ANNUAL INFORMATION FORM for the FISCAL PERIOD ENDED DECEMBER 31, 2016 95 Schooner Street Coquitlam, British Columbia V3K 7A8 Telephone: (604) 303-1000 Facsimile: (604) 516-7155 www.gcgaming.com March 6, 2017 (Expressed in millions of Canadian dollars, except for per share information) TABLE OF CONTENTS Page DEFINITIONS AND INTERPRETATION ................................................................................................ 1 Definitions ................................................................................................................................................ 1 Currency and Presentation ................................................................................................................... 6 Forward-Looking Information ............................................................................................................... 6 Non-IFRS Measures .............................................................................................................................. 7 CORPORATE STRUCTURE ................................................................................................................... 8 Name, Address and Incorporation ....................................................................................................... 8 Intercorporate Relationships ................................................................................................................. 8 GENERAL DEVELOPMENT OF THE BUSINESS ............................................................................. 10 Three Year History ............................................................................................................................... 10 BUSINESS OF THE COMPANY ........................................................................................................... 13 Overview ................................................................................................................................................ 13 Corporate Social Responsibility ......................................................................................................... 13 Property Operations Summary ........................................................................................................... 13 Revenues .............................................................................................................................................. 15 British Columbia ................................................................................................................................... 15 Ontario ................................................................................................................................................... 22 New Brunswick ..................................................................................................................................... 28 Nova Scotia ........................................................................................................................................... 29 Washington State ................................................................................................................................. 30 Property Ownership Summary ........................................................................................................... 32 Specialized Skills & Knowledge ......................................................................................................... 33 Other Business Developments ........................................................................................................... 33 Regulation and Licensing .................................................................................................................... 36 Anti-money Laundering in the Gaming Sector ................................................................................. 40 Operating Agreements ........................................................................................................................ 41 Agreements Related to Horse Racing .............................................................................................. 45 RISK FACTORS ....................................................................................................................................... 47 Management of Expanding Operations ............................................................................................ 47 Acquisitions ........................................................................................................................................... 47 Acquisition and Business Development Opportunities ................................................................... 48 Non-realization of Cost Reductions and Synergies ........................................................................ 48 Operational Services Agreements ..................................................................................................... 48 Significance of River Rock Casino Resort ........................................................................................ 49 Reassessment of Tax Filings by Tax Authorities ............................................................................ 49 Ontario Racetracks Operations (Flamboro Downs and Georgian Downs) ................................. 49 Ontario Standardbred Alliance ........................................................................................................... 49 Competition ........................................................................................................................................... 49 Online Gambling ................................................................................................................................... 50 Management of Capital Projects ........................................................................................................ 51 Construction Considerations .............................................................................................................. 51 Success of Expanding Operations .................................................................................................... 51 Unions and Labour Relations ............................................................................................................. 51 Availability of Financing ....................................................................................................................... 51 Indebtedness and Liquidity Risk ........................................................................................................ 52 Maintaining Covenants under Debt Facilities .................................................................................. 52 Future Capital Needs ........................................................................................................................... 53 Market Risk ........................................................................................................................................... 53 Credit Risk ............................................................................................................................................. 53 Renewal of Horse Racing Agreements ............................................................................................. 53 Washington State Licenses ................................................................................................................ 53 Government Restrictions ..................................................................................................................... 54 Regulatory Regime .............................................................................................................................. 54 High Level of Regulation ..................................................................................................................... 54 Renewal of Site Operating Leases; Termination ............................................................................. 54 Horse Racing Revenue Declines ....................................................................................................... 55 BC Horse Racing Revenue Allocations ............................................................................................ 55 Dependence on Key Personnel ......................................................................................................... 55 Access to Properties ............................................................................................................................ 55 Fluctuations in Market Share Price.................................................................................................... 55 First Nations’ Claims ............................................................................................................................ 55 Ability to Utilize or Add Slot Machines .............................................................................................. 56 Negative Connotations Linked to the Gaming Industry .................................................................. 56 Sensitivity to General Economic Conditions .................................................................................... 56 Technology Dependence .................................................................................................................... 56 Privacy Breaches and Data Theft .....................................................................................................