Gaming Weekly. *Please see analyst certification and required disclosures starting on page 12 of this report.

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1 11 September 2015 Industry Update KEY TOPICS Comments on Macau Junket Rumors US Gambling Expansion Prospects (Alabama, Connecticut and Rhode Island) Regional Gaming Trends for August: (IL, IN, MD, MO, OH) WEEKLY HEADLINES Century Casinos Expands Deal With TUI Cruises Ontario Lottery Awards Casino Contract Caesars Settles with FinCEN Amaya Launches Starsdraft Daily Fantasy Sports HOTS: Macau Junket Rumors, US Gambling Expansion and Regional Gaming Trends Following up on the rumors swirling around about Wynn Macau and its junket partner Dore. The rumors suggested that an employee of Dore had absconded with up to HK$2B of Dore funds. The junket operator posted an official statement on its website today commenting on the rumors (of which we provide a translation on page 3). The statement acknowledged that it has in fact been the victim of internal fraud by a former employee but did not quantify the economic value of the fraud. We would add that Union Gaming's recent visits to Dore facilities at Wynn Macau overnight found that business is continuing as usual, with no evidence that HK$2B had been stolen. It is important to note also that Wynn's financial position or balance sheet is not at risk, and that the impact the rumor has had on the shares of WYNN this week is well overdone in our view. Connecticut comes one step closer to gambling expansion. Yesterday, the State of Connecticut came one step closer to realizing a third casino when Foxwoods and Mohegan Sun officially formalized a partnership that would commit to constructing a third casino in the state. All three cities currently interested in hosting the new casino are located less than 45 minutes driving time from MGM's development in Springfield, MA. MGM is staging a legal challenge, questioning the fairness of CT's licensing process. Alabama is considering gambling options to close budget gap. Alabama continues to circle around expanding gaming in the state. This time, Governor Robert Bentley has approached the Alabama State Supreme Court for clarification of whether the creation of a state lottery would open the door for expanded gaming in the state. The governor asked if an amendment to the State Constitution to allow for a state lottery - which currently bans gambling and gambling activities would allow for the expansion of casino-style gaming in the state. Twin River hosts meeting in Tiverton on casino plan. Executives from Twin River hosted its first of three town hall meetings in Tiverton, RI to get resident input on its proposed casino. Twin River is seeking to relocate its Newport Grand casino license to the Massachusetts border town of Tiverton. The company expects to finalize its design plan by November Amaya becomes first gaming company to push into Daily Fantasy Sports. With the rebranding of its recent acquisition of Victiv.com, the third largest DFS operator, as Starsdraft, Amaya has become the first major gambling interest to make a push into the new business. While more traditional bricks-and-mortar casino operators are keeping their distance for now until they get more comfortable with regulatory implications, Amaya is continuing its focus on the online markets. Heavy advertising from the DFS industry has the business poised to grow rapidly this year, and Amaya is looking to capitalize with its existing network of some 95MM users throughout its other online gaming offerings. Analysts Christopher Jones Tel: chris.jones@uniongaminggroup.com John DeCree Tel: john.decree@uniongaminggroup.com Grant Govertsen Tel: grant.govertsen@uniongaminggroup.com *Please see analyst certification and required disclosures starting on page 12 of this report Union Gaming Group. All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or by any information storage and retrieval system, without permission in writing from Union Gaming Group.

2 US Gambling Expansion Looming CT TRIBES FORMALIZE PARTNERSHIP FOR THIRD CASINO Yesterday, the State of Connecticut came one step closer to realizing a third casino, when Foxwoods and Mohegan Sun officially formalized a partnership that would commit to constructing a third casino in the state. Thus far, three regions have expressed interest in hosting the facility, Hartford, East Windsor and Enfield. All three are located less than 45 minutes from Springfield, MA, the location of MGM s casino site. While the move has been characterized as an effort to save jobs and revenue for CT, the likely end result will be diminished returns for all of the casino operators in the region. We believe it s unlikely that whatever is built, will be world-class, as the proximity to Springfield and the considerable investments already made by both CT casinos would be impaired by a major casino development. While we believe that MGM will certainly not welcome the competition, we see MGM focusing its efforts on the pulling customers from Western MA. MGM is also staging a legal challenge to the casino, calling into question the legality of the agreement and the use of state land and presumably sovereign tribal operators. We also believe that MGM s property will be highly competitive. MGM is no stranger to competition in its regional markets such as Detroit and Biloxi, yet still dominates both of these respective markets. ALABAMA CONSIDERING GAMBLING EXPANSION Alabama continues to circle around expanding gaming in the state. This time, Governor Robert Bentley has approached the Alabama State Supreme Court for clarification of whether the creation of a state lottery would open the door for expanded gaming in the state. The governor asked if an amendment to the State Constitution to allow for a state lottery - which currently bans gambling and gambling activities would allow for the expansion of casino-style gaming in the state. With a $200MM budget shortfall, the state is looking for ways to plug the gap. Governor Bentley has been an outspoken opponent of casino-style gambling, though given the nature of the question to the state Senate, seems poised to compromise on a state lottery. Continued resistance to casinos in Alabama is certainly good news for Mississippi, which has been on edge over the prospect of expanded gaming in the market. Alabama is the most important draw market for Biloxi-based casinos. TWIN RIVER MEETS IN TIVERTON ON CASINO PLAN With aspirations of relocating its recently purchased Newport Grand casino license to Tiverton, RI, executives from Twin Rivers held a town hall meeting with residents of Tiverton last night. This was the first of three meetings the company plans to host with residents of the town, as the company looks to take input from residents as it puts together its design proposal for the casino. The final design is expected to be completed by November of We believe that the odds are growing that Southern Massachusetts will face the prospects of a casino in Tiverton over the next couple years; calling into question the more ambitious plans for a casino in the southern region of Massachusetts. 2

3 RUSH STREET WANTS ACTION OR ITS WALKING FROM SOUTHERN MA Neil Bluhm, chairman of Rush Street Gaming, is pressing the Massachusetts Gaming Commission to make a decision on its bid for a casino in Brockton, MA. The Rush Street bid is the only surviving bid for the Southern license, though Mr. Bluhm feels the gaming commission is dragging its feet, as they await the decision of the Bureau of Indian Affairs on whether it will place 150 acres of land in Taunton into trust for the Mashpee Wampanoag Indian Tribe a move that would position the tribe to build a casino on the site. Rush Street believes that regardless of the decision, the end result will end up in the courts, potentially for years. With this as the backdrop, Rush Streets says his investors aren t as patient and that if they are made to wait, they will likely walk. Macau Junket Rumors Following up on the rumors swirling around about Wynn Macau and its junket partner Dore. The rumors suggested that an employee of Dore had absconded with up to HK$2B of Dore funds. The junket operator posted an official statement on its website today commenting on the rumors. The statement acknowledged that it has in fact been the victim of internal fraud by a former employee but did not quantify the economic value of the fraud. For your convenience, Union Gaming provides a translation of the announcement from Dore below: "Dore group's ex cage manager Mimi Chow, allegedly used her power to conduct unauthorized actions without the company's knowledge, which severely impacts the company's interest and reputation. Due to the seriousness of this event which involved fraud, the group has filed a police report." Comments from Wynn Resorts representatives have noted that they have no outstanding liabilities with Dore and are not party to any issues around Dore. Without Dore addressing the size of the fraud, it s difficult to address the potential impact to Dore or to the junket business overall. However, it s important to note that Wynn s financial position is not at risk, due to this alleged fraud, suggesting the selloff in the name is overdone. We would add that Union Gaming visits to the Dore facilities at Wynn overnight in Macau suggested that it was business as usual, and certainly not operating like they just lost HK$2B! So while this likely represents yet another black eye for the junket business in Macau, we maintain that the impact on the shares of Wynn from this is well overdone. 3

4 Regional Gaming Updates ILLINOIS GAMING REVENUE AUGUST 2015 Statewide gaming win declined 7.3% in August to $118.5MM with a decline of 7.7% in admissions to 1.12MM. BYD s Par-a-Dice generated $7.5MM of net win, down about 10.6% y/y. Caesars two properties in the market posted a combined $22.4MM of gaming revenue in August, down 11.1% y/y. The MGM Grand Victoria was the only operator in the market to post a gain, with a 2.7% lift in gaming revenue to $15MM on a 1.9% increase in admissions. PENN s three properties generated a combined $25.6MM of gaming win, down 6.8% y/y. The largest casino in the market by annual revenue, Rivers Des Plaines, posted $32.9MM of gaming win, down 7.77% y/y. Figure 1. State Gaming Revenue Trends $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 AGR (000s) YoY % 10.0% 5.0% 0.0% (5.0%) (10.0%) (15.0%) Source: State gaming agencies, Union Gaming Research. INDIANA CASINO REVENUES DOWN IN AUGUST Statewide, Indiana adjusted casino revenue declined 5.9% y/y in August to $172MM on a steeper 14.6% decline in admissions. PNK came out on top in Indiana in August, with its two properties posting a 3% gain in gaming win to $30MM, including a 4% lift at the Ameristar property and a 1.2% gain at Belterra. BYD s Blue Chip asset was also more resilient than the rest of the market, with its gaming win down just 1.7% to $14MM in August. Caesars two properties reported a collective 11.4% decline to $55.2MM while PENN s Lawrenceburg property was down 20.3% as it continues to face fierce competition in its local market, namely from Cincinnati, Ohio. 4

5 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Figure 2. State Gaming Revenue Trends $250,000 $200,000 $150,000 $100,000 $50,000 $0 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 AGR (000s) YoY % 20.0% 15.0% 10.0% 5.0% 0.0% (5.0%) (10.0%) (15.0%) (20.0%) (25.0%) Source: State gaming agencies, Union Gaming Research. MISSOURI GAMING WIN DECLINES 2.6% IN AUGUST Missouri s casinos posted $143.3MM of gaming win in August, a 2.6% decline from the prior year period. The pressure was a result of a 7.4% decline in admissions. Caesars property in North Kansas City reported a 3.8% decline in gaming win. ISLE s four assets in the market posted a combined decline of 2.5% to $21.8MM of gaming win. PNK s three assets also reported a collective decline of 3.4% to $58.1MM. River City generated $19.1 MM of gaming win, up 0.6% y/y. PENN s two properties posted a 6.8% gain to $32.2MM, including a 12.6% lift at Maryland Heights. Figure 3. State Gaming Revenue Trends $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% (2.0%) (4.0%) (6.0%) (8.0%) (10.0%) AGR (000s) YoY % Source: State gaming agencies, Union Gaming Research. 5

6 OHIO SAME-STORE GAMING WIN DOWN 2.7% IN AUGUST Ohio reported $138.1MM of gaming win from both its casinos and racinos in August. On a same-casino basis, total revenue of $123MM was down 2.7% y/y. Casino revenue was down 6.3% while same-store racino win was up 2%. Results from Caesars in the state were mixed with the Cleveland asset reporting a 16.6% drop to $17.1MM and the Cincinnati property reporting a 6.2% lift to a comparable $17.1MM. The strength at Horseshoe Cincinnati likely played into the continued pressure on PENN s Lawrenceburg property just over the border in Indiana (see above). PNK s Belterra Park asset continues to gain traction with a 40.6% lift in gaming win to $6.3MM. PENN s four assets in the state posted a combined $47MM, including $7.2MM from Dayton and $7.9MM from Mahoning Valley. On a same-store basis, PENN s two casinos (Toledo and Columbus) posted a 6.1% drop in gaming win. Dayton opened in August 2014 and will have its first full y/y comp in September. The Mahoning Valley property opened in September 2014 and will face its first full y/y comp in October. MARYLAND CASINOS GENERATE $96.7MM IN AUGUST The Maryland Lottery and Gaming Commission reported that the state s five casinos generated $96.7MM of gaming revenue in August, marking a 20% lift over the prior year period. The updraft is due to a full month of operations from Horseshoe Baltimore which was not open yet for a full month last August. The Hollywood Perryville casino reported a 10.8% y/y decline in gaming revenue while Maryland Live reported a 9.1% decline. The state s two smaller casinos, Rocky Gap and Ocean Downs, reported a 3.6% increase and a 2.3% increase, respectively. 6

7 Weekly Headlines CENTURY CASINOS INKS TWO MORE CRUISE SHIP OPERATIONS Century Casinos, Inc. (CNTY, Not Rated) added two new TUI Cruises to its list of operated casinos this week. The two new TUI Cruises ship will be the Mein Schiff 5 and Mein Schiff 6, both of which are currently being built and expected to begin operations in mid-2016 and mid-2017, respectively. The two new luxury liners will each hold up to 2,500 guests. The two new additions will bring Century Casinos operations on cruise liners up to 13 total. The company has operations with TUI Cruises, Windstar Cruises and Nova Star Cruises. In addition to cruise line casinos, the company operates the Century Casinos in Edmonton, Canada; Alberta Canada; Central City, Colorado and Cripple Creek Colorado. The company, through its European subsidiary also has a 33.3% stake in Casinos Poland. ONTARIO LOTTERY SELECTS ONTARIO GAMING EAST AS SERVICE PROVIDER After a competitive bidding process, Ontario Lottery and Gaming (OLG) awarded a 20- year license to operate the OLG Casino Thousand Islands and OLG Slots at Kawartha Downs to Ontario Gaming East LP (majority owned by Great Canadian Gaming Corporation). The license also calls for a new gaming and entertainment facility to be built in Belleville or Quinte West. The operator transition is expected to be completed by early While Ontario Gaming East will be responsible for the day-to-day operations of the properties, OLG will continue to conduct and manage the gaming, own key player information, and maintain compliance and make tax and host community payments. Great Canadian Gaming is the majority stakeholder in Ontario Gaming East and has considerable industry experience and currently owns or operates 16 casinos, including Hard Rock Casino Vancouver, River Rock Resort and Casino Nova Scotia, among others. CAESARS PALACE SETTLES WITH FINCEN This week the Financial Crimes Enforcement Network (FinCEN) announced a settlement with Caesars subsidiary, Desert Palace (dba Caesars Palace) for $8MM. In addition, the casino agreed to periodic external audits and independent review of its anti-money laundering program. Caesars Palace has also agreed to adopt a training program, improve its compliance program and look-back for other potential transactions that may have violated the Bank Secrecy Act (BSA). The FinCEN settlement is a civil penalty against the property which had been accused of inadequately monitoring transaction from high rollers in some of its private gaming salons. Given the Caesars entity that owns Caesars Palace had filed for bankruptcy in January, this settlement is pending approval of the bankruptcy court. AMAYA LAUNCHES STARSDRAFT DAILY FANTASY SPORTS Amaya, Inc (AYA-TSE, Not Rated), the largest online gaming company in the world, pushed its way into the rapidly growing daily fantasy sports (DFS) industry with the launch of its Starsdraft platform. Starsdraft comes via Amaya s acquisition of Victiv.com earlier in the year. Prior to being rebranded, Victiv.com was the third largest DFS operation behind industry leaders, FanDuel and Draftkings. With tens of millions of dollars on advertising to help kick off the new football season, the DFS industry is poised 7

8 for strong growth this year. Amaya looks to capitalize on the industry growth along with its network of over 95MM registered users via its other online platforms like PokerStars. 8

9 Global Gaming Valuation Figure 4. Stock Price Performance Current Last Week Weekly Weekly YTD 52wk 52wk Large Cap Gaming Price Price Change % Change % Change Low High Las Vegas Sands Corp (1.13) (2.4%) (20.0%) Wynn Resorts, Limited (4.15) (5.6%) (53.2%) MGM Resorts International % (3.1%) Melco Crown Entertainment Limited Sponsored ADR (0.70) (4.1%) (35.2%) Regional Gaming Boyd Gaming Corporation % 29.0% Penn National Gaming, Inc (0.64) (3.5%) 28.3% Pinnacle Entertainment, Inc (0.53) (1.4%) 63.8% Churchill Downs Incorporated % 44.0% Isle of Capri Casinos, Inc % 132.9% Caesars Entertainment Corporation % (40.0%) Caesars Acquisition Co. Class A % (30.4%) Gaming Equipment and Technology International Game Technology PLC (0.25) (1.5%) (25.0%) Scientific Games Corporation Class A % (8.2%) Aristocrat Leisure Limited % 27.9% Konami Corporation 2, , (69.00) (2.6%) 17.0% 1,900 2,706 Global Cash Access Holdings, Inc % (30.2%) Small/Micro Cap Gaming Tropicana Entertainment Inc % (5.9%) Monarch Casino & Resort, Inc % 14.9% Empire Resorts, Inc % (40.5%) Full House Resorts, Inc (0.11) (7.6%) (4.3%) Macau Gaming Sands China Ltd % (29.1%) Wynn Macau Ltd (0.08) (0.7%) (45.0%) MGM China Holdings Limited % (37.4%) SJM Holdings Limited % (45.7%) Galaxy Entertainment Group Limited % (47.3%) Macau Legend Development Ltd % (66.0%) NagaCorp Ltd % (25.9%) Louis XIII Holdings Limited (0.09) (3.8%) (33.1%) Asian Pacific Gaming Crown Resorts Limited (0.06) (0.5%) (14.0%) SKYCITY Entertainment Group Limited % (1.8%) Genting Singapore Plc (0.02) (2.7%) (32.9%) Echo Entertainment Group Limited % 27.4% Melco Crown (Philippines) Resorts Corp (0.50) (8.8%) (62.0%) Bloomberry Resorts Corporation (0.19) (2.8%) (46.9%) Paradise Co., Ltd 21,250 22,200 (950) (4.3%) (10.0%) 20,200 41,400 Kangwon Land, Inc. 42,200 41, % 38.8% 29,800 45,900 Benchmarks and Indicies S&P 500 (Operating Basis) 1,952 1, % (5.2%) 1,821 2,135 S&P 500 / Casinos & Gaming -SUB (31) (5.6%) (53.2%) 631 1,495 NASDAQ Composite Index 4,796 4, % 1.3% 4,117 5,232 DJ Industrial Average 16,330 16,375 (44) (0.3%) (8.4%) 15,855 18,351 Hang Seng Index 21,563 20, % (8.7%) 22,530 28,589 Source: Company filings, FactSet and Union Gaming Research. Priced as of 9/10/15. 9

10 Figure 5. Credit Relative Value Date Amount Current Last 7day 52wk 52wk Current Current Current ISSUER / Issue Issued Outstanding Price Week Change Low High YTW YTM STW MGM RESORTS INTERNATIONAL MGM Resorts International 7.5% 01-JUN /17/2007 $ % 2.71% 239 MGM Resorts International 10.0% 01-NOV /01/2011 $ % 3.35% 300 MGM Resorts International 6.875% 01-APR /21/2006 $ % 2.91% 264 MGM Resorts International 7.625% 15-JAN /21/2006 $ % 3.39% 298 MGM Resorts International % 01-MAR /22/2010 $ % 4.13% 331 MGM Resorts International 8.625% 01-FEB /17/2012 $ % 4.92% 386 MGM Resorts International 5.25% 31-MAR /19/2013 $ (1.125) % 5.22% 387 MGM Resorts International 6.75% 01-OCT /03/2013 $1, % 5.22% 378 MGM Resorts International 6.625% 15-DEC /20/2012 $1, % 5.31% 363 MGM Resorts International 7.75% 15-MAR /22/2012 $1, % 5.75% 404 MGM Resorts International 6.0% 15-MAR /25/2014 $1, % 5.75% 388 CAESARS ENTERTAINMENT OPERATING CO 1st Lien Secured Caesars Entertainment Operating Co., Inc. 9.0% 15-FEB /01/2013 $1, (1.500) Caesars Entertainment Operating Co., Inc. 8.5% 15-FEB /07/2012 $1, Caesars Entertainment Operating Co., Inc % 01-JUN /21/2010 $2, nd Lien Secured Caesars Entertainment Operating Co., Inc. 10.0% 15-DEC /21/2010 $3, % 61.49% 6,053 Caesars Entertainment Operating Co., Inc % 15-APR /29/2011 $ (2.000) % 79.17% 7,849 Unsecured Caesars Entertainment Operating Co., Inc. 5.75% 01-OCT /16/2005 $ % 61.48% 6,088 Caesars Entertainment Operating Co., Inc. 6.5% 01-JUN /09/2006 $ % % 18,890 Subsidiary secured Chester Downs & Marina LLC 9.25% 01-FEB /03/2012 $ % 17.01% 1,577 Caesars Entertainment Operating Co., Inc % 01-FEB /06/2009 $ (0.750) CAESARS ENTERTAINMENT RESORT PROPERTIES Caesars Entertainment Resort Properties LLC 8.0% 01-OCT /13/2015 $ % 8.49% 706 Caesars Entertainment Resort Properties LLC 11.0% 01-OCT /13/2015 $1, % 12.81% 1,124 CAESARS GROWTH PROPERTIES HOLDINGS Caesars Growth Properties Holdings LLC 9.375% 01-MAY /17/2014 $ BOYD GAMING CORPORATION Boyd Acquisition Sub LLC 8.375% 15-FEB /16/2012 $ (0.750) % 7.02% 476 Boyd Gaming Corporation 9.0% 01-JUL /27/2013 $ (0.121) % 7.19% 498 SCIENTIFIC GAMES Scientific Games International, Inc. 7.0% 01-JAN /21/2014 $ % 6.55% 500 Scientific Games International, Inc. 10.0% 01-DEC /21/2014 $2, % 11.77% 1,002 Scientific Games Corporation 8.125% 15-SEP /07/2011 $ % 10.67% 972 Scientific Games International, Inc % 15-MAY /04/2014 $ (0.500) % 13.56% 1,202 Scientific Games International, Inc. 6.25% 01-SEP /30/2013 $ (0.750) % 13.85% 1,243 MOHEGAN TRIBAL GAMING AUTHORITY Mohegan Tribal Gaming Authority 9.75% 01-SEP /12/2014 $ (1.000) % 9.09% 766 Mohegan Tribal Gaming Authority 11.0% 15-SEP /06/2012 $ % 2.02% 975 GAMING & LEISURE PROPERTIES GLP Capital LP 4.375% 01-NOV /30/2014 $ % 3.37% 233 GLP Capital LP 4.875% 01-NOV /30/2014 $1, (0.125) % 4.22% 277 GLP Capital LP 5.375% 01-NOV /30/2014 $ % 4.78% 283 ISLE OF CAPRI CASINOS Isle of Capri Casinos, Inc % 15-MAR /30/2013 $ % 5.04% 353 Isle of Capri Casinos, Inc % 15-JUN /02/2012 $ % 7.00% 431 WYNN LAS VEGAS Wynn Las Vegas LLC 5.375% 15-MAR /06/2012 $ (1.375) % 6.13% 439 Wynn Las Vegas Capital Corp. 4.25% 30-MAY /22/2013 $ (0.750) % 6.27% 434 PINNACLE ENTERTAINMENT Pinnacle Entertainment, Inc % 01-AUG /10/2014 $ (0.500) % 5.20% 376 Pinnacle Entertainment, Inc. 7.75% 01-APR /19/2012 $ (0.375) % 5.85% 293 Ameristar Casinos, Inc. 7.5% 15-APR /29/2011 $1, (0.490) % 6.37% 452 Pinnacle Entertainment, Inc. 8.75% 15-MAY /27/2010 $ (0.125) % 7.56% 571 ELDORADO RESORTS Eldorado Resorts LLC 8.625% 15-JUN /01/2011 $ Eldorado Resorts, Inc. 7.0% 01-AUG /23/2015 $ (0.375) % 7.17% 528 SINGLE ISSUES Churchill Downs Incorporated 5.375% 15-DEC /16/2013 $ % 4.91% 344 Station Casinos LLC 7.5% 01-MAR /30/2013 $ % 6.19% 450 Penn National Gaming, Inc % 01-NOV /01/2014 $ % 5.58% 422 Sugarhouse HSP Gaming LP 6.375% 01-JUN /24/2013 $ % 7.51% 594 ROC Finance LLC % 01-SEP /19/2011 $ % 9.86% 825 NATIVE AMERICAN ISSUERS Chukchansi Economic Development Authority 9.75% 15-NOV /30/2012 $ % 23.43% 2,204 Buffalo Thunder Development Authority 11.0% 09-DEC /09/2014 $ (2.000) % 18.37% 1,665 Seminole Hard Rock Entertainment, Inc % 15-MAY /14/2013 $ (0.500) % 5.97% 440 Shingle Springs Tribal Gaming Authority 9.75% 01-SEP /29/2013 $ (0.250) % 8.61% 700 Choctaw Resort Development Enterprise, Inc. 7.25% 15-NOV /04/2004 $ % 7.64% 643 Mohegan Tribal Gaming Authority 9.75% 01-SEP /12/2014 $ (1.000) % 9.09% 766 Mohegan Tribal Gaming Authority 11.0% 15-SEP /06/2012 $ % 2.02% 975 Graton Economic Development Authority (California) 9.625% 01-SEP /22/2012 $ (0.250) % 7.56% 628 Source: FactSet and Union Gaming Research. Priced as of 9/3/15. 10

11 Figure 6. Stock Price Performance 09/11/15 LTM LTM Total Current 52 Week YTD Dividend Dividend Market Enterprise Stock Price Implied Adjusted EBITDA EV/ EBITDA Net Debt/EBITDA Company Ticker Price Low High % Per Share Yield Cap Value Rating Target Return 2014A 2015E 2016E 2014A 2015E 2016E 2014A 2015E 2016E DESTINATION GAMING OPERATORS Las Vegas Sands Corp. LVS $46.56 $40.00 $65.83 (19.9%) $ % $37,129 $45,571 Buy $ % $5,248 $4,132 $4, x 11.1x 10.1x 1.9x 2.5x 2.3x MGM Resorts International MGM $20.86 $16.84 $24.31 (2.4%) $ % $11,741 $26,068 Buy $ % $2,233 $2,175 $2, x 12.0x 11.5x 5.3x 5.4x 4.3x Wynn Resorts Ltd WYNN $67.46 $67.42 $ (54.7%) $ % $6,849 $13,321 Buy $ % $1,661 $1,186 $1, x 11.2x 8.1x 3.0x 5.6x 4.0x Melco Crown Entertainment MPEL $16.74 $16.34 $28.17 (34.1%) $ % $9,095 $11,402 Buy $ % $1,166 $946 $1, x 12.1x 7.4x 2.0x 1.3x (0.1x) Sector Average 9.5x 11.5x 9.9x 3.4x 4.5x 3.6x HONG-KONG LISTED GAMING OPERATORS Galaxy Entertainment (HK $) 27-HKG $23.00 $22.00 $56.20 (47.3%) $ % $97,898 $94,214 Buy $ % $13,250 $11,917 $15, x 7.9x 6.2x (0.8x) (0.4x) (0.5x) Sands China Ltd. (HK $) 1928-HKG $26.65 $25.10 $49.30 (30.1%) $ % $215,037 $225,984 Buy $ % $24,937 $17,965 $20, x 12.6x 11.0x 0.2x 1.0x 1.2x SJM Holdings Ltd. (HK $) 880-HKG $6.53 $6.40 $18.26 (47.2%) $ % $36,938 $16,838 Buy $ % $7,925 $6,174 $5, x 2.7x 2.9x (3.0x) (2.3x) (1.1x) Wynn Macau Ltd. (HK $) 1128-HKG $10.86 $10.84 $29.00 (47.0%) $ % $56,423 $76,048 Buy $ % $8,613 $5,334 $8, x 14.3x 9.1x 0.9x 3.8x 2.8x MGM China Holdings Ltd (HK$) 2282-HKG $12.06 $11.62 $25.60 (38.8%) $ % $45,828 $51,584 Buy $ % $6,663 $4,602 $5, x 11.2x 9.1x 0.0x 2.2x 2.9x Nagacorp Ltd. (HK$) 3918-HKG $4.72 $4.33 $6.66 (25.6%) $ % $10,717 $9,140 Buy $8 77.3% $1,360 $1,747 $1, x 5.2x 5.1x (1.1x) (1.1x) (1.2x) Sector Average 7.4x 11.1x 8.2x (0.4x) 1.0x 1.3x REGIONAL GAMING OPERATORS Boyd Gaming Corp. BYD $16.29 $8.78 $ % $ % $1,807 $5,071 Buy $ % $545 $594 $ x 8.5x 8.1x 6.1x 5.6x 5.0x Pinnacle Entertainment Inc. PNK $36.40 $19.66 $ % $ % $2,210 $5,988 Hold $ % $585 $626 $ x 9.6x 9.4x 6.5x 5.7x 5.1x Penn National Gaming Inc. PENN $17.68 $10.50 $ % $ % $1,418 $2,479 Hold $ % $285 $321 $ x 7.7x 6.8x 3.6x 4.5x 3.0x Gaming & Leisure Properties, Inc. GLPI $29.89 $27.66 $ % $ % $3,423 $6,104 Buy $ % $423 $436 $ x 14.0x 13.8x 6.1x 5.8x 5.6x Monarch Casino & Resort MCRI $18.62 $11.22 $ % $ % $316 $345 Not Rated NA $43 $47 $51 8.1x 7.4x 6.7x 0.6x 0.9x 2.4x Churchill Downs Inc CHDN $ $90.52 $ % $ % $2,426 $2,979 Not Rated NA $202 $316 $ x 9.4x 8.5x 3.5x 1.7x 2.0x Isle of Capri Casinos Inc ISLE $19.13 $6.25 $ % $ % $778 $1,697 Not Rated NA $200 $217 $ x 7.8x 7.5x 4.6x 4.1x 3.5x Sector Average (excl. GLPI) 9.3x 8.4x 7.8x 3.9x 4.0x 3.8x GAMING TECHNOLOGY International Game Technology IGT $16.57 $15.12 $24.23 (25.7%) $ % $3,291 $11,498 Buy $ % $912 $1,602 $1, x 7.2x 6.6x 1.7x 5.6x Scientific Games Corp SGMS $11.60 $8.44 $17.12 (8.9%) $ % $999 $9,325 Hold $ % $556 $1,054 $1, x 8.9x 8.0x 15.0x 7.9x 7.0x Global Cash Access Holdings GCA $4.94 $4.39 $8.53 (30.9%) $ % $326 $1,328 Not Rated NA $80 $203 $ x 6.6x 6.0x 13.8x 5.3x 4.7x Amaya Gaming Group Inc. AYA-TSX $27.72 $22.07 $39.25 (2.9%) $ % $3,690 $8,577 Not Rated NA $309 $623 $ x 13.8x 11.4x 8.1x 4.0x 2.5x Ainsworth Game Technology Limited AGI-ASX $2.76 $2.03 $ % $ % $890 $859 Not Rated NA $89 $83 $ x 10.3x 8.5x (0.4x) (0.4x) (0.7x) Aristocrat Leisure ALL-ASX $8.24 $5.53 $ % $ % $5,223 $6,701 Not Rated NA $209 $506 $ x 13.2x 11.4x (0.8x) 2.2x 1.6x Konami Corp 9766-JPY $2, $1,900 $2, % $ % $370,499 $321,235 Not Rated NA #N/A $42,938 $43, x 7.4x - (0.9x) (1.1x) Sector Average 19.3x 9.6x 8.5x 6.3x 3.4x 2.4x INDUSTRY AVERAGE 11.4x 10.2x 8.6x 3.3x 3.2x 2.8x Source: Company filings, FactSet and Union Gaming Research. 11

12 Important Disclosure Analyst Certification The analysts, Grant Govertsen and Christopher Jones, primarily responsible for the preparation of this research report attest to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers; and (2) that no part of the research analyst s compensation was, is, or will be directly related to the specific recommendations or views in this research report. Company Specific Disclosures The following company is a client of Union Gaming and the firm has received or is entitled to receive compensation for investment banking services involving their securities within the last 12 months: MGM Ratings Definitions Current Ratings Definition Union Gaming Research and Union Gaming Securities Asia Limited uses a traditional ratings construct (Buy, Hold, and Sell) that is underscored by percentage upside/downside from current trading levels along with dividend yields for total return. We exclude special dividends and contemplate regular dividends only in our total return forecasts. These are absolute ratings, not relative or forced ratings. We define a Buy rating as a company whose shares exhibit total return (appreciation and dividends) potential of at least 15% within the next 12 months, and conversely a Sell rating as a company whose shares exhibit downside potential of at least 15% within the next 12 months. A Hold rating is reserved for companies whose shares exhibit total return potential between those parameters. Buy the total forecasted return is expected to be greater than 15% within the next 12 months Hold the total forecasted return is expected to be greater than or equal to 0% and less than or equal to 15% Sell whose shares exhibit downside potential of at least 15% within the next 12 months Suspended the company rating, target price and earnings estimates have been temporarily suspended. Valuation and Risks Ratings Distribution (as of 09/11/2015) Coverage Universe Investment Banking Services / Past 12 Months Ratings Count Pct. Rating Count Pct. BUY 14 78% BUY 3 21% HOLD 4 22% HOLD 0 0% SELL 0 0% SELL 0 0% General Disclosures Additional information is available upon request. This report was prepared by Union Gaming Research, LLC. Union Gaming Research, LLC is a wholly owned subsidiary of Union Gaming Group, LLC. Union Gaming Group, LLC also owns Union Gaming Advisors, LLC, a FINRA member firm, Union Gaming Securities Asia Ltd., a licensed corporation with the Securities and Futures Commission (SFC) in Hong Kong and Union Gaming Analytics, LLC. Union Gaming Advisors, LLC and Union Gaming Analytics, LLC do not produce research reports. All questions or comments concerning this research report should be addressed to Union Gaming Research, LLC at (702) Neither Union Gaming Advisors, LLC ("Advisors") nor its affiliates, analysts or employees own any securities of companies analyzed in the research reports it distributes. Neither Union Gaming Advisors nor its affiliates or analysts serve as an officer, director or advisory board member of any Subject Company. Advisors, its affiliates, analysts and employees may have received investment banking, non-investment banking securities and non-securities service, related compensation from the subject company in the past 12 months. It further intends to seek compensation for investment banking, non-investment banking securities and non-securities service, related activities in the next three months. Accordingly, investors should be aware that the firm and its affiliates may have a conflict of interest that could affect the objectivity of the reports it distributes. Advisors is not now nor has ever been a market maker. All prices are those current at the end of the previous trading session unless otherwise indicated. Prices are sourced from local exchanges via Bloomberg and Factset. Data is sourced from Union Gaming Research, Union Gaming Securities Asia Limited, and subject companies. Union Gaming Research and Union Gaming Securities Asia Limited are not responsible for errors in prices provided by independent sources. Data, analyses, and reports necessarily contain time-sensitive information, and no subscriber or client should rely on dated reports or conclusions. Investor clients and financial advisers should consider any report from Union Gaming as only a single factor in making any investment decision. 12