Assumptions and Methodology Casino City’s Global Gaming Almanac 985 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 2024 for the Euro are as follows: 1 December 2024 1.054401 2 December 2024 1.050102 3 December 2024 1.050950 4 December 2024 1.051226 5 December 2024 1.058647 6 December 2024 1.057562 7 December 2024 1.057050 8 December 2024 1.056572 9 December 2024 1.055540 10 December 2024 1.053131 11 December 2024 1.050560 12 December 2024 1.047355 13 December 2024 1.050563 14 December 2024 1.050200 15 December 2024 1.050974 16 December 2024 1.051701 17 December 2024 1.049472 18 December 2024 1.035010 19 December 2024 1.036455 20 December 2024 1.043150 21 December 2024 1.043000 22 December 2024 1.043326 23 December 2024 1.040430 24 December 2024 1.040450 25 December 2024 1.039917 26 December 2024 1.042181 27 December 2024 1.042550 28 December 2024 1.042800 29 December 2024 1.042950 30 December 2024 1.040589 31 December 2024 1.034999 Using this raw exchange rate data, a monthly average exchange rate of 1.047219 is calculated for December 2024. Thus, revenue of EUR 10,000.00 in December of 2024 is equivalent to USD 10472.19 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 2024 currency. The inflation adjustment factor for a given month is calculated as the consumer price index value for December 2024 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 223 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 34 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 120 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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