February 24, 2021

The Resort Association is pleased to present the 2021 edition of the Nevada Gaming Fact Book. report reflect normalized, pre-COVID-19 values for the last full reporting period (2019) – providing a gauge Overall, this document is designed to deliver facts about the resort industry, but delivering complete information of where the industry has the potential to reach upon recovery. Traditionally, the industry supports a total in a continually evolving COVID-19 environment is challenging. We do know that the economic devastation of 433,400 employees statewide (including indirect and induced impacts) who earn a total of $19.6 billion. caused by the public health crisis and related response has been tremendous, and no industry has been more Additionally, visitor spending in the Nevada economy reached $42.4 billion pre-pandemic, which impacted than travel and tourism, particularly destination markets, including . supported a total of $73.2 billion in economic activity within the leisure and hospitality sector. While the 2020 estimates are not available as of yet, we expect those figures to be less than one-half of 2019 levels. On March 17, 2020, Nevada resorts were ordered to be closed, and those orders remained in place until June 4, 2020. The two-plus months of closure were followed by a slow and measured re-opening authorization to ▪ Fiscal Impacts: In addition to the economic implications, the industry’s contributions to state and local ensure the safety and well-being of employees and guests. Each resort was required to submit detailed plans governments have suffered. In fiscal year 2020, the industry’s contributions to the state general fund are to the Nevada Gaming Control Board before being authorized to open its doors. Throughout the process, health estimated at $1.4 billion, or 33.8 percent of all revenues. It is important to note, these values reflect the and safety remained top of mind for the industry and resort operators. As of now, nearly all large gathering activity through June of 2020, which includes approximately four months of pandemic-related impact. spaces such as theaters, showrooms, convention and exhibition facilities, banquet rooms, arenas, nightclubs When focusing exclusively on industry-specific taxes such as room taxes, gaming tax, live entertainment and other high-capacity venues remain either closed to the public entirely or with very minimal capacity. While taxes and other fees and charges that inure to the benefit of state and local governments, the industry these restrictions are appropriate, they continue to have a substantial impact on the financial performance of taxes totaled approximately $1.3 billion in fiscal year 2020. Looking at the first half of calendar year 2020, resorts, as well as a material negative impact on the Nevada economy as whole and its fiscal system. industry-specific taxes were down 60.4 percent compared to the prior year. Losses continue to mount in an industry that is essentially operating at one half of its historical capacity. The COVID-19 health crisis continues to evolve on a daily basis and weakness in the tourism industry is expected to persist into 2021 and beyond. However, recently released vaccinations that are rolling out across ▪ Social Impacts: Despite the economic challenges caused by COVID-19 and the related response, the the United States and to a global audience provide optimism for an industry in a state that is dependent on societal contributions the resorts make are impressive – not only for their own employees, but for the people making the decision to get in a car or board a plane to enjoy the wide-range of Nevada’s amenities, broader community. Examples ranging from sourcing personal protective equipment (e.g., over 12.5 including its resorts. The following are highlights of key economic, fiscal and social impacts of the resort industry million face masks donated to first responders, medical personnel, law enforcement, the community, in Nevada. employees and guests) to developing a rapid testing center demonstrate how the resort industry has stepped up to meet the current challenge. There are a number of highlights contained on the pages that ▪ Economic Impacts: Historically, the leisure and hospitality industry accounts for more than one in four follow that depict an industry that supports the people that are the backbone of Nevada. direct jobs in Nevada, and when the ripple effect of those positions is considered, the industry traditionally supports nearly one out of three positions statewide. However, in April 2020, the Silver State posted the We hope this publication provides you with information that helps you understand the resort industry, its overall highest unemployment of any state in the country in modern history – unemployment reached in excess of performance and its contributions to the place we call home. 30 percent in the first full month of the pandemic-related shutdown. The resort industry largely bore the impact which saw its total base of jobs decline from 349,800 in February to 204,700 in April 2020. By December 2020, total employment in the leisure and hospitality sector stands at 300,700, the equivalent to 2010 levels. Since not all 2020 year-end statistics have been released and visitor spending data for the Ellen Whittemore Virginia Valentine past year will not be available for a couple of months, the economic impact estimates contained in this Chair President

10000 W. CHARLESTON BLVD., SUITE 165, LAS VEGAS, NV 89135 NEVADARESORTS.ORG Page 2 Nevada Resort Industry Snapshot

Notes: Data is generally as of fiscal year 2020 (visitor and room inventory reflect pre-COVID values). Impacts as of fiscal year 2019. Page 3 Table of Contents

Economic Output Impacts 04 State of the Industry 47 and Total Impacts

23 Nevada’s Gaming Industry 51 Public Revenue (Tax) Impacts

Social Impacts and COVID-19 33 Employment Impacts 64 Relief Efforts

Nevada Resort Association 42 Wage and Salary Impacts 76 Overview Page 4

STATE OF THE INDUSTRY Page 5 COVID-19’s Impact on U.S. Gaming

Casinos Estimated Loss of Gaming Employees Communities Directly Closed Economic Activity* Idled* Impacted 989 $105B 650,000 564 70% of Visitors Felt the Gaming Industry Responded Well to Keeping Customers and Employees Safe Throughout the Pandemic

Source: American Gaming Association. Note: *As a result of two-month shutdown. Page 6 COVID-19 Health Crisis Impact in Nevada The Nevada Tourism Industry is Severely Impacted by the Pandemic On March 13, 2020, a Declaration of Pre-COVID Emergency was issued in the state of Nevada Indicator Feb. ‘20 Prior Year Net Growth Nevada as a result of the rapidly Leisure and Hospitality Employment 349,800 q -3,100 spreading COVID-19 virus. Soon after on Leisure and Hospitality Employment Share 24.7% q -0.5% March 17, Governor Sisolak issued orders Unemployment Insurance (UI) Claims 19,459 q -1,132 for all ‘nonessential’ businesses to temporarily close in an effort to slow the Accommodation & Food Services UI Claim Share 12.8% p +0.6% spread of the virus. As a result of these Visitor Volume [Monthly] 4.4 M p +241,225 closures coupled with the national efforts to stop the spread of the coronavirus, COVID-19 Trough Nevada’s tourism industry was greatly Nevada Indicator April ‘20 Prior Year Net Growth affected. Over the course of two months, the industry lost 145,100 jobs while Leisure and Hospitality Employment 204,700 q -153,600 accounting for 37.4 percent of the state’s Leisure and Hospitality Employment Share 18.0% q -7.4% unemployment insurance claims. The Unemployment Insurance (UI) Claims 274,850 p +257,152 COVID-19 health crisis contributed to the Accommodation & Food Services UI Claim Share 37.4% p +27.7% worst economic downturn the tourism Visitor Volume [Monthly] 353,055 q -4.3 M industry has ever experienced in Nevada.

Sources: U.S. Bureau of Labor Statistics; Nevada Department of Employment, Training and Rehabilitation; and Nevada Commission on Tourism, Discover the Facts. Page 7 Nevada’s Tourism Industry Selected Nevada Tourism Indicators Point Toward Contraction Nevada’s tourism industry plays a Year-Over-Year Historical Historical Variance significant role in the state’s economy. Industry Indicator FY 2019 FY 2020 Growth Peak Peak Year from Peak Through the years, the industry has gained Visitor Volume 55.8 M 42.0 M q -24.6% 56.5 M '17 q -25.6% its strength through major investments and offering visitors a reason to seek out the Airport Volume 55.1 M 41.6 M q -24.5% 55.1 M '19 q -24.5% Silver State. Prior to the COVID-19 health Vehicle Traffic Volume (Entering Nevada)[1] 28.2 M 29.4 M p 4.1% 30.8 M '15 q -4.4% crisis of 2020, visitation to the state reached notable peaks, including a historic Convention Attendance 6.9 M 5.0 M q -27.1% 7.4 M '07 q -31.7% peak in the state’s airport volume which reached 55.1 million passengers. As a /Motel Occupancy Rate 83.0% 62.5% q -20.5% 85.2% '07 q -22.7% result of statewide closures, the tourism industry suffered significant declines in key Hotel/Motel Room Nights Occupied 58.3 M 43.3 M q -25.7% 58.8 M '17 q -26.5% indicators. Fiscal year 2020 finished at Hotel/Motel Room Inventory 194,317 134,940 q -30.6% 194,798 '12 q -30.7% 42.0 million visitors, which was down 24.6 percent from the prior fiscal year. Greater Average Daily Room Rate[2] $129.85 $119.39 q -8.1% $129.85 '19 q -8.1% losses have continued through the close of calendar year 2020. Gross Gaming Revenue[3] $11.9 B $9.3 B q -21.7% $12.7 B '07 q -26.8%

Sources: Nevada Commission on Tourism, Discover the Facts; Nevada Gaming Control Board; Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; and Applied Analysis. Notes: [1] Due to road construction and equipment failures, traffic volumes may be underestimated in some years. Traffic counts include interstate, U.S. and state highways. Counts may or may not include local traffic. [2] Weighted average. [3] Non- restricted gaming licensees with $1 million or more in gaming revenue. Page 8 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Annual Series Visitor Volume Convention Attendance 60 7.5

7.0 Millions Millions 55

6.5 50

M 6.0

45 42.0 5.5 M

40 5.0 5.0

35 4.5

30 4.0 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Commission on Tourism, Discover the Facts. Note: Fiscal year represented. Page 9 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Monthly Series Visitor Volume Convention Attendance 6 900,000 800,000 5 Millions 700,000 4 600,000

M 500,000 3 2.6 400,000 2 300,000 200,000 1

100,000 2,579 0 0

Source: Nevada Commission on Tourism, Discover the Facts (latest available). Page 10 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Annual Series

Airport Volume Vehicle Traffic Volume (Entering Nevada) 60 34

32 M Millions Millions 55

30 29.4 50

28 M

45 26 41.6 24 40 22 35 20

30 18 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Commission on Tourism, Discover the Facts. Note: Fiscal year represented. Page 11 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Monthly Series

Airport Volume Vehicle Traffic Volume (Entering Nevada) 6 4.0

5 3.5 M

Millions

Millions 3.1 4 3.0

3 2.5 M

2 1.9 2.0

1 1.5

0 1.0

Source: Nevada Commission on Tourism, Discover the Facts (latest available). Page 12 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Annual Series Hotel/Motel Occupancy Rate Hotel/Motel Room Nights Occupied 90% 65

85% 60 Millions 80% 55 75%

50 M 70%

45 43.3

65% 62.5% 40 60%

55% 35

50% 30 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Commission on Tourism, Discover the Facts. Note: Fiscal year represented. Page 13 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Monthly Series Hotel/Motel Occupancy Rate Hotel/Motel Room Nights Occupied 90% 6 80% 5 70% Millions

60% 4 M 50% 48.9% 3 40% 2.5 30% 2 20% 1 10% 0% 0

Source: Nevada Commission on Tourism, Discover the Facts (latest available). Page 14 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Annual Series Hotel/Motel Room Inventory Average Daily Room Rate 220,000 $140

$130 200,000

$120 $119.39 180,000 $110

160,000 $100

$90

140,000 134,940 $80 120,000 $70

100,000 $60 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Sources: Nevada Commission on Tourism, Discover the Facts; Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; and Applied Analysis. Notes: Fiscal year represented. Average Daily Room Rate is a weighted average. Page 15 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Monthly Series Hotel/Motel Room Inventory Average Daily Room Rate 220,000 $140

$130 200,000 $120

180,000 173,851

$110 $105.94

160,000 $100 $90 140,000 $80 120,000 $70

100,000 $60

Sources: Nevada Commission on Tourism, Discover the Facts (latest available); Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; and Applied Analysis. Note: Average Daily Room Rate is a weighted average. Page 16 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Annual Series Gross Gaming Revenue $13

Billions $12 FULL-TIME EQUIVALENT

$11 RESIDENTS B $10 Southern Nevada is home to not just its 2.3 million residents.

$9.3 Over the year, Las Vegas welcomes millions of visitors from all $9 over the world to stay in one-of-a-kind with world-class restaurants, clubs and retailers. Visitors equate to roughly $8 400,000 full-time equivalent residents primarily focused within the 4.2-mile-long . This means that on any $7 given night, 1 in 6 heads in beds live somewhere else. If these full-time equivalent residents were to make up their own city, it $6 would be the second-largest city in Nevada. '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Gaming Control Board. Note: Fiscal year represented. Page 17 Nevada’s Tourism Industry Selected Nevada Tourism Indicators | Monthly Series Gross Gaming Revenue

$1,200 M

Millions $1,000 INDUSTRY

$800 INNOVATIONS $683.7 Nationally, Nevada has been setting the standard in adapting to $600 the new COVID-19 market realities. The state has led the way in innovation to allow tourists to feel comfortable and safe while $400 enjoying the luxuries that resorts have to offer. Many resorts throughout the state have introduced contactless check-ins, $200 allowing guests to simply use their mobile phones for entry into their room and for various uses throughout the property. $0 Additionally, plexiglass barriers, health screenings, rapid testing and thermal imagery have been utilized to provide a safe environment for guests and visitors alike. Source: Nevada Gaming Control Board (latest available). Page 18 Nevada’s Tourism Investments Cost of Fixed Assets Total Cost Annual Growth

$70 40% B

Billions $60 30%

$50 $50.0 20%

$40 10%

$30 0%

$20 -10%

$10 -20%

10.9% - $0 -30% '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 Source: Nevada Gaming Control Board, Gaming Abstract, Non-restricted gaming licensees with $1 million or more in gaming revenue. Notes: Fiscal years represented (stated at historical cost basis no inflation-adjusted). In fiscal years 2019 and 2020, accounting and reporting adjustments for real estate transactions impacted reported totals downward. Page 19 Nevada’s Tourism Development Pipeline

Planned and Under Planned and Under Share of Nevada’s Future Construction Tourism Construction Tourism Tourism Projects Located Investment Expenditures Investment Projects in Las Vegas $15.5 B 42 82.6% Page 20 Nevada’s Tourism Investments Project Name Cost Status 1 $4.3 B Under Construction 2 Jackie Robinson Arena and Hotel Project $3.0 B Planned 3 MSG Sphere at The Venetian $1.7 B Under Construction 4 Las Vegas Convention Center Expansion $1.4 B Under Construction 5 $850.0 M Planned 6 Astral Hotel and Casino $350.0 M Planned 7 Dream Hotel $300.0 M Planned 8 Nevada Museum of Art, Las Vegas $217.0 M Planned 9 Las Vegas $200.0 M Under Construction 10 Renovation $150.0 M Under Construction 11 Delta by Marriott $100.0 M Under Construction 12 Extension to $100.0 M Planned 13 AC Hotel by Marriott $95.0 M Planned 3 Monorail Station at MSG Sphere Las Vegas $33.6 M Planned 14 Expansion $32.0 M Planned 15 Hotel Cloe $20.0 M Planned

Sources: Las Vegas Convention and Visitors Authority and third party media sources. Notes: “DND” stands for Did Not Disclose. Contains investments as of December 2020. Page 21 Nevada’s Tourism Investments Las Vegas Valley (Continued) Project Name Cost Status 16 McCarran Airport Infrastructure Improvements $13.9 M Planned 17 Skyline Hotel & Casino Expansion $7.0 M Under Construction 18 Expansion $3.1 M Under Construction 19 Aloft Hotel DND Planned 20 Atari Hotel DND Planned 21 Circus Circus Hotel, Casino and Theme Park Renovations DND Planned 22 Flamingo Mixed-Use Development DND Under Construction 23 Mardi Gras Hotel and Casino Redevelopment DND Planned 24 Springhill Suites Marriott DND Planned 19 The Element Hotel by Westin DND Planned 25 Towne Place Suites DND Planned Total $12.8 B

Sources: Las Vegas Convention and Visitors Authority and third party media sources. Notes: “DND” stands for Did Not Disclose. Contains investments as of December 2020. Page 22 Nevada’s Tourism Investments Reno-Sparks Area Project Name Cost Status 1 Reno-Tahoe International Airport Expansion $1.6 B Planned 2 Reno Experience District $500.0 M Under Construction 3 Sands Remodel (Neon Line District) $250.0 M Under Construction 4 Reno Neon Line - Art & Acquisitions $125.0 M Under Construction 5 Station Gaming Facility $50.0 M Planned 6 Rancharrah "The Village" $50.0 M Under Construction 7 Silver Legacy Resort Casino Room Remodel $47.0 M Under Construction 8 Reno Public Market $34.0 M Under Construction 9 in Sparks Renovation $25.0 M Under Construction 10 Innfusion Hotel and Events Center $25.0 M Planned 11 ReTRAC Plaza Beautification Phase I $0.2 M Planned 12 CAI - Riverside Luxury Hotel & Offices DND Planned 13 Kimpton Hotel DND Planned 14 Reno City Center DND Planned 15 Whitney Peak Expansion DND Under Construction Total $2.7 B

Sources: Reno-Sparks Convention Authority and third party media sources. Notes: “DND” stands for Did Not Disclose. Contains investments as of December 2020. Page 23

NEVADA’S GAMING INDUSTRY Page 24 Commercial Casino Gaming U.S. Gross Gaming Revenue | Percent Growth from 2018 to 2019 Historically, Nevada has been the greatest contributor of commercial gross gaming revenue in the nation. The state, with gaming focused primarily in the southern portion, is responsible for over a quarter of the nation’s total commercial gaming revenue. From 2018 to 2019, Nevada’s gaming revenue grew by a modest 1.0 percent. For the nation’s largest gross commercial gaming revenue contributor, this equated to over $114 million in incremental gaming revenue.

Gross Commercial Gaming Revenue

Nevada U.S. Less than 0.0% 0.0% to 4.9% $12.0 B $43.6 B 5.0% to 9.9% 10.0% or Greater Source: American Gaming Association State of the States 2020 (latest available). Page 25 Commercial Casino Gaming Commercial Casino Gaming Revenue in Nevada Total Revenue Annual Growth $14 10%

5% Billions $12 B 0% $10 $9.3 -5%

$8 -10%

$6 -15% -20% $4 -25% $2

-30% 21.7% - $0 -35% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Gaming Control Board. Note: Fiscal year represented. Page 26 Nevada’s Gaming Revenue Nevada Gaming Revenue Total Revenue Gaming Revenue Share as a Share of Total $14 65%

$12 60% Billions

$10 55% B

$8 50% $6.7 $6 45%

$4 40% 36.8% $2 35%

$0 30% '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20

Source: Nevada Gaming Control Board, Gaming Abstract, Non-restricted gaming licensees with $1 million or more in gaming revenue. Notes: Fiscal year represented. Starting in fiscal year 2019, with regards to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 606 – Revenue from contracts with customers, all nonrestricted licensees (public and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. Page 27 Nevada’s Gaming Revenue Nevada Non-Gaming Revenue Total Revenue Non-Gaming Revenue Share as a Share of Total 80% $21

Billions $18 70% B

$15 63.2% 60% $12 $11.6

$9 50%

$6 40% $3

$0 30% '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20

Source: Nevada Gaming Control Board, Gaming Abstract, Non-restricted gaming licensees with $1 million or more in gaming revenue. Notes: Fiscal year represented. Starting in fiscal year 2019, with regards to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 606 – Revenue from contracts with customers, all nonrestricted licensees (public and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. Page 28 Nevada’s Gaming Revenue Nevada Gaming and Non-Gaming Revenue Total Combined Revenue Annual Growth $35 20%

$30

Billions 10% B $25 0%

$20 $18.3 -10% $15 -20% $10

$5 -30% 25.2% $0 -40% - '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20

Source: Nevada Gaming Control Board, Gaming Abstract, Non-restricted gaming licensees with $1 million or more in gaming revenue. Notes: Fiscal year represented. Starting in fiscal year 2019, with regards to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 606 – Revenue from contracts with customers, all nonrestricted licensees (public and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. Page 29 Nevada’s Gaming Revenue 10-Year Compound Annual Growth Rates by Category | Fiscal Year 2010 to 2020

Gaming Revenue Rooms Food Beverage Other -3.8% +1.8% +0.3% +0.8% -1.3%

Source: Nevada Gaming Control Board, Gaming Abstract, Non-restricted gaming licensees with $1 million or more in gaming. Notes: Fiscal year compound annual growth rate represented. Starting in fiscal year 2019, with regards to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 606 – Revenue from contracts with customers, all nonrestricted licensees (public and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. Page 30 Nevada’s Gaming Revenue Nevada Gaming and Non-Gaming Revenue Distribution 2010 2020 Other Other 12.5% 12.4% Beverage Beverage Gaming 6.6% Revenue Gaming 8.1% 36.8% Total Revenue Total Food Revenue 47.5% Revenue 14.6% Food $18.3B $20.9B 17.0%

Rooms Rooms 18.9% 25.7% Source: Nevada Gaming Control Board, Gaming Abstract, Non-restricted gaming licensees with $1 million or more in gaming revenue. Notes: Fiscal year represented. Starting in fiscal year 2019, with regards to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 606 – Revenue from contracts with customers, all nonrestricted licensees (public and nonpublic organizations as defined by FASB) were required to follow the new accounting standard when preparing standard financial statements. Totals may not sum due to rounding. Page 31 Southern Nevada Gaming Visitor Trends Share of Visitors to Las Vegas Who Gambled In 2019, Southern Nevada reported the 90% highest number of visitors who gambled 85% during their visit in the past ten years. 84% Overall, 81 percent of visitors surveyed 85% 83% 81% reported that they had gambled during 80% their current trip to Las Vegas, an increase 80% of 7 percentage points from the prior year. 77% Moreover, visitors who reported their 74% primary purpose of their current visit was 75% 73% to gamble increased to 14 percent, double 71%71% what it was in 2018. 74% 70% 72% Primary Purpose for Current Visit: 69% To Gamble 65% 2018 2019 7% 14% 60% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Source: Las Vegas Convention and Visitors Authority, Visitor Profile. Page 32 Sports Betting in Nevada Sports Betting Revenue in Nevada Total Revenue Annual Growth

$330 M 55%

Millions $280 40% $258.4

$230 25%

$180 10%

$130 -5%

$80 -20% 15.7% $30 -35% - '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Gaming Control Board. Notes: Fiscal year represented. In March 2020, the COVID-19 health crisis resulted in the cessation of large-scale sporting events. Page 33

EMPLOYMENT IMPACTS Page 34 Defining the Impacts Economic Impact Analysis and Types of Impacts

Direct Impacts Employment Impacts generated by the Impact on the Number of Jobs industry’s employment and within Local Economy visitor spending

Wages and Salaries Indirect Impacts Total Impacts Impact on Personal Incomes Secondary impacts generated The sum of direct, for Local Residents by supplier purchases indirect and induced impacts

Induced Impacts Economic Output Sourced to businesses that are Impact on Total Spending supported by the spending of within the Local Economy direct employees Page 35 Nevada’s Tourism Industry Impacts 2019 Employment Impacts Prior to the COVID-19 health crisis and 278,800 related response, the tourism industry directly employed 278,800 workers in Nevada. However, the impacts of the industry are more far-reaching than just employment in the resort properties. Retail, food and beverage and other industry-related positions are beneficiaries of the industry and its 88,400 employees. Indirect impacts, those secondary 66,100 impacts attributable to purchases made by the industry’s suppliers, reached 66,100 employees. While induced impacts, those sourced to purchases made by employees Direct Indirect Induced who work directly for the tourism industry, supported 88,400 employees. In total, the tourism industry supported 433,400 jobs. Total Jobs Supported 433,400

Sources: Applied Analysis and IMPLAN. Notes: The estimated economic impact figures (including direct, indirect and induced impacts) presented in this section and following sections are generally reflective of the impacts of the Nevada resort tourism industry. Figures may not sum due to rounding Page 36 Leisure and Hospitality Employment Nevada Employment and Unemployment Rate Leading up to fiscal year 2020, Nevada’s leisure and hospitality sector had maintained its employment growth, Leisure and Hospitality Share of Employment reaching a peak of 360,300 employees within the industry in July 2019. The leisure and hospitality sector has historically Nevada U.S. employed over one-fourth of the state’s total workers. As a 23.8% 9.0% result of this dependency, the sector’s employment was impacted the greatest when the COVID-19 health crisis Employment Indicator FY ’10 FY ’20 Growth effectively put a global travel ban in place and the state was required to close all non-essential businesses. These closures Total Employment 1.12 M 1.27 M p +13.4% and drop in travel resulted in the sector’s lowest level of employment since 1993. With businesses forced to Leisure & Hospitality Employment 313.6 K 301.5 K q -3.9% temporarily close, job counts suffered. This resulted in the nation’s highest unemployment rate, impacting a high of 30.1 percent of the workforce. As businesses were able to reopen, Leisure & Hospitality Employment Share 27.9% 23.8% q -4.1% the unemployment rate edged down to half of its peak during that time and ended the fiscal year at 15.2 percent. Unemployment Rate 13.5% 15.2% p +1.7%

Source: U.S. Bureau of Labor Statistics; Not Seasonally Adjusted. Note: Fiscal years represented. 260,000 280,000 300,000 320,000 340,000 360,000 380,000 Nevada’sTourism Employment Industry Source: U.S. Bureau of Labor Statistics; Not Seasonally Adjusted. '10 LeisureHospitality andEmployment '11 '12 '13 '14 '15 Notes: '16 Fiscal Fiscal year represented. Hotel '17 '18 '19 '20 - casino casino employment is a subset of the leisure and hospitality employment industry. 301,500 120,000 135,000 150,000 165,000 180,000 195,000 '10 '11 Hotel '12 - Casino Employment '13 '14 '15 '16 '17 '18 '19 '20 133,600 Page 37 Page 38 Nevada’s Tourism Industry Employment Monthly Series Leisure and Hospitality Employment Hotel-Casino Employment 380,000 175,000

340,000 160,000 300,700 300,000 145,000

260,000 130,000 127,900

220,000 115,000

180,000 100,000

Source: U.S. Bureau of Labor Statistics; Not Seasonally Adjusted. Note: Hotel-casino employment is a subset of the leisure and hospitality employment industry. Page 39 Nevada’s Diversifying Employment Nevada Employment Growth (Net) by Sector | Fiscal Year 2010 vs. 2020

Construction 35,700 Education and Health Services 32,100 Professional and Bus. Services 28,100 Trade, Trans. and Utilities 21,600 INDUSTRY EMPLOYMENT Manufacturing 19,100 By the end of fiscal year 2020, the sector reported 12,100 fewer Financial Activities 15,200 jobs than a decade ago as a direct result of the COVID-19 Other Services 3,300 health crisis. Furthermore, as was mentioned before, the tourism industry supports 433,400 jobs within the state; this Mining and Logging 3,200 equates to roughly 3 out of every 10 jobs that are supported in Information 1,300 some way by the tourism industry. Although net employment throughout the state remained above where it was at a decade Government -2,400 ago, it is clear the leisure and hospitality sector continues to Leisure and Hospitality -12,100 face challenges as a result of the heath crisis and related response. Source: U.S. Bureau of Labor Statistics. Page 40 Nevada’s Employment Distribution Fiscal Year 2020

Sector Share Leisure and Hospitality 23.8% Trade, Transportation, and Utilities 18.2% Professional and Business Services 13.0% Government 11.9% Education and Health Services 10.5% Total Construction 7.6% Employment Financial Activities 5.4% 1.27M Manufacturing 4.5% Other Services 2.9% Mining and Logging 1.2% Information 1.1%

Source: U.S. Bureau of Labor Statistics. Note: Totals may not sum due to rounding. Page 41 Nevada’s Hachman Diversity Index

82 80 78 76 74 72 70

68 MoreDiverse 66 64 62 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: U.S. Bureau of Labor Statistics and Applied Analysis. Note: To determine economic diversity, the Hachman Index compares the relative shares of the local economy to those of the national economy to identify the variances in each employment sector, also known as the location quotient. Impacts are then aggregated to create the diversity index. A score of 100 reflects a diversified economy, while a score of 0 reflects a narrow economy. The Hachman Index assumes the national economy reflects broad diversity Page 42

WAGE AND SALARY IMPACTS Page 43 Nevada’s Tourism Industry Impacts 2019 Wage and Salary Impacts Overall, the tourism industry supported an estimated $12.6 billion in direct wage and $12.6 B salary payments during the pre-pandemic timeframe. This equals about $45,400 annually per direct employee. The indirect wages and salaries that were paid as a result of vendor and other industry-related spending, reached an estimated $3.3 billion. Furthermore, induced wage and $3.3 B $3.7 B salary payments as a result of direct industry employee spending added $3.7 billion. In total, wage and salary payments reached $19.6 billion. In total, this was Direct Indirect Induced roughly $45,300 per employee. Total Wage and Salary Payments Supported $19.6 B

Sources: Applied Analysis and IMPLAN. Notes: The estimated economic impact figures (including direct, indirect and induced impacts) presented in this section and following sections are generally reflective of the impacts of the Nevada resort tourism industry. Figures may not sum due to rounding Page 44 Tourism Industry Wages and Benefits Nevada Gross Wages and Health Benefits Paid | Fiscal Year 2020

Gross Health Total Wages & Industry Share Wages Benefits Benefits Paid of Total Leisure and Hospitality $10.46 B $1.08 B $11.54 B 19.7% Professional and Business Services $10.15 B $0.54 B $10.69 B 18.3% Education and Health Services $5.93 B $0.39 B $6.31 B 10.8% Construction $5.82 B $0.40 B $6.22 B 10.6% Retail Trade $5.38 B $0.34 B $5.73 B 9.8% Financial Activities $4.07 B $0.23 B $4.30 B 7.4% Manufacturing $2.96 B $0.25 B $3.21 B 5.5% Wholesale Trade $2.82 B $0.20 B $3.02 B 5.2% Transportation and Warehousing $2.45 B $0.20 B $2.65 B 4.5% Information $1.57 B $0.11 B $1.68 B 2.9% Mining, Quarrying, and Oil and Gas Extraction $1.49 B $0.20 B $1.69 B 2.9% Other Services $0.88 B $0.04 B $0.92 B 1.6% Utilities $0.35 B $0.03 B $0.38 B 0.6% Agriculture, Forestry, Fishing and Hunting $0.13 B $0.01 B $0.14 B 0.2% Total $54.47 B $4.01 B $58.48 B 100.0% Source: Nevada Department of Taxation, Modified Business Tax Statistics, Quarterly Report June 2020. Notes: Table does not include government and unclassified wages and health benefits. Reported wages and benefits in the leisure and hospitality sector totaled $10.5 billion during fiscal year 2020; this concept differs slightly from the overall impact of the tourism industry that also accounts for visitor spending within other segments of the economy (e.g. retail). Figures may not sum due to rounding. Page 45 Tourism Industry Wages and Benefits Nevada Hotel-Casino Total Payroll Expenses Exclusively | Fiscal Year 2020

Employee Benefits 20.5%

Total Payroll Expenses $6.5B Total Payroll Total Payroll Wages and Salaries Employee Benefits Total Wages $5.2B $1.3B 79.5%

Source: Nevada Gaming Control Board, Gaming Abstract; Non-restricted gaming licensees with $1 million or more in gaming revenue. Note: Fiscal year represented. Page 46 Tourism Industry Wages and Benefits Nevada Hotel-Casino Total Payroll Expenses Exclusively Nevada Hotel-Casino Wages & Salaries Nevada Hotel-Casino Employee Benefits $8 $2.1

$7 Billions

Billions $1.8

B B $6

$1.5

$5.2 $1.3 $5 $1.2 $4 $0.9 $3 $0.6 $2

$1 $0.3

$0 $0.0 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 Source: Nevada Gaming Control Board, Gaming Abstract; Non-restricted gaming licensees with $1 million or more in gaming revenue. Note: Fiscal year represented. Page 47

ECONOMIC OUTPUT IMPACTS AND TOTAL IMPACTS Page 48 Nevada’s Tourism Industry Impacts 2019 Summary of Tourism Industry Impacts Nevada’s tourism industry was directly $42.4 B responsible for $42.4 billion in direct economic output during the pre-pandemic timeframe (2019). This equates to roughly $152,000 in economic output per direct industry employee. Indirect economic output from industry-specific spending, $17.7 B such as from vendors, reached $13.1 $13.1 B billion. Additionally, induced impacts from activity associated with direct industry employees added $17.7 billion in economic output. Overall, Nevada’s tourism industry was responsible for $73.2 Direct Indirect Induced billion in economic output. This equates to approximately $168,900 in economic output per employee. Total Economic Output $73.2 B

Source: Applied Analysis and IMPLAN. Note: Figures may not sum due to rounding Page 49 Nevada’s Tourism Industry Impacts 2019 Summary of Tourism Industry Impacts

Direct Impacts Indirect Impacts Induced Impacts Total Impacts Total Employees 278,800 66,100 88,400 433,400 Total Wage and Salary Payments $12.6 Billion $3.3 Billion $3.7 Billion $19.6 Billion Wages Per Employee $45,400 $49,400 $41,900 $45,300 Total Economic Output $42.4 Billion $13.1 Billion $17.7 Billion $73.2 Billion Output Per Employee $152,000 $197,900 $200,400 $168,900

Leading into the COVID-19 health crisis and related response (2019), the tourism industry was responsible for supporting roughly 3 out of every 10 employees in the state. With over 433,000 employees relying on the industry, this attributed to $19.6 billion in wage and salary payments supported. As a whole, the industry’s contribution reached in excess of $73.2 billion in economic output that is generated from direct tourism-related activity.

Sources: Applied Analysis and IMPLAN. Note: Figures may not sum due to rounding. Page 50 Nevada’s Tourism Industry Impacts 2019 Indirect and Induced Employment Impacts by Sector

Indirect Induced Combined Distribution Leisure and Hospitality 56,584 10,935 67,519 43.7% Professional and Business Services 5,155 10,764 15,919 10.3% Trade, Transportation and Utilities 1,334 21,667 23,001 14.9% Financial Activates 1,262 14,128 15,390 10.0% Other Services 520 8,225 8,745 5.7% Government 480 980 1,460 0.9% Information 428 1,289 1,717 1.1% Construction 199 769 968 0.6% Manufacturing 143 362 505 0.3% Natural Resources and Mining 27 152 179 0.1% Education and Health Services 9 19,134 19,142 12.4% Total 66,140 88,404 154,544 100%

Sources: Applied Analysis and IMPLAN. Note: Figures may not sum due to rounding. Page 51

PUBLIC REVENUE (TAX) IMPACTS Page 52 Nevada’s Business Environment 2021 State Business Tax Climate Index In the latest release by the Tax Foundation, Nevada ranks as the seventh best business tax climate in the nation. One major contributor to this tax-friendly environment is that Nevada does not impose a corporate or individual income tax. This creates a low tax burden for both Nevada businesses and residents alike which #7 allows the state to consistently rank as one of the best states to do business in.

10 Best Business Tax Climates 10 Worst Business Tax Climates

Source: Tax Foundation. Page 53 General Business Taxes General Fund Revenue Breakdown | Fiscal Year 2020 General Fund Revenue Source* Total Collections Hotel-Casino Industry Contributions Hotel-Casino Industry as a Share of Total Branch Bank Excise Tax $2,608,720 $0 0.0% Business License Fee $103,062,659 $10,792,640 10.5% Cigarette Tax $156,694,742 $25,492,455 16.3% Commerce Tax $204,983,790 $37,663,297 18.4% Gaming Taxes $622,903,223 $622,903,223 100.0% Governmental Services Tax $21,307,879 $10,099,935 47.4% HECC Transfer (Higher Education Capital Fund) $5,000,000 $5,000,000 100.0% Insurance Taxes $452,361,356 $47,370,923 10.5% Liquor Tax $42,312,940 $15,332,879 36.2% Live Entertainment Tax $91,335,734 $72,175,787 79.0% Mining Taxes and Fees $57,158,980 $0 0.0% Modified Business Tax (MBT) – Financial $34,306,987 $0 0.0% Modified Business Tax (MBT) - Mining $22,921,979 $0 0.0% Modified Business Tax (MBT) – Nonfinancial[1] $585,374,301 $105,800,175 18.1% Other Tobacco Tax $23,200,047 $3,774,384 16.3% Transportation Connection Excise Tax $19,868,720 $6,954,052 35.0% Real Property Transfer Tax[2] $100,266,873 $0 0.0% Sales and Use Tax $1,263,939,457 $371,706,602 29.4% Total Tax Revenue $3,809,608,386 $1,335,066,352 35.0% Other Revenue $267,638,954 $44,559,264 16.6% Total $4,077,247,340 $1,379,625,616 33.8% Sources: Economic Forum; Las Vegas Convention and Visitors Authority; Nevada Gaming Control Board, Quarterly Statistical Report; Department of Taxation Nevada Department of Employment, Training and Rehabilitation and Applied Analysis. Notes: *Reflects collections within the Nevada General Fund and excludes taxes, fees and other charges that inure to the benefit of other state and local municipalities; [1] The modified business tax is a tax on gross payroll, less a deduction for employer-provided health care coverage. Because the hotel-casino industry provides such a significant share of these benefits to its employees, the industry’s share of modified business tax collections is lower than its share of employees; [2] Assumed to be zero due to a lack of available data. Page 54 Largest Ad Valorem (Property) Taxpayers Clark County

Rank Taxpayer Assessed [1] Appraised [2] Rank Taxpayer Assessed [1] Appraised [2] 1 MGM Resorts International $3.56 B $10.16 B 11 Golden Entertainment Inc. $0.28 B $0.81 B

2 Caesars Entertainment Corp. $1.86 B $5.30 B 12 Universal Health Services Inc. $0.25 B $0.73 B

3 NV Energy $1.75 B $5.00 B 13 Picerne Real Estate Group $0.25 B $0.71 B

4 Las Vegas Sands Corp. $1.06 B $3.03 B 14 Brookfield Property Partners $0.25 B $0.71 B

5 Wynn Resorts Limited $0.85 B $2.43 B 15 Prologis $0.24 B $0.68 B

6 Station Casinos Inc. $0.78 B $2.23 B 16 Gaughan South Limited Liability Co. $0.23 B $0.66 B

7 Howard Hughes Corp. $0.47 B $1.34 B 17 Invitation Homes $0.22 B $0.63 B

8 Corporation $0.43 B $1.22 B 18 Harsch Investment Properties $0.22 B $0.62 B

9 The Blackstone Group $0.32 B $0.91 B 19 Ovation Development Corp. $0.22 B $0.62 B

10 Hilton Grand Vacations $0.29 B $0.84 B 20 World Market Center Las Vegas $0.21 B $0.61 B

Sources: Clark County’s Assessor’s Office, Secured and Unsecured Tax Rolls; Washoe County Assessor’s Office, Real Property Assessment Roll. Notes: [1] Assessed value reflects 35 perfect of appraised value. [2] Appraised value reflects the cash value of land and replacement cost of improvements. Page 55 Largest Ad Valorem (Property) Taxpayers Washoe County

Rank Taxpayer Assessed [1] Appraised [2] Rank Taxpayer Assessed [1] Appraised [2] 1 Apple Inc. $123.22 M $352.04 M 11 AGNL Slots LLC $32.03 M $91.51 M

2 Peppermill Casinos Inc. $115.58 M $330.22 M 12 HR Owner LLC $28.99 M $82.83 M

3 Icon Reno Property Owner Pool 3 NE $72.31 M $206.60 M 13 D.R. Horton Inc. $28.04 M $80.10 M

4 Gage Village Commercial Dev LLC. $63.14 M $180.39 M 14 Icon Reno Property Owner Pool 6 West $25.71 M $73.46 M

5 Toll NV Limited Partnership $62.58 M $178.81 M 15 Charles River Laboratories Inc. $23.46 M $67.03 M

6 Golden Road Motor Inn Inc. $50.80 M $145.15 M 16 Smooth Bourbon LLC $22.43 M $64.09 M

7 Circus & Eldorado Joint Venture $49.98 M $142.81 M 17 G&I VII Reno Operating LLC $22.42 M $64.05 M

8 MPT of Reno LLC $47.99 M $137.13 M 18 DWF V Summit Club Holdings Inc. $21.51 M $61.44 M

9 Lennar Reno LLC $36.70 M $104.87 M 19 Arrowcreek Venture LLC $19.04 M $54.39 M

10 Red Sparks SPE LLC $33.45 M $95.56 M 20 S.W. Commerce Reno LLC $18.58 M $53.07 M

Sources: Clark County’s Assessor’s Office, Secured and Unsecured Tax Rolls; Washoe County Assessor’s Office, Real Property Assessment Roll. Notes: [1] Assessed value reflects 35 perfect of appraised value. [2] Appraised value reflects the cash value of land and replacement cost of improvements. Page 56 Industry-Specific Taxes Gaming and Other Industry-Specific Fees and Tax Collections | Fiscal Year 2020 Type of Fee/Collection Tax Collections Share of Total Transient Lodging (Room) Tax[1] $671,551,247 52.1%

Percentage Fees Collections $472,433,163 36.7%

Live Entertainment Tax Collections $72,175,787 5.6%

Annual Slot Tax Collections $33,670,620 2.6%

Other Fee Collections $13,136,597 1.0%

Quarterly Nonrestricted Slot Collections $10,223,380 0.8%

Quarterly Restricted Slot Collections $8,073,138 0.6%

Quarterly Game Fee Collections $5,439,293 0.4%

Annual Game Fee Collections $2,299,100 0.2%

Total $1,289,002,325 100.0%

Sources: Nevada Gaming Control Board, Quarterly Statistical Report; and Applied Analysis. Notes: The gaming industry pays all of the taxes paid by businesses generally, as well as these levies. Figures may not sum due to rounding. Tax collections reflect data sourced to the Quarterly Statistical Report and may differ slightly from the State General Fund reporting. [1] Estimated due to varying tax rates by jurisdiction. Page 57 Industry-Specific Taxes

Percentage Fees (Gaming Tax) Collections Live Entertainment Tax Collections $850 $160

$800 Millions Millions $140 $750

$700 $120

$650 $100

$600 M M

$550 $80 $72.2 $500 $472.4 $60 $450

$400 $40 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: Nevada Gaming Control Board, Quarterly Statistical Report. Note: Fiscal year represented. Page 58 Industry-Specific Taxes

Room Tax Collections $1,000

$900

M Millions $800 NEVADA’S TAX CLIMATE

$700 $671.6 Nevada is consistently cited as having one of the best overall $600 business tax climates in the nation. The state’s tax structure is designed to be less burdensome to businesses, their $500 employees and residents. In Nevada, there is no personal income tax, franchise tax, unitary tax, inventory tax, inheritance $400 tax or estate tax. A major contributor to this reduced burden $300 comes from the resort industry and their out-of-town guests. In Southern Nevada, tourism industry contributions to public $200 revenues reduce the annual tax burden for every resident in '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Clark County by nearly $1,100 per year. Sources: Nevada Department of Taxation; Las Vegas Convention and Visitors Authority. Page 59 Southern Nevada Room Tax Revenue Fiscal Year 2020

Tax Rate Share of Tax Amount Las Vegas Convention and Visitors Authority - General Fund and LVCCD Capital Fund 4% - 5% 39.8% $237.4 M

State of Nevada - Education 2% - 3% 22.7% $135.5 M

Clark County School District - Capital Projects 1.625% 12.3% $73.4 M

Local Jurisdictions - General Fund 0.0% - 2% 8.5% $50.8 M

Clark County Transportation 1.0% 7.6% $45.2 M

Las Vegas Stadium Authority 0.0% - 0.88% 6.2% $37.2 M

State General Fund - Tourism 0.375% 2.8% $16.9 M

Total Room Tax 12% - 13.88% 100.0% $596.2 M

Sources: Nevada Department of Taxation; Las Vegas Convention and Visitors Authority; and Applied Analysis. Notes: Room tax amounts and allocations are preliminary and subject to change given the timing of this publication. Figures may not sum due to rounding. Page 60 Southern Nevada Room Tax Revenue Fiscal Year 2020 Share of Room Tax Revenue Origin of Room Tax Collections

State of Nevada CCSD - Capital Projects Balance of State 11.2% - Education 12.3% 22.7%

Local Jurisdictions - General Fund Total 8.5% Revenue Clark County Clark County $596.2 M Transportation 88.8% 7.6%

LVCVA - LV Stadium Authority General Fund 6.2% and LVCCD Capital Fund State General Fund - Tourism 39.8% 2.8% Series 1 Sources: Nevada Department of Taxation; Las Vegas Convention and Visitors Authority; and Applied Analysis. Note: Totals may not sum due to rounding. Page 61 Southern Nevada Room Tax Revenue

Revenues Generated for Transportation Revenues Generated for Clark County School $70 District Capital Projects $120

$60 M

Millions M

Millions $100

$50 $45.2 $80 $40 $73.4

$60 $30

$20 $40

$10 $20

$0 $0 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 Sources: Nevada Department of Taxation; Las Vegas Convention and Visitors Authority; and Applied Analysis. Notes: Revenues reflect the Clark County transportation component only and do not include Nevada Department of Taxation bonds. Fiscal year represented. Page 62 Northern Nevada Room Tax Revenue Fiscal Year 2020

Tax Rate Share of Tax Amount Reno-Sparks Convention and Visitors Authority* 8.625% 64.8% $30.6 M

City of Reno 2% - 4.5% 21.0% $9.9 M

State of Nevada 0.375% - 1.375% 6.8% $3.2 M

Incline Village/Crystal Bay N/A 3.6% $1.7 M

City of Sparks 0% - 2.5% 2.8% $1.3 M

Washoe County 0% - 1% 1.1% $0.5 M

Total Room Tax 13% - 13.5% 100.0% $47.2 M

Source: Reno-Sparks Convention and Visitors Authority, Popular Annual Financial Report. Notes: Room tax amounts and allocations are preliminary and subject to change given the timing of this publication. Figures may not sum due to rounding. *General Fund, Convention Center Debt, City/Civic Center. Page 63 Northern Nevada Room Tax Revenue Fiscal Year 2020 Share of Room Tax Revenue Origin of Room Tax Collections

City of Reno 21.0%

State of Nevada 6.8% Total Balance of State 93.0% Revenue Incline Village/Crystal Bay $47.2 M 3.6% City of Sparks Reno-Sparks 2.8% Convention and Visitors Authority Washoe County Washoe County 64.8% 1.1% 7.0% Series 1 Source: Reno-Sparks Convention and Visitors Authority, Popular Annual Financial Report. Note: Totals may not sum due to rounding. Page 64

SOCIAL IMPACTS AND COVID-19 RELIEF EFFORTS Page 65 COVID-19 Social Impact Summary

Employee Payroll Monetary/ Pounds of Masks/Face Assistance In-Kind Donations Food Donated Coverings Donated +$265M +$17.0M +1.1M +12.5M Nevada’s resort industry has a long history of being strong community partners and good corporate citizens, particularly in times of crisis.

Sources: Gaming property partners and third-party media. Note: Data represents only a small sampling of the members’ efforts. Page 66 Caesars Entertainment Caesars Entertainment empowers more than 29,000 Nevada Team Members (as of December 2020), supports local businesses and nonprofit organizations, and respect the environment at each of their Las Vegas, Reno, Laughlin and Lake Tahoe locations. Caesars advances responsible business practices while inspiring employees, guests, partners and communities to share in making a positive impact through their PEOPLE PLANET PLAY framework. A testament to their ‘Planet’ programming, properties across the state provide electric vehicle charging stations to guests at no charge, and Promenade in Las Vegas and THE ROW in Reno both host Tesla Supercharger stations. Arrive and Thrive Business Diversity Outreach In early 2020, Caesars opened the CAESARS FORUM, a state-of-the-art conference center. Through the project’s contracting initiative Arrive and Thrive, they engaged and mentored diverse businesses from $30 Million groundbreaking to opening day. The program facilitated nearly $30 million to more than 36 diverse businesses across seven diversity categories over the two-year timeframe.

For the sixth consecutive year, Caesars Entertainment was recognized as one of The Civic 50’s most community minded companies in 2020. This mindset played a crucial part in the company’s response to the COVID-19 pandemic. To support Team Members who suffered unanticipated hardships, Caesars established an employee assistance fund called Caesars Cares. Additional financial support has been provided by Caesars Entertainment and its nonprofit, the Caesars Foundation. In addition, properties donated over 400,000 pounds Lbs. of Food Donated of food directly to food banks and pantries, along with various PPE. 400,000 Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. Page 67 & Casino Grand Sierra Resort and Casino (GSR) is involved in the community in a number of ways, including through GSR Cares, where team members have been involved in extensive volunteering opportunities with local organizations and charities. GSR has also partnered with Lyft and Zero Fatalities Coalition to prevent impaired driving in Northern Nevada. Additionally, the company is committed to furthering education for the region and renewed its annual commitment to donate $35,000 to the Washoe County School District for the 2020-2021 school year, while pledging an additional $25,000 of in-kind donations. Furthermore, in preparation for a potential capacity surge due to the influx of COVID-19 patients, (GSR) provided 139 rollaway beds to Renown Health to be used to set up Rollaway Beds overflow availability when needed. 139 Boyd Gaming Corporation Through these unprecedented times, Boyd Gaming remains committed to supporting the communities it calls home. To assist southern Nevada in its response to COVID-19, Boyd Gaming donated personal protective equipment (PPE) to local first responders and tens of thousands of pounds of surplus food to food bank partners. Additionally, Boyd Gaming made special donations of more than $500,000 to non-profit organizations focused on assisting local residents who were impacted by the pandemic and its economic ramifications. Nonprofit Donations +$500,000 Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. Page 68 Las Vegas Sands Following the closure of their properties, the Las Vegas Sands committed to covering payroll costs for salaried employees while also giving hourly and part-time employees a weekly stipend. Additionally, the company committed to covering the pay of approximately 1,200 employees from the 14 third-party partner restaurants on its resort properties.

Sands donated $250,000 to several local organizations including Three Square, Communities in Schools, Share Village Las Vegas and Catholic Charities of Southern Nevada. Furthermore, Sands donated over 68,100 pounds N95 Respirator Masks of food, or 56,700 meals, 55,000 bottles of water and 150 cases of dry food throughout the Las Vegas Valley. 2 Million From a medical standpoint, the company took the initiative to donate two million N95 respirator and surgical masks to local healthcare professionals, first responders and nonprofit organization. The company also donated 20,000 protective suits for the state’s hospitals and first responders, 1,900 coronavirus test kits and 20,000 hygiene kits to Spread the Word Nevada, Communities in Schools and the Public Education Foundation through Direct Care to Kids initiative. The company also donated roughly 104 cases of toilet paper to Nevada Homeless Alliance and U.S. Vets – Las Vegas.

Hygiene Kits 20,000 Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. Page 69 Station Casinos To help mitigate the spread of COVID-19, Station Casinos donated $1 million to the COVID-19 Emergency Response Fund to purchase personal protective equipment and critical medical supplies, including test kits, for use by first responders and healthcare professionals throughout Nevada.

Station Casinos also donated $160,000 to Three Square Food Bank and The Public Education Foundation as part of their 20-year anniversary of the “Smart Start” school program that supports some of the Clark County School District’s most in-need schools. Station Casinos’ $50,000 donation to Three Square Food Bank’s COVID-19 Emergency “BackPack for Kids” program provided bags of nutritious, single-serving, ready-to-eat items to children who Response Fund Donation might otherwise go without on weekends, long breaks from school and during summer months. Furthermore, $1 Million Station Casinos’ donation of $110,000 to The Public Education's distance learning initiatives provided aid to at- risk schools by pioneering programs developed as a result of the COVID-19 pandemic so teachers and parents could succeed in a digital learning environment. The 11 elementary schools in the “Smart Start” program had the opportunity to have parents participate in The Foundation’s virtual Family Learning Program, which provided parents with three weeks of instruction on commonly used technology platforms such as Canvas and Clever to close the digital divide faced by some parents. Schools were also given the opportunity for teachers to participate in The Foundation’s new Digital Leadership Institute where training was provided on best practices to successfully engage students and families in distance learning. Distance Learning Initiative Donation

Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. $110,000 Page 70 MGM Resorts International Following the closure of their properties, MGM Resorts International donated to local food banks and medical groups, and quickly aligned to provide resources for their employees. The company’s chefs worked with the Social Impact and Sustainability team and local food banks to ensure large quantities of food were safely rescued and quickly donated to charitable organizations to serve people in need. In Southern Nevada alone, the company donated 444,000 pounds of food, or 370,000 meals. Across regional properties an additional 219,000 pounds or 182,000 meals were donated bringing the company’s total donation during the COVID-19 crisis to over 662,000 pounds of food, or 552,000 meals. Meals Donated

MGM Resorts International also leveraged their procurement and logistics expertise to support the Nevada 552,000 COVID-19 task force in procuring 261,000 hospital gowns, 200,000 medical gloves and 500,000 KN95 respiratory masks through MGM Macau.

The MGM Resorts Foundation expanded the Employee Emergency Grant Fund within weeks of the companywide closure, to help eligible furloughed and separated employees and their families by providing financial assistance. The Employee Emergency Grant Fund disbursed over $15.5 million which covered 21,000 bill payments on behalf of current and former employees in need of assistance. Medical Gloves Donated

Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. 200,000 Page 71 Peppermill Resort Spa Casino Reno To help combat the COVID-19 health crisis impacts in Nevada, Peppermill Resort Spa Casino donated a pallet of medical gloves to the Nevada Trucking Association, 15 cases of bottled water to temporary shelter residents and donated all perishable food to Peppermill and employees and families. Despite the challenging environment created by the pandemic, the company continued to support area nonprofits with donations and in- kind support.

From a sustainability standpoint, through their geothermal energy investments, Peppermill was able to reduce Metric Tons of CO2 their carbon footprint by 12,000 metric tons of CO2 emissions per year. They upgraded their laundry facility to Emissions Reduced reduce water usage by 21.6 million gallons per year and installed 40,000 square feet of artificial grass to save an additional 5.2 million gallons of water annually. Furthermore, over 1.4 million kilowatt-hours were saved by 12,000 switching over 400 fluorescent lightbulbs with LED ones. Silverton Casino The day following Governor Sisolak’s order for all non-essential businesses to temporarily close, Silverton Casino immediately provided COVID-19 relief efforts to the local community. The company enacted a volunteer workforce that made six trips to donate 21 pallets of perishable food, or roughly 3,500 meals, to local food banks within Clark Cases of Water County. The company also donated over 1,000 cases of bottled water to local hospitals and first responders. Donated

Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. 1,000 Page 72 Over the course of 2019 through 2020, Wynn Las Vegas reported nearly 55,000 employee volunteer hours. In March 2020, the company launched the Virtual Volunteerism program to provide a convenient, flexible way for employees to volunteer without traveling and featured participation from over 40 nonprofits. Volunteer opportunities included mentoring, card writing, senior citizen check-in calls, assisting the visually impaired and offering career advice.

In 2020 alone, the company donated $2.5 million in monetary donations, $186,700 in Wynn Employee Foundation Volunteer Hours grants and $240,000 in COVID-19 emergency grants. The COVID-19 grants were distributed to eight nonprofits within Las Vegas and Boston that focused on food insecurity, mental health and combatting domestic violence. Las 55,000 Vegas nonprofit recipients include Three Square, Delivering with Dignity, The Shade Tree, Hope Means Nevada and SafeNest. Wynn employees also donated over $500,000 to the Wynn Employee Foundation in 2020.

In terms of direct COVID-19 relief efforts, Wynn Resorts donated more than $4.5 million worth of financial aid, personal protective equipment, food and essential cleaning supplies to dozens of healthcare facilities and local nonprofit organizations throughout Las Vegas and Boston. The company donated 245,000 N95-equivalent respirator masks, 730,000 surgical masks, 580,000 pairs of medical gloves and 21,000 prepared meals. Wynn Las Vegas employees sewed over 4,000 handmade face coverings for the local community. The company also Wynn Employee extended pay to their employees, investing close to $250 million in payroll expenses. Furthermore, Wynn Las Foundation Donations Vegas offered a complimentary one-night stay for 10,000 first responders to show their appreciation. Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. $500,000 Page 73 Wynn Las Vegas (Continued) To help protect the health and safety of guests and facilitate the return of group gatherings, Wynn Las Vegas has invested in the construction of a custom-built state-of-the-art COVID-19 testing lab located at the resort, accompanied by a mobile health app. The company also worked with University Medical Center to opens an on- site COVID-19 Vaccination Center at Encore at Wynn Las Vegas to serve people 70 and older, healthcare workers, and first responders initially. Wynn also sponsored up to 400 distance learning seats daily at the Boys and Girls Clubs of Southern Nevada for children of Wynn employees. Distance Learning Seats Sponsored SAHARA Las Vegas 400 Seats SAHARA Las Vegas teamed up with Chef José Andrés World Central Kitchen (WCK) to support more than 2,000 healthcare workers and 400 first responders by providing them meals for their COVID-19 relief efforts. Furthermore, SAHARA Las Vegas donated essential supplies to roughly 350 homeless people through the Cashman Isolation-Quarantine Complex, which included sheets, towels, washcloths, shampoo, conditioner, shower gel, soap and lotion. The company also gave back to their workers through a team member food distribution event where over 500 employees turned out to receive complimentary bags of groceries, which included milk, eggs, cheese, beverages and fresh fruits and vegetables. Leftover food was then donated to Three First Responder Meals Square Food Bank to support its Emergency Food Distribution Strategy. 2,400 Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. Page 74 Atlantis Casino Resort Spa Reno Atlantis Casino Resort Spa Reno is committed to giving back to the community it serves in northern Nevada. Despite the many challenges the COVID-19 pandemic has presented, Atlantis has continued to provide support and valuable resources to those in need. When non-essential businesses were closed statewide, Atlantis immediately went into action, providing all its team members with two weeks’ pay to help cover any immediate expenses. The company donated over 3,000 pounds of perishable food to team members, the Food Bank of Northern Nevada and other local charities. Atlantis also donated 15,000 gloves, 5,000 face masks, 15 gallons of bleach, rollaway beds and cell phone chargers to Northern Nevada Medical Center. As a host site for the All Reno Pounds of Radio Blood Drive, Give 2 Live Blood Drive, Heroes Remembered Blood Drive, Radio For Life Blood Drive and the Food Donated Pam Bedard Blood Drive, Atlantis helped Vitalant collect 1,247 units of blood. 3,000 Atlantis proudly donates thousands of dollars to multiple charities and organizations annually. Recent charitable donations include $50,000 to MD Anderson Cancer Center, $25,000 to Honor Flight Nevada, an organization that flies veterans to Washington D.C. to see memorials erected in their honor, $10,000 to the University of Nevada, $5,000 to the Boys & Girls Club of Truckee and $3,000 to the Education Alliance of Washoe County, which helped with the purchase of laptops for distance learning. With the help of Everi Cares Giving Kiosks, Atlantis has given its guests the opportunity to donate change to select charities. Since the program’s inception in 2018, $124,561 has been collected and distributed to the American Cancer Society Great West Division, the Food Bank Medical Gloves of Northern Nevada, Honor Flight Nevada, the Make-A-Wish Foundation of Northeastern California and Northern Donated Nevada and Team Rubicon. Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. 15,000 Page 75 Atlantis Casino Resort Spa Reno (Continued) Once Atlantis reopened, the company worked diligently to provide its guests and team members with a safe environment that exceeded local and state health requirements. Along with a vigorous cleaning and disinfecting routine, plexiglass dividers were installed throughout the property to provide an extra layer of protection for guests and team members. Additionally, state-of-the-art thermal temperature stations were installed at each of the building’s four entrances. Atlantis is the only hotel and casino in northern Nevada that screens its guests and team Face Masks members individually as they enter the building. The company also provides its team members with free, COVID-19 Donated rapid testing. 5,000 In an ongoing effort to increase the availability of environmentally friendly products, Atlantis has installed new water stations from Vivreau Advanced Water Systems. This premium drinking water is offered free of charge to all guests on the casino floor and at all casino bars. This will directly eliminate more than 45,000 single-use plastic water bottles per year. Using local on-site water reduces the casino’s carbon footprint in bottled water transportation and because Vivreau water is cooled on demand, the system has reduced refrigerated storage needs.

Water Bottles Eliminated Each Year

Note: Data represents only a small sampling of the member’s corporate social responsibility work in Nevada. 45,000 Page 76

NEVADA RESORT ASSOCIATION OVERVIEW Page 77 Nevada Resort Association Overview About Us

The Nevada Resort Association was established in 1965 and has been providing industry insight ever since. The Association works with members from across the state to gather information on the tourism industry to provide the best available data for future industry decisions and state policies that will allow Nevada to remain as one of the top gaming and travel destinations in the world. Members include a diverse group of gaming and resort establishments.

Applied Analysis, a Nevada-based economic research and analysis consultancy, was retained by the Nevada Resort Association to review and analyze the tourism industry in Nevada. The study includes highlights of the state of the industry, economic and fiscal contributions in Nevada and other qualitative contributions of resort properties. It is also worth noting this report would not be possible without the support and research of others in the community, including the Las Vegas Convention and Visitors Authority, Reno-Sparks Convention and Visitors Authority, Nevada Commission on Tourism, Nevada Gaming Control Board and the Nevada Resort Association. Page 78 Nevada Resort Association Overview Southern Nevada Members

• Aliante Casino + Hotel + Spa • Casino Hotel • The Spa Casino Las Vegas • Aquarius Casino Resort Laughlin • Edgewater Casino Resort Laughlin • Main Street Station Casino Brewery Hotel • • • Mandalay Bay Resort and Casino LV • Arizona Charlie’s Boulder • Excalibur Hotel Casino Las Vegas • MGM Grand • Arizona Charlie’s Boulder • • Mirage Las Vegas • Bally’s Las Vegas • • New York New York Hotel & Casino • Las Vegas • • Hotel & Casino • Hotel & Casino • Fremont Hotel & Casino • Hotel & Casino • Buffalo Bill’s Resort & Casino • Gold Coast Hotel & Casino Las Vegas • Las Vegas • Las Vegas • Golden Gate Hotel & Casino Las Vegas • Spa • California Hotel & Casino Las Vegas • Resort Casino & Spa • • Cannery Casino Hotel • Harrah’s Las Vegas • Park MGM Las Vegas • Circa Resort & Casino Las Vegas • Harrah’s Laughlin • Planet Hollywood Resort & Casino LV • • The Linq Hotel & Casino • Plaza Hotel & Casino • Casino & Hotel • • Primm Valley Resort & Casino Page 79 Nevada Resort Association Overview Southern Nevada Members (Continued)

• Red Rock Casino Resort Spa • Silverton Casino Hotel Las Vegas • Hotel | Laughlin Casino • Resorts World Las Vegas • South Point Casino & Spa • • Rio All-Suite Hotel & Casino • Hotel, Casino & Skypod • Hotel & Casino • Sahara Las Vegas • Suncoast Hotel & Casino • Whiskey Pete’s Hotel & Casino • Sam’s Town Hotel & Gambling Hall • Sunset Station Hotel Casino • Wild Wild West Gambling Hall & Hotel • Hotel Casino • Gambling Hall & Hotel • Wynn Las Vegas • Hotel & Casino •

Northern Nevada Members

• Atlantis Casino Resort Spa • Grand Sierra Resort and Casino Reno • Peppermill Resort Spa Casino Reno • Circus Circus Hotel Casino Reno • Harrah's Lake Tahoe • Casino Hotel • Casino Downtown Reno • • Silver Legacy Resort Casino Reno • Reno • Nugget Casino Resort