State-Federal Relations Committee- Internet Gaming New Administration…New Outlook? - New DOJ’s treatment of Wire Act…will the states pursue intrastate online gaming and how will they proceed?...Updates on CA,PA and other states considering authorizing iGaming…Lessons learned from DE,NJ,NV Joe Carlon Senior Manager - GLI

21 Global Locations Lakewood, N. J. World Headquarters Moncton, Canada. Madrid, Spain Barcelona, Spain Hillegom, The Netherlands Graz, Austria Krakow, Poland Bologna, Italy Vancouver, Canada Wheat Ridge, CO Macau, China Las Vegas, NV Manila, The Philippines Mexico City, Mexico Sydney, Australia San Juan, Puerto Rico Lima, Peru Buenos Aires, Argentina Midrand, S. Africa Adelaide, Australia Melbourne, Australia

Interactive Gambling is Not New 1995 – First legalized sites 1996 – Online sports books 1997 – More than 200 online casinos 1998 – Online revenues $830 million 1999 – Online poker tournaments 2000 – Betfair enters the market 2002 – In-game sports wagering 2006 – 7.2% of UK adults play online 2006 – Congress passes UIGEA 2010 – 10.7% of UK adults play online 2011 – U.S. “Black Friday” shuts down sites taking bets from U.S.

Interactive Gaming in Europe

Interactive Gaming in Canada

United States Regulated Internet Gaming NEW JERSEY

Existing Casino Gaming Networks

Modernizing the Delivery of Gaming Content

iGaming & Shared Liquidity Considerations Server Locations Primary Backup Safe Reciprocity Change Management Emergency Rule Coordination Jurisdictional Critical File Differences Supported Financial Products Cash Deposit/Withdrawal ACH Debit and/or Credit Card Support PayPal, Neteller, PayNearMe, … DE NV Shared components

iGaming & Shared Liquidity Considerations Revenue Management & Allocation Poker Example Taxation Geolocation for Revenue Accounting Non-anonymous Play AML and Know Your Customer (KYC) Customer Data Protection AML protections Fraud management 3rd party services Dispute resolution

iGaming & Shared Liquidity Considerations Geolocation Revenue Reporting Compliance Multiple Technical Solutions Intentional Subversion Allowed Game Types Traditional Slot & Casino Peer to Peer Poker/Bingo Skill Games Sportsbook Live Dealer DFS eSports ….

Questions?

Thank you! www.gaminglabs.com Joe Carlon Senior Manager j.carlon@gaminglabs.com (303) 215-5860

Princeton Public Affairs Group, Inc. NCLGS’s state & federal relations committee – internet gaming, new administration…new outlook? A presentation by: William J. Pascrell, III Princeton Public Affairs Group, Inc.

gaming nationally 48 States Nationally Allow Forms of Gaming Horse Racing, Lottery, Dog Racing, Casinos, Daily Fantasy, Poker Rooms, etc. Hawaii and Utah Nationally, the state of gaming remains very healthy. Across the board, gaming revenues increased by $73.1 billion, an increase of 2.0% from 2015. Commercial Gaming lagged in growth, only growing by 0.9% Tribal Gaming saw an increase in revenues of 2.6% Limited Stakes Gaming saw the largest increase – 7.1%

internet gaming National Revenue New Jersey Delaware Nevada 2016 Revenues - $212.2 million New Jersey Enacted in 2012 2016 Revenues - $196.7 million Delaware Enacted at the end of 2013 2016 Revenues - $3.02 million Nevada Enacted on April 30, 2013 2016 Revenues - $12. 5 million National – With three states authorizing online gaming, internet gaming experienced a growth rate of 32.1%. New Jersey remains a leader in the field, that has provided a sustainable and viable option for those unable to travel to casinos. New Jersey: Signed into law by Governor Christie in 2012, internet gaming continues to provide a viable option for consumers looking to gamble remotely. Regulated online gaming saw an increase in revenues of 32.1% since 2015 from $148.9 million to $196.7 million Delaware: Enacted under the watch of Jack Markell (D), Delaware’s internet gaming brought in $3.02 million for fiscal year 2013. Nevada: Signed into law and launched in 2013 under Governor Brian Sandoval (R), internet gaming was authorized for poker only.

Pending Action on internet gaming New York S03898/A05250 (Bonacic/Pretlow) – Allows internet poker to be classified as a game of ‘skill’ S03898 has been referenced for third reading A05250 has had no action Illinois HB479 (Rauol/Zalewski) – the Internet Gaming Act. Introduced and referred to the House – No Action Pennsylvania HB271 (Ortitay/Brown, V.) – Provides for the regulation of Daily Fantasy Sports and Internet Gaming Passed both the Senate and House New York – S03898 has been referenced for third reading. A05250 has not been heard in any committees. 15% sales tax on internet gaming Reclassifies poker to be a gaming of skill Illinois – HB479 was passed by the Senate with a vote of 42 -10 on May 31, 2017. The bill has been referred to the House, but no action has been taken yet. The bill would place a tax, between 5-15% on all internet gaming revenues Pennsylvania – HB271 was passed by the House (142-56) on April 4, 2017 and the Senate (38-12) on May 24, 2017. The bill will impose a 345 on all i-gaming revenues.

Daily Fantasy sports regulations 31 States – Have Implemented or are Seeking Regulations of DFS Bans – 5 States – AZ, IA, LA, MT, and WA Allowed – 12 States – IN, KS, MD, MA, RI, VA, CO, MO, AK,MI, TN, and NY Pending Regulations to Allow – 14 States – OR, WA, NE, MI, IL, OH, NJ, PA. NC, CT, RI, VT, NH, and ME

sports betting NFL vs. Chris Christie II Solicitor General Noel Francisco Letter Advising Courts Take on Case ‘Well, what I’d do is I’d sit down with the commissioners. I would be talking to them, and we’ll see how they feel about it…I’d also get the input from lots of law enforcement officials, because, obviously, that’s a big step.’ – President Trump (Feb. 5, 2017) \

GOVERNOR RACES - 2017 Current Breakdown Two Races for Governor in 2017 33 Republicans v. 16 Democrats v. 1 Independent Two Races for Governor in 2017 New Jersey Governor Chris Christie (R) Virginia Governor Terry McAuliffe (D)

GOVERNOR RACES - 2018 36 Gubernatorial Races in 2018 28 Republicans v. 9 Democrats v. 1 Independent

State Legislatures - 2017 Republican Controlled Legislatures 32 States Feature Both Chambers with Republican Majorities Democratic Controlled Legislatures 14 States Feature Chambers Both with Democrats Majorities 3 Legislatures Feature Split Chambers State Races in New Jersey and Virginia

Senate Elections - 2018 November 6, 2018 33 Elections: 23 Democrats, 8 Republicans and 2 Independents

Analysis on Trump Administration on Gaming Increased Optimism for Gaming Future Outlook for the Industry

Challenges to the internet gaming industry Cohesion and building a unified message Unified standards and practices Industry is growing Compliments brick and mortar industry

Thank you!