METHODOLOGY ...... 2 WORLD SERIES OF PLAYER SURVEY ...... 16-17

Across a broad spectrum of the U.S. adult population, casino gambling is a preferred recreational activity. CAMPAIGN 2004 HEALTH AND WELLNESS Our annual Harrah’s Survey describes casino players, where they come from, and what they like to do Party Affiliation ...... 3 Diet And Exercise...... 18 in other aspects of their lives. Intention To Vote ...... 3 Physician Visitation ...... 18 Presidential Issues ...... 4 Casino gambling is a central feature of political debates in our country and abroad, yet these debates Presidential Characteristics ...... 5 CASINO PLAYER DEMOGRAPHICS are surprisingly uninformed by facts about casino guests. Slightly more than a quarter of American Political Activism ...... 5 Age Differences In Casino Participation ...... 19 adults gambled in a casino in the last year. Yet, the preferences, choices, and aspirations of America’s Confidence In Institutions ...... 6 Income Differences In Casino Participation ...... 19 more than 50 million casino customers are under-reported and misunderstood. The Harrah’s Survey Government Regulation of Individual Behavior ...... 6 Household Size...... 19 attempts to remedy this situation. Government’s Role in Casinos ...... 6 Home Ownership...... 19 Because 2004 is a presidential election year, this year’s Harrah’s Survey provides a timely focus on the Employment...... 20 politics of casino gamblers versus non-gamblers. The survey finds not only significant differences in the COMMUNITY INVOLVEMENT/VALUES Education...... 20 issues the two groups think are important, but distinctions in levels of political activism as well. Civic Participation ...... 7 Volunteer Time...... 7 CASINO GAMES This year’s Harrah’s Survey also provides insight into the game of poker – now enjoying unprecedented Volunteer Contributions...... 8 Games Played Most Often By Americans ...... 21 popularity around the country – by providing a detailed portrait of participants in the world’s largest The Environment...... 8 Geographic Region And Games Played Most Often...... 21 poker tournament, the . Whether you’re matching wits with friends around the Religion ...... 8 Age And Games Played Most Often...... 22 kitchen table, or with fellow poker enthusiasts at your favorite casino poker room, we hope that these Gender And Games Played Most Often ...... 22 insights will make your next poker game a richer experience. MONEY MANAGEMENT As always, we welcome your comments and questions about our survey. Current Investments...... 9 U.S. CASINO VISITATION Savings For Retirement...... 9 Visits ...... 23 Investment Assistance...... 10 Geographic Differences In Casino Participation ...... 23 Financial Activities ...... 10 Casino Participation Rates Across The Country ...... 24 Credit Card Bills ...... 11 States Generating The Most Casino Trips...... 24 Windfall ...... 11 States Generating 2 Million+ Trips...... 25 Casino Participation Rates In The Largest Feeder Markets ...... 25 LIFESTYLE Feeder Markets Generating The Most Trips ...... 26 Vacation/Travel Trips ...... 12 Feeder Markets Generating 1 Million+ Trips ...... 27 Gary Loveman Vacation/Travel Experiences ...... 12 President and Chief Executive Officer Vacation/Travel Accommodations...... 13 STATE PROFILES ...... 28 Harrah’s Entertainment, Inc. Sports Activities ...... 13 Entertainment ...... 14 SELECTED DESIGNATED MARKET AREA PROFILES...... 31 Eating Out ...... 14 Professional Services ...... 15 Customer Loyalty Programs ...... 15 PARTY AFFILIATION INTENTION TO VOTE Gamblers trend Democratic while non-gamblers trend Republican. Casino gamblers are slightly more inclined to vote in the upcoming Profile of the American Casino Gambler: Harrah’s Survey 2004 is based on three studies: the National presidential election than non-gamblers. Non-gamblers are more Profile Study and the U.S. Gaming Panel, both conducted by TNS NFO on a nationwide basis; and likely to be undecided about whether they will vote and are more a survey of amateur and professional poker players at the 2004 World Series of Poker in , How would you describe your overall point of view in likely to be certain they won’t vote. conducted by the marketing research department at Harrah’s Entertainment, Inc. terms of political parties? 34% Mostly Democratic 27% Do you plan to vote in the November 2004 presidential NATIONAL PROFILE STUDY election? 9% Leaning Democratic 80% TNS NFO mailed a survey questionnaire to 3,475 adults age 21 years or older in the Continental 11% Definitely will vote United States in April 2004. The total mailing consisted of two groups: 77% 14% Complete Independent 9% • A nationally representative group of 2,250 adults balanced to 2003 U.S. Census data 17% Probably will vote 8% • A group of 1,225 individuals pre-identified to have gambled in a casino in the past 12 months 31% Mostly Republican 5% 34% Undecided The survey generated 2,207 returns, of which 1,015 were gamblers (gambled in the last 12 months) 7% and 1,012 were not gamblers. The margin of error for a question asked of all respondents at a 90% 10% confidence level is approximately +/- 2%. Leaning Republican 3% 9% Probably will not vote 3% Findings from the National Profile Study are reflected on pages 3-15 and 18 of the Harrah’s Survey. 2% Other 3% 3% Definitely will not vote 6% U.S. GAMING PANEL 0 10203040 010 20406080 30 50 70 Casino gamblers Casino gamblers TNS NFO mailed a survey questionnaire in 2003 to a panel of 100,000 adults (25,000 adults per Non-gamblers quarter) 21 years of age or older within the Continental United States. The survey generated 67,575 Non-gamblers respondents, from which TNS NFO identified the U.S. Gaming Panel, a nationally representative sample of 17,439 casino players. “Casino gamblers” were defined as respondents who indicated that they had gambled in a casino during the 12 months prior to being surveyed. The margin of error for a question asked of all casino players at a 95% confidence level is approximately +/- 1.5%, and can vary between +/- 2% and +/- 4% depending on the sample segmentation. Findings from the U.S. Gaming Panel are reflected on pages 19-32 of the Harrah’s Survey. TNS NFO is one of the world’s leading market information groups, providing market measurement, analysis and insight through their operating companies in 70 countries.

WORLD SERIES OF POKER PLAYER SURVEY The marketing research department at Harrah’s Entertainment conducted intercept interviews with both amateur and professional poker players from April 23-26 at the 2004 World Series of Poker held at Binion’s Horseshoe Hotel & Casino in downtown Las Vegas. The interviews were conducted between 9 a.m. and 6 p.m. at the tournament’s pre-registration area, and players were invited to answer a series of questions. Players’ amateur/professional status was self-described. The margin of error for a question asked of all respondents at a 90% confidence level is approximately +/- 4.67%. Findings are reflected in the World Series of Poker Player Survey pullout on pages 16 and 17.

2 3 PRESIDENTIAL ISSUES PRESIDENTIAL CHARACTERISTICS POLITICAL ACTIVISM Gamblers and non-gamblers prioritize presidential election issues generally the same way. More non-gamblers than gamblers, however, Honesty/integrity is by far the most important characteristic of a Casino gamblers are more politically active than non-gamblers. indicate that a candidate’s position on abortion and gay marriage is important to their vote. presidential candidate, according to both gamblers and non- They are more likely to have signed a petition (51% to 42%), to gamblers. have contributed money (26% to 19%), or to have attended a public meeting (19% to 15%) on behalf of a political candidate How important are the following issues with regard to Of the following issues, which one is the most important or cause. your vote for the presidential election of 2004? with regard to your vote for the presidential election Which of the following is the most important characteristic in 2004? of a president?

86% 56% In the past four years, which of the following have you Taxes Honesty/integrity 84% 18% Economy 59% done in support of a political candidate or cause? 14% 90% 51% Economy Avoids giving in to Signed a petition 88% 12 % 42% 14% pressure from special Homeland security 10 % 13% interest groups 82% Crime Written, called or 81% 13% Being compassionate War in Iraq 11 % emailed a politician 30% 12% enough to understand 10 % about an issue that 30% 85% average people Health insurance concerned you 84% 10% Social Security 10% Having consistent 8% Contributed money to 84% positions on issues 7% 26% Homeland security a political candidate 82% 8% 19 % Health insurance or cause 7% 86% Shares your views on 6% Social Security political issues 6% 83% 8% Taxes Put a political sign on 24% 5% your property 81% 22% Education The candidate’s 6% 85% 6% intelligence Education 6% 7% 78% Job market Attended a public 19 % 76% 4% 1% meeting Job market Political experience 15 % 5% 2% 76% Written a letter or Gasoline prices 74% 3% email to the editor of a Abortion 1% 5% Military experience newspaper or magazine 13 % 1% 75% or called a live TV/radio 13 % War in Iraq show to express an 77% 4% Gasoline prices opinion 3% Experience outside <1% 66% politics Middle East policy <1% Put a political sticker 10 % 67% 3% Middle East policy on your car 9% 3% 020406010 30 50 60% Immigration Casino gamblers 58% 2% Gay marriage Non-gamblers 4% Attended a political 8% 48% rally or protest 6% Abortion 56% 2% Crime 2% 28% Gay marriage Volunteered on a 7% 39% 2% Immigration political campaign 6% 1% 02040609010 30 50 70 80 0 5 10 15 20 Casino gamblers Non-gamblers Casino gamblers 5% Other Non-gamblers 5%

Percentage indicating issue is “extremely important” or “very important”

28% None of the above 35%

020406010 30 50

Casino gamblers Non-gamblers

4 5 CONFIDENCE IN INSTITUTIONS GOVERNMENT REGULATION OF INDIVIDUAL BEHAVIOR CIVIC PARTICIPATION VOLUNTEER TIME With very few exceptions, casino gamblers have more confidence in More than 40% of gamblers and non-gamblers think there is Casino gamblers tend to be more connected to community Casino gamblers and non-gamblers are both more likely to volunteer government, business and other institutions than non-gamblers. too much government regulation of individuals’ behavior. groups – particularly volunteer, fraternal, union and political – for religious and education groups than other types of organizations. In particular, gamblers have more confidence in the military. while non-gamblers are more active in religious groups.

In general, do you think there is too much, too little or In the past 12 months, which of the following types of How much confidence do you have in each of the about the right amount of government regulation of To which of the following groups in your community are organizations did you volunteer at or help? individuals’ behavior? following institutions? you connected? 25% Religious 77% 43% 36% 33% Military Too much Religious or spiritual 71% 43% 44% 24% School/education Banks/financial 62% 30% 29% institutions 59% 45% Volunteer Right amount 27% 43% Neighborhood 15 % 50% Local law enforcement 17 % association 13 % 48% Hobby-oriented 18 % 12% 14 % 40% Too little Recreation and sports Presidency 14 % 43% 17 % 12 % Alumni association 020405010 30 17 % U.S. Supreme Court 37% Healthcare/ 12 % 33% Casino gamblers social services 14 % 13 % Non-gamblers Professional 16 % 33% Organized religion 12 % 32% Community outreach 13 % 11 % Fraternal 34% 8% Public schools 11 % 31% GOVERNMENT’S ROLE IN CASINOS Animal/pet 14 % 10 % Union U.S. intelligence 30% A large majority of both gamblers and non-gamblers believe 8% agencies 27% 6% states with casino gambling should permit licensed, private com- Environmental 7% 6% 22% panies to operate the facilities. Political Healthcare industry 4% 20% 7% Political 5% 20% 5% Congress Which of the following comes closest to your opinion Ethnic 3% 19 % about the regulation of casino gambling? 0204010 30

20% Casino gamblers Criminal justice system If a state decides to 4% Social activities Non-gamblers 18 % have casino gambling, 3% 11% government agencies Corporate America 17 % should own and operate 15 % 17 % Other 14 % gambling facilities. 14 % Drug/pharmaceutical 18 % companies If a state decides to 28% 16 % None of the above have casino gambling, 28% 19 % casinos should be 89% Organized labor 020405010 30 14 % operated by licensed, 85% private companies that Casino gamblers are strictly regulated Media 17 % Non-gamblers 15 % by state government. 0307090102040 50 60 80

Casino gamblers Legal profession 14 % 14 % Non-gamblers

Oil companies 8% 9%

Responded four or five on a scale 010 20406080 30 50 70 of one to five where one meant “no confidence” at all and five Casino gamblers meant “a great deal of confidence” Non-gamblers

6 7 VOLUNTEER CONTRIBUTIONS THE ENVIRONMENT CURRENT INVESTMENTS SAVINGS FOR RETIREMENT Casino gamblers and non-gamblers are more likely to contribute In general, casino gamblers are slightly less “green” than non-gamblers. Gamblers are more likely than non-gamblers to have a variety of Gamblers are more likely to be comfortable with their financial to religious organizations than to other organizations. Gamblers common investments. standing as they age, whereas non-gamblers are more likely to are more inclined than non-gamblers to donate money to political worry they will not have adequate funds for retirement. organizations. Which of the following do you regularly do to help the environment? Which types of investments do you currently have?

73% 68% Please indicate how much you agree or disagree with To which of the following types of organizations did you Recycle Savings account 72% each statement about saving money and planning for donate money or goods in the past 12 months? 62% retirement: 44% Religious 52% 60% Conserve water Life insurance I am confident I will 47% 51% 55% 6.42 be able to retire Try to avoid using comfortably 5.73 School/education 33% chemicals and 33% Retirement/ 60% 34% pesticides around 37% pension plans 55% I always put away as my house 5.99 much money as 5.47 Animal/pet 28% Own a fuel efficient 20% 43% possible for the future Mutual funds 26% vehicle 24% 37% I am worried about Go out of my way to Healthcare/ investing my savings 5.82 25% buy products that 13 % 40% social services Stocks because the market 5.92 24% are environmentally 14 % 34% is too volatile responsible I’m too worried about Community outreach 22% Use alternatives 11 % 34% making ends meet to 4.69 Real estate 20% to driving 14 % 32% worry about saving 5.21 for retirement Political 17 % 7% 34% Buy organic foods Money market accts. I will never have 11 % 8% 28% 4.56 enough money to retire 5.07 11 % 11 % Environmental None of the above Certificates of 28% 13245 67 12 % 12 % deposit (CD) 24% Casino gamblers 04080102030 50 60 70 Non-gamblers Recreation and sports 13 % 28% 10 % Casino gamblers Bonds 22% Mean scores based on a scale of one to 10 where one meant “strongly disagree” and 10 meant Non-gamblers “strongly agree” Neighborhood 10 % RELIGION 24% association 10 % Annuities Casino gamblers and non-gamblers are just as likely to attend 19 % 0205010 30 40 church, at least on occasion. Non-gamblers, however, are more 7% Casino gamblers None of the above likely than gamblers to report going to church at least twice a week. 13 % Non-gamblers 020507010 30 40 60

How often do you attend a place of worship? Casino gamblers Non-gamblers More than once 6% per week 18 %

Once a week 28% 28%

9% Once every 2-3 weeks 6%

Less often than once 33% per month 26%

Never 18 % 19 %

04010 20 30 Casino gamblers Non-gamblers 8 9 INVESTMENT ASSISTANCE FINANCIAL ACTIVITIES CREDIT CARD BILLS WINDFALL When making financial and investment decisions, gamblers are Gamblers tend to be more active than non-gamblers when Casino gamblers are more likely than non-gamblers to always or If presented a large sum of newfound money, gamblers say they more inclined than non-gamblers to seek expert advice and managing their finances and flexing their financial muscle. almost always pay the entire balance on credit cards. are more likely to save or invest it, while non-gamblers say they reference a broad array of resources. Non-gamblers are less likely to sell or acquire investment holdings, are more inclined to use the money to pay off debt. Neither group apply for credit cards with lower interest rates and return or cut up is likely to go out and spend the money on extra purchases. credit cards. Gamblers are more inclined to purchase a new car. How do you typically pay your bills for credit cards with Which, if any, of the following do you use to assist with revolving debts? your household’s financial or investment decisions? If you unexpectedly received $10,000, which of the Always pay the 43% In the past 12 months, which, if any, of the following following would you most likely do? Financial planner/ 23% entire balance 41% financial purchases or decisions have you or your analyst 19 % Pay off debt (loan, 38% family made? Almost always pay 15 % credit card, etc.) 44% the entire balance 23% 13 % Friends/relatives Cut up or returned 33% 18 % credit cards 30% Usually pay more than 48% 37% Save/invest minimum but not the 42% 20% Purchased or sold 41% Tax specialist/CPA 31% entire balance stocks, bonds, mutual Buy myself something 18 % 23% 5% funds, etc. Always pay the 5% nice that I will use/ have for years to come 4% minimum 5% Broker 20% 23% Purchased a new car Spend it on something (stocks, bonds, etc.) 15 % 2% 18 % 05010 20 30 40 I really want but don’t necessarily need 2% Applied for a new Casino gamblers Financial publications/ 15 % 23% credit card with a Non-gamblers media 12 % 10 % lower interest rate 18 % Other 14 % 16 % Internet 17 % Refinanced a mortgage 05010 2030 40 10 % 17 % Casino gamblers Non-gamblers Banker 11 % 15 % 4% Took out a loan 13 %

8% Financial/tax software 5% 6% Purchased a new home 5%

4% Attorney Purchased a second/ 3% 4% vacation home 2%

1% 24% Spiritual advisor None of the above 2% 33%

0204010 30 Other 5% 5% Casino gamblers Non-gamblers 33% None 42%

020405010 30

Casino gamblers Non-gamblers

10 11 VACATION/TRAVEL TRIPS VACATION/TRAVEL EXPERIENCES VACATION/TRAVEL ACCOMMODATIONS SPORTS/ACTIVITIES Two out of three casino gamblers take at least one long trip per Casino gamblers are more likely than non-gamblers to schedule Casino gamblers like to travel in style and are more likely Exercise and recreational activities are a significant part of casino year, while less than half of non-gamblers do. a wide range of vacation experiences. than non-gamblers to book upscale accommodations when gamblers’ more active lifestyles. In particular, gamblers are more they vacation. inclined than non-gamblers to go golfing, bowling, swimming or fishing. How many vacation/pleasure trips of five nights or more In the past 12 months, what type(s) of vacations have have you taken in the past 12 months? you taken? When you travel, on average, in which class of accommodations do you typically stay? 35% 50% Which of the following recreational activities have you None Trip to visit relatives 53% participated in during the past 12 months? 45% 28% Budget 39% 68% 28% 46% Walking 1 Weekend getaway 66% 24% 29% Moderate 54% 52% 31% 19% Swimming 2 Trip to a U.S. city 43% 24% 14% 27% Upscale 16 % 8% 25% 9% Fishing 3 Trip to visit friends 29% 19 % 5% 21% 2% Luxury <1% 20% 7% Lake, shore or Biking or cycling 4-5 24% 20% 3% beach trip 19 % 06010 20 30 40 50 Casino gamblers 20% 2% 20% Non-gamblers Camping 6 or more Resort vacation 18 % 1% 10 %

0102030 40 50 60 19 % 15 % Bowling Camping or hiking trip 13 % Casino gamblers 14 % Non-gamblers 18 % 13 % Golf Trip to the mountains 10 % 11 %

13 % Trip to visit a historical Boating/sailing 13 % 11 % site in the U.S. 9%

13 % Trip to an international Hiking/backpacking 12 % 12 % destination 7%

Jogging/running 12 % Fishing or hunting trip 10 % 9% 7%

0205010 30 40 Aerobics class 10 % 8% Casino gamblers Non-gamblers 10 % None of the above 13 %

02010 30 40 50 60 70 Casino gamblers Non-gamblers

12 13 ENTERTAINMENT EATING OUT PROFESSIONAL SERVICES CUSTOMER LOYALTY PROGRAMS Gamblers are more likely to go out for a night on the town than Casino gamblers tend to eat out more often than non-gamblers, Gamblers, who generally have more disposable income and a Gamblers are savvier about taking advantage of the cost savings non-gamblers. regardless of the type of restaurant. more active lifestyle, are more likely than non-gamblers to use and perks offered by loyalty programs for travel and shopping. professional services to complete their chores.

Which of the following places have you visited in the In the past month, how many times have you eaten at Which types of customer appreciation programs are you past 12 months? the following types of restaurants? In the past 12 months, have you hired or employed any a member of? of the following professional services? 67% 4.5 46% Movies at the theater Casual dining Grocery stores 59% 3.4 39% Gardener/lawn 23% care service 15 % 72% 47% 36% Sporting events Airlines 35% 5.9 26% Fast food 19 % 4.7 Handyman 15 % 43% 26% Concerts Hotels 34% 14% 12 % 1.4 Maid/cleaning service Fine dining 11% 33% 0.8 17 % Museums Restaurants 28% 10 % 0246135 Carpet cleaning 14 % Reflects a monthly average Casino gamblers service 9% 39% 14% Bars/nightclubs Non-gamblers Clothing stores 22% 10 % 12 % Pet groomer 9% 28% 14% Zoos Car rental companies 26% 8% 9% Massage therapist 8% Theatrical/Broadway 26% 10 % Other retail stores shows 20% 9% 7% Automobile detailer 6% 25% 30% Art galleries None of the above 18 % 41% Pool service 3% 1% 0405010 20 30 17 % Public aquariums 12 % 020255 10 15 Casino gamblers Non-gamblers 03070102040 50 60 Casino gamblers Non-gamblers Casino gamblers Non-gamblers

14 15

REASONS FOR PLAYING SKILL OR LUCK? BEGINNER MISTAKES FAVORITE GAMES ANNOYANCES “TELLS” DEMOGRAPHICS Not surprisingly, both amateur and professional WSOP players Most WSOP players think skill has a greater role than luck in Most WSOP professionals and amateurs believe the most common No Limit Hold ’Em is WSOP amateurs’ and professionals’ favorite WSOP amateurs are more than twice as likely as professionals to “Tells” are expressions or gestures that give experienced players WSOP players are predominantly male, are well-educated compared like to win money and identify that as a key reason to play the both tournaments and live games. beginner mistake is playing over one’s head. poker game. Limit Hold ’Em is the next most popular game be bothered by opponents who smoke/chew tobacco during insight into an opponent’s state of mind. Veterans look for tells to the average American and can be found in all age groups.

game. Players also frequently report playing for the challenge In a tournament, what percent of the game is skill and What are the most common mistakes beginners tend overall, but is preferred by far more amateurs than professionals. play. Otherwise, the groups agree that too much table talk and to help determine if an opponent is bluffing or truly confident Amateur players tend to be older than professional players. to make? and excitement. what percent is luck? What is your favorite poker game? rude behavior are annoying. in his or her cards. And while enthusiasts see plenty of tells each Gender time they play, there isn’t much consensus on which are the Why do you play poker? Playing over their heads 55% 42% What is the most annoying thing other poker players do? 51% No Limit Hold ’Em Professional 40% most common. Professional 61% 15 % For the money 66% 34% Talk too much 95% 5% 41% Skill Luck 28% 17 % What are the most common tells in playing poker? Misreading their hands Limit Hold ’Em 18 % Male Female 25% 34% 32% Amateur Smoking/ 7% Body language/ 8% For the challenge Amateur 39% 65% 35% 14 % chewing tobacco 16 % body movement 15 % Folding too early Limit Seven Card Stud 15 % 98% 2% Skill Luck 13 % 9% 9% Male Female 27% Rude behavior Nervousness/ 13 % It’s exciting 15 % 12 % 32% Playing too many hands Limit Omaha 7% excitement 11% 12 % High-Low Split 4% In live game play, what percent of the game is skill and Abusive/argue with Education For fun/recreation/ 4% 13 % 13 % what percent is luck? 10 % the dealer 9% General mannerisms hobby 19% Facial expressions 7% 9% 3% 12 % Pot Limit Hold ’Em Some high school 3% 3% 5% Bad attitudes/ 8% 9% Competition Professional 10 % Eyes/eye movement 9% 3% 5% poor losers 9% 18 % 39% 73% 27% Calling too much 3% Pot Limit Omaha High school graduate 2% 22% Skill Luck 7% 6% Professional players Loud/noisy/obnoxious 10 % For the love of the game <1% 9% Betting patterns 3% Amateur players No Limit Omaha <1% 8% 33% Amateur Folding too late 3% Some college WORLD SERIES OF POKER 70% 30% High-Low Split 3% 36% 2% Playing too slowly 7% Hand shaking/ To meet new friends Skill Luck 06010 2030 40 50 Professional players 1% 5% 6% movement 12 % 7% The game of poker is enjoying record popularity, both in the Multiple responses accepted Limit Omaha 3% Associate degree Amateur players 3% Professional players Mean reported 1% United States and around the world. Enthusiasts are signing up 1% Bad language 6% Talking/verbal 10 % Entertainment Amateur players Players pay cash to buy into poker tournaments and are given chips that represent cash. They are 0405010 20 30 5% for tournaments and online competitions in previously 4% expressions 4% Four-year college 30% eliminated when they run out of chips. In live games, participants use their own money to play. They Responses with less than 3% of mentions by both WSOP amateur and professional players not shown degree 04070102030 50 60 20% unheard of numbers, and television networks are investing can continue to play as long as they have cash or purchased chips available to remain in the game. Drinking/drunk 5% Betting motion/ 5% 5% Multiple responses accepted betting too quickly 6% 0% millions to bring the high-stakes action to an ever-growing CHARACTERISTICS OF A GREAT POKER ROOM Some graduate school OTHER FAVORITES 2% legion of viewers. In Nevada alone, poker room revenues Criticize other players 6% Chip handling/ 5% POKER EXPERIENCE 4% The image of serious poker players as cigar smokers is a myth. playing with chips 6% Graduate school 9% increased 18% in the past year. More than half of WSOP players enjoy playing other table graduate 15 % BEST PLAYERS Those interviewed have played the game for an average of 24 years. As a matter of fact, WSOP players said a non-smoking environ- Not paying attention 4% Looking at cards/chips games at the casino. About a quarter also play slots and place 1% 04010 20 30 Amid this proliferation, the World Series of Poker (WSOP), ment is among the most important traits of a great poker room. to the game 3% too long How long have you played poker? bets in the sports book. 4% which celebrated its 35th anniversary in 2004, remains the When it comes to Limit poker games, gets the Professionals are more demanding than amateurs; they consider 01020515 Professional players most votes for the world’s best competitor by a margin of nearly What other casino games do you play? 4% Amateur players it more important to receive comped meals, have a wide variety Professional players Don’t know largest, richest and most prestigious tournament of its kind. Professional 24 years 5% two-to-one over T.J. Cloutier. Cloutier, however, bests Lederer in 21% of games from which to choose and to receive fast drink service. Amateur players 01020515 On average, nearly 1.4 million households tuned in each polling for No Limit games. Amateur 23 years Slots NET 22% What are the characteristics of a great poker room? Responses with less than 3% of mentions not shown Professional players Age week to watch ESPN’s coverage of the World Series of Poker Who would you say is the best Limit poker player in 12 % Video poker Amateur players 20% the world? 66% 18 % 21-34 in 2004, an increase of 15 percent over 2003. This year’s Non-smoking 13 % WSOP players – both amateur and professional – tend to have 76% final episode of the WSOP main event attracted 2.5 million 7% Multiple responses accepted. Responses with less than 3% of mentions by both WSOP amateur 1. Howard Lederer 6. learned the game from a relative. Professional players, however, Race book 3% PARTICIPATION IN THE PAST 12 MONTHS and professional players not shown. 25% Comfortable 64% 35-44 household viewers. 2. T.J. Cloutier 7. 23% are far more likely than amateurs to be self-taught. atmosphere 66% 3. 8. Sports book 27% Within the past year, WSOP amateurs and professionals have 4. 9. Who first taught you how to play poker? 23% 21% Which isn’t to say all the enthusiasts are watching at home. The Helpful/friendly 67% played live poker in a casino an average of 128 times. They have 45-54 5. 10. David Chui 15 % employees 64% Traditional table & 51% 35th annual World Series of Poker attracted a record number 38% played in a poker tournament an average of 57 times during the A relative Asian table games NET 55% 46% 24% of players from around the globe to Binion’s Horseshoe in Based on responses from both WSOP amateur and professional players 61% same period. Comped meals 55-64 26% 45% Traditional table 42% downtown Las Vegas, which has hosted the event since its 24% In the past 12 months, how many times have you Who would you say is the best No Limit poker player in A friend games NET 50% 25% played live poker at a casino? 10 % inception. In all, more than 13,000 registrants descended the world? Wide variety of 50% 65+ 25% 22% 35% Blackjack/21 on the landmark casino, with 2,576 people vying for the 24% games to choose 35% Self-taught 0203010 $5 million top prize in the World Championship round. 1. T.J. Cloutier 6. Doyle Brunson 12 % Professional 157 2. Howard Lederer 7. Chip Reese Fast drink service 26% 24% 19% Craps Professional players 3. Johnny Chan 8. 24% Amateur 98 At this year’s event, researchers interviewed 310 tournament I read a book 6% Amateur players 4. Phil Ivey 9. Layne Flack 7% Being able to eat 17% 7% Mean reported Other participants over the course of three days to gain insight on 5. Phil Hellmuth 10. Men Nguyen at my station 11% 10 % In the military 2% Professional players In the past 12 months, how many times have you a wide variety of subjects, including why they play poker, 2% Based on responses from both WSOP amateur and professional players 8% Amateur players Asian table 15 % played poker in a tournament? Jackpot games who taught them to play and what percentage of the game Professional players 14% games NET 9% is skill versus luck. Co-worker/college 3% Amateur players 1% 04080102030 50 60 70 None/no other game 32% 26% Professional 66 0102030 4050 Multiple responses accepted 02010 30 40 50 60Amateur 47 Responses with less than 2% of mentions by both WSOP amateur and professional players not shown Multiple responses accepted Professional players Mean reported Amateur players DIET AND EXERCISE PHYSICIAN VISITATION AGE DIFFERENCES IN CASINO PARTICIPATION INCOME DIFFERENCES IN CASINO PARTICIPATION There is very little difference between gamblers and non-gamblers There is virtually no difference in the reasons why gamblers and The casino participation rate, the percentage of adults who The higher a person’s income, the more likely he or she is to when it comes to exercise, but non-gamblers are more likely to non-gamblers visit their doctors. gambled at least once in a casino in the last 12 months, peaks play casino games. The median household income of U.S. eat a balanced diet than gamblers. at the empty nester years. The median age of casino gamblers is casino gamblers ($53,204) is 16% higher than that of 48 compared to 46 for the U.S. population (21+). non-gamblers ($45,781). Which one statement best describes why you see your Please indicate how much you agree or disagree with doctor? the following statements regarding personal health and Casino participation rate by age Casino participation rate by income I regularly see my wellness: 58% doctor for routine 58% exams and check-ups I try to eat a balanced 7.20 21-35 years old 24% Under $35,000 20% and healthy diet 7.42 I only see my doctor 28% 36-50 24% $35,001-$55,000 26% when I have a problem 27% 51-65 29% $55,001-$75,000 29% Exercise is an important 6.41 part of my routine 6.39 When reminded, I see 66 and above 26% $75,001-$95,000 30% 8% my doctor for exams 8% Over $95,000 32% 5.18 and check-ups I love junk food 5.08 Even if I have a problem, 5% I do whatever it takes 6% to avoid my doctor When I snack, it is mostly 5.07 on fruits and vegetables 5.13 HOUSEHOLD SIZE I don’t believe in going 1% HOME OWNERSHIP to doctors 1% Casino gamblers live in smaller households than non-gamblers. I always save room 4.53 Home ownership is higher among casino players, with more for dessert 4.43 05010 2030 40 50 than three-quarters of casino players owning a home. Casino gamblers I eat for today and Members 4.46 Non-gamblers pretty much don’t 4.20 Own vs. rent worry about tomorrow Single member 14 % 15 % 12346 57 8 76% Own Casino gamblers 71% 39% Non-gamblers Two members 31%

Mean scores based on a scale of one to 10 where one meant “strongly disagree” and 10 meant 20% 18 % Rent “strongly agree.” Three members 24% 20%

16 % Four members 4% 19 % Other 5%

0204010 30 50 60 70 80 Five members 9% 11 % Casino gamblers Non-gamblers Six members 3% 4%

Seven or more 1% 2%

04010 20 30

Casino gamblers Non-gamblers

18 19 EMPLOYMENT EDUCATION GAMES PLAYED MOST OFTEN BY AMERICANS GEOGRAPHIC REGION AND GAMES PLAYED MOST OFTEN When compared with the U.S. population as a whole, casino Among adults 25 years old or older, gamblers are more likely Slots reign as America’s favorite casino games. Three-quarters of players are more likely to hold white-collar jobs. than the average American to have attended college. casino gamblers play slots, video poker or other electronic gaming Slots are most popular among casino gamblers in the North devices most often. Slot play on quarter or 50-cent machines is Central region. Quarter and 50-cent slot play is particularly far and away the favorite. Blackjack is the top choice among popular among gamblers in the North East, while gamblers in those who play table games most often. the West show the greatest preference for nickel and dime slots. 8% 9% 13% 15% Casino games played most often Casino games played most often and residence 19% 17% 17% 44% 17% 41% 45% 47% North North Slots/Video Poker (Net) 75% East Central South West $.01 – .02 1% Slots/Video Poker (Net) 75% 77% 74% 71% 25% 27% 28% 25% $.05 – .10 18% $.01 – .02 <1% 2% 1% 2% $.25 – .50 45% $.05 – .10 9% 20% 17% 25% $1.00 – 4.00 9% Casino Gamblers U.S. Population Casino Gamblers U.S. Population $.25 – .50 54% 47% 46% 36% $5.00+ 1% $1.00 – 4.00 10% 8% 9% 7% White collar No college Blue collar Some college/associates degree $5.00+ 1% 1% 1% 1% Table Games (Net) 13% Retired Bachelors degree Other (military and homemakers) Post bachelors degree Blackjack/21 9% Table Games (Net) 14% 12% 14% 14% Roulette 2% Blackjack/21 8% 9% 9% 10% Craps 2% Roulette 3% 1% 2% 2% Craps 3% 2% 3% 2% Other 3% Don’t know 8% Other 5% 4% 4% 6% Don’t Know 6% 8% 7% 9%

20 21 AGE AND GAMES PLAYED MOST OFTEN GENDER AND GAMES PLAYED MOST OFTEN VISITS GEOGRAPHIC DIFFERENCES IN CASINO PARTICIPATION The preference for slots increases in proportion to a casino Slots are the top attraction for both men and women on the Casino gambling is a popular pastime for more than a quarter of The casino participation rate in the West is nearly twice that in gambler’s age, while table games are far more popular among casino floor. Men show a far greater preference for playing table U.S. adults. the South. younger players. games, particularly blackjack/21 and craps. Roulette play is In 2003, 53.4 million Americans (26% of those 21 or older) equal among men and women. gambled at a casino. Gamblers made 310 million casino trips, Casino participation rate by geographic region Casino games played most often and age of adults with the average player visiting a casino about once every two Casino games played most often and gender of adults months. The number of U.S. gambling trips is likely to increase 21-35 36-50 51-65 66+ in the second half of this decade as new casinos open near major North East 27% Slots/Video Poker (Net) 69% 73% 77% 79% Male Female markets. In 2004, Pennsylvania became the most recent state to Slots/Video Poker (Net) 66% 81% legalize casino gambling. $.01 – .02 1% 1% 2% 1% North Central 27% $.05 – .10 19% 18% 18% 19% $.01 – .02 1% 2% West 35% $.05 – .10 13% 23% $.25 – .50 41% 45% 47% 49% Adults who gambled at a casino in the last 12 months $1.00 – 4.00 8% 9% 10% 8% $.25 – .50 41% 48% $5.00+ 1% 1% 1% 1% $1.00 – 4.00 10% 7% U.S. adult population (Age 21+) 205.6 million $5.00+ 1% 1% Casino gamblers 53.4 million South 18%

Table Games (Net) 18% 15% 11% 8% Casino participation rate 26%

Blackjack/21 12% 11% 7% 5% Table Games (Net) 20% 8% Average trip frequency 5.8 trips/year Roulette 2% 2% 1% 1% Blackjack/21 13% 5% Casino trips 310 million Craps 3% 2% 2% 2% Roulette 2% 2% Craps 4% 1% The casino participation rate is the percentage of adults who gambled at least once in a casino in the last 12 months Other 5% 5% 5% 5% Don’t Know 8% 7% 7% 8% Other 6% 5% Don’t Know 9% 6%

22 23 CASINO PARTICIPATION RATES ACROSS THE COUNTRY STATES GENERATING THE MOST CASINO TRIPS STATES GENERATING 2 MILLION+ TRIPS CASINO PARTICIPATION RATES IN THE LARGEST FEEDER MARKETS Sixteen of 24 states in the North East and South census regions had The top 10 states accounted for more than 63% of all casino Casino gamblers live in all areas of the country. Thirty-two casino participation rates below the national average. These areas trips. During the past year, two states moved up on the list – states each generated more than 2 million casino trips last year, Eight of the 20 most populous Designated Market Areas (or of the country are the most undersupplied by casino gambling Nevada, where casino development has continued to grow, and and residents in 18 states took more than 5 million annual trips. DMAs) in the U.S. have casino participation rates that are equal opportunities, and many residents are required to travel significant New York, where Indian casinos have generated significant trips. Georgia, which dropped from the list in 2002, again climbed to or less than the national average. distances, often across state lines, to visit a casino. Illinois slid from the number two position to the number four above the 2 million mark last year. position. Population Participation States with casino gambling participation rates equal to States with 2 million+ trips to a casino in last 12 months DMA (21+) Rate or greater than the national average Top states generating casino trips in last 12 months New York 14,715,137 33% 11,585,293 40% 2003 Rank 2002 Rank Chicago 6,596,350 30% 1. California 1 Philadelphia 5,450,401 33% 2. Nevada 3 San Francisco/Oakland/ 3. New York 4 Santa Rosa 4,934,155 33% 4. Illinois 2 Boston 4,476,819 30% 5. New Jersey 6 Dallas/Fort Worth 4,265,265 20% 6. Michigan 5 Washington, D.C. 4,221,090 15% 7. Texas 7 Atlanta 3,955,496 14% 8. Louisiana 8 Houston 3,597,530 26% 9. Missouri 10 Detroit 3,530,906 32% 10. Arizona 12 Seattle/Tacoma/Bellevue 3,166,448 32%

Alabama Michigan Miami/Ft. Lauderdale 3,020,024 19% Arizona Minnesota Phoenix 2,998,728 39% Arkansas Mississippi Minneapolis/St. Paul 2,992,281 37% Arizona Missouri California Missouri California Nebraska Colorado Nebraska Tampa/St. Petersburg/ Colorado Nevada Connecticut Nevada Sarasota 2,962,142 15% Connecticut New Jersey Florida New Jersey Cleveland 2,795,707 23% Delaware New Mexico Georgia New Mexico Illinois New York Illinois New York Sacramento/Stockton 2,652,576 40% Iowa North Dakota Indiana Ohio Denver 2,627,524 34% Kansas Oregon Iowa Oregon Orlando/Daytona Beach/ Louisiana Rhode Island Kansas Pennsylvania Melbourne 2,343,424 21% Massachusetts South Dakota Kentucky Tennessee Michigan Utah Louisiana Texas Minnesota Washington Maryland Washington Mississippi Wisconsin Massachusetts Wisconsin

The casino participation rate is the percentage of adults who gambled at least once in a casino in the last 12 months

24 25 FEEDER MARKETS GENERATING THE MOST TRIPS FEEDER MARKETS GENERATING 1 MILLION+ TRIPS Gamblers living in the top 20 DMAs took more than 50% of U.S. casino trips in 2003, and the top five markets alone accounted for Fifty-five U.S. feeder markets each generated 1 million or more casino trips last year and 29 markets generated 2 million or more trips. more than 25% of total trips. Both Phoenix and Minneapolis, two markets with Indian casinos, climbed three places in the top 10 from Spokane joined the list of 1 million+ trip cities for the first time. the previous year. Source: Harrah’s Entertainment, Inc./NFO WorldGroup/U.S. Census Bureau

12 12 48

23

54

47 42 7 16 7 16 34 26 11 49 11 1 50 28 1 10 39 10 35 4 5 4 5 25 44 36 55 17 17 24 45 9 9 27 13 13 30 18 29 18 14 14 51 3 3 8 2 2 21 19 19 8 6 8 6 52 40

38 22 32 33 41 53 37 20 15 20 15 46 43

31

1. New York 11. Hartford-New Haven 1. New York 21. Albuquerque-Santa Fe 41. Mobile-Pensacola 2. Los Angeles 12. Seattle-Tacoma-Bellingham 2. Los Angeles 22. Dallas-Ft. Worth 42. Traverse City-Cadillac 3. Las Vegas 13. Denver 3. Las Vegas 23. Portland, OR 43. Tampa-St. Petersburg- 4. Chicago 14. St. Louis 4. Chicago 24. Omaha Sarasota 5. Philadelphia 15. New Orleans 5. Philadelphia 25. Reno 44. Salt Lake City 6. Phoenix 16. Boston 6. Phoenix 26. Providence-New Bedford 45. Baltimore 7. Minneapolis-St. Paul 17. Sacramento-Stockton 7. Minneapolis-St. Paul 27. Washington, D.C. 46. Orlando-Daytona Beach- 8. San Diego 18. Kansas City 8. San Diego 28. Milwaukee Melbourne 9. San Francisco-Oakland-Santa Rosa 19. Memphis 9. San Francisco-Oakland- 29. Fresno-Visalia 47. Wausau-Rhinelander 10. Detroit 20. Houston Santa Rosa 30. Cincinnati 48. Spokane 10. Detroit 31. Miami-Ft. Lauderdale 49. Flint-Saginaw-Bay City 11. Hartford-New Haven 32. Shreveport 50. Chico-Redding 12. Seattle-Tacoma-Bellingham 33. Jackson, MS 51. Louisville 13. Denver 34. Buffalo 52. Little Rock-Pine Bluff 14. St. Louis 35. Cleveland 53. Baton Rouge 15. New Orleans 36. Des Moines-Ames 54. Duluth-Superior 16. Boston 37. Biloxi-Gulfport 55. Pittsburgh 17. Sacramento-Stockton 38. Tucson-Nogales 18. Kansas City 39. Grand Rapids-Kalamazoo- 19. Memphis Battle Creek 20. Houston 40. Atlanta

26 27 STATE 2003 2003 2003 2003 2003 SHARE TOP STATE 2003 2003 2003 2003 2003 SHARE TOP U.S. CENSUS CASINO NUMBER OF AVERAGE NUMBER OF OF U.S. CASINO U.S. CENSUS CASINO NUMBER OF AVERAGE NUMBER OF OF U.S. CASINO POPULATION PARTICIPATION CASINO TRIP GAMBLING GAMBLING DESTINATIONS POPULATION PARTICIPATION CASINO TRIP GAMBLING GAMBLING DESTINATIONS (21+) RATE GAMBLERS FREQUENCY TRIPS TRIPS (IN ALPHABETICAL ORDER) (21+) RATE GAMBLERS FREQUENCY TRIPS TRIPS (IN ALPHABETICAL ORDER) (PER YEAR) (PER YEAR)

Alabama 3,225,152 20% 645,000 4.9 3,161,000 1% Gulf Coast, MS Louisiana 3,118,119 39% 1,216,000 8.6 10,458,000 4% Gulf Coast, MS Mississippi Indian Lake Charles Tunica, MS New Orleans Shreveport/Bossier City Arizona 3,907,855 41% 1,602,000 5.9 9,453,000 3% Arizona Indian Las Vegas/ Maine 958,705 12% 115,000 small small small small Laughlin sample sample sample sample

Arkansas 1,956,085 22% 430,000 4.8 2,066,000 1% Shreveport/ Maryland 3,878,464 17% 659,000 4.1 2,703,000 1% Atlantic City Bossier City, LA Delaware Tunica, MS Massachusetts 4,648,548 31% 1,441,000 4.1 5,908,000 2% Connecticut Indian California 24,394,117 38% 9,270,000 5.7 52,838,000 19% Las Vegas Rhode Island No. California Indian So. California Indian Michigan 7,092,971 32% 2,270,000 5.4 12,257,000 4% Detroit/Windsor Michigan Indian Colorado 3,284,975 34% 1,117,000 6 6,701,000 2% Colorado Las Vegas Minnesota 3,568,202 34% 1,213,000 6.6 8,007,000 3% Las Vegas Minnesota Indian Connecticut 2,468,888 40% 988,000 5.7 5,629,000 2% Atlantic City Connecticut Indian Mississippi 2,002,356 35% 701,000 8.9 6,237,000 2% Gulf Coast, MS Las Vegas Tunica, MS Vicksburg, MS Delaware 582,288 28% 163,000 9.2 1,500,000 1% Atlantic City Delaware Missouri 4,043,835 30% 1,213,000 7.8 9,463,000 3% Kansas City, MO Las Vegas St. Louis

Florida 12,572,881 17% 2,137,000 4.2 8,978,000 3% Cruise Ships Montana 654,204 18% 118,000 small small small small Florida Indian sample sample sample sample Gulf Coast, MS Las Vegas Nebraska 1,216,955 35% 426,000 8.1 3,450,000 1% Quad Cities/Council Bluffs South Dakota Indian Georgia 6,133,858 13% 797,000 2.6 2,073,000 1% Cherokee, NC Gulf Coast Nevada 1,622,669 40% 649,000 24.3 15,772,000 6% Las Vegas Las Vegas Reno

Idaho 929,197 25% 232,000 3 697,000 < 1% Idaho Indian New Hampshire 916,239 20% 183,000 4.4 806,000 < 1% Atlantic City Las Vegas Connecticut Indian Other Nevada New Jersey 6,170,667 36% 2,221,000 5.6 12,440,000 4% Atlantic City Illinois 8,865,588 28% 2,482,000 5.9 14,646,000 5% Chicago Area Las Vegas Las Vegas St. Louis New Mexico 1,282,715 32% 410,000 7.1 2,914,000 1% Las Vegas New Mexico Indian Indiana 4,364,554 22% 960,000 4.3 4,129,000 1% Chicago Area Las Vegas New York 13,708,258 27% 3,701,000 3.9 14,435,000 5% Atlantic City Southern IL/IN Connecticut Indian

Iowa 2,101,363 26% 546,000 6.5 3,551,000 1% Iowa Indian North Carolina 6,090,949 8% 487,000 2.9 1,413,000 1% Atlantic City Other Iowa Riverboats Cherokee, NC Quad Cities/Council Bluffs North Dakota 452,569 31% 140,000 4.3 603,000 < 1% Minnesota Indian Kansas 1,906,819 26% 496,000 5.2 2,578,000 1% Kansas City, MO North Dakota Indian Kansas Indian Las Vegas Ohio 8,121,037 19% 1,543,000 3 4,629,000 2% Detroit/Windsor Las Vegas Kentucky 2,976,801 19% 566,000 4 2,262,000 1% Southern IL/IN Southern IL/IN Tunica, MS West Virginia

28 29 STATE 2003 2003 2003 2003 2003 SHARE TOP DMA 2003 2003 2003 2003 2003 TOP U.S. CENSUS CASINO NUMBER OF AVERAGE NUMBER OF OF U.S. CASINO U.S. CENSUS CASINO NUMBER OF AVERAGE NUMBER OF CASINO POPULATION PARTICIPATION CASINO TRIP GAMBLING GAMBLING DESTINATIONS POPULATION PARTICIPATION CASINO TRIP GAMBLING DESTINATIONS (21+) RATE GAMBLERS FREQUENCY TRIPS TRIPS (IN ALPHABETICAL ORDER) (21+) RATE GAMBLERS FREQUENCY TRIPS (IN ALPHABETICAL (PER YEAR) (PER YEAR) ORDER)

Oklahoma 2,476,698 16% 396,000 3.4 1,347,000 < 1% Las Vegas Atlanta 3,955,496 14% 560,000 2.7 1,511,000 Cherokee, NC Oklahoma Indian Cruise Ships Tunica, MS Gulf Coast, MS Las Vegas Oregon 2,552,233 28% 715,000 4.3 3,073,000 1% Las Vegas New Orleans Oregon Indian Tunica, MS

Pennsylvania 8,983,452 21% 1,887,000 4.1 7,735,000 3% Atlantic City Baltimore 2,005,768 18% 361,000 3.9 1,408,000 Atlantic City West Virginia Delaware

Rhode Island 764,255 36% 275,000 6.2 1,706,000 1% Connecticut Indian Boston 4,476,819 30% 1,351,000 3.9 5,267,000 Connecticut Indian Rhode Island Buffalo 1,181,766 30% 355,000 4.9 1,742,000 Canada South Carolina 2,967,842 8% 237,000 3.1 736,000 < 1% Cherokee, NC Las Vegas Las Vegas New York Indian

South Dakota 533,666 32% 171,000 5 854,000 < 1% North Dakota Indian Cincinnati 1,569,703 26% 402,000 4.9 1,972,000 Chicago Area South Dakota Indian Las Vegas Southern IL/IN Tennessee 4,232,699 20% 847,000 5.1 4,317,000 2% Cherokee, NC Southern IL/IN Cleveland 2,795,707 23% 643,000 2.7 1,737,000 Detroit/Windsor Tunica, MS Las Vegas West Virginia Texas 14,967,435 21% 3,212,000 3.9 12,526,000 4% Lake Charles, LA Las Vegas Columbus, OH 1,500,351 13% 193,000 2.7 522,000 Detroit/Windsor Shreveport/ Las Vegas Bossier City, LA Southern IL/IN

Utah 1,488,279 27% 402,000 3.6 1,447,000 1% Las Vegas Little Rock/Pine Bluff 980,824 22% 218,000 5.3 1,157,000 Tunica, MS Other Nevada Louisville 1,133,306 27% 307,000 3.8 1,168,000 Las Vegas Vermont 449,402 9% 40,000 small small small small Southern IL/IN sample sample sample sample Los Angeles 11,585,293 40% 4,606,000 4.4 20,265,000 Las Vegas Virginia 5,291,982 12% 650,000 3 1,949,000 1% Atlantic City Laughlin Las Vegas So. California Indian West Virgina Miami/Ft. Lauderdale 3,020,024 19% 569,000 3.3 1,877,000 Cruise Ships Washington 4,343,446 28% 1,216,000 5.5 6,689,000 2% Las Vegas Florida Indian Washington Indian Las Vegas

West Virginia 1,347,674 7% 92,000 3.6 331,000 < 1% Las Vegas Minneapolis/St. Paul 2,992,281 37% 1,112,000 6.9 7,675,000 Las Vegas West Virginia Minnesota Indian Wisconsin Indian Wisconsin 3,889,572 29% 1,128,000 6.2 6,994,000 2% Las Vegas Wisconsin Indian Mobile/Pensacola 920,072 35% 320,000 4.7 1,505,000 Gulf Coast, MS

Wyoming 353,136 17% 60,000 small small small small New York City 14,715,137 33% 4,850,000 4.4 21,338,000 Atlantic City sample sample sample sample Connecticut Indian

30 31 DMA 2003 2003 2003 2003 2003 TOP U.S. CENSUS CASINO NUMBER OF AVERAGE NUMBER OF CASINO POPULATION PARTICIPATION CASINO TRIP GAMBLING DESTINATIONS (21+) RATE GAMBLERS FREQUENCY TRIPS (IN ALPHABETICAL (PER YEAR) ORDER) Founded 67 years ago, Harrah’s Entertainment, Inc. operates 28 casinos in the United States, primarily under the Harrah’s brand name. Harrah’s Entertainment is focused on building loyalty and value with Oklahoma City 1,165,681 14% 165,000 3.5 578,000 Las Vegas Oklahoma Indian its target customers through a unique combination of great service, excellent products, unsurpassed Tunica, MS distribution, operational excellence and technological leadership.

Orlando/Daytona Beach/Melbourne 2,343,424 21% 487,000 2.8 1,363,000 Cruise Ships Promoting responsible gaming is also part of Harrah’s culture. Our position is simple and unequivocal: Gulf Coast, MS If a customer plays at a Harrah’s casino for any reason other than the fun of it, that customer is playing Las Vegas for the wrong reason. Philadelphia 5,450,401 33% 1,821,000 6.2 11,293,000 Atlantic City In the 1980s, Harrah’s became the first casino company to recognize and operationally address problem Delaware gambling. This early leadership led to company initiatives to educate employees, guests and the public Pittsburgh 2,134,941 16% 334,000 3 1,003,000 Atlantic City about the issue. For example, Harrah’s: Las Vegas West Virginia • Helped create the first national tollfree helpline for people who experience gambling problems (1-800-522-4700). Providence/New Bedford 1,154,286 35% 402,000 6.2 2,494,000 Connecticut Indian Rhode Island • Places the helpline number on all of our print advertising. San Diego 2,061,292 41% 839,000 7.6 6,376,000 Las Vegas • Restricts the placement and content of our ads and other marketing materials. Laughlin So. California Indian • Has a policy that supplements certain state-mandated programs permitting individuals to San Francisco/Oakland/Santa Rosa 4,934,155 33% 1,637,000 3.7 6,056,000 Lake Tahoe request to be taken off mailing lists, to be denied check-cashing privileges, and to be denied Las Vegas casino play privileges at company casinos nationwide. No. California Indian Reno • Provides responsible gaming training for employees.

Tampa/St. Petersburg/Sarasota 2,962,142 15% 444,000 3.3 1,464,000 Cruise Ships • Supports the work of the National Council on Problem Gambling and its many state affiliates. Florida Indian Gulf Coast, MS • Supports the work of and provides financial support to the National Center for Responsible Las Vegas Gaming for independent scientific research on pathological and youth gambling. Washington, D.C. 4,221,090 15% 653,000 3.8 2,483,000 Atlantic City • Launched the casino industry’s first broadcast advertising campaign to promote responsible Delaware Las Vegas gaming and increase awareness of tollfree helpline numbers. West Virginia We continue to look for meaningful ways to promote responsible gaming everywhere we do business.

32 Information contained in Profile of the American Casino Gambler may be reprinted with the permission of Harrah’s Entertainment, Inc. If you have questions or comments about any of the material contained in Profile of the American Casino Gambler, please send an email to [email protected], or call us at 901-537-3708.

Copyright © 2004, Harrah’s Entertainment, Inc. Publication date: October 2004