METHODOLOGY ..........................................................................2 WORLD SERIES OF POKER 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 World Series of Poker. 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 Las Vegas, 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