ENTERTAINMENT: CASINOS • DISTRIBUTED GAMING

ABOUT US

Golden Entertainment, Inc . . owns and operates gaming properties across two divisions

Distributed Gaming

• Establishments operating since the 1970's • We are one of the largest distributors in the country • Operating in Nevada and Montana with over 10,500 gaming devices • 51 taverns in Nevada

Casinos

• Four casinos; one in Maryland, three in Pahrump, NV • Award-winning properties • Hotel, golf, RV park, restaurants, event centers and more

OVERVIEW OF DISTRIBUTED GAMING

7 st.ates have permit limited device locations~<1 >

• Nevada (18, 751 restricted devices) • Illinois (22, 135 restricted devices) • Louisiana (16,698 restricted devices) • Montana (-16,000 restricted devices)

• Oregon (11,925 restricted devices) • West Virginia (-9,000 restricted devices)

" • South Dakota (3, 189 restricted devices)

Advantages of legalizing restricted gaming:

• Supplementary state revenues from implementation of gaming taxes and increased consumption resulting in additional sales taxes

• Private economy boost from local investment in VGT establishments yielding additional jobs and F&B retail sales

Source: (1) Various state gaming and lottery regulatory websites for the most recent available period.

GOLDEN ROUTE OPERATIONS

Description

• Largest distributed gaming

operator in Nevada; second

largest in Montana

• Largest operator of branded

taverns in Nevada

• Caters to local residents by

operating gaming devices at

restaurants, bars, grocery stores,

convenience stores, saloons and

liquor stores

Metrics

• Over 10,500 gaming devices in

980 locations

• Owns and operates 53 tavern

locations operating approximately

779 gaming devices

• Generally offers 15 gaming

devices per location in NV and 20

gaming devices per license in MT

RESPONSIBLE GAMING

At Golden Entertainment, we are committed to responsible gaming. As a result, every Golden Entertainment team member completes responsible gaming training as part of the new hire orientation process. In Maryland, this training is approved by the Maryland Lottery and Gaming Control Agency. And in Nevada, employee training is overseen by 'When the Fun Stops' as part of the Nevada Council on Problem Gambling.

We are also well aware that in many cases responsible gaming and responsible alcohol service go hand-in-hand, which is why every team member in a position responsible for the sale and service of alcohol also completes a responsible alcohol training program. In Nevada, these team members must possess a TAM (Techniques of Alcohol Management) card in order to work. And in Maryland, team members must complete TIPS {Training for Intervention Procedures) courses, as required by the state, to remain in service.

CENTRAL ACCOUNTING

• Full Functionality Slot Accounting and Player Tracking System

• Integrated Cash Safe Dispenser • Proprietary Software and Hardware • Centralized or Local Accounting Functionality • Full Suite of Accounting Auditing/Financial Software • Ticket In I Ticket Out Services • Automated Reports • Daily Win/Loss • MTD Win/Loss • Detail by Location and Individual Games • Fully Customizable

$102.00

NV/MT DISTRIBUTED GAMING MARKETS

Nevada Market <1>

• -1,981 licensed gambling establishments • -18,751 restricted gaming devices • Over 200,000 casino gaming devices

Montana Market <1>

• -1,400 licensed gambling establishments • -16,000 gaming devices • -$400M annual gaming revenues • 15 % gross income tax on license holders • Maximum $2 bet and $800 payout

MT - VGM Revenue Tax (in

Tax Type millions} 2012 2013 2014 2015

VGM Tax Collection $53.7 $57.0 $56.9 $59.7

YOY% £. 8.0% 5.8% -0.2% 4.7%

Source: (1) Various state gaming and lottery regulatory websites for the most recent available period.

2016

$60.4

1.1%

IL DISTRIBUTED GAMING MARKET

Description <1>

• Legislation passed in 2009 to operate up to 5 Video Gaming Terminals (VGTs) in licensed retail establishments

Metrics <1>

• -5, 726 licensed establishments

• -24,840 gaming devices

• First VGT machine was installed in September 2012

• $332M total gaming tax revenues 2016 <1)

• 30% NTI tax rate

• Currently 332 municipalities participating in VGT market out of 1,299

• Maximum $2 bet and $500 payout

Continues to show signs of growth, while co-existing with casino industry

• YTD gaming revenues up 7o/o YOY

• If all municipalities opted in, estimated pickup of $370M in Annual Gaming Tax Revenue <2)

Revenue Source

Casino

VGT Total Tax Rev

YOY% .A

IL Annual Gaming Revenue (in millions)

2011 2012 2013 2014

$1,478 $1,638 $1,551 $1,463

$0.0 $12.3 $300 $659.5 $1,478 $1,650 $1,626 $2,123 7.1% 10.5% -1.5% 23.4%

Sources: (1) Illinois Gaming Board; (2) Union Gaming IL VGT Publication

2015 2016

$1,438 $1,414

$913.6 $1,108 $2,352 $2,522 9.7% 7.2%

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PA/IL COMPARISON

Statistic Illinois Pennsylvania

Population <1) 12.6M 12.78M

Median Household Income <1) $57,574 $53,599

# Retail Establishments <1) 39,252 43,598

State Tax Revenues <2) $39.28 $34.28

# Casinos <2) 10 12

2016 Gaming Revenue <2) $1.48 $3.28

2016 Casino Gaming Tax <2) $478M $853M

2016 VGT Gaming Tax <2) $322M ****

Sources: (1) United States Census Bureau; (2) State gaming and lottery regulatory websites for the most recent available period.

ESTIMATED VGT CONTRIBUTION TO PENNSYLVANIA

Estimated # of Gray Market Gaming Devices in PA <1> 40,000

# of Games of Skill in PA <2> ? . ? .

Estimated VGT Gaming Revenue <3> $1.09 billion

Estimated # of VGT if legalized in PA 24,000

Estimated VGT Gaming Tax <4> $371, 138,424

Sources: (1) Spokesman for the Meadows Racetrack and Casino at a Senate Hearing on June 10, 2015; (2) Decision in Superior Court of Pennsylvania & Court of Common Pleas of Beaver County, Pennsylvania; (3) 24,000 x AWPU in Illinois* ($124.61) *2015 IGB Annual Report; (4) 34% of Estimated VGT Gaming Revenue

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