0.85 2.40 1.12
Cash Ratio Absolute 0.60 0.57 0.30 0.71 0.20
Leverage Ratios
Debt to Equity Ratio Absolute 2.33 4.10 3.17 5.27 5.85
Net Debt to Equity Absolute 2.16 3.86 2.95 4.92 5.61
Debt to Capital Ratio Absolute 0.70 0.80 0.76 0.84 0.85
Efficiency Ratios
Asset Turnover Absolute 0.61 0.43 0.44 0.17 0.26
Fixed Asset Turnover Absolute 1.40 0.94 0.89 0.41 0.65
Inventory Turnover Absolute 60.48 58.84 64.26 65.44 115.26
Current Asset Turnover Absolute 8.39 4.99 4.29 1.09 1.59
Capital Employed Turnover Absolute 0.45 0.37 0.51 0.11 0.29
Working Capital Turnover Absolute 54.28 12.02 -30.17 1.02 14.35
SOURCE: COMPANY FILINGS MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 30

 Casinos & Gaming in the United States

Industry Profiles

Table 13: Caesars Entertainment, Inc.: Key Employees

Name Job Title Board

Anthony Carano Chief Operating Officer Senior Management
Anthony Carano President Senior Management
Bonnie S. Biumi Director Non Executive Board
Bret Yunker Chief Financial Officer Senior Management
Courtney Mather Director Non Executive Board
Courtney R. Mather Director Non Executive Board
David P Tomick Director Non Executive Board
Don R. Kornstein Director Executive Board
Don R. Kornstein Vice Chairman Executive Board
Edmund L. Quatmann Jr. Chief Legal Officer Senior Management
Edmund L. Quatmann Jr. Executive Vice President Senior Management
Edmund L. Quatmann Jr. Secretary Senior Management
Frank J. Fahrenkopf Director Non Executive Board
Gary L. Carano Chairman Executive Board
Glenn Carano Senior Vice President Regional Operations Senior Management
James B. Hawkins Director Non Executive Board
Jan Jones Blackhurst Director Non Executive Board
Josh Jones Chief Marketing Officer Senior Management
Michael E. Pegram Director Non Executive Board
Nina Carano Director Corporate Advertising Senior Management
Roger P. Wagner Director Non Executive Board
Sandra Douglass Morgan Director Non Executive Board
Chief Development Officer- Caesars
Shawn Clancy Senior Management
Entertainment Services
Stephanie D. Lepori Chief Accounting Officer Senior Management
Stephanie D. Lepori Chief Administrative Officer Senior Management
Thomas R. Reeg Chief Executive Officer Executive Board
Thomas R. Reeg Director Executive Board
William Reeg Senior Vice President Regional Operations Senior Management
SOURCE: COMPANY FILINGS MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 31

 Casinos & Gaming in the United States

Industry Profiles

9. Macroeconomic Indicators

9.1. Country data

Table 14: United States size of population (million), 2017–21

Year Population (million) % Growth
2017 326.3 0.8%
2018 328.9 0.8%
2019 331.4 0.8%
2020 333.9 0.8%

SOURCE: MARKETLINE MARKETLINE

Table 15: United States gdp (constant 2005 prices, $ billion), 2017–21
Year Constant 2005 Prices, $ billion % Growth
2017 16,161.3 2.7%
2018 16,559.0 2.5%
2019 16,929.6 2.2%
2020 17,270.7 2.0%

SOURCE: MARKETLINE MARKETLINE

Table 16: United States gdp (current prices, $ billion), 2017–21

Year Current Prices, $ billion % Growth

2017 20,145.1 4.8%
2018 21,077.3 4.6%
2019 21,993.9 4.3%
2020 22,953.1 4.4%

SOURCE: MARKETLINE MARKETLINE

Table 17: United States inflation, 2017–21

Year Inflation Rate (%)
2017 2.3%
2018 2.3%
2019 2.2%
2020 2.4%

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 32

 Casinos & Gaming in the United States

Industry Profiles

Table 18: United States consumer price index (absolute), 2017–21

Year Consumer Price Index (2005 = 100)

2017 129.3
2018 132.2
2019 135.1
2020 138.3

SOURCE: MARKETLINE MARKETLINE

Table 19: United States exchange rate, 2017–21

Year Exchange rate (€/$)
2017 1.1320
2018 1.1810
2019 1.1200
2020 1.1405
2021 1.1832

SOURCE: MARKETLINE MARKETLINE

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 33

Casinos & Gaming in the United States

Industry Profiles

Appendix

Methodology

MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles
and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 34

Casinos & Gaming in the United States

Industry Profiles

9.2. Industry associations

9.2.1. American Gaming Association

1299 Pennsylvania Ave., NW, Suite 1175, Washington, D.C. 20004, USA
Tel.: 1 202 552 2675
Fax: 1 202 552 2676
www.americangaming.org

9.2.2. International Association of Gaming Regulators (IAGR)

www.iagr.org

9.2.3. North American Association of State and Provincial Lotteries

6 North Broadway, Geneva, Ohio 44041, USA

Tel.: 1 440 466 5630
Fax: 1 440 466 5630
www.naspl.org

9.2.4. World Lottery Association

Lange Gasse 20, CH-4002 Basel, Switzerland

Tel.: 41 61 284 1111
Fax: 41 61 284 1350
www.world-lotteries.org

9.3. Related MarketLine research

9.3.1. Industry Profile

Global Casinos & Gaming

Casinos & Gaming in Asia-Pacific
Global Casinos & Gaming
Casinos & Gaming in the United Kingdom

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 35

Casinos & Gaming in the United States

Industry Profiles

About MarketLine
In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.
We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries and
countries across the world. No other business information company comes close to matching our sheer breadth of
coverage.
And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so
you can absorb key facts in minutes, not hours.
What we do
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business
information today.
Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine
to deliver quality data in an instant.
For further information about our products and services see more at: http://www.marketline.com/overview/
Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher,
MarketLine.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that
the findings, conclusions and recommendations that MarketLine delivers will be based on information gathered in good
faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such
MarketLine can accept no liability whatever for actions taken based on any information that may subsequently prove to
be incorrect.
Copyright of Casinos & Gaming Industry Profile: United States is the property of
MarketLine, a Progressive Digital Media business and its content may not be copied or
emailed to multiple sites or posted to a listserv without the copyright holder's express written
permission. However, users may print, download, or email articles for individual use.