Industry Analysis

The casino gaming industry is a major global market that was worth $68.5 billion worldwide in 2004, according to PricewaterhouseCoopers.  It is an ever-growing market, requiring acquisition of select new concepts in gaming.  The media is expanding their push to create interest in casino games through televised tournaments and other featured television programs, as well as advertisements on the internet, television, radio, and magazines.  Younger populations are involved in table gaming now more than ever, and casinos are faced with the need to meet the demand and variety of interests, particularly for the new table game players of this generation.

Market Analysis Summary

Expected growth for the future of the following casino markets:

Land-based: Improved economic conditions and a rapid growth in on-line gaming will stimulate interest in playing games on-site at casinos, helping worldwide casino gaming revenues reach $100.3 billion by 2009 at a 7.9% compound annual growth rate (CAGR), according to PricewaterhouseCoopers' "Global Entertainment and Media Outlook: 2005-2009."

On-line: Since its birth in 1995, on-line gaming has been one of the Internet's most profitable phenomena, growing to $9.2 billion in 2004 (Dresdner Kleinwort Wasserstein).  It is expected to reach $16 billion worldwide by 2008, according to Juniper.

Mobile: Currently mobile gaming is estimated to generate $1.2 billion in annual revenues, with Europe as the leading market.  This is estimated to grow to $7.6 billion worldwide by 2010, according to Informa, based in London.

We are currently seeking capital for investment in our company to continue to finance Quick Seven, Upper Hand Blackjack (state approvals, travel, felts, table signs, etc.) and to further develop eight other products.  Innovative Gaming, Inc. will rapidly become a mainstay in the casino gaming industry and an investment in our company will be one in a stable, highly lucrative market.

Larry R. Cockrell, Jr.

President