1. State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

2. U.S. Office 1250 Connecticut Avenue NW Suite 200 Washington, D.C. 20036 T: +1 202 261 3567 F: +1 202 261 6583 info@gamblingcompliance.com U.K. Office Suite 704, Capitol Tower 91 Waterloo Road London SE1 8RT T: +44 (0)207 921 9980 F: +44 (0)207 960 2885 info@gamblingcompliance.com GamblingCompliance About us: GamblingCompliance provides government officials and gaming industry professionals with independent and timely regulatory, legal and policy analysis – in one, fully-customizable online subscription service.  Comprehensive analysis of regulatory change and public policy discussions  Monitoring Internet gaming legislation  Off-reservation gaming and ‘Carcieri’  Congressional hearings and conference reports  Global market statistics via GamblingData

3. GamblingCompliance Internet Gambling State Legislative Summary *| June 2012 Source: GamblingCompliance Research GamblingCompliance StatusPokerCasinoLottery CaliforniaPending: SB1463 is pending. Bills must pass by August 31. DelawarePending: HB333 is pending. Session ends June 30. Hawaii Dead: Identical bills HB2422 and SB29 both died in committee. IllinoisPending: Introduced as an amendment to property tax measure HB4148 may be considered in veto session (Nov 27-Dec 6). IowaDead: SF2275 passed Senate but died in House. MainePassed: Effectively prohibits Internet lottery sales. MassachusettsWithdrawn: Budget bill amendment 827 was withdrawn. (SB 132-Lottery Pilot Program pending). MichiganPending: SB1003 is pending. Session ends December 31. MississippiDead: HB1373 died in committee. New JerseyPending: SB1565 and A2578 may be considered in the fall. PennsylvaniaWithdrawn: Amendment to HB65 withdrawn shortly after introduction. UtahPassed: Expressly prohibits all Internet gambling, effective July 1. Washington DCPassed: Lottery iGaming bill repealed in February. *Does not include ADW legislation

4. GamblingCompliance Source: GamblingCompliance Research GamblingCompliance U.S. Internet Gambling State Prohibitions and Discussions*| 2011-2012 Prohibited Regulated Legislation Pending Formal/Informal Discussion *Does not include ADW legislation or informal discussions involving solely online lottery ticket sales via the Internet

5. GamblingCompliance Source: GamblingCompliance Research GamblingCompliance CaliforniaDelawareIllinoisNew Jersey Regulatory Structure: Internet poker may be offered for play by licensed card rooms, gaming tribes, racing and ADW entities with oversight by the Gambling Control Commission and California Department of Justice. Games Offered: Poker only. Minimum Age: 21 Tax Rate: 10% of GGR, $30m initial fee Regulatory Structure: Internet gaming offered on shared platform through the state’s three racetrack casinos, overseen by the lottery. Also allows lottery ticket sales through lottery. Games Offered: Internet table games (i.e. Blackjack, poker, craps etc.), Internet video lottery (i.e. slot-type games) and Internet ticket games (i.e. Online/draw and instant ticket games). Minimum Age: 21 for casino games/18 for Internet tickets Tax Rate: Same as land based. Regulatory Structure: Creates Division of Internet Gaming within the Lottery. Internet games offered via a single platform but can be offered through multiple affiliates. Division can license affiliates (casino and ADW operators) Games Offered: Casino games, including poker. Minimum Age: 21 Tax Rate: No taxes but $5m affiliate license fee. Regulatory Structure: Internet gaming operated by Atlantic City casinos and overseen by New Jersey Casino Control Commission and Division of Gaming Enforcement. Games Offered: Casino games, including poker. Minimum Age: 21 Tax Rate: 15%-25% of GGR

6. GamblingCompliance Nevada 2001June 2011Dec 2011Feb 2012May 2012 2013 Interactive Gaming Law is Enacted Internet Poker Legislation Passed Licensing and Operating Regulations Issued Technical Standards Issued First Licensing Recommendations Made Live Play?

7. GamblingCompliance Looking Forward... “ Internet gambling is going to come. It’s interesting that seven or eight years ago, most of the industry was opposed to Internet gambling, and now it’s flipped.” – Tom Swoik, Illinois Casino Gaming Association “We want to make sure that states like Nevada, New Jersey and California, which are moving forward on Internet gambling, don’t get a competitive advantage on Illinois by legalizing it before we do. We don’t want Congress to close the door by passing a bill before Illinois does. We want to be grandfathered by acting first so the federal government won’t be able to prevent what we want to do on Internet gambling.” – Ronald Holmes, Staff Member Illinois Senate President John Cullerton

8. U.S. Office 1250 Connecticut Avenue NW Suite 200 Washington, D.C. 20036 T: +1 202 261 3567 F: +1 202 261 6583 info@gamblingcompliance.com U.K. Office Suite 704, Capitol Tower 91 Waterloo Road London SE1 8RT T: +44 (0)207 921 9980 F: +44 (0)207 960 2885 info@gamblingcompliance.com Contact Information Jennifer Webb, Esq. Regulatory and Legislative Manager, Americas T: (202) 261-3542 E: jennifer@gamblingcompliance.comjennifer@gamblingcompliance.com GamblingCompliance | GamblingCompliance www.gamblingcompliance.com www.gamblingdata.com