3 January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite normally detrimental for existing operators. Over the course of the next two years, most of the incremental supply will be opening in the Atlantic Coast market. And while the supply additions are significant with the SALT deductions in place we fear it could get a lot worse should SALT be eliminated which is currently the plan. Over the course of the last 10 years, the Atlantic Coast market has seen the number of slot machines grow dramatically. While that growth started in 1993 with the introduction of Foxwoods in Connecticut, it was not until 2004 that capacity additions began to proliferate in a dramatic way with the introduction of the first VLT casinos in upstate New York (Saratoga, Finger Lakes, Fairgrounds, and Monticello). Soon thereafter, in 2006, supply stepped up with the opening of Empire City and Vernon Downs in New York, coupled with the first two casinos in Pennsylvania (Mohegan Sun and Parx Casino). Since then, Pennsylvania, Maryland, Massachusetts, New York, and even Atlantic City have added capacity to the market. Regional gaming developments to come online in 2018 and 2019 include the Rain Rock Casino (Yreka, CA), Four Winds South Bend (South Bend, IN), Resorts World Catskills (Catskills, NY), Point Place Casino (Bridgeport, NY), MGM Springfield (Springfield, MA), Tiverton Casino (Tiverton; RI), Wynn Boston Harbor (Everett, MA), and Live! Hotel & Casino (Philadelphia, PA). We believe that Foxwoods and Mohegan Sun will be the operators that will suffer the most cannibalization from new supply. We note that a study submitted to both operators by Pyramid Associates in 2015 estimated that the GGR displacement related to MGM Springfield, Wynn Boston Harbor and Resorts World Catskills during their first full year of operations should account for 24% of Mohegan's GGR and 28% of Foxwoods' GGR. The same study estimates that the ramp up of these casinos