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COMMITTEE HEARING Tuesday, June 3, 2014 9:30 A.M. to 1:00 P.M. Hearing Room #1, North Office Building (Main Capitol Complex) Subject Matter and Purpose Subject Matter: PA Casino Gaming Industry: Its Current State & Potential for Growth in an Increasing Competitive Atmosphere and Potential Impact of New Revenue Sources (i.e., iGaming/Online Gaming), Nongaming Amenities & Regulatory Landscape. Purpose: The purpose of this hearing is to consider the current state and potential for growth with regard to the Pennsylvania casino gaming industry in an increasing competitive atmosphere. The committee will consider a range of related issues, including the potential impact of new revenue sources (i.e., iGaming/online gaming), nongaming amenities and the regulatory landscape. Ultimately, to ensure the health and viability of the PA gaming industry, the Commonwealth must be diligent in avoiding the status quo to prevent stagnation and decline in the industry along with the revenues and jobs it generates. The goal of the CERD committee is to determine the best practices and course of action, versus pushing any specific agenda, to ensure the economic viability of the PA gaming industry for the foreseeable future. {Tentative} Agenda {*} [Note: Each of the primary sessions will be followed by a round of questions. The “{Q/A}” designation indicates persons listed on the Agenda for the limited purpose of responding to questions] [9:30 A.M.] – Introductory Remarks – Senator Ward and Senator Fontana

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Page 2 Agenda

COMMITTEE HEARING

Tuesday, June 3, 20149:30 A.M. to 1:00 P.M.Hearing Room #1, North Office Building (Main Capitol Complex)

Subject Matter and Purpose

Subject Matter: PA Casino Gaming Industry: Its Current State & Potential for Growth in an Increasing Competitive Atmosphere and Potential Impact of New Revenue Sources (i.e., iGaming/Online Gaming), Nongaming Amenities & Regulatory Landscape.

Purpose: The purpose of this hearing is to consider the current state and potential for growth with regard to the Pennsylvania casino gaming industry in an increasing competitive atmosphere. The committee will consider a range of related issues, including the potential impact of new revenue sources (i.e., iGaming/online gaming), nongaming amenities and the regulatory landscape. Ultimately, to ensure the health and viability of the PA gaming industry, the Commonwealth must be diligent in avoiding the status quo to prevent stagnation and decline in the industry along with the revenues and jobs it generates. The goal of the CERD committee is to determine the best practices and course of action, versus pushing any specific agenda, to ensure the economic viability of the PA gaming industry for the foreseeable future.

{Tentative}Agenda

{*} [Note: Each of the primary sessions will be followed by a round of questions. The {Q/A} designation indicates persons listed on the Agenda for the limited purpose of responding to questions]

[9:30 A.M.] Introductory Remarks Senator Ward and Senator Fontana

[9:35 A.M.] Overview and Consideration of the Legislative Budget and Finance Committee (LBFC) report titled, The Current Condition and Future Viability of Casino Gaming in Pennsylvania (May 2014), conducted pursuant to SR 273-2013 Stephen P. Mullin, M.A., President & Principal, Econsult Solutions, Inc. Adam Ozimek, Ph.D., Director of Research and Senior Economist {Q/A} Philip [Phil] P. Durgin, Executive Director, LBFC

[10:30 A.M.] Pennsylvania Gaming Control Board (PGCB) William [Bill] H. Ryan, Jr., Esq., Chairman {Q/A} Kevin F. OToole, Executive Director

[11:15 A.M.] {Panel} PA Casinos Revenue Trends and Competitive Atmosphere Hollywood Casino at Penn National Race Course (Cat. 1) John V. Finamore, Senior Vice President of Regional Operations, Penn National Gaming, Inc. The Meadows Racetrack & Casino (Cat. 1) Sean Sullivan, Vice President and General Manager Presque Isle Downs & Casino (Cat. 1) Jeff Favre, Vice President & General Manager SugarHouse Casino (Cat. 2) Wendy Hamilton, General Manager Lady Luck Casino Nemacolin (Cat. 3) Don Mitchell, CAO, Isle of Capri Casinos, Inc. {Q/A} Cheri Bomar, Corporate Counsel Nemacolin Woodlands Resort, 84 Lumber Company

[12:00 P.M.] {Panel} PA Casinos iGaming/Online Gaming Harrahs Philadelphia Casino & Racetrack (Cat. 1) Michael Cohen, Senior Vice President, Corporate Development, General Counsel and Corporate Secretary for Caesars Acquisition Company (Nasdaq: CACQ) Parx Casino and Racing (Cat. 1) Robert [Bob] Green, Chairman Valley Forge Casino Resort (Cat. 3) Robert [Bob] M. Pickus, Esq., Managing Director of GCA, Holdings. LLC and the CEO of its subsidiary, GCA Leisure, LLC and Chairman of the Board of Managers for Valley Forge Casino Resort Sands Casino Resort Bethlehem (Cat. 2) Andrew [Andy] Abboud, Senior Vice President for Government Relations and Community Development, Las Vegas Sands Corp.

[12:40 P.M.] National Council on Problem Gambling (NCPG) and on behalf of its affiliate the Council on Compulsive Gambling of Pennsylvania (CCGP) Keith S. Whyte, Executive Director, NCPG {Written Supplement} James [Jim] S. Pappas, Executive Director, CCGP

[12:55 P.M.] Pennsylvania Equine Coalition (representing the Pennsylvania Harness Horsemens Association [PHHA], Pennsylvania Thoroughbred Horsemens Association [PTHA], Standardbred Breeders Association of Pennsylvania [SBAP], Pennsylvania Horse Breeders Association [PHBA], Meadows Standardbred Owners Association [MSOA], and Pennsylvania Horsemens Benevolent & Protective Association [PHBPA]) Kim Hankins, Executive Director (MSOA) {Q/A} James [Jim] W. Simpson (SBAP Breeder Hanover, PA)

{Written Testimony Submissions}

Department of Revenue and Office of the Budget Daniel Meuser, Secretary of Revenue and Charles Zogby, Secretary of Budget. The Poker Players Alliance John A. Pappas, Executive Director