Assumptions and Methodology Casino City’s Global Gaming Almanac 991 Appendix A: Assumptions and Methodology Introduction This appendix summarizes the economic assumptions and the underlying methodology used to calculate the financial information presented in Casino City's Global Gaming Almanac and Casino City's GlobalGamingAlmanac.com online service. Our philosophy in the body of this almanac is to fully disclose the underlying financial data and sources within each jurisdiction. This appendix extends this philosophy by clearly presenting the techniques we have used to manipulate the raw data to present financial summary information. Five major topic areas are covered in this appendix. They include currency conversion, inflation adjustment, revenue estimates based on industry averages, calendar year revenue calculations and missing data estimates. Currency Conversion Financial data for each jurisdiction is reported in the local currency and also in United States dollars. The United States dollar figures are used for comparative purposes. The raw currency conversion rate data used in the preparation of this almanac was provided by Open Exchange Rates and is available on their website at www.openexchangerates.org. Financial data for a particular currency and time period is converted to United States dollars using the arithmetic mean, or average, of the daily exchange rates for the currency during the time period. For example, the daily exchange rates for December 2023 for the Euro are as follows: 1 December 2023 1.089258 2 December 2023 1.088672 3 December 2023 1.088595 4 December 2023 1.083752 5 December 2023 1.079447 6 December 2023 1.07664 7 December 2023 1.07898 8 December 2023 1.077354 9 December 2023 1.077354 10 December 2023 1.076525 11 December 2023 1.076536 12 December 2023 1.079849 13 December 2023 1.088265 14 December 2023 1.099335 15 December 2023 1.09085 16 December 2023 1.09085 17 December 2023 1.089498 18 December 2023 1.092333 19 December 2023 1.097850 20 December 2023 1.094451 21 December 2023 1.100634 22 December 2023 1.102612 23 December 2023 1.102650 24 December 2023 1.101700 25 December 2023 1.101897 26 December 2023 1.104295 27 December 2023 1.110846 28 December 2023 1.106798 29 December 2023 1.105550 30 December 2023 1.105550 31 December 2023 1.103765 Using this raw exchange rate data, a monthly average exchange rate of 1.092344 is calculated for December 2023. Thus, revenue of EUR 10,000.00 in December of 2023 is equivalent to USD 10923.44 that month. Inflation Adjustment Inflation-adjusted revenue figures have been provided for a number of jurisdictions. All inflation-adjusted figures in the almanac are expressed in December 2023 currency. The inflation adjustment factor for a given month is calculated as the consumer price index value for December 2023 divided by the consumer price index value for the month. When underlying revenue data covers a period spanning more than one month, inflation-adjusted revenue is determined by first allocating a pro-rata portion of the revenue to each month in the covered period and then adding together the separately calculated inflation-adjusted revenue attributable to each month. Revenue Estimates Based on Industry Averages Gaming revenue can be calculated as sales (handle or turnover in the pari-mutuel industry, amount wagered in the sports betting industry) less the prizes paid out, or handle or amount wagered 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 we calculated using data from other jurisdictions that provided more complete financial information. For race wagering, gaming revenue is the handle or turnover less the handle returned to bettors. We determined gaming revenue averages 19.7% of the handle based on 1140 data points where we could determine both the actual handle and the actual handle returned to bettors. This industry average was applied to 201 additional data points to estimate the associated gaming revenue. For casino and card room gaming, we determined gaming revenue averages 15.7% of wagers based on 58 data points. This industry average was applied to 20 additional data points to estimate the associated gaming revenue. For sports betting, we determined gaming revenue averages 25.2% of sales based on 126 data points. This industry average was applied to 99 additional data points to estimate the associated gaming revenue. For lotteries, we determined gaming revenue averages 48.0% of sales based on 1,403 data points. This industry average
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