Bring It On Home An Overview of Gaming Behavior in New England

Transcription

1 Bring It On Home An Overview of Gaming Behavior in New England Results of the 4th Biennial New England Gaming Behavior Survey March, 2013 Prepared by

2 UNIVERSITY OF MASSACHUSETTS DARTMOUTH CENTER FOR POLICY ANALYSIS The is a multidisciplinary research unit that promotes economic, social, and political development by providing research and technical assistance to client organizations. The offers custom designed research and technical analysis in the areas of economic development, public management, program evaluation and polling research for government agencies, nonprofit organizations, private businesses, and educational institutions. The strives to erode the walls between research and teaching by training students in the techniques of applied social science and by conducting university and community based educational programs. The does not pursue a predetermined research agenda, but is a flexible research organization responding on a timely basis to the problems and issues identified by client agencies. Clyde W. Barrow, Ph.D., Political Science Director EXECUTIVE BOARD David Borges, M.P.A., Public Administration Associate Director/Senior Research Associate Chad Maguire, J.D., Law Senior Research Associate Colleen Dawicki, M.P.P., Public Policy Project Manager/Senior Research Associate Joao Paraskeva, Ph.D., Education Senior Research Associate EXECUTIVE STAFF David Borges, M.P.A., Public Administration Associate Director/Senior Research Associate Colleen Dawicki, M.P.P., Public Policy Project Manager/Senior Research Associate Jason Hill, UMass Dartmouth MPP Candidate, Urban Initiative Graduate Research Assistant Robert Golder, UMass Dartmouth MPP Candidate, Urban Initiative Graduate Research Assistant Nancy Trudel Assistant to the Director Correspondence and inquiries should be addressed to:, University of Massachusetts Dartmouth, 285 Old Westport Road, North Dartmouth, Massachusetts (telephone: ; fax: ). Copyright. All rights reserved. Cover Design: Lauren Butler. Website URL: The information and analysis in this report does not represent an official statement or view of the University of Massachusetts. Polling and Program Evaluation Series No.108

3 Contents EXECUTIVE SUMMARY... i 1.00 PROPENSITY TO GAMBLE: RESPONDENTS WHO HAVE PARTICIPATED IN SOME FORM OF GAMBLING IN THE LAST 12 MONTHS Propensity to Participate in Different Forms of Gambling by State Propensity to Participate in Different Forms of Gambling: Historical Trends CONNECTICUT: FOXWOODS RESORT CASINO AND MOHEGAN SUN CASINO Visitation Data Demographic Profile of Visitors to Foxwoods and Mohegan Sun Percentage Who Spent Money on Gambling and Non-Gambling Activities Visits to Casinos Outside of the New England Games Played at Foxwoods and Mohegan Sun RHODE ISLAND: TWIN RIVER CASINO AND NEWPORT GRAND SLOTS Visitation Data Demographic Profile of Visitors to Twin River and Newport Grand Percentage Who Spent Money on Gambling and Non-Gambling Activities DIFFERENTIATION BETWEEN THE RESORT CASINO MARKET AND THE CONVENIENCE GAMBLING (SLOT PARLOR/RACINO) MARKET Importance of Amenities Importance of Drive Time MAINE: HOLLYWOOD CASINO AND OXFORD CASINO Visitation Data Travel Time Cross-Visitation APPENDIX A: METHODOLOGY APPENDIX B: SURVEY QUESTIONNAIRE APPENDIX C: DEMOGRAPHIC PROFILE OF RESPONDENTS

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5 EXECUTIVE SUMMARY Overview of the Gaming Behavior Survey Given the comparatively recent expansion of casino gambling in the United States, gambling studies is a relatively new field of social scientific inquiry. 1 Consequently, policymakers, the general public, and even many scholars are often unfamiliar with the complexities and nuances of gaming-related issues and, most particularly the differences between destination resort casinos and convenience gambling facilities. There is often a tendency to view gambling as one large undifferentiated market with uni-dimensional behavior patterns and demographics that can be extrapolated from one market niche to another or from one political jurisdiction to another without qualification. More specifically, casinos, racinos, and lotteries are often viewed as generic (fiscal and economic) equivalents by public policymakers, regardless of whether they are land-based resorts, riverboat, dockside, or racetrack casinos. In fact, differences within the casino market have significant implications for public policy, especially for state fiscal, economic development, and social policies. The New England Gaming Research Project was launched by the at the University of Massachusetts Dartmouth with the February 2004 release of its first annual New England Casino Gaming Update (NEGU). The Gaming Research Project s purpose is to provide policymakers, the general public, and the media with independent and objective research on the economic and fiscal impacts of gaming in the New England region, including information on the gaming behavior of New England residents. The New England Gaming Behavior Survey is conducted every two years to complement and expand upon the information reported in the annual NEGU report by informing on-going debates about expanded gambling in New England and to provide a region-wide base of knowledge about gaming behavior in New England. The 1 st New England Gaming Behavior Survey (2006) polled more than 2,400 respondents in the states of Massachusetts and Rhode Island, which at the time were debating various proposals for expanded gambling. The 2 nd New England Gaming Behavior Survey (2008) interviewed 2,806 residents in four of the six New England states. The 2008 survey was expanded to include Maine and New Hampshire because a slot parlor opened in Maine in late 2005, while previous studies by the found that New Hampshire is a significant feeder market for Connecticut s two Native American casinos. On the other hand, Vermont has not entertained any proposals for expanded gambling and previous studies have not found it to be a significant feeder market to any of the region s established gaming destinations. In early 2009, the conducted its 3 rd New England Gaming Behavior survey, which sampled 3,970 residents in Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island. Connecticut was added to the survey because the state is a unique gaming market that combines features of both destination and convenience gambling and therefore warrants a separate analysis. Bring It On Home: An Overview of the New England Gaming Market is the 4 th public release of findings from the New England Gaming Behavior Survey. The study builds on data from previous Gaming Behavior Surveys to refine the analysis of the casino and racino markets in New England, including: How many people gamble, where do they gamble, and what types of gambling interest them? Do different people gamble at destination casinos as opposed to racinos? 2 What is the demographic background of casino and racino patrons? 1 The leading academic journals in this field are the Journal of Gambling Studies and the Gaming Law Review and Economics. However, scholarly research on various aspects of gambling are now published in journals of economics, economic development, sociology, political science, psychology, travel and tourism, and public health. 2 Racinos are slot parlors located at pari-mutuel facilities, such as greyhound racing parks, horse racing tracks, or jai alai frontons. i

6 How often does the average patron visit a destination casino or racino? What types of games do they play when they visit? On what items do patrons spend their money when they visit New England s casinos and racinos? How far will patrons drive to visit a casino or racino and are there differences between those who visit a destination casino or racino? The 4th New England Gaming Behavior Survey was conducted from January 3, 2012 through January 22, 2013 using a questionnaire developed by the (see Appendix B). The survey uses an overlapping dual frame design that includes both landlines and cellphones. 3 The survey generated a total of 3,035 respondents distributed among the five New England states included in the survey (see Table 1). Table 1 Sample Size by State State # Respondents % Total Sample Total 3, % Connecticut % Maine % Massachusetts % New Hampshire % Rhode Island % Summary of Results Propensity to Gamble Overall, 52% of residents in the five states surveyed participated in some form of legal gambling in the last twelve months. Casino gambling is the third most frequent form of gambling among the five states residents with Connecticut (27%) reporting the highest propensity to casino gamble, followed by Rhode Island (26%), Massachusetts (22%), Maine (21%), and New Hampshire (16%). The propensity to casino gamble fell by 7 percentage points from 2006 to 2012 despite the addition of new or expanded casino gambling venues in Rhode Island, Maine, and Queens, New York. The one exception for this annual decline is Maine, where the propensity to gamble has more than doubled from 9% (2006) to 21% (2012). The casino industry as a whole continues to implement strategies aimed at expanding non-gaming amenities and relying less on gambling dollars. This trend is reflected in the New England gaming market, where a declining percentage of visitors to Foxwoods, Mohegan Sun, Twin River, and to a lesser extent Newport Grand report they gambled at these facilities in the last 12 months. Among the five states surveyed: 25% of visitors to Mohegan Sun and 18% of visitors to Foxwoods did not gamble in From 2006 to 2012, the percentage of visitors who gambled at Foxwoods and Mohegan Sun declined by 17 percentage points at both facilities, while the percentage who spent on food and beverages at each facility increased by 21 percentage points. Spending on other items such as shows, dancing, and concerts also trended upward over this period. 16% of visitors to Twin River and 7% of visitors to Newport Grand did not gamble in The percentage of visitors to Twin River who gambled declined by 11 percentage points from 2006 to 2012, although the percentage who gambled at Newport Grand increased by 2 percentage points over this period. 3 A more detailed explanation of the Survey s methodology can be found in Appendix A. ii

7 Differentiation Between the Resort Casino Market and the Convenience Gambling (Slot Parlor/Racino) Market The availability of table games, numerous non-gambling amenities, the physical attractiveness of the facilities, and the general atmosphere of the facilities continue to differentiate New England s resort casino market from the convenience gambling market. Among residents of the five states surveyed: 78% of visitors to Foxwoods or Mohegan Sun in the last 12 months did not visit Twin River or Newport Grand, despite the closer proximity of these facilities for most residents. This ratio has remained nearly unchanged since the Gaming Behavior Survey first measured this differentiation in Conversely, 65% of visitors to Twin River or Newport Grand in the last 12 months also visited Foxwoods or Mohegan Sun, even though these facilities are often a farther drive. Indeed, casino gamblers will travel farther to access the table games, non-gambling amenities, and to experience the general atmosphere of a resort casino than a convenience gambling facility. Conversely, racino/slot parlor gamblers are attracted primarily by convenience, that is, the distance they must drive to reach a facility. Among the five states surveyed: 74% of visitors to Foxwoods traveled more than an hour to reach the casino, while 27 percent traveled more than 90 minutes. Similarly, 69% of visitors to Mohegan Sun traveled more than an hour to reach the casino, while 24 percent traveled more than 90 minutes. Conversely, 89% of visitors to the convenience gaming facility of Twin River traveled an hour or less to reach the racino and 68 percent traveled 30 minutes or less. Ninety percent (90%) of visitors to Newport Grand traveled an hour or less to reach the racino and 27% traveled 30 minutes or less. Connecticut: Foxwoods Resort Casino and Mohegan Sun Casino Connecticut s two Indian casinos continue to be negatively affected by a weak consumer economy and increased competition; from 2006 to 2012, slot win declined by 29.4% at Foxwoods and 28.9% at Mohegan Sun. 4 Twin River in Lincoln, Rhode Island, which underwent a major expansion in 2007 and is the 5 th largest slots facility in the country, appears to be siphoning off some of Foxwoods customers, particularly those from Rhode Island and Massachusetts. Additionally, Resorts World in Queens, New York, which opened in 2011 and is the nation s 4 th largest slots facility, is attracting customers from New York who would normally visit Mohegan Sun. Among the five states surveyed: 17% of residents visited Foxwoods at least once during the previous 12 months, which is a decline from 22% in The percentage of residents who visited Foxwoods also declined in each of the five states surveyed, most notably residents from New Hampshire (-9 percentage points), Rhode Island (-7 percentage points), and Massachusetts (-5 percentage points). Again, while some of the decline is attributable to the struggling economy, residents of these three states are also substituting trips to facilities closer to home such as Twin River and Oxford Casino. 14% of residents from the five states surveyed visited Mohegan Sun at least once during the previous 12 months, which is a decline from 19% who visited in The percentage of Connecticut residents visiting Mohegan Sun declined by 9 percentage points from 2008 to 2012, despite living most proximate to the facility. 4 The Tribes compacts with the state of Connecticut do not require them to report table game revenues. 5 Residents 21 years of age and older. iii

8 Despite the declines, Connecticut s casinos continue to attract a significant number of visitors from the five states surveyed, although the number of visitors continues to fall: 6 In 2012, approximately 1.7 million residents from the five states surveyed visited Foxwoods and approximately 1.6 million residents visited Mohegan Sun. However, the estimated number of visitors to Foxwoods declined by 22% from 2008 to 2012, while the number of visitors to Mohegan Sun also declined by 22% over this period. The number of visitors over the past 2 years (2010 to 2012) declined by 10% at Foxwoods and 7% at Mohegan Sun. Significantly, Massachusetts residents account for two-thirds (66%) of the decline in the number of visitors to Foxwoods from 2008 to 2012 and 28% of the decline in visitors at Mohegan Sun. In fact, the decline in the number of Massachusetts residents visiting Foxwoods from 2008 to 2012 is greater than the decline in the number of visitors from the other four states combined. While some of the decline is due to the general decrease in the propensity to gamble, much of the decline is due to casino gamblers from Massachusetts shifting trips to Twin River (see below). Rhode Island: Twin River Casino and Newport Grand Slots Twin River and Newport Grand are both convenience gaming facilities that do not offer table games or have hotels, spas, or other amenities typical of a resort casino. However, Twin River underwent a major expansion in 2007 and is now the 5 th largest gaming facility in the United States in terms of slot positions, with 4,751 video lottery terminals (VLTs). The Twin River expansion also added several new restaurants, a bar and lounge, a comedy club, a 2,000-seat entertainment arena, and virtual table games. 7 Newport Grand is more modest slot facility with approximately 1,100 VLTs housed in a former jai-alai fronton. Because Twin River and Newport Grand are convenience gambling facilities, they draw few visitors from outside of the New England area. For example, CFPA s 2012 Patron Origin Analysis estimates that only 1.0% of visitors to Twin River and 2.3% of visitors to Newport Grand are from outside the five states surveyed. Twin River and Newport Grand have been on different trajectories since 2006; net terminal income at Twin River increased by 45.2% from 2006 to 2012, while it declined by 35.0% at Newport Grand. In 2012, approximately 580,000 New Englanders from the five states surveyed visited Twin River and approximately 115,000 visited Newport Grand. 8 The number of visitors to Twin River increased by 24% from 2008 to 2012, while the number of visitors to Newport Grand declined by 0.4% over this period. Twin River and Newport Grand primarily draw their customers from Rhode Island and Massachusetts. Twenty percent (20%) of Rhode Islanders visited Twin River in the last 12 months, while 8% of Massachusetts residents visited the facility. Five percent (5%) of Rhode Islanders visited Newport Grand in the last 12 months, while 1% of Massachusetts residents visited the facility. Much of the attendance growth at Twin River since its expansion in 2007 is fueled by Massachusetts residents, a state that posted a 154% increase in visitors from 2006 to 2012 or 233,918 additional unique visitors. In fact, from 2008 to 2012 the total number of visitors from Massachusetts increased by 149,519, while the number of visitors from the other four states combined actually declined by 38,058. Thus, one might argue that the success of Twin River, despite being located in Rhode Island, is more dependent on Bay State residents than Ocean Staters. 6 Throughout this report, visitors refers to the number of unique visitors in the 12 month period, whereas visits measures the total number of times that visitors patronized the facility, that is, the number of unique visitors multiplied the average number of times visited. 7 Twin River is now licensed to offer table games, which are planned to be up and running by the summer of Residents 18 years of age and older. iv

9 Similarly, Newport Grand received the greatest number of visitors from Massachusetts in 2012 (66,794), followed by Rhode Island (39,809), and Connecticut (8,274). Since 2006, the number of Massachusetts visitors to Newport Grand increased by 41%, while the number of visitors from Rhode Island actually declined by 3%. Maine: Hollywood Casino and Oxford Casino Hollywood Casino Bangor opened in 2005 and includes approximately 925 slots, 16 table games, and a hotel. The facility was originally a racino, but a $131 expansion completed in 2008 added the hotel and additional gaming space. Table games were authorized in 2011 and the facility s first table games were installed in March, Oxford Casino in Oxford, Maine opened in June, The facility originally housed about 500 slot machines and 12 table games but has already expanded its gaming floor to include approximately 800 slot machines, 22 table games, and additional office, warehouse, and parking space. Maine s gaming facilities are more isolated and are located in smaller population centers in comparison to New England s other gaming facilities; thus the Maine gaming market consists primarily of in-state and New Hampshire residents. The facilities also strive to attract out-of-state tourists, including visitors from Canada. Among the five states surveyed: About two percent (1.9%) of residents visited Hollywood Casino in the last 12 months, an increase of 0.8 percentage points from Just over one percent (1.3%) of residents visited Oxford Casino % of Maine s adult residents visited Hollywood Casino at least once in the last 12 months, an increase from 8.8% in 2008 but a decline from 19.3% in The decline is primarily a result of competition from Oxford Casino, with 8.4% of Maine residents reporting visiting Oxford Casino despite it only being open for about 7 months in It is estimated that nearly 160,000 visitors made at least one trip to Hollywood Casino in the last 12 months, an increase of 55% from 2008 but a decline of 23% from Seventy-two percent (72%) of Hollywood Casino s visitors in 2012 from the five states surveyed were Maine residents (114,879 visitors), followed by Massachusetts (28,940 visitors), New Hampshire (9,707 visitors), Connecticut (5,209 visitors), and Rhode Island (771 visitors). It is estimated that nearly 164,000 visitors made at least one trip to Oxford Casino in the last 12 months. Among the five states surveyed, 51% of the visitors to Hollywood Casino were Maine residents (83,912 visitors), followed by New Hampshire (74,740 visitors), and Connecticut (5,209 visitors). There is some cross-visitation between Hollywood Casino and Oxford Casino; among visitors to Hollywood Casino from the five states surveyed, 17% also visited Oxford Casino in the past 12 months. Among Oxford Casino visitors, 26% also visited Hollywood Casino. 9 Residents 21 years of age and older. v

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11 1.00 PROPENSITY TO GAMBLE: RESPONDENTS WHO HAVE PARTICIPATED IN SOME FORM OF GAMBLING IN THE LAST 12 MONTHS 1.10 PROPENSITY TO PARTICIPATE IN DIFFERENT FORMS OF GAMBLING BY STATE Fifty-two percent (52%) of residents in the five states surveyed participated in some form of legal gambling in the last 12 months. The most frequent form of gambling is the lottery, including both lotto tickets (39%) and scratch tickets (36%), followed by casino gambling (23%). Smaller percentages of residents played keno (7%), poker (6%), bingo (5%), dog or horse racing (3%), sports betting (3%), and the Internet (2%) (see Table 2). Massachusetts residents report the highest propensity to gamble (58% gambled legally in the last 12 months), followed by residents of New Hampshire and Rhode Island (51%), Connecticut (50%) and Maine (43%) (see Table 2). Massachusetts lead in gambling propensity is primarily due to the high percentage of Bay State residents who play the lotto and scratch tickets. 10 Casino gambling is the third most frequent form of gambling among the five states residents with Connecticut (27%) reporting the highest propensity to casino gamble, followed by Rhode Island (26%), Massachusetts (22%), Maine (21%), and New Hampshire (16%) (see Table 2). This pattern is consistent with research that indicates a higher propensity to casino gamble the closer residents are to a gaming facility. Table 2 Type of Game Played in the Last Twelve Months All Resp. CT ME MA NH RI Any type 52% 50% 43% 58% 51% 51% Lotto (e.g. Megabucks) 39% 36% 27% 45% 40% 41% Scratch tickets 36% 32% 30% 46% 37% 32% Casino 23% 27% 21% 22% 16% 26% Keno 7% 2% 3% 11% 2% 9% Poker 6% 5% 6% 6% 8% 4% Bingo 5% 3% 4% 5% 2% 7% Dog/horse race 3% 3% 2% 2% 1% 4% Sports betting 3% 2% 3% 4% 3% 3% Internet 2% 1% 1% 2% 2% 2% 10 Massachusetts continues to have one of the most successful lotteries in the nation

12 1.20 PROPENSITY TO PARTICIPATE IN DIFFERENT FORMS OF GAMBLING: HISTORICAL TRENDS The overall propensity to gamble on any type of game declined by from 59% in 2006 to 52% in 2012 (see Figure 1). The propensity to gamble by each type of game also declined during this period, particularly for casino gambling, despite the addition of casino gambling venues throughout New England (e.g. Twin River s expansion in 2007, the opening of Hollywood Casino in 2005, and the opening Oxford Casino in 2012). 11 Some of the decline in gambling propensity can be attributed to the addition of Connecticut to the survey sample in 2008, a state which has lower levels of gambling in comparison to residents in Massachusetts and Rhode Island, although the overall propensity to gamble has continued to trend downward since that time. Another factor continues to be the economy, particularly in Rhode Island, which has one of the highest unemployment rates in the nation. 70% Figure 1 Type of Game Played in the Last 12 Months: 2006 to % 50% 40% 30% 20% 10% 0% Any type Lotto (e.g. Megabucks) Scratch tickets Casino Keno Poker Bingo Dog/horse race Sports betting Internet Poker and sports betting were added to the survey in

13 2.00 CONNECTICUT: FOXWOODS RESORT CASINO AND MOHEGAN SUN CASINO Foxwoods Resort Casino is operated by the Mashantucket Pequot Tribe of Connecticut and Mohegan Sun Casino is operated by the Mohegan Tribe of Connecticut. Both casinos operate under the provisions of the Indian Gaming Regulatory Act of 1988, including procedures and regulations approved or adopted by the United States Department of the Interior and the National Indian Gaming Commission (NIGC 2008a). Foxwoods is currently the single largest gaming facility in the United States in terms of total gaming positions and gaming space. Mohegan Sun is the second largest gaming facility in the United States in terms of total gaming positions, but in the 2008 calendar year Mohegan Sun surpassed Foxwoods in gross gaming revenue, after surpassing it in total revenues (gaming & non-gaming) for the first time in VISITATION DATA Visitation Patterns by State Twenty-two percent (22%) of residents in the five states surveyed report having visited Foxwoods or Mohegan Sun at least once during the previous 12 months, a decline from 26% in 2006 (see Figure 2). Not surprisingly, due to their proximity, Connecticut residents report the highest percentage of visitations to Foxwoods or Mohegan Sun, with 35% having visited one or both of these facilities in the last 12 months, although this percentage has been declining since the regional gaming market peaked in 2006 (see Figure 2). Figure 2 Visited Foxwoods Resort Casino or Mohegan Sun in the Last 12 Months: 2006 to % 44% 40% 30% 20% 10% 29% 26% 26% 22% 38% 35% 10% 7% 7% 7% 30% 25% 24% 23% 19% 16% 12% 10% 35% 35% 32% 26% 0% NA All Respondents Connecticut Maine Massachusetts New Hampshire Rhode Island Residents 21 years of age and older

14 2.12 Historical Visitation Patterns by Facility Seventeen percent (17%) of residents in the five states surveyed visited Foxwoods at least once during the previous 12 months, which is a steady decline from the survey s baseline year. The percentage of residents who visited Foxwoods also declined in each of the five states, most notably residents from New Hampshire (-9%) and Rhode Island (-7%), who are clearly shifting many of their casino visits to Oxford Casino or Twin River respectively (see Table 3). Fourteen percent (14%) of residents in the five states surveyed visited Mohegan Sun at least once during the previous 12 months, which is a decline of 5 percentage points since Massachusetts is the only state to have posted an attendance increase at Mohegan Sun since its baseline year (+2%). Conversely, the percentage of Connecticut residents visiting Mohegan Sun declined by 9 percentage points since 2008, despite being most proximate to the facility (see Table 3). Table 3 Percent Visited Foxwoods Resort Casino or Mohegan Sun: 2006 to 2012 % Change % Change All Respondents 23% 22% 20% 17% *-5% 13% 19% 17% 14% *-5% Connecticut NA 27% 20% 22% *-5% NA 38% 35% 29% *-9% Maine 8% 5% 7% 5% -3% 5% 4% 5% 4% -1% Massachusetts 22% 24% 21% 17% -5% 13% 18% 13% 15% 2% New Hampshire 17% 10% 10% 8% -9% 7% 11% 7% 3% -4% Rhode Island 30% 29% 28% 23% -7% 17% 17% 17% 12% -5% * Percent change because Connecticut residents were not included in the 2006 survey. Data includes visitors age 21 years of age and older. % Visited Foxwoods Resort Casino % Visited Mohegan Sun - 4 -

15 2.13 Number of Annual Unique Visitors by State 13 In 2012, approximately 1.7 million residents from the five states surveyed visited Foxwoods and approximately 1.6 million residents visited Mohegan Sun (see Table 4). The number of visitors to Foxwoods declined by 22% from 2008 to 2012, while the number of visitors to Mohegan Sun also declined by 22% over this period. 14 The number of visitors over the past 2 years (2010 to 2012) declined by 10% at Foxwoods and 7% at Mohegan Sun, partly due to a general decline in the propensity to gamble, but also due to significant inroads on their customer base by Twin River and Oxford Casino. Foxwoods received the greatest number of visitors from Massachusetts in 2012 (815,155), followed by Connecticut (580,799), Rhode Island (175,125), New Hampshire (77,652), and Maine (52,944). Mohegan Sun received the greatest number of visitors from Connecticut (750,090), followed by Massachusetts (723,511), Rhode Island (94,120), Maine (35,962), and New Hampshire (33,002) (see Table 4). The number of visitors to Foxwoods declined for each state from their respective baseline year - 15% Connecticut, 34% Maine, 17% Massachusetts, 50% New Hampshire, and 24% Rhode Island although the number of visitors from Connecticut increased slightly over the past 2 years (see Table 4). Most significantly, Massachusetts residents account for two-thirds (66%) of the decline in the number of visitors to Foxwoods from 2008 to 2012 and 28% of the decline in visitors to Mohegan Sun. In fact, the decline in the number of Massachusetts residents visiting Foxwoods from 2008 to 2012 is greater than the decline in the number of visitors from the other four states combined. Declines in the number of visitors is likely a result of two factors; a still struggling economy coupled with the addition/expansion of casino gambling venues located more conveniently to each state s residents, for example, Twin River for Massachusetts and Rhode Island residents, and Hollywood and Oxford Casinos for Maine residents. 15 Table 4 Number of Visitors to Foxwoods Resort Casino and Mohegan Sun by State: 2006 to 2012 % Change % Change All Respondents 1,442,433 2,182,772 1,881,956 1,701,675 *-22% 807,091 2,085,218 1,758,029 1,636,685 *-22% Connecticut NA 682, , ,799 *-15% NA 960, , ,090 *-22% Maine 80,074 49,134 64,762 52,944-34% 43,413 39,307 46,118 35,962-17% Massachusetts 976,579 1,133,564 1,008, ,155-17% 567, , , ,511 27% New Hampshire 154,862 95,667 90,774 77,652-50% 66, ,233 70,708 33,002-51% Rhode Island 230, , , ,125-24% 129, , ,297 94,120-27% * Percent change because Connecticut residents were not included in the 2006 survey. Data includes visitors age 21 years of age and older. Foxwoods Resort Casino Mohegan Sun 13 This data measures the number of unique visitors regardless of the number of times they visited throughout the 12 month period. 14 Comparisons to 2006 data are not presented for respondents overall because Connecticut residents were not included in the 2006 survey. 15 It is generally agreed upon that as a result of their locations, Mohegan Sun attracts more customers from the western Connecticut, New York, and New Jersey in comparison to Foxwoods, while Foxwoods draws a higher number of patrons from eastern Connecticut, Rhode Island, and Massachusetts. This is consistent with results from CFPA s previous Gaming Behavior Surveys and its annual Patron Origin Analysis

16 2.14 Number of Visits Per Year to Foxwoods Resort Casino & Mohegan Sun by State 16 Residents from Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island made approximately 5.9 million visits to Foxwoods and 6.5 million visits to Mohegan Sun Casino in 2012 (see Table 5). Visits to Foxwoods declined by 30% from 2008 to 2012, while the number of visits to Mohegan Sun Casino declined by 11% over this period. 17 Massachusetts residents continue to be Foxwoods primary feeder market, with its residents making over 3 million visits in 2012 (3,009,146). This is followed by Connecticut (2,213,307 visits), Rhode Island (631,904), New Hampshire (138,904), and Maine (88,390). At Mohegan Sun, Connecticut residents made the most visits among the five states surveyed (4,271,835 visits), followed by Massachusetts (2,018,450 visits), Rhode Island (291,641 visits), Maine (72,543 visits), and New Hampshire (57,797 visits) (see Table 5). Each facility experienced both a percentage and absolute decline in visits from residents of each state. At Foxwoods, the number of visits from each state declined from their respective baseline year - 37% Connecticut (2008 to 2012), 46% Maine, 37% Massachusetts, 61% New Hampshire, and 49% Rhode Island although visitations by Connecticut residents increased over the past 2 years. A similar decline for each state occurred at Mohegan Sun - 3% Connecticut (2008 to 2012), 32% Maine, 2% Massachusetts, 48% New Hampshire, and 37% Rhode Island (see Table 5). In absolute numbers, from 2008 to 2012 Foxwoods experienced the largest decline in visitations from Connecticut residents (-1,314,370 visits), followed by Massachusetts (-731,614 visits), Rhode Island (-303,107 visits), and New Hampshire (-18,946 visits), while visitations increased by 21,076 for Maine residents. In fact, Connecticut accounted for more than half the decline in the number of visits to Foxwoods over this period (53%). Visits to Mohegan Sun from 2008 to 2012 declined most significantly among Massachusetts residents (-277,016 visits), followed by New Hampshire (-156,879 visits), Connecticut (-145,658 visits), and Rhode Island (93,691 visits), while Mai ne posted a modest gain (+8,865 visits). Table 5 Number of Visits to Foxwoods Resort Casino and Mohegan Sun by State: 2006 to 2012 Foxwoods Resort Casino Mohegan Sun % Change % Change All Respondents 6,566,692 8,428,522 6,456,981 5,923,192 *-30% 2,744,286 7,376,646 7,462,266 6,533,154 *-11% Connecticut NA 3,527,677 1,720,964 2,213,307 *-37% NA 4,417,493 4,896,764 4,271,835 *-3% Maine 164,952 67, ,362 88,390-46% 106,363 63, ,068 72,543-32% Massachusetts 4,804,770 3,740,760 3,137,163 3,009,146-37% 2,066,714 2,295,466 1,931,916 2,018,450-2% New Hampshire 354, , , ,904-61% 111, , ,274 57,797-48% Rhode Island 1,242, ,921 1,205, ,904-49% 459, , , ,641-37% * Percent change because Connecticut residents were not included in the 2006 survey. Data includes visitors age 21 years of age and older. 16 This data measures the total number of visits to these facilities, as opposed to the previous section that measured the number of unique visitors. 17 Comparisons to 2006 data are not included for respondents overall because Connecticut residents were not included in the 2006 survey

17 While the drop in visitations at both facilities is partly explained by a decline in the number of unique visitors (see Table 4), the overall decline at Foxwoods is also a factor of patrons visiting less frequently; annual average visits to Foxwoods among the five states is at its lowest level since 2006 (3.5 visits/year), while the average number of visits has remained relatively stable at Mohegan Sun (see Table 6). Table 6 Average Annual Number of Visits: 2006 to 2012 Foxwoods Resort Casino Mohegan Sun *All Respondents *Connecticut NA NA Maine Massachusetts New Hampshire Rhode Island Data includes visitors age 21 years of age and older Frequency of Visitation to Foxwoods Resort Casino & Mohegan Sun by State Most individuals among the five states surveyed visit Foxwoods and Mohegan Sun once or twice per year; 70% of those who reported visiting Foxwoods in the last 12 months made only 1 trip (47%) or 2 trips (23%). Similarly, 69% of those who visited Mohegan Sun in the last 12 months made 1 trip (43%) or 2 trips (26%) (Table 7). Table 7 Number of Trips Per Year to Foxwoods Resort Casino and Mohegan Sun, 2012 Foxwoods Mohegan Sun 1 Trip 2 Trips 3 Trips 4 Trips 5+ Trips 1 Trip 2 Trips 3 Trips 4 Trips 5+ Trips All Respondents 47% 23% 9% 5% 16% 43% 26% 7% 5% 19% Connecticut 51% 17% 3% 7% 23% 30% 26% 10% 6% 28% Maine 68% 5% 24% 0% 3% 58% 19% 12% 0% 12% Massachusetts 43% 30% 10% 3% 14% 49% 28% 3% 7% 13% New Hampshire 56% 19% 23% 0% 3% 44% 40% 13% 3% 0% Rhode Island 42% 25% 9% 7% 18% 56% 23% 5% 0% 16% - 7 -

18 2.20 VISITS TO CASINOS OUTSIDE OF NEW ENGLAND A small percentage of residents in the five states surveyed visited casinos in other jurisdictions within the last 12 months, including Atlantic City (2%), Las Vegas (4%), and other areas (3%) such as the Caribbean, Canada, Puerto Rico, Europe, or a cruise ship (see Table 8). Table 8 Percent Visited Casinos Outside of New England Last 12 Months Atlantic City Las Vegas Other Areas All Respondents 2% 4% 3% Connecticut 3% 3% 3% Maine 1% 2% 2% Massachusetts 2% 5% 3% New Hampshire 2% 4% 2% Rhode Island 2% 3% 3% 2.30 DEMOGRAPHIC PROFILE OF VISITORS TO FOXWOODS AND MOHEGAN SUN 18 Respondents from each of the five states surveyed were asked to indicate their sex, age, educational attainment, and annual family income. This analysis provides insight into the types of customers who visited Connecticut s casinos from these states in the last 12 months Sex There is a fifty-fifty split in the percentage of men and women who visited Foxwoods or Mohegan Sun in the last 12 months (see Figure 3). Figure 3 Percent Visited Foxwoods Resort Casino or Mohegan Sun in the Last Twelve Months by Sex, 2012 All Respondents Connecticut 50% 50% 50% 50% Maine Massachusetts 52% 53% 47% 48% New Hampshire 62% 38% Rhode Island 43% 57% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Male Female 18 Residents 21 years of age and older. 19 Note: Small number of respondents for Maine and New Hampshire. Conclusions should be made with caution for these states

19 2.32 Age Cohort The average age of visitors to Foxwoods and Mohegan Sun from the five states surveyed are nearly identical; 46.5 years of age for Foxwoods and 46.6 years of age for Mohegan Sun. In addition: The percentage of visitors in each age group is fairly evenly distributed, with 28% of the visitors to Foxwoods Resort Casino and Mohegan Sun Casino age 21 to 34, 29% age 35 to 49, 26% age 50 to 64, and 16% age 65 and older (see Figure 4). This result (and those supported by previous Gaming Behavior Surveys) dispels the argument among some that Foxwoods and Mohegan Sun s primary customers are seniors, when in fact Foxwoods and Mohegan attract the lowest percentage of their customers from the 65 and older age group. The age ranges for the individual states are generally evenly distributed, although conclusions should be made with caution for Maine and New Hampshire due to the low number of respondents. Again, it is worth noting that residents age 65 and older from each state represent the casinos smallest customer base. Figure 4 Visited Foxwoods Resort Casino or Mohegan Sun in the Last Twelve Months by Age Group, 2012 All Respondents 28% 29% 26% 16% Connecticut 26% 30% 30% 15% Maine 19% 19% 43% 19% Massachusetts 27% 31% 24% 17% New Hampshire 30% 24% 33% 12% Rhode Island 32% 30% 22% 16% 0% 20% 40% 60% 80% 100% 21 to to to

20 2.33 Education Visitors to Foxwoods and Mohegan Sun from the five states surveyed possess a comparatively high level of educational attainment: 37% of visitors to Foxwoods or Mohegan Sun in the last 12 months held a bachelor s degree or higher, while 33% had some college experience or an Associate s degree/technical certification, 28% had a high school diploma, and only 3% had no high school diploma (see Figure 5). This result (and those supported by previous Gaming Behavior Surveys) dispels the argument among some that Foxwoods and Mohegan Sun s primary customers possess low levels of education, when in fact, only 3% who visited either facility had less than a high school diploma. Conversely, more than a third (37%) possess at least a Bachelor s degree. The educational attainment levels for each state are also fairly evenly distributed, although conclusions should be made with caution for Maine and New Hampshire due to the low number of respondents. Figure 5 Visited Foxwoods Resort Casino or Mohegan Sun in the Last Twelve Months by Education, 2012 All Respondents 3% 28% 33% 37% Connecticut 3% 22% 31% 43% Maine 3% 28% 35% 35% Massachusetts 4% 27% 32% 37% New Hampshire 0% 22% 51% 27% Rhode Island 3% 35% 31% 32% 0% 20% 40% 60% 80% 100% Less than High School High School Only Some College/Associate's Bachelor's and Higher

21 2.34 Annual Family Income Foxwoods and Mohegan Sun have a comparatively affluent customer base with nearly half reporting annual family incomes above $75,000: 26% of visitors to Foxwoods or Mohegan Sun in the last 12 months had annual family incomes of less than $45K, while 29% had incomes between $45K and $75K, 17% had incomes between $75K and $100K, 17% had incomes between $100K and $50K, and 11% had incomes of $150K and higher (see Figure 6). When these results are combined into two income categories, 55% of visitors have annual family incomes below $75K, while 45% have incomes above $75K (see Figure 7). Income distribution among the five states surveyed is also fairly evenly dispersed, although conclusions should be made with caution for Maine and New Hampshire due to the low number of respondents. Figure 6 Visited Foxwoods Resort Casino or Mohegan Sun In the Last Twelve Months by Annual Family Income, 2012 All Respondents 26% 29% 17% 17% 11% Connecticut 23% 28% 15% 22% 13% Maine 26% 37% 19% 19% 0% Massachusetts 25% 26% 24% 14% 10% New Hampshire 7% 33% 30% 23% 7% Rhode Island 34% 30% 11% 12% 13% 0% 20% 40% 60% 80% 100% < $45K $45K to $75K $75K to $100K $100K to $150K $150K + Figure 7 Visited Foxwoods Resort Casino or Mohegan Sun In the Last Twelve Months by Annual Family Income, 2012 All Respondents 55% 45% Connecticut 51% 50% Maine 63% 37% Massachusetts 51% 49% New Hampshire 40% 60% Rhode Island 64% 36% 0% 20% 40% 60% 80% 100% <$75K $75K

22 2.40 PERCENTAGE WHO SPENT MONEY ON GAMBLING AND NON-GAMBLING ACTIVITIES Respondents from the five states surveyed who reported they visited Foxwoods or Mohegan Sun in the last 12 months were asked: On your last visit to Foxwoods Resort Casino/Mohegan Sun did you spend money on any of the following items? Food, hotel or lodging, retail purchases, other entertainment, gambling, spa, and golf yes/no. Most visitors to Foxwoods (82%) and Mohegan Sun Casino (75%) gambled, although 18% of visitors to Foxwoods and 25% of visitors to Mohegan Sun did not gamble (see Table 9). Nearly all visitors spent money on food and beverages when they visited the casinos (92%), while smaller percentages spent money on lodging, retail, other types of entertainment such as shows, dancing, and concerts, spa services, and golf (see Table 9). 20 Table 9 Percent Patrons Spending By Category, 2012 Foxwoods Resort Casino % Food % Lodging % Retail % Other % Gambling Spa Golf All Respondents 92% 34% 30% 42% 82% 9% 4% Connecticut 94% 29% 26% 47% 73% 8% 5% Maine 95% 55% 43% 28% 94% 8% 0% Massachusetts 91% 43% 34% 42% 91% 14% 5% New Hampshire 92% 32% 16% 24% 87% 6% 9% Rhode Island 90% 29% 31% 42% 79% 8% 4% Mohegan Sun % Food % Lodging % Retail % Other % Gambling Spa Golf All Respondents 92% 24% 32% 47% 75% 6% NA Connecticut 92% 22% 36% 51% 70% 4% NA Maine 88% 23% 28% 29% 92% 16% NA Massachusetts 92% 32% 28% 44% 82% 10% NA New Hampshire 95% 39% 28% 29% 95% 15% NA Rhode Island 90% 16% 28% 50% 68% 4% NA Note: Small N for Maine and New Hampshire. Conclusions should be made with caution. 20 Mohegan Sun owns a golf course located about 15 miles from the casino. The course was closed for re-design and upgrades in 2011 and reopened in spring of

23 % Spending Money By Category % Spending Money By Category Bring It On Home: An Overview of the New England Gaming Market Draft 2 The percentage of visitors from the five states surveyed who gambled at either Foxwoods or Mohegan Sun has declined steadily since 2006 as each facility moves to increase visitor spending on non-gaming amenities. The most salient result of this strategy is the declining percentage of visitors who gamble versus the rising percentage who spend on food and beverages; from 2006 to 2012, spending on gambling declined at both Foxwoods and Mohegan Sun by 17%, while spending on food and beverages at each facility increased by 21%. Spending on other items such as shows, dancing, and concerts also trended upward (see Figure 8 and Figure 9). 120% Figure 8 Historical Spending By Category: Foxwoods Resort Casino 100% 80% 60% 40% 20% Gambling Food Retail Lodging Other 0% % Figure 9 Historical Spending By Category: Mohegan Sun Casino 80% 60% 40% 20% Gambling Food Retail Lodging Other 0%

24 2.50 GAMES PLAYED AT FOXWOODS AND MOHEGAN SUN Respondents from the five states surveyed were asked which games they played when the visit Foxwoods and Mohegan Sun in the past 12 months and which they play most often. 21 Most visitors played slot machines at both Foxwoods and Mohegan Sun (83%), while 38% of Foxwoods visitors and 39% of Mohegan Sun visitors played table games. Smaller percentages played other games (see Figure 10) % 80% 83% 83% Figure 10 Type of Played at Foxwoods Resort Casino or Mohegan Sun, 2012 Foxwoods Mohegan Sun 60% 40% 38% 39% 20% 0% 12% 6% 4% NA 2% 2.0% 2.0% 3% 1% 3% Slots Table games Bingo Poker Racebook Keno Other 2.51 Primary Game Played In terms of the game they primarily play, 64% of Foxwoods visitors and 70% of Mohegan Sun visitors from the five states surveyed primarily play slots, while 24% of Foxwoods and 27% of Mohegan Sun visitors play table games (see Figure 11). 80% 60% 70% 64% Figure 11 Type of Game Primarily Played at Foxwoods Resort Casino or Mohegan Sun, 2012 Foxwoods Mohegan Sun 40% 20% 24% 27% 0% 6% 3% 0% NA 0.8% 0% 0.5% 0.5% 0% 0% Slots Table games Bingo Poker Play all equally Racebook Keno 21 As noted earlier, 18% of Foxwoods visitors and 26% of Mohegan Sun visitors did not gamble in the last 12 months. These respondents are not included in the data. 22 As of fall 2012, Mohegan Sun no longer offers Keno

25 2.52 Primary Game Primarily Played by Demographic Background The following data presents the percentage of visitors in the five states surveyed who primarily play slots or table games at Foxwoods and Mohegan Sun by their sex, age cohort, education, and income. Data is presented by the percentage within each demographic group (the first table for each variable) and by the percentage within the type of game played (the second table in each section). Sex A higher percentage of women (87%) report they primarily play slot machines at Foxwoods and Mohegan Sun in comparison to men (58%). 23 Conversely, a higher percentage of men (42%) report they primarily play table in comparison to women (13%) (see Table 10). Table 10 Game Primarily Played by Sex Slots Table Games Total All Respondents 73% 27% 100% Male 58% 42% 100% Female 87% 13% 100% Among visitors who primarily play slots, 61% are female and 39% are male. Conversely, among table games players, 75% are male and 25% are female (see Table 11). Table 11 Type of Game Played By Sex Slots Table Games Male 39% 75% Female 61% 25% Total 100% 100% 23 The percentages presented in this section are based on players who primarily play slots or table games and do not include keno players, bingo players, etc. due to the small sample size for those games. Therefore, these percentages in these tables do not equal the totals in Figure 10 and Figure

26 Age Cohort The older the age cohort, the larger the percentage who report they primarily play slot machines at Foxwoods and Mohegan Sun; age 21 to 34 = 59%, age 35 to 50 = 71%, age 50 to 64 = 79%, age 65 and older = 88%. Conversely, table games are more popular among younger age cohorts; age 21 to 34 = 41%, age 35 to 50 = 30%, age 50 to 64 = 21%, age 65 and older = 12% (see Table 12). Table 12 Game Primarily Played by Age Cohort Slots Table Games Total All Respondents 73% 27% 100% 21 to 34 59% 41% 100% 35 to 50 71% 30% 100% 50 to 64 79% 21% 100% % 12% 100% Among visitors who primarily play slots, 23% are age 21 to 34, 27% are age 35 to 50, 30% are age 50 to 64, and 21% are 65 years of age and older. Forty-two percent (42%) of table games players are under the age of 35 and 72% are under the age of 50 (see Table 13). Table 13 Type of Game Played By Age Cohort Slots Table Games 21 to 34 23% 42% 35 to 50 27% 30% 50 to 64 30% 21% % 7% Total 100% 100%

27 Education The percentage of visitors who primarily play slot machines is somewhat evenly distributed among education levels, although those with a Bachelor s degree or higher (69%) are least likely to play slot machines. Conversely, this group is most likely to play table games (see Table 14). Table 14 Game Primarily Played by Education Slots Table Games Total All Respondents 73% 27% 100% < High School 75% 25% 100% High School Only 75% 25% 100% Some College/Assoc. 77% 23% 100% Bachelor's + 69% 32% 100% Among visitors who primarily play slots, 3% have less than a high school diploma, 29% have a high school diploma only, 34% have some college/associate s degree, and 34% have a Bachelor s or higher. Table games are primarily played by respondents with higher levels of education; 43% of table games players have a Bachelor s or higher, compared to only 30% who have a high school diploma or lower (see Table 15). Table 15 Type of Game Played By Education Slots Table Games < High School 3% 3% High School Only 29% 27% Some College/Assoc. 34% 28% Bachelor's + 34% 43% Total 100% 100%

28 Annual Family Income Visitors from all income levels report they primarily play slot machines, although those with lower incomes are more likely to play slots than those with higher incomes. Conversely, respondents with higher income levels are more likely to play table games (see Table 16). Table 16 Game Primarily Played by Annual Family Income Slots Table Games Total All Respondents 73% 27% 100% < $45K 76% 24% 100% $45K to $75K 78% 22% 100% $75K to $100K 68% 32% 100% $100K to $150K 71% 29% 100% $150K + 65% 35% 100% Among visitors who primarily play slots, 26% have annual average income below $45K, 34% between $45K and $75K, 17% between $75K and $100K, 14% between $100K and $150K, and 9% over $150K. Among table games players, 23% have annual average income below $45K, 26% between $45K and $75K, 22% between $75K and $100K, 16% between $100K and $150K, and 13% over $150K (see Table 17). Table 17 Type of Game Played By Annual Family Income Slots Table Games < $45K 26% 23% $45K to $75K 34% 26% $75K to $100K 17% 22% $100K to $150K 14% 16% $150K + 9% 13% Total 100% 100%