Targeting The Next Generation of Gamblers: Ipsos Gaming Emerging Markets Syndicated Study US/Canada Comparison IGNA – February20, 2013

 Quick look at methodology  Review demographics of who we surveyed  Lottery participation and play analysis  Casino & Other Gaming participation  Internet Gaming/Gambling  Technology & the Internet – Key Metrics  Social Networking 2 On Tap for Today

Privileged and confidential © 2012 Ipsos Methodology 3  Online survey conducted in Canada in proportion to the total Canadian population with respondents between the ages of Ipsos’ Online Consumer Panel Resources Online Canadians &Americans Between Online Methodology Completed Surveys with “Emerging Market” United States: 1001 Canada: 1001

Who Did We Talk To? What Do They Look Like? 4

Privileged and confidential © 2012 Ipsos Emerging Market Demographic Profile 5 GenderAgeMarital Status Male Female Single Married % 28% 29% 30% 62% 56% 43% 41% 29% 26% 6% 16% continued… Domestic Partnership

Privileged and confidential © 2012 Ipsos Emerging Market Demographic Profile continued 6 EducationIncomeEmployment $30-$50K $50K-70K High School or less Some college or university or technical school College/University degree or post grad degree Working full time Home maker Working part-time Full time student Self-employed Unemployed <$30K $70K + 27% 18% 34% 27% 39% 54% 12% 33% 14% 15% 25% 15% 39% 17% 33% 48% 10% 5% 16% 8% 18% 13% 6% 4%

Lottery Participation 7

 More Canadians than Americans play the lottery  Americans dominate in the Scratch category, and Canadians dominate in the big lotto category In both countries, general playership increases as we move from to 25-29, and subsequently to ─Except for Scratch play in Canada  Canadians spend more on lottery  Among Scratch category, Americans dominate $1 price point whereas Canadians dominate $3 price point Which means Canadians players dominate extended play games 8 Key Findings – Lottery Participation

Privileged and confidential © 2012 Ipsos Incidence of Past Year Lottery Participation 9 Base: All respondents 70% Canada (n=1001) Incidence: Played a Lottery Game in the Past Year 60% United States (n=1001)

Privileged and confidential © 2012 Ipsos Past Year Lottery Participation 10 Any Game (Net) Multi-State Game (US)/ National Game (Canada) (Nets) Instant Scratch Games (Net) Cash Lotto (Net) Daily Games (Net) Pick 6 Lotto (Net) Base: All respondents QA1. Which of the following activities have you done in the past year?

Privileged and confidential © 2012 Ipsos Past Year Lottery Participation – By Age 11 Base: All respondents QA1. Which of the following activities have you done in the past year? 18 to 24 Any Game (Net) Instant Scratch Games (Net) National Game (Net) United States (n=430) Canada (n=410) 25 to 29 Any Game (Net) Instant Scratch Games (Net) National Game (Net) 30 to 34 Any Game (Net) Instant Scratch Games (Net) National Game (Net) United States (n=290) Canada (n=300) United States (n=280) Canada (n=290)

Privileged and confidential © 2012 Ipsos Proportion of Spending 12 Base: Played any game in the past year A2. In the past year, about how much money have you spent on the following Lottery games? Multi-State Game (US)/ National Game (Canada) (Nets) Instant Scratch Games (Net) Daily Games (Net) Pick 6 Lotto (Net)

Privileged and confidential © 2012 Ipsos Amount of Money Spent on Any Lottery Game in the Past Year 13 Base: Spent money on lottery game in the past year QA2. In the past year, about how much money have you spent on the following Lottery Games? $1 - $49 $50 - $100 $101 - $200 $201 - $500 $501 + Median Past Year Spend: United States : $55 Canada: $76 Median Past Year Spend: United States : $55 Canada: $76

Privileged and confidential © 2012 Ipsos Price Point Purchased Most Often – Scratch Games 14 Base: Played Instant tickets in the past year QA6. Which price of Instant Scratch Games would you say that you purchased most often? $1 $2 $3 $5 $10

Privileged and confidential © 2012 Ipsos Extended vs. Quick Play Preference 15 Base: Played Instant tickets in the past year QA6B. Please indicate which type of Instant Scratch Games you prefer to play. Extended Play Quick Play Definitions: “Extended Play” – Games that take longer to play such as Bingo or Crossword “Quick Play” – Games that are quick to play such as matching symbols

Casino and Other Gaming Participation 16

 Among non-Casino games, more Canadians buy raffle types games, but more Americans play bingo  Casino visitation to Vegas/Atlantic City much higher among Americans, whereas casino visitation to in-state/in-province higher in Canada At the casino, one key difference is Video Poker more popular among Americans Americans outspend Canadians at Casino both in gaming and non-gaming activities ─Function of slot and table game denomination on gaming side  More Americans boast having a casino loyalty card  Among non-casino visitors, Americans seems more receptive to various incentives for visiting 17 Key Findings – Casino and Other Gaming Participation

Privileged and confidential © 2012 Ipsos Other Gaming Participation 18 On Raffles or 50/50 draws Playing bingo Card games such as poker or Hold'em Poker outside of a casino or card club (played in- person, not on the Internet) On sports pools such as at the office or bar Playing in Fantasy Sports Pools Pull-tabs or breakopens Betting on live horse or dog racing at the track Betting on live horse or dog racing at an off track betting establishment Purchased Lottery tickets for real money on the Internet % Participated Base: All respondents QB1. Overall in the past year, on how many separate occasions did you participate in the following?

Privileged and confidential © 2012 Ipsos Visits to Casinos – Past 3 Years 19 Any Casino (Net) A casino in Nevada (such as Las Vegas) or Atlantic City A land-based Casino in your state or province (if available) A land-based Casino out of your state or province A resort Casino (where you might go for a wknd or as part of a vacation) in your state or province (if available) A resort Casino out of your state or province (where you might go for a wknd or as part of a vacation) - from Las Vegas or Atlantic City A riverboat or dockside Casino in your state or province (if available) A racetrack Casino in your state or province (if available) A riverboat or dockside Casino out of your state or province A racetrack Casino out of your state or province Base: All respondents C1. Please indicate if you have been to any of the following types of casinos in the past three years. % Yes

Privileged and confidential © 2012 Ipsos Participation in Non-Gaming Activities at Casino 20 Base: Visited casinos in the Past 3 Years C7. Thinking about your visits to casinos, please indicate the activities that you typically participate in when you go to the casino. You may not participate in all of these activities each time you visit a casino but try to think of a typical visit and answer accordingly. Any Non-Gaming Activity (Net) Dined at a casual restaurant Visited a casino bar Any Entertainment (Subnet) Attended special events like concerts Watched live entertainment at a lounge Saw a headline show Attended special events like boxing and UFC Dined at a fine dining restaurant Visited a nightclub Took part in promotional events

Privileged and confidential © 2012 Ipsos Last Visit Spending on Casino Activities 21 Base: Spent money on a casino game/ casino entertainment C8/C9. During your last visit to any type of Casino, in total, approximately how much money would you say you have wagered on all gambling a activities combined, such as slots, table games, track betting, sports books, etc.? During your last visit to any type of Casino, approximately how much money did you spend on non-gambling activities such as watching live entertainment, dining at casino restaurants, attending events, visiting the casino bar/nightclubs, etc....? Base: Visited casinos in the Past 3 Years (n=483) Mean Spending on all Casino Games Mean Spending on Casino Entertainment United States: $ Canada: $ United States: $ Canada: $108.80

Privileged and confidential © 2012 Ipsos Slot Denomination Participation 22 % All/Most of the time Penny 2¢ 5¢ 10¢ 25¢ $1 $2 $5 Greater than $5 Base: Played slots (n=370) C7A. How often do you play the following denominations of slot machines when you visit the casino?

Privileged and confidential © 2012 Ipsos Table Game Denomination Participation 23 % All/Most of the time $5 $10 $15 $20 $25 $50 $100 $500+ Base: Played table games at the casino (n=224) C7B. When you play table games at the casino, how often do you play the following denominations?

Privileged and confidential © 2012 Ipsos Casino Loyalty Cards 24 Base: Visited casinos in the Past 3 Years C10. Do you currently own a play loyalty card to a Casino (any Casino)? United States (n=524) Canada (n=564) Ownership of Loyalty Cards % Yes Ownership of Loyalty Cards % Yes Canada Loyalty Cards Held (mentions of 5% or greater) Canada Loyalty Cards Held (mentions of 5% or greater) Base: Currently own a play loyalty card to a Casino C11. What loyalty card or cards do you currently have? United States Loyalty Cards Held (mentions of 3% or greater) United States Loyalty Cards Held (mentions of 3% or greater)

Internet Gaming 25

 Internet gambling penetration similar in both countries, but for fun play higher in the U.S. Somewhat more Americans played for fun first (83%) than Canadians (75%)  Canadians slightly more loyal to one site only  Pokerstars dominant site in both countries  Americans spend more in typical session  Some key differences in payment solutions used  Americans more likely than Canadians to try gambling online if offered by local lottery or name brand casinos 26 Key Findings – Internet Gaming

Privileged and confidential © 2012 Ipsos Internet Gaming Participation 27 B4a. Overall in the past year, have you played any of the following games on the Internet for money? Base: All respondents Any game (Net) Played skill games and card games Played games online through your mobile device Played Poker Played slot machines or spinning wheel games Played Bingo against other players or versus a computer Played Blackjack Entered fantasy sports pools Entered sports pools Wagering on the outcome of events (such as the outcome of elections or reality shows) Played Roulette or Craps Placed sports wagers or bet on sports outcomes Played games like Caribbean Stud or Pai Gow Bet on horse or dog racing For Fun For Money B4. Overall in the past year, have you played any of the following games on the Internet for fun without betting money? Base: All respondents

Privileged and confidential © 2012 Ipsos Played Internet Games for “Fun” Before “Real Money” 28 Yes No Base: Played games online for money QB7. Earlier you indicated you had spent real money playing games on the Internet. Did you play Internet games for 'fun' before you started playing for real money?

Privileged and confidential © 2012 Ipsos Patterns of Internet Gaming for Money 29 Base: Played games online for money QB8. Which of the statements below best describes your patterns of Internet gaming for real money? At any one time... 12% I exclusively play only one Internet gaming website for real money I play at two or three different Internet gaming websites for real money I shop around and play a large variety of Internet gaming websites for real money

Privileged and confidential © 2012 Ipsos Registration with internet Gaming Sites 30 Base: Played games online for money B9. How many Internet gaming websites are you registered with? to to 19 Number of Gaming Websites United States Mean: 2.7 Canada Mean: 2.3

Privileged and confidential © 2012 Ipsos Participation at Internet Gaming Websites 31 Pokerstars World Series of Poker Bingo Diamond Bodog Sportsbook Pinnacle Bet365 Played Past Year Typically Play Base: Played games online for money B6a. From the list of Internet gambling websites below, please check off which ones you have played over the past year. Base: Canada: Played games on the internet over the past year United States: Played games on the internet for money B6b. From the list of Internet gambling websites below, please check off the one that you typically play at.

Privileged and confidential © 2012 Ipsos Participation at Internet Gaming Websites, continued 32 Bet Victor ME Bingo William Hill Ladbrokes BetCRIS Bwinparty PKR Played Past Year Typically Play Base: Played games online for money B6a. From the list of Internet gambling websites below, please check off which ones you have played over the past year. Base: Canada: Played games on the internet over the past year United States: Played games on the internet for money B6b. From the list of Internet gambling websites below, please check off the one that you typically play at.

Privileged and confidential © 2012 Ipsos Internet Gaming Spending 33 Base: Played games online for money (n=182) B6. In the spaces provided, please estimate the total amount of money you wager in a typical gaming session. AVERAGE spend in a typical gaming session: United States : $ Canada : $124.90

Privileged and confidential © 2012 Ipsos Method of Depositing Internet Gaming Funds 34 Base: Played games online for money B10. How do you typically deposit funds into your internet gaming account? Pre-paid Card Credit Card 24%39% United States (n=208) Canada (n=182) Electronic Payment Solution 47%37% 12%7% Bank Wire/ Money Order 7%5% Electronic Funds Transfer 1%3% Cheque 2% Other 8%

Privileged and confidential © 2012 Ipsos United States (n=793) Alberta, Saskatchewan, Manitoba and Ontario lottery players (QB12, n=319) British Columbia, Quebec, and Atlantic provinces lottery players (QB12a, n=208) Base: Not played online for money B12. How likely would you be to start gambling with your local lottery if they were to offer Internet Gaming (Internet casinos, poker and sports betting) for real money? B12. How likely would you be to start gambling if your provincial lottery were to offer Internet Gaming (Internet casinos, poker and sports betting) for real money (AB, SK, MB, ON only)? Likelihood of Internet Gaming with Lottery 35 B12a. How likely are you to start gambling with your provincial lottery, knowing they offer Internet gaming for real money (BC, QC, ATL only)? Likely (7,6,5)Neutral (4) Not Likely (3,2,1 )

Privileged and confidential © 2012 Ipsos United States (n=793) Canada (n=819) Likelihood of Internet Gaming with Casino 36 Base: Not played for real money B13. How likely would you be to start gambling on the Internet for real money if casinos (such as Caesars or MGM) were to offer Internet gaming? Likely (7,6,5)Neutral (4) Not Likely (3,2,1 )

Privileged and confidential © 2012 Ipsos Reasons for not Internet Gaming for Money 37 Concerned about the legitimacy of website I'm concerned about the security of giving credit card information I can't afford it right now Don't like the idea of having to download software to play I am not interested in Internet gaming Concerned about professional players or sharks I like to play these types of games in person I'm not good enough at gaming Base: Not played for real money B14. We're now going to show you some general reasons why some people have not played games on the Internet for real money. Please indicate if you agree or disagree with each reason as it applies to you personally using a 7-point scale where 1 is 'Strongly Disagree' and 7 is 'Strongly Agree'. % Agree (5,6,7) continued…

Privileged and confidential © 2012 Ipsos Reasons for not Internet Gaming for Money continued 38 I'm concerned about getting in trouble with the law I'm afraid I'll become addicted Internet gaming (except lottery ticket sales) is not regulated in Canada or the United States I don't have a credit card Spouse/partner would not approve I am morally opposed to gaming A friend or relative had a bad experience Base: Not played for real money B14. We're now going to show you some general reasons why some people have not played games on the Internet for real money. Please indicate if you agree or disagree with each reason as it applies to you personally using a 7-point scale where 1 is 'Strongly Disagree' and 7 is 'Strongly Agree'. % Agree (5,6,7)

Technology and the Internet 39

 Functional use of mobile devices has grown at incredible rate in past few years in both countries In 2012, texting took over ‘calling’ as dominant mode of electronic communication  However, texting activity by Americans nearly doubles that of Canadians Likely a function of landline vs cellular penetration and cost of communications plans 40 Key Findings – Technology and the Internet

Privileged and confidential © 2012 Ipsos Activities Performed Using Mobile Device 41 Base: Currently using cellular phone/iPhone/Blackberry/Android QF4. Thinking about the past six months, please indicate if you have conducted any of the following activities using your cellular phone, blackberry, or wireless handheld. Sent or received text messages Browsed the Internet Sent or received Sent or received photos Visited social networking sites (such as Facebook or Twitter)* Downloaded or played games Downloaded or listened to music Download applications (apps) other than games** continued… United States Canada 2009 (n=870) 2010 (n=861) 2011 (n=773) 2012 (n=620) 2009 (n=923) 2010 (n=780) 2011 (n/a) 2012 (n=641) *Note: Prior to 2012, question was ‘Logged into Hotmail or Facebook accounts’ **Note: Prior to 2012, question was ‘Downloaded applications (apps)’

Privileged and confidential © 2012 Ipsos Activities Performed Using Mobile Device, continued 42 Base: Currently using cellular phone/iPhone/Blackberry/Android QF4. Thinking about the past six months, please indicate if you have conducted any of the following activities using your cellular phone, blackberry, or wireless handheld. continued… United States Canada Posted photos to a social networking site Sent or received video or multimedia messages Downloaded content from the Internet Downloaded or watched TV/video programs Called others using an app (eg. Skype) Entered a contest Used a mobile issued coupon or ticket Responded to a mobile promotion 2009 (n=870) 2010 (n=861) 2011 (n=773) 2012 (n=620) 2009 (n=923) 2010 (n=780) 2011 (n/a) 2012 (n=641)

Privileged and confidential © 2012 Ipsos Communication Through a Wireless Handheld Device 43 Base: Has sent or received text messages QF5. On average, how many text messages would you say that you send in a given week? Average Number of text messages sent in a given week United States Canada

Privileged and confidential © 2012 Ipsos Communication Through a Wireless Handheld Device 44 Base: Has cellular phone/Blackberry or iPhone QF6. Of all the communicating that you use your cellular phone or other wireless handheld device (such as a Blackberry) for, what percentage of the time would you say that you call someone vs. text message someone vs. someone Percent of time spent calling vs. text messaging vs. ing Text Call United States Canada

Privileged and confidential © 2012 Ipsos Current Telephone Situation 45 Base: All respondents QF6a. Please select the statement that best describes your current telephone situation. Landline Only Cellular Phone Only 8% 9% 54% 35% 39% 57% Have Both a Landline & Cellular Phone

Social Networking 46

 Awareness and registration with popular social sites similar in both countries But some gender differences on penetration with some sites Frequency of login similar at most sites except for Instagram and Pinterest being slightly more popular in the U.S.  Slightly more Americans use Social Networking site for communication than than do Canadians 47 Key Findings – Social Networking

Privileged and confidential © 2012 Ipsos Tracking Social Networking Sites 48 %Registered % Visited % Aware, Not Visited Total Aware Base: All respondents QF9. Please select one response for each of the following social networking sites listed below. 98% 94% 98% 99% 93% 89% 73% 61%

Privileged and confidential © 2012 Ipsos Social Networking Sites 49 % Registered % Visited % Aware, Not Visited Total Aware Base: All respondents QF9. Please select one response for each of the following social networking sites listed below. 64% 48% 80% 73% 74% 72% 75% 67% 46% 43%

Privileged and confidential © 2012 Ipsos Social Networking Sites – by Gender (2012) 50 Base: All respondents QF9. Please select one response for each of the following social networking sites listed below. % Registered Canada United States

Privileged and confidential © 2012 Ipsos Communication vs. Social Networking 51 Base: Send private messages F11A. Of all the communicating that you do through private messaging, what percentage of the time do you use a personal account vs. messaging through a social networking site? Please enter the approximate percent of time dedicated to these forms of messaging. The numbers must add to 100%. Social Networking

Privileged and confidential © 2012 Ipsos  Quick look at methodology  Review demographics of who we surveyed  Lottery participation and play analysis  Casino & Other Gaming participation  Internet Gaming/Gambling  Technology & the Internet – Key Metrics  Social Networking 52 What Did We Look At Today?

Contact Information 53 © 2012 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos. Contact: Paul Lauzon 403‐294‐7386 or