E l lij a y

1. Newnan Centre, Imperial Theatre, Cobb Energy Centre, Historic Ritz Theatre Holly Theatre, RiverCenter, Fox Theatre, Eagle Theatre

2. Americus RylanderTheatre Athens ClassicCenter Morton TheatreCorporation Atlanta 7 Stages Atlanta BotanicalGardens Cobb EnergyCentre FoxTheatre Fulton County Arts Council Metropolitan Atlanta ArtsFund SouthArts Variety Playhouse Woodruff ArtsCenter Augusta AugustaAmusements Augusta EntertainmentComplex Greater Augusta Arts Council ImperialTheatre Miller Theater / AugustaSymphony Brunswick RitzTheatre Buford Buford CommunityCenter EagleTheatre Carrollton Carrollton Center for theArts Columbus Columbus CivicCenter Columbus CVB RiverCenter Conyers Conyers Rockdale Council forthe Arts Dahlonega Holly Theatre CommunityCenter Dublin TheatreDublin Duluth Infinite EnergyCenter Eatonton The Plaza ArtsCenter Ellijay GilmerArts Gainesville The Arts Council Pearce Auditorium GainesvilleGarden Hawkinsville Hawkinsville OperaHouse LithiaSprings ArtsGeorgia Mableton Mable House BarnesAmphitheatre Macon Historic DouglassTheatre Marietta Earl and Rachel SmithStrand Theatre Milledgeville AlliedArts Newnan The NewnanCentre PeachtreeCity TheFred Rome Historic DesotoTheatre Springfield MarsTheatre Statesboro Averitt Center for the Arts Performing Arts Center atGeorgia SouthernUniversity Thomasville Thomasville Entertainment Foundation Toccoa SchaeferCenter The Historic RitzTheatre Vidalia PALTheater Waleska Falany Performing ArtsCenter Waynesboro Waynesboro-Burke ConcertSeries Winterville WintervilleAuditorium Georgia Presenters Member Townsend Center for the Performing Arts,Carrollton Ellijay Toccoa Waleska Gainesville Rome Duluth Mableton Buford Winterville Carrollton Atlanta Athens Lithia Springs Augusta Conyers Peachtree City Newnan Eatonton Waynesboro Milledgeville Dublin Statesboro Springfield Columbus Hawkinsville Vidalia Americus Brunswick 2

3. TheIssue Casinos uselive entertainment simply asa lossleader to draw people to thegaming floor and generate gaming receipts This impacts alocal venue’s ability to booktalent and drives up theprice consumerspay 3

4. Entertainment BusinessModel The artistreceives 85-90% of netticket sales Only10-15% stayswiththelocalvenues4

5. Georgia Venues Model: Survive on SmallMargins Entertainment is our life blood– it drives ancillaryincome Incomesources include • modest ticketproceeds • food & beverage sales • merchandisesales Currently, all Georgia venues operate within the same free market system and we compete for talent and customers on a level playingfield. 5

6. We are in the popcorn business! 6

7. What the current Georgia competitive market giveus? Civic assetsthat support tourism and economic development Downtown anchors, whose patrons keep local restaurants and businessesthriving Highly revered sources of communitypride Investment in taxpayer-owned and operated venues Venues that offer classical musicand opera Educational andcultural programming for children andseniors Nonprofitinstitutions with historicalsignificance

8. The CasinoModel Casinos use entertainment asa lossleader to draw people to the gaming floor and generate gamingreceipts • Offer free or deeply discounted tickets to entertainmentshows • Include vouchers for “free” game play, knowing most people will keep playing even after they’ve used thevoucher 8

9. The CasinoModel Casinos routinely payartists well above marketrates as their entertainment expenses are subsidized by other revenue streams, likegaming CASINOSIMPOSE Exclusivity Clauses talent can onlyperform at facilities owned by a certaincasino Radius Clauses talent cannotperform within a certain mile radius of thecasino Duration Clauses talent cannot return to the market for acertain length oftime 9

10. Ellijay Sautee Nachoochee Calhoun Canton Clarkesville Toccoa Woodstock Waleska Dahlonega Gainesville Rome Marietta Roswell Duluth Cedartown Buford Mableton Winterville Bremen Atlanta Athens Lithia Carrollton Springs Greensboro Conyers Madison Peachtree Warrenton Augusta City Newnan Eatonton Milledgeville Waynesboro Macon SwainsboroStatesboro Springfield Columbus Dublin Hawkinsville Vidalia Americus McRae-Helena TybeeIsland Douglas Tifton Moultrie Brunswick Thomasville Valdosta How a commonlyimposed 150-mile radiusclause would impactGeorgia 10 150-mileradius CASINO

11. States shaded dark blue responded to survey(s) on the impact of casino gaming that will be discussed in thispresentation. These issues would not be unique to Georgia 11

12. Conventions, Sports &Leisure International KEY FINDINGSFROM 7Markets 20PerformingArtsCenters Providence, RI; Detroit, MI; Oklahoma City, OK; New London, CT; Easton, PA; Boston, MA; Omaha,NE Small market theaters experiencedsignificant competition, oftentimes resulting ina forcedexit from segments of themarket Theaters in large markets sawan erosion ofbusiness leading some to alter their business models to remainopen Venues reported business losses representing 25% or more ofprogramming being forcedout of marketsegments being outbid consistently bycasinos 12

13. Rising TalentCosts “ “ Costs have gone way up--just todayI For acts that play casinos, talentcosts submitted an offer for an artist whowould have increased by 25-35% becausethese have normally been $25K. I was told hewas acts are accustomed to receiving higher talent fees from casinos. And, for acts considering a casino play, we are forced to offer higher talent fees to keep the acts from going to thecasinos. now $35K, because "the casinos love him and will paythat. ” – Wausau,WI “ ” – New Orleans,LA Typically we can't afford an act once one of the casinos starts to bid onit. Once or twice we’ve been able to increase an offer by 10k-20k to confirm a show; but often that's the difference between making and losingmoney. – Worcester,MA “ We are now considered a casino market so prices for talent are quoted at casinorates. – Biloxi,MS ” ” “ In many cases we just can't compete with the fees that the Casinos pay artists. Butwhen we do, we generally have to pay 30%+ more than other markets that do not haveCasinos. 1”3 – Providence,RI

14. ShrinkingRevenue “ Pre-casino activity was 35-40 concerts per year. Post-casinoactivity is 15 a year. That equates to about $400,000 a year in lost net revenue. – Providence,RI ” “ “ Overall, concert revenue has decreased approximately 25%with the opening of thecasinos. – New Orleans,LA Depending on the year,it would fluctuate downwards at times to 25%less. ” ” – Seattle,WA “ “ If we get blocked byradius clauses our revenue is down for that fiscalyear. We have had to rely more on concessions and ancillaries - which are also impacted when attendance isdown. ” ” – Toledo,OH – Albany,NY 14

15. AMS Planning andResearch KEY FINDINGSFROM 12 20 Nebraska, Kentucky, Alberta, Florida, Ohio, DC, Connecticut,Pennsylvania, Quebec, Massachusetts, Texas, andWisconsin Performing ArtsCenters Markets 15

16. KEY FINDINGSFROM Central AtlantaProgress It is unclear ofwhat portion of casino revenueis “new money” adiversion of othernon-casino discretionaryspending vs. The greatest effect willbe on leisure and entertainment discretionaryspending Any casino resortshould leverage, not recreate, the surrounding hospitality andleisure assets Atlanta and other jurisdictions mustcarefully consider the potential impact of a casino’s entertainment and retail component on surroundingbusinesses 16

17. What do Georgians stand tolose? Civic assetsthat support tourism and economic development Downtown anchors, whose patrons keep local restaurants and businessesthriving Highly revered sources of communitypride Investment in taxpayer-owned and operated venues Venues thatoffer classical music andopera Educational andcultural programming for children andseniors Nonprofitinstitutions with historicalsignificance

18. The Solution forGeorgia The only provision that is sure to protect and preserve our valued community assets isto Prohibit casinos from owning or operating entertainmentfacilities 18

19. ThankYou Newnan Centre Cobb Energy Centre Imperial Theatre Historic Ritz Theatre RiverCenter FoxTheatre 19