November 10, 2010

Consumer Consumer
Casinos & Gaming
Missouri Casino Revenues Up 4.5% in October
United States of America
Investment Summary
MO's Oct revs support our thesis that regional performance should
gradually improve given easier comps and slightly better consumer
trends.The news should be bullish for ASCA and ISLE given large
exposure to the market and relative outperformance versus our
expectations.The news should be slightly negative for PNK, which
also has meaningful exposure but is currently lagging our forecast.
David Katz
(212) 336-7379, dkatz@jefferies.com Event
Stephen Shulstein
The Missouri Gaming Commission reported October casino revenues
(212) 323-3991, sshulstein@jefferies.com of $151.9M, up 4.5% YoY.
Kathryn Harmon Key Points
(212) 284-2115, kharmon@jefferies.com • Casino revenues during the month of October were up 4.5% overall
with the Kansas City market reporting a slight YoY decline of 0.8%
while both the St. Louis and "Other Missouri" markets reported YoY
improvements of 5.3% and 4.0%, respectively. Growth in slot
revenues was the primary driver behind the respective markets'
strength with an overall gain of 6.3% over the prior year. And while
Kansas City reported a slight YoY contract in slot win of 0.6%, both
the St. Louis and Other markets were up 5.3% and 5.7%,
respectively. Table revenues were 2.6% higher compared to last
year on a statewide basis, but down 2.8% and 10.8% in the Kansas
City and Other Missouri markets. Table win in the St. Louis market
was up 5.2%.
• October gaming revenue performance was generally mixed across
the individual properties with Mark Twain posting the largest YoY
gain of 7.9%. Isle's (ISLE, $8.56, Hold) Lady Luck Caruthersville
and St. Joseph's Riverboat both posted casino revenue
improvements of 5.8% over last year. In the St. Louis market,
however, intense competition continued to take a toll on the
operators as all properties (excluding River City, which was not
open in October 2009) reported YoY contractions. In particular,
Pinnacle's (PNK, $13.70, Buy) Lumiere Place saw a 17.6% decline
versus last year, which could likely be a result of cannibalization
from River City. Harrah's MD Heights and Casino Queen also
underperformed compared to last year by 10.9% and 9.9%,
respectively.
• Despite some YoY casino revenue contractions on an individual
property basis, we view Missouri's October results as bullish
particularly for Ameristar (ASCA, $18.13, Hold) and ISLE, which
each derive significant portions of property EBITDA from the state
and are trending ahead of our expectations despite an intensely
competitive environment. In the case of ASCA, both the St. Charles
and Kansas City properties are 20.1% and 2.9% ahead of our 4Q10
casino revenue estimates and, on aggregate, contribute 43.5% of
property EBITDA to the operator. Meanwhile, ISLE's three
properties finished the October quarter with 4.4% upside to our
expectations and represent 19.6% of EBITDA. The October results
are also encouraging for Penn (PENN, $34.80, Buy) whose
Riverside property is tracking 2.1% ahead of our 4Q10 estimate
and feeds 8.5% of EBITDA to the total property portfolio. Finally,
the October data could be slightly bearish for PNK given that its
properties, Lumiere Place and River City, are about 29.7% of
property EBITDA and lagging our forecast by 1.7% on aggregate.

Please see important disclosure information on pages 5 - 8 of this report.

 Casinos & Gaming

Missouri Monthly Summary

Table Revenues Win (in thousands) Position Win/Table/Day Fair Share
Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City $2,304 $2,098 (8.9%) 75 74 (1.3%) $991 $915 (7.7%) 93.6% 88.9% (470 bp)
Argosy Riverside 1,559 1,677 7.6% 47 47 0.0% 1,107 1,107 0.0% 101.1% 111.8% 1080 bp
Harrah's Kansas City 2,419 2,433 0.6% 62 64 3.2% 1,259 1,226 (2.6%) 118.8% 119.1% 30 bp
Isle of Capri-Kansas City 547 430 (21.5%) 24 23 (4.2%) 735 603 (18.0%) 69.4% 58.5% (1090 bp)
Kansas City Market Total 6,830 6,639 (2.8%) 208 208 0.0% 1,059 1,030 (2.8%) 100.0% 100.0% 0 bp

Ameristar St. Charles 1,921 2,426 26.3% 90 73 (18.9%) 689 1,072 55.7% 58.9% 91.8% 3280 bp
(3)
Lumiere Place 4,248 3,298 (22.4%) 68 68 0.0% 2,015 1,564 (22.4%) 172.5% 133.9% (3860 bp)
President-St. Louis (5) 84 NA NA 10 NA NA 270 NA NA 23.1% NA NA
Alton Belle (1) 350 287 (18.0%) 18 18 0.0% 627 515 (18.0%) 53.7% 44.0% (960 bp)
(1)
Casino Queen 1,320 1,254 (5.0%) 28 28 0.0% 1,521 1,444 (5.0%) 130.1% 123.6% (650 bp)
Harrah's MD Heights 3,090 2,717 (12.1%) 90 78 (13.3%) 1,107 1,124 1.5% 94.8% 96.2% 140 bp
River City (4) NA 1,609 NA NA 55 NA NA 943 NA NA 80.8% NA
St. Louis Market Total 11,013 11,590 5.2% 304 320 5.3% 1,169 1,168 (0.0%) 100.0% 100.0% 0 bp
(2)
Lady Luck Caruthersville 371 315 (15.0%) 18 16 (11.1%) 665 636 (4.4%) 90.9% 94.3% 330 bp
Isle of Capri-Boonville 588 463 (21.2%) 19 19 0.0% 998 787 (21.2%) 136.4% 116.6% (1980 bp)
Mark Twain 170 223 31.3% 14 14 0.0% 392 514 31.3% 53.5% 76.3% 2270 bp
St. Joseph Riverboat 277 253 (8.8%) 11 11 0.0% 813 741 (8.8%) 111.1% 109.9% (120 bp)
Other Missouri total 1,406 1,255 (10.8%) 62 60 (3.2%) 732 675 (7.8%) 100.0% 100.0% 0 bp

Market Total $17,495 $17,942 2.6% 518 542 4.6% $1,089 $1,068 (2.0%) 100.0% 100.0% 0 bp
Ameristar State Total 4,225 4,524 7.1% 165 147 (10.9%) 1,680 1,987 18.3% 75.8% 93.0% 1720 bp
Harrah's State Total 5,509 5,150 (6.5%) 152 142 (6.6%) 2,366 2,350 (0.7%) 107.3% 109.6% 220 bp
Pinnacle State Total 4,248 4,906 15.5% 68 123 80.9% 2,015 2,508 24.4% 172.5% 120.5% (5200 bp)
Isle of Capri State Total 1,135 893 (21.3%) 43 42 (2.3%) 1,733 1,389 (19.9%) 78.1% 64.2% (1390 bp)

Slot Revenues Win (in thousands) Position Win/Slot/Day Fair Share

Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City $17,493 $17,794 1.7% 2,997 2,924 (2.4%) $188 $196 4.3% 86.7% 89.7% 290 bp
Argosy Riverside 14,960 14,499 (3.1%) 1,962 1,962 0.0% 238 238 0.0% 113.3% 108.9% (440 bp)
Harrah's Kansas City 14,878 14,430 (3.0%) 1,758 1,763 0.3% 273 264 (3.3%) 125.7% 120.6% (510 bp)
Isle of Capri-Kansas City 6,222 6,535 5.0% 1,240 1,199 (3.3%) 162 176 8.6% 74.5% 80.3% 580 bp
Kansas City Market Total 53,553 53,258 (0.6%) 7,957 7,848 (1.4%) 217 219 0.8% 100.0% 100.0% 0 bp

Ameristar St. Charles 21,860 21,043 (3.7%) 3,025 2,746 (9.2%) 233 247 6.0% 102.7% 113.0% 1030 bp
(3)
Lumiere Place 13,637 11,441 (16.1%) 2,027 2,062 1.7% 217 179 (17.5%) 95.6% 81.8% (1380 bp)
President-St. Louis (5) 1,783 NA NA 696 NA NA 83 NA NA 36.4% NA NA
(1)
Alton Belle 6,374 5,933 (6.9%) 1,102 1,085 (1.5%) 187 176 (5.5%) 82.2% 80.7% (150 bp)
Casino Queen(1) 10,357 9,256 (10.6%) 1,155 1,155 0.0% 289 259 (10.6%) 127.4% 118.2% (920 bp)
Harrah's MD Heights 22,261 19,882 (10.7%) 2,833 2,698 (4.8%) 253 238 (6.2%) 111.7% 108.7% (300 bp)
(4)
River City NA 12,780 NA NA 2,103 NA NA 196 NA NA 89.6% NA

St. Louis Market Total 76,271 80,335 5.3% 10,838 11,849 9.3% 227 219 (3.7%) 100.0% 100.0% 0 bp

Lady Luck Caruthersville(2) 2,368 2,584 9.1% 634 619 (2.4%) 120 135 11.7% 71.7% 75.5% 380 bp
Isle of Capri-Boonville 6,630 6,867 3.6% 992 992 0.0% 216 223 3.6% 128.3% 125.3% (300 bp)
Mark Twain 2,826 3,008 6.5% 650 656 0.9% 140 148 5.5% 83.4% 83.0% (50 bp)
St. Joseph Riverboat 2,900 3,110 7.2% 550 550 0.0% 170 182 7.2% 101.2% 102.3% 110 bp
Other Missouri Total 14,724 15,569 5.7% 2,826 2,817 (0.3%) 168 178 6.1% 100.0% 100.0% 0 bp

Market Total $126,034 $133,973 6.3% 18,668 20,274 8.6% $218 $213 (2.1%) 100.0% 100.0% 0 bp
Ameristar State Total 39,353 38,837 (1.3%) 6,022 5,670 (5.8%) 421 443 5.2% 96.8% 103.7% 690 bp
Harrah's State Total 37,139 34,312 (7.6%) 4,591 4,461 (2.8%) 526 502 NA 119.8% 116.4% (340 bp)
Pinnacle State Total 13,637 24,221 77.6% 2,027 4,165 105.5% 217 375 72.8% 95.6% 88.0% (760 bp)
Isle of Capri State Total 12,851 13,402 4.3% 2,232 2,191 (1.8%) 377 399 5.7% 85.3% 92.6% 730 bp

Monthly Gaming Revenues Win (in thousands) Position Win/Position/Day Fair Share
Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City $19,797 $19,892 0.5% 3,447 3,368 (2.3%) $185 $191 2.8% 87.6% 89.7% 210 bp
Argosy Riverside 16,520 16,177 (2.1%) 2,244 2,244 0.0% 231 248 7.2% 112.2% 109.5% (280 bp)
Harrah's Kansas City 17,298 16,863 (2.5%) 2,130 2,147 0.8% 262 253 (3.3%) 123.8% 119.3% (450 bp)
Isle of Capri-Kansas City 6,769 6,965 2.9% 1,384 1,337 (3.4%) 158 168 6.5% 74.6% 79.1% 460 bp
Kansas City Market Total 60,383 59,897 (0.8%) 9,205 9,096 (1.2%) 212 212 0.4% 100.0% 100.0% 0 bp

Ameristar St. Charles 23,781 23,469 (1.3%) 3,565 3,184 (10.7%) 215 238 10.5% 94.7% 108.2% 1350 bp
Lumiere Place(3) 17,885 14,739 (17.6%) 2,435 2,470 1.4% 237 192 (18.8%) 104.3% 87.6% (1670 bp)
President-St. Louis (5) 1,867 NA NA 756 NA NA 80 NA NA 35.1% NA NA
Alton Belle(1) 6,726 6,220 (7.5%) 1,082 1,067 (1.4%) 201 188 (6.2%) 88.3% 85.6% (260 bp)
Casino Queen(1) 11,662 10,510 (9.9%) 1,180 1,180 0.0% 319 287 (9.9%) 140.4% 130.9% (950 bp)
Harrah's MD Heights 25,350 22,599 (10.9%) 3,373 3,166 (6.1%) 242 230 (5.0%) 106.7% 104.8% (190 bp)
River City (4) NA 14,388 NA NA 2,433 NA NA 191 NA NA 86.8% NA
St. Louis Market Total 87,271 91,925 5.3% 12,390 13,499 8.9% 227 220 (3.3%) 100.0% 100.0% 0 bp

Lady Luck Caruthersville(2) 2,739 2,899 5.8% 742 715 (3.6%) 119 131 9.8% 88.2% 92.5% 430 bp
Isle of Capri-Boonville 7,218 7,330 1.6% 1,106 1,106 0.0% 211 214 1.6% 155.9% 151.2% (460 bp)
Mark Twain 2,996 3,232 7.9% 734 740 0.8% 132 141 7.0% 97.5% 99.6% 220 bp
St. Joseph Riverboat 3,177 3,363 5.8% 616 616 0.0% 166 176 5.8% 123.2% 124.5% 140 bp
Other Missouri Total 13,391 13,924 4.0% 3,198 3,177 (0.7%) 135 141 5.8% 100.0% 100.0% 0 bp

Market Total $145,396 $151,915 4.5% 21,776 23,526 8.0% $215 $208 4.7% 100.0% 100.0% 0 bp
Harrah's State Total 42,648 39,462 (7.5%) 5,503 5,313 (3.5%) 250 240 4.3% 116.1% 115.0% (100 bp)
Isle of Capri State Total 16,726 17,194 2.8% 2,490 2,443 (1.9%) 217 227 (4.6%) 100.6% 109.0% 840 bp
Pinnacle State Total 17,885 29,127 62.9% 2,435 4,903 101.4% 237 192 (18.8%) 104.3% 92.0% (1230 bp)
Ameristar State Total 43,578 43,361 (0.5%) 7,012 6,552 (6.6%) 200 213 (6.1%) 93.1% 102.5% 940 bp
(1) Illinois riverboat
(2) ISLE acquired Caruthersville on June 11, 2007.
(3) Opened December 19, 2007
(4) Opened March 2010
(5) Closed June 2010
Source: The Missouri Gaming Commission.

Please see important disclosure information on pages 5 - 8 of this report.

David Katz , dkatz@jefferies.com, (212) 336-7379 Page 2 of 8
 Casinos & Gaming

Missouri Monthly Admissions Summary

Admissions Revenue/Admission
Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City 641,294 648,037 1.1% $31 $31 (0.6%)
Argosy Riverside 471,477 456,903 (3.1%) 29 33 10.8%
Harrah's Kansas City 493,252 437,688 (11.3%) 35 39 9.9%
Isle of Capri-Kansas City 256,514 279,784 9.1% 26 25 (5.7%)

Kansas City Market Total 1,862,537 1,822,412 (2.2%) 32 33 1.4%

Ameristar St. Charles 701,984 650,183 (7.4%) 34 36 6.5%

Lumiere Place 628,380 549,431 (12.6%) 28 27 (5.8%)
(1)
President-St. Louis 94,660 NA NA 20 NA NA
Alton Belle 98,684 89,812 (9.0%) 68 69 1.6%
Casino Queen 188,159 177,635 (5.6%) 62 59 (4.5%)
Harrah's MD Heights 676,707 586,796 (13.3%) 37 39 2.8%
River City NA 522,481 NA NA 28 NA

St. Louis Market Total 2,388,574 2,576,338 7.9% 37 36 (2.3%)

Lady Luck Caruthersville 80,005 82,872 3.6% 34 35 2.2%

Isle of Capri-Boonville 199,437 196,993 (1.2%) 36 37 2.8%
Mark Twain 104,954 102,552 (2.3%) 29 32 10.4%
St. Joseph Riverboat 109,899 113,407 3.2% 29 30 2.6%

Other Missouri Total 494,295 495,824 0.3% 27 28 3.7%

Market Total 4,363,903 4,627,127 6.0% 33 33 (1.5%)

Ameristar State Total 1,343,278 1,298,220 (3.4%) 32 33 3.2%

Harrah's State Total 1,169,959 1,024,484 (12.4%) 36 39 6.2%
Isle of Capri State Total 455,951 476,777 4.6% 31 31 (0.8%)
(1) Closed June 2010
Source: The Missouri Gaming Commission and Jefferies & Co estimates.

Missouri Quarterly State Revenue vs. Jefferies Forecast Summary

Reported Jefferies
Casino Forecasted
Property Variance
Revenue Casino Rev.
(MM) (MM)
(1)
Ameristar St. Charles (ASCA) $70.3 $58.6 20.1%
(1)
Ameristar Kansas City (ASCA) 58.1 56.5 2.9%
(1)
Riverside (PENN) 46.5 45.5 2.1%
(2)
Isle of Capri-Kansas City (ISLE) 20.7 19.5 6.5%
(2)
Isle of Capri-Boonville (ISLE) 21.1 21.0 0.4%
(2)
Lady Luck Caruthersville (ISLE) 8.6 7.8 9.9%
(1)
Lumiere Place (PNK) 42.7 42.0 1.6%
(1)
River City ( PNK) * 42.4 44.5 (4.8%)

Quarterly Total $310.4 $295.3 5.1%

Isle of Capri Total (ISLE) 50.4 48.2 4.4%

Pinnacle Total (PNK) 85.1 86.5 (1.7%)
Ameristar Total (ASCA) 128.4 115.1 11.6%

(1) Jefferies & Co estimate is for the quarter ending December 31, 2010.
(2) Jefferies & Co estimate is for the quarter ending October 31, 2010.
* Given the River City opened in March 2010, our casino revenue projections are based on prior
quarter's monthly tracking.
Source: The Missouri Gaming Commission and Jefferies & Co estimates.

Please see important disclosure information on pages 5 - 8 of this report.

David Katz , dkatz@jefferies.com, (212) 336-7379 Page 3 of 8
 Casinos & Gaming

Missouri LTM Summary

Table Revenues Win (in thousands) Position Win/Table/Day Fair Share
Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City $27,801 $27,113 (2.5%) 79 73 (7.2%) $968 $1,018 5.1% 88.8% 95.9% 700 bp
Argosy Riverside 19,098 18,567 (2.8%) 47 47 0.2% 1,169 1,111 (4.9%) 102.1% 101.8% (30 bp)
Harrah's Kansas City 30,396 27,839 (8.4%) 62 63 2.0% 1,341 1,204 (10.2%) 123.1% 113.5% (960 bp)
Isle of Capri-Kansas City 7,348 6,286 (14.5%) 25 23 (9.7%) 805 763 (5.3%) 73.9% 71.8% (200 bp)
Kansas City Market Total 84,642 79,805 (5.7%) 213 206 (3.2%) 1,090 1,061 (2.6%) 100.0% 100.0% 0 bp

Ameristar St. Charles 27,055 27,635 2.1% 91 75 (17.3%) 814 1,005 23.5% 63.4% 66.5% 300 bp
Lumiere Place(3) 56,515 88,210 56.1% 68 68 0.0% 1,219 1,239 1.7% 177.5% 235.0% 5760 bp
Alton Belle(1) 5,453 4,120 (24.4%) 18 18 0.0% 830 627 (24.4%) 64.7% 41.5% (2320 bp)
Casino Queen(1) 19,444 17,455 (10.2%) 31 28 (8.2%) 1,747 1,708 (2.2%) 136.1% 112.9% (2320 bp)
Harrah's MD Heights 36,837 32,911 (10.7%) 93 81 (13.3%) 1,082 1,115 3.1% 84.4% 73.8% (1060 bp)
President-St. Louis (5) 1,083 919 (15.2%) 12 9 (24.8%) 253 285 12.8% 19.7% 18.8% (80 bp)
River City (4) NA 13,100 NA NA 55 NA NA 7,683 NA NA 43.2% NA
St. Louis Market Total 146,388 184,350 25.9% 313 334 6.9% 1,283 1,512 17.9% 100.0% 100.0% 0 bp

Lady Luck Caruthersville(2) 4,442 3,784 (14.8%) 20 16 (18.2%) 619 645 4.2% 89.5% 95.7% 620 bp
Isle of Capri-Boonville 6,624 5,779 (12.8%) 20 19 (6.6%) 893 833 (6.6%) 129.1% 123.7% (540 bp)
Mark Twain 2,491 2,577 3.4% 14 14 0.0% 488 504 3.4% 70.5% 74.9% 430 bp
St. Joseph Riverboat 2,847 2,635 (7.4%) 11 11 0.0% 709 656 (7.4%) 102.5% 97.4% (510 bp)
Other Missouri total 16,404 14,775 (9.9%) 65 60 (7.6%) 691 674 (2.6%) 100.0% 100.0% 0 bp

Market Total $156,906 $243,336 55.1% 440 486 10.6% $978 $1,372 40.2% 100.0% 100.0% 0 bp
Pinnacle State Total 57,598 102,229 77.5% 80 132 65.3% 1,979 2,124 7.4% 202.3% 154.9% (4740 bp)
Ameristar State Total 75,613 106,777 41.2% 170 115 (32.2%) 1,220 2,542 108.3% 124.8% 185.3% 6060 bp
Harrah's State Total 67,233 60,751 (9.6%) 155 144 (7.2%) 1,186 1,154 (2.6%) 121.2% 84.2% (3710 bp)
Isle of Capri State Total 13,972 12,065 (13.7%) 45 42 (8.3%) 844 795 (5.9%) 86.3% 58.0% (2840 bp)

Slot Revenues Win (in thousands) Position Win/Slot/Day Fair Share

Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City $215,318 $212,175 (1.5%) 2,997 2,924 (2.4%) $196 $198 0.7% 89.5% 90.4% 100 bp
Argosy Riverside 179,110 172,994 (3.4%) 1,962 1,962 0.0% 252 249 (1.1%) 113.7% 109.9% (380 bp)
Harrah's Kansas City 168,358 169,090 0.4% 1,758 1,763 0.3% 263 263 0.2% 119.3% 119.5% 30 bp
Isle of Capri-Kansas City 76,042 75,371 (0.9%) 1,240 1,199 (3.3%) 163 171 5.1% 76.4% 78.4% 200 bp
Kansas City Market Total 638,828 629,628 (1.4%) 7,957 7,848 (1.4%) 220 220 (0.1%) 100.0% 100.0% 0 bp

Ameristar St. Charles 271,281 255,860 (5.7%) 3,025 2,746 (9.2%) 245 244 (0.7%) 92.9% 94.0% 100 bp
Lumiere Place(3) 280,618 431,797 53.9% 2,027 2,062 1.7% 203 200 (1.5%) 143.4% 211.1% 6770 bp
Alton Belle(1) 80,421 74,194 (7.7%) 1,097 1,095 (0.3%) 201 186 (7.5%) 75.9% 68.4% (760 bp)
Casino Queen(1) 130,571 117,537 (10.0%) 1,141 1,155 1.2% 313 279 (11.1%) 118.5% 102.6% (1590 bp)
Harrah's MD Heights 259,593 243,600 (6.2%) 2,833 2,698 (4.8%) 252 247 (2.2%) 94.9% 91.0% (390 bp)
President-St. Louis (5) 21,933 18,304 NA 696 686 NA 83 29 NA 32.6% 26.9% NA
River City (4) NA 102,809 NA NA 2,103 NA NA 1,577 NA NA 49.3% NA
St. Louis Market Total 1,044,418 1,244,100 19.1% 10,820 12,545 15.9% 264 272 2.7% 100.0% 100.0% 0 bp

Lady Luck Caruthersville(2) 29,193 30,079 3.0% 634 619 (2.4%) 133 132 (0.9%) 74.3% 77.4% 320 bp
Isle of Capri-Boonville 76,397 75,310 (1.4%) 992 992 0.0% 210 209 (0.5%) 124.2% 121.0% (320 bp)
Mark Twain 34,345 34,995 1.9% 650 656 0.9% 143 147 2.6% 85.2% 85.0% (20 bp)
St. Joseph Riverboat 35,262 36,389 3.2% 550 550 0.0% 174 181 4.2% 103.4% 105.4% 200 bp
Other Missouri total 175,197 176,774 0.9% 2,826 2,817 (0.3%) 170 172 1.2% 100.0% 100.0% 0 bp

Market Total $1,366,833 $1,305,861 (4.5%) 17,337 $16,109 (7.1%) $216 $222 2.8% 100.0% 100.0% 0 bp

Pinnacle State Total 302,552 552,910 82.7% 2,723 4,851 78.1% 304 312 2.6% 31.1% 22.8% (840 bp)
Ameristar State Total 486,599 604,790 24.3% 6,022 5,670 (5.8%) 221 292 32.0% 102.5% 131.6% 2910 bp
Harrah's State Total 427,952 412,689 (3.6%) 4,591 4,461 (2.8%) 255 253 (0.8%) 118.2% 114.1% (410 bp)
Isle of Capri State Total 152,439 150,681 (1.2%) 2,232 2,191 (1.8%) 187 188 0.7% 86.6% 13.7% (7290 bp)

Total LTM Gaming Revenues Win (in thousands) Position Win/Position/Day Fair Share
Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg. Oct-09 Oct-10 % Chg.
Ameristar Kansas City $243,119 $239,288 (1.6%) 3,447 3,368 (2.3%) $185 $191 2.8% 89.7% 86.0% (380 bp)
Argosy Riverside 198,207 191,560 (3.4%) 2,244 2,244 0.0% 231 231 0.0% 112.4% 103.3% (910 bp)
Harrah's Kansas City 198,754 239,288 20.4% 2,130 2,147 0.8% 262 253 (3.3%) 118.7% 134.8% 1610 bp
Isle of Capri-Kansas City 83,390 81,656 (2.1%) 1,384 1,337 (3.4%) 158 168 6.5% 76.7% 73.9% (280 bp)
Kansas City Market Total 723,470 751,792 3.9% 9,205 9,096 (1.2%) 215 226 5.2% 100.0% 100.0% 0 bp

Ameristar St. Charles 298,336 283,494 (5.0%) 3,565 3,184 (10.7%) 215 238 10.5% 88.0% 89.6% 160 bp
Lumiere Place(3) 337,133 520,007 54.2% 2,435 2,470 1.4% 237 192 (18.8%) 145.7% 211.8% 6620 bp
Alton Belle(1) 85,586 78,322 (8.5%) 1,205 1,203 (0.2%) 195 178 (8.3%) 74.7% 65.5% (920 bp)
Casino Queen(1) 150,050 135,021 (10.0%) 1,180 1,180 (0.0%) 348 314 (10.0%) 133.8% 115.2% (1860 bp)
Harrah's MD Heights 296,431 276,511 (6.7%) 3,373 3,166 (6.1%) 242 230 (5.0%) 92.5% 87.9% (460 bp)
President-St. Louis (5) 23,016 19,222 (16.5%) 767 739 (3.6%) 80 29 (63.8%) 31.6% 26.2% (540 bp)
River City (4) NA 115,909 NA NA 2,433 NA NA 191 NA NA 47.9% NA
St. Louis Market Total 1,190,553 1,428,486 20.0% 12,525 14,374 14.8% 260 272 4.5% 98.5% 100.2% 170 bp

Lady Luck Caruthersville(2) 33,634 33,863 0.7% 742 715 (3.6%) 119 131 9.8% 70.5% 73.9% 350 bp
Isle of Capri-Boonville 83,022 81,089 (2.3%) 1,106 1,106 0.0% 211 214 1.6% 116.7% 114.5% (220 bp)
Mark Twain 36,836 37,572 2.0% 734 740 0.8% 132 141 7.0% 78.0% 79.3% 120 bp
St. Joseph Riverboat 38,108 39,025 2.4% 616 616 0.0% 166 176 5.8% 96.2% 98.9% 270 bp
Other Missouri total 157,966 157,686 (0.2%) 2,456 2,462 0.2% 176 175 (0.4%) 100.0% 100.0% 0 bp

Market Total $1,532,855 $1,503,346 (1.9%) 20,108 19,362 (3.7%) $209 $213 1.9% 100.0% 100.0% 0 bp
Pinnacle State Total 360,150 655,139 81.9% 3,202 5,642 76.2% 308 318 3.2% 31.5% 23.2% (830 bp)
Ameristar State Total 541,456 522,782 (3.4%) 7,012 6,552 (6.6%) 212 219 3.3% 101.3% 102.8% 150 bp
Harrah's State Total 495,185 515,798 4.2% 5,503 5,313 (3.5%) 247 266 7.9% 118.0% 125.0% 700 bp
Isle of Capri State Total 166,411 162,745 (2.2%) 2,490 2,443 (1.9%) 183 183 (0.3%) 87.7% 85.8% (190 bp)
(1) Illinois riverboat
(2) ISLE acquired Caruthersville on June 11, 2007.
(3) Opened December 19, 2007
(4) Opened March 2010
(5) Closed June 2010
Source: The Missouri Gaming Commission.

Please see important disclosure information on pages 5 - 8 of this report.

David Katz , dkatz@jefferies.com, (212) 336-7379 Page 4 of 8
 Casinos & Gaming

ANALYST CERTIFICATIONS
I, David Katz, certify that all of the views expressed in this research report accurately reflect my personal views about the subject
security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related
to the specific recommendations or views expressed in this research report.
I, Stephen Shulstein, certify that all of the views expressed in this research report accurately reflect my personal views about the
subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly,
related to the specific recommendations or views expressed in this research report.
I, Kathryn Harmon, certify that all of the views expressed in this research report accurately reflect my personal views about the
subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly,
related to the specific recommendations or views expressed in this research report.

Important Disclosures
As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments
discussed in this report receive compensation based in part on the overall performance of the firm, including
investment banking income. We seek to update our research as appropriate, but various regulations may prevent us
from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are
published at irregular intervals as appropriate in the analyst's judgement.
Jefferies makes a market in Ameristar Casinos, Inc.
Jefferies makes a market in Isle of Capri Casinos, Inc.
Jefferies makes a market in Penn National Gaming, Inc.

Meanings of Jefferies & Company, Inc, Ratings

Buy - Describes stocks that we expect to provide a total return (price appreciation plus yield) of 15% or more within a
12-month period.

Hold - Describes stocks that we expect to provide a total return (price appreciation plus yield) of plus 15% or minus
10% within a 12-month period.

Underperform - Describes stocks that we expect to provide a total negative return (price appreciation plus yield) of 10%
or more within a 12-month period.

Our focus on mid-capitalization and growth companies implies that many of the companies we cover are typically more
volatile than the overall stock market, which can be amplified for companies with an average stock price consistently
below $10. For companies in this category only, the expected total return (price appreciation plus yield) for Buy rated
stocks is 20% or more within a 12-month period. For Hold rated stocks with an average stock price consistently below
$10, the expected total return (price appreciation plus yield) is plus or minus 20% within a 12-month period. For
Underperform rated stocks with an average stock price consistently below $10, the expected total return (price
appreciation plus yield) is minus 20% within a 12-month period.

NR - The investment rating and price target have been temporarily suspended. Such suspensions are in compliance
with applicable regulations and/or Jefferies & Company, Inc. policies.

CS - Coverage Suspended. Jefferies & Company, Inc. has suspended coverage of this company.

NC - Not covered. Jefferies & Company, Inc. does not cover this company.

Restricted - Describes issuers where, in conjunction with Jefferies engagement in certain transactions, company policy
or applicable securities regulations prohibit certain types of communications, including investment recommendations.

Monitor - Describes stocks whose company fundamentals and financials are being monitored, and for which no
financial projections or opinions on the investment merits of the company are provided.

Valuation Methodology
Jefferies' methodology for assigning ratings may include the following: market capitalization, maturity, growth/value,
volatility and expected total return over the next 12 months. The price targets are based on several methodologies,
which may include, but are not restricted to, analyses of market risk, growth rate, revenue stream, discounted cash flow
(DCF), EBITDA, EPS, cash flow (CF), free cash flow (FCF), EV/EBITDA, P/E, PE/growth, P/CF, P/FCF, premium

Please see important disclosure information on pages 5 - 8 of this report.

David Katz , dkatz@jefferies.com, (212) 336-7379 Page 5 of 8
 Casinos & Gaming
(discount)/average group EV/EBITDA, premium (discount)/average group P/E, sum of the parts, net asset value,
dividend returns, and return on equity (ROE) over the next 12 months.

Risk which may impede the achievement of our Price Target

This report was prepared for general circulation and does not provide investment recommendations specific to
individual investors. As such, the financial instruments discussed in this report may not be suitable for all investors and
investors must make their own investment decisions based upon their specific investment objectives and financial
situation utilizing their own financial advisors as they deem necessary. Past performance of the financial instruments
recommended in this report should not be taken as an indication or guarantee of future results. The price, value of, and
income from, any of the financial instruments mentioned in this report can rise as well as fall and may be affected by
changes in economic, financial and political factors. If a financial instrument is denominated in a currency other than
the investor's home currency, a change in exchange rates may adversely affect the price of, value of, or income
derived from the financial instrument described in this report. In addition, investors in securities such as ADRs, whose
values are affected by the currency of the underlying security, effectively assume currency risk.

Rating and Price Target History for: Ameristar Casinos, Inc. (ASCA) as of 11-09-2010

01/23/08 02/21/08 07/24/08 08/05/08 10/08/08 11/10/08 02/11/09 05/29/09 07/16/10 11/03/10
B:$31 B:$28 B:$24 B:$21 B:$17 B:$16 B:$12 D:B:$12 I:H:$17 H:$21

32

24

16

0
Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
2008 2009 2010 2011

Created by BlueMatrix

Rating and Price Target History for: Isle of Capri Casinos, Inc. (ISLE) as of 11-09-2010

12/05/07 03/06/08 07/03/08 09/04/08 09/19/08 10/08/08 12/03/08 03/04/09 05/29/09 07/16/10 09/01/10
B:$28 B:$22 B:$12.5 B:$12 B:$11 B:$8 B:$7 B:$6 D:B:$6 I:H:$10 H:$8

20

16

12

0
Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
2008 2009 2010 2011

Created by BlueMatrix

Please see important disclosure information on pages 5 - 8 of this report.

David Katz , dkatz@jefferies.com, (212) 336-7379 Page 6 of 8
 Casinos & Gaming

Rating and Price Target History for: Penn National Gaming, Inc. (PENN) as of 11-09-2010
01/16/08 07/07/08 07/25/08 10/07/08 10/08/08 10/28/08 02/06/09 05/29/09 07/16/10 07/23/10 09/03/10
B:$57 B:$41 B:$40 B:$39 B:$35 B:$31 B:$28 D:B:$28 I:H:$26 H:$27 H:$30

75

60

45

30

15

0
Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
2008 2009 2010 2011

10/22/10
B:$41

Created by BlueMatrix

Rating and Price Target History for: Pinnacle Entertainment, Inc. (PNK) as of 11-09-2010

07/16/10 10/28/10
I:B:$15 B:$19

32

24

16

0
Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
2008 2009 2010 2011

Created by BlueMatrix

Distribution of Ratings
IB Serv./Past 12 Mos.

Rating Count Percent Count Percent

BUY [BUY/ SB] 547 53.40 48 8.78

HOLD [HOLD] 430 42.00 28 6.51

SELL [SU/ UNPF] 47 4.60 5 10.64

OTHER DISCLOSURES
This material has been prepared by Jefferies & Company, Inc. a U.S.-registered broker-dealer, employing appropriate
expertise, and in the belief that it is fair and not misleading. The information upon which this material is based was
obtained from sources believed to be reliable, but has not been independently verified, therefore, we do not guarantee
its accuracy. Additional and supporting information is available upon request. This is not an offer or solicitation of an
offer to buy or sell any security or investment. Any opinion or estimates constitute our best judgment as of this date,
and are subject to change without notice. Jefferies & Company, Inc. and Jefferies International Limited and their
affiliates and their respective directors, officers and employees may buy or sell securities mentioned herein as agent or
principal for their own account. Upon request Jefferies & Company, Inc. may provide specialized research products or

Please see important disclosure information on pages 5 - 8 of this report.

David Katz , dkatz@jefferies.com, (212) 336-7379 Page 7 of 8
 Casinos & Gaming
services to certain customers focusing on the prospects for individual covered stocks as compared to other covered
stocks over varying time horizons or under differing market conditions. While the views expressed in these situations
may not always be directionally consistent with the long-term views expressed in the analyst's published research, the
analyst has a reasonable basis and any inconsistencies can be reasonably explained.

Additional information for UK and Canadian investors

This material has been issued by Jefferies & Company, Inc. ("JEFCO") and in the United Kingdom ("UK") is approved
and distributed by Jefferies International Limited ("JIL") which is authorized and regulated by the Financial Services
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In the UK, this material is intended for use only by persons who have, or have been assessed as having, suitable
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The information set forth herein was obtained from sources believed to be reliable, but has not been independently
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associates or affiliates, and their respective officers, directors, and employees may have long or short positions in, or
may buy or sell any of the securities, derivative instruments or other investments mentioned or described herein, either
as agent or as principal for their own account. Upon request JEFCO may provide specialized research products or
services to certain customers focusing on the prospects for individual covered stocks as compared to other covered
stocks over varying time horizons or under differing market conditions. While the views expressed in these situations
may not always be directionally consistent with the long-term views expressed in the analyst's published research, the
analyst has a reasonable basis and any inconsistencies can be reasonably explained.

This material does not constitute a personal recommendation or take into account the particular investment objectives,
financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in
this report is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax
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JEFCO research reports are disseminated and available primarily electronically, and, in some cases, in printed form.
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connection with the preparation and publication of research, the details of which are available upon request in writing
to: The Compliance Officer, Jefferies International Limited, Vintners Place, 68 Upper Thames Street, London EC4V
3BJ; telephone +44 (0)20 7029 8000; facsimile +44 (0)20 7029 8010.

For Important Disclosure information, please visit our website at

https://jefferies.bluematrix.com/bluematrix/JefDisclosure or call 1.888.JEFFERIES.

Upon request Jefferies International Limited may provide specialized research products or services to certain
customers focusing on the prospects for individual covered stocks as compared to other covered stocks over varying
time horizons or under differing market conditions. While the views expressed in these situations may not always be
directionally consistent with the long-term views expressed in the analyst's published research, the analyst has a
reasonable basis and any inconsistencies can be reasonably explained.

© 2010 Jefferies & Company, Inc,

Please see important disclosure information on pages 5 - 8 of this report.

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