Assumptions and Methodology 972 Casino City’s North American Gaming Almanac Revenue Estimates Based on Industry Averages Gaming revenue can be calculated as sales (handle or turnover in the pari-mutuel industry) less the prizes paid out or handle returned to bettors. However, this information is not available for every gaming activity in every jurisdiction. To estimate gaming revenue in these jurisdictions, we used industry averages calculated using data from other jurisdictions that provided more complete financial information. For racing, gaming revenue is the handle or turnover less the handle returned to bettors. We determined gaming revenue averages 19.7257 percent of the handle based on 1,040 data points where both the actual handle and the actual handle returned to bettors were available. This industry average was applied to 637 additional data points to estimate the associated gaming revenue. For lotteries, gaming revenue is sales less prizes paid out. We determined revenue averaged 48.0286 percent of sales based on 1,403 data points where both sales and prizes as a percent of sales were available. This industry average was applied to 35 additional data points to estimate the associated revenue. For charitable gaming, revenue is sales less prizes paid out. We determined revenue averaged 30.3525 percent of sales based on 608 data points where both sales and prizes as a percent of sales were available. This industry average was applied to 112 additional data points to estimate the associated revenue. Whenever we estimated gaming revenue using industry averages, we included a footnote in the body of the almanac indicating which revenue figures were estimated on that basis. Indian Gaming Revenue This almanac uses estimates of Indian gaming revenue in the United States. Actual state-by-state Indian gaming revenue figures are not included in this almanac – they are only available online to Casino City’s IndianGamingReport.com subscribers. For more information about the online service, please visit IndianGamingReport.com. Calendar Year Revenue Calculations We provide revenue figures based on calendar years in this almanac. However, many jurisdictions report revenue on the basis of a fiscal year that is not aligned with a calendar year. Furthermore, different jurisdictions use different fiscal years. Sometimes the determination of calendar year revenue is straightforward even when calendar and fiscal years are not aligned. For example, Nevada has a fiscal year that starts July 1st. However, revenue figures are provided each month, so it is easy to determine calendar year revenue by adding together the revenue figures for each month in a calendar year even though they cross a fiscal year. Unfortunately, many jurisdictions do not provide financial information on a monthly basis. In this case, when the reporting periods are not aligned with the calendar year, revenues for the calendar year must be estimated based on the reporting periods for which revenue can be determined. For example, Canadian lotteries report on a fiscal year basis only, and their fiscal year begins on April 1 each calendar year. In this case we perform a linear interpolation using data for the two fiscal years that overlap with the calendar year. For example, calendar year 2022 revenue is calculated as 3/ 12 of the revenue for the fiscal year ending in March 2022 and 9/ 12 of the revenue for the fiscal year ending in March 2023. Whenever we estimated revenue for a calendar year by interpolating fiscal year data, we included a footnote in the body of the almanac indicating which revenue figures were interpolated. In some cases, only fiscal year data and data for the first three quarters of a calendar year are available. In this situation we calculate the missing quarterly figure by adding together the revenue figures for the known three quarters of the fiscal year and subtracting that number from the fiscal year total. To calculate the annual revenue figure, we add together the four quarterly figures which constitute the calendar year. Missing Data Estimates Sometimes data for all reporting periods is not available from regulatory agencies. For example, regulatory agencies providing only fiscal year data often publish results well after the end of the fiscal year. This means in some situations data for the most recent fiscal year, which included data for a portion of calendar year 2022, was not available for inclusion in this almanac. In a few situations, data is not consistently available for all past fiscal years. When data is available for prior reporting periods, but not for the most recent reporting periods, we perform linear extrapolation to estimate revenue for the recent periods. For example, if revenue of $10,000,000 was reported for the fiscal year ending in 2020, and revenue of $10,300,000 was reported for fiscal year 2021, then we would estimate revenue as $10,600,000 for fiscal year 2022. Linear extrapolation was also used if data was missing for initial reporting periods, but was available for later reporting periods. Occasionally data was not available for reporting periods sandwiched between other reporting periods for which data was available. For example, we might have data for 2022, 2020, and 2019, but not for 2021. In this situation we performed linear interpolation to estimate the missing data. Whenever we estimated revenue by extrapolating or interpolating missing data we included a footnote in the body of the almanac indicating which revenue figures were interpolated or extrapolated.
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