<PAGE>

SPIN FOR CASH JV FINANCIALS




   Spin for Cash Joint Venture
   and Master License Agreement

   Financial Statements
   for the Years Ended October 2, 1999
   and September 30, 1998 and for the Period
   from December 3, 1996 (Inception) through
   September 30, 1997 and Independent Auditors' Report

<PAGE>

INDEPENDENT AUDITORS' REPORT


To the Co-Venturers of the Spin for Cash
Joint Venture and Master License Agreement:

We have audited the accompanying balance sheets of the Spin for Cash Joint
Venture and Master License Agreement (the "Venture") as of October 2, 1999 and
September 30, 1998, and the related statements of income, venturers' capital,
and cash flows for the years ended October 2, 1999 and September 30, 1998 and
for the period from December 3, 1996 (inception) through September 30, 1997.
These financial statements are the responsibility of the Venture's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Venture as of October 2, 1999 and
September 30, 1998, and the results of its operations and its cash flows for the
years ended October 2, 1999 and September 30, 1998 and for the period from
December 3, 1996 (inception) through September 30, 1997, in conformity with
generally accepted accounting principles.


DELOITTE & TOUCHE LLP


Reno, Nevada
November 10, 1999
<PAGE>

SPIN FOR CASH JOINT VENTURE
AND MASTER LICENSE AGREEMENT

STATEMENTS OF INCOME
YEARS ENDED OCTOBER 2, 1999 AND SEPTEMBER 30, 1998
AND THE PERIOD FROM DECEMBER 3, 1996 (INCEPTION)
THROUGH SEPTEMBER 30, 1997
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>

(Dollars in thousands)

                                                  1999         1998         1997

<S>                                            <C>          <C>          <C>
REVENUES:
  Gaming operations                            $ 293,460    $ 246,851    $  60,672
                                               ---------    ---------    ---------

COST AND EXPENSES:
  Cost of gaming operations                      124,268      101,655       26,979
  Depreciation                                    17,911       13,237        2,586
  Research and development                         3,216        2,088        1,587
  Selling, general, and administrative               177          189           50
  Provision for bad debts                             --          125           --
                                               ---------    ---------    ---------

      Total expenses                             145,572      117,294       31,202
                                               ---------    ---------    ---------

INCOME FROM OPERATIONS                           147,888      129,557       29,470
                                               ---------    ---------    ---------

OTHER INCOME (EXPENSE):
  Interest income                                  6,307        3,745          499
  Interest expense                                (4,234)      (2,323)        (821)
  Loss on investments                                 (3)          --           --
                                               ---------    ---------    ---------

           Total other income (expense), net       2,070        1,422         (322)
                                               ---------    ---------    ---------

NET INCOME                                     $ 149,958    $ 130,979    $  29,148
                                               =========    =========    =========
</TABLE>


   The accompanying notes are an integral part of these financial statements.
<PAGE>

SPIN FOR CASH JOINT VENTURE
AND MASTER LICENSE AGREEMENT

BALANCE SHEETS
OCTOBER 2, 1999 AND SEPTEMBER 30, 1998
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>

(Dollars in thousands)
                                                         1999        1998

<S>                                                   <C>         <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                           $  57,783   $  45,835
  Accounts receivable, net                               24,674      20,179
  Investments to fund liabilities to jackpot winners      4,741       5,900
  Prepaid royalties                                      15,238          --
  Prepaid expenses and other                                931       1,839
                                                      ---------   ---------

     Total current assets                               103,367      73,753
                                                      ---------   ---------

FURNITURE, FIXTURES, AND EQUIPMENT, at cost              51,688      49,564
  Less accumulated depreciation                         (29,309)    (14,792)
                                                      ---------   ---------

     Equipment, net                                      22,379      34,772
                                                      ---------   ---------

PREPAID ROYALTIES                                        24,164          --
                                                      ---------   ---------

INVESTMENTS TO FUND LIABILITIES TO JACKPOT
  WINNERS                                                50,033      63,217
                                                      ---------   ---------

TOTAL                                                 $ 199,943   $ 171,742
                                                      =========   =========

LIABILITIES AND VENTURERS' CAPITAL

CURRENT LIABILITIES:
  Accounts payable to IGT                             $  27,997   $   3,182
  Accounts payable to Anchor                                715       1,348
  Jackpot liabilities                                    12,383       7,826
  Commissions and other payable                           1,297       2,932
  Royalties payable                                          --       3,455
  Capital lease payable to IGT                              398       2,120
                                                      ---------   ---------

     Total current liabilities                           42,790      20,863

LONG-TERM JACKPOT LIABILITIES                            80,343      86,952
                                                      ---------   ---------

     Total liabilities                                  123,133     107,815

VENTURERS' CAPITAL                                       76,810      63,927
                                                      ---------   ---------

TOTAL                                                 $ 199,943   $ 171,742
                                                      =========   =========
</TABLE>

   The accompanying notes are an integral part of these financial statements.
<PAGE>

SPIN FOR CASH JOINT VENTURE
AND MASTER LICENSE AGREEMENT

STATEMENTS OF CASH FLOWS
YEARS ENDED OCTOBER 2, 1999 AND SEPTEMBER 30, 1998
AND THE PERIOD FROM DECEMBER 3, 1996 (INCEPTION)
THROUGH SEPTEMBER 30, 1997
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>

(Dollars in thousands)
<S>                                                  <C>        <C>        <C>

                                                        1999       1998       1997

CASH FLOW FROM OPERATING ACTIVITIES:
  Net income                                          $149,958   $130,979   $ 29,148
  Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation                                        17,911     13,237      2,586
    Provision for bad debts                                 --        125         --
    Loss on sale of assets                               2,494      1,887         --
    Increase in accounts receivable                     (4,495)    (8,517)   (11,788)
    Increase in prepaid expenses and other             (38,494)    (1,725)      (114)
    Increase (decrease) in accounts payable and
      accrued expenses                                  17,370    (13,526)    25,280
                                                      --------   --------   --------

Total adjustments                                       (5,214)    (8,519)    15,964
                                                      --------   --------   --------

Net cash provided by operating activities              144,744    122,460     45,112
                                                      --------   --------   --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investment in furniture, fixtures, and equipment     (10,749)   (31,802)   (22,171)
  Investment in systems annuity assets                  14,344    (57,761)   (11,356)
  Proceeds from the sale of furniture, fixtures, and
    equipment                                            2,735      2,774         --
                                                      --------   --------   --------

Net cash provided by (used in) investing activities      6,330    (86,789)   (33,527)
                                                      --------   --------   --------

</TABLE>

   The accompanying notes are an integral part of these financial statements.
<PAGE>

SPIN FOR CASH JOINT VENTURE
AND MASTER LICENSE AGREEMENT

STATEMENTS OF CASH FLOWS
YEARS ENDED OCTOBER 2, 1999 AND SEPTEMBER 30, 1998
AND THE PERIOD FROM DECEMBER 3, 1996 (INCEPTION)
THROUGH SEPTEMBER 30, 1997
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>


(Dollars in thousands)

                                                      1999         1998       1997

<S>                                               <C>         <C>         <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
  Payment on systems annuity liability             $ (35,449)  $  (5,892)  $  (1,002)
  Collection from systems to fund jackpot
   liabilities                                        33,398      79,024      22,649
  Capital contributions                               22,275          --       5,943
  Capital distributions                             (159,350)   (102,143)         --

     Net cash (used in) provided by financing
      activities                                    (139,126)    (29,011)     27,590
                                                   ---------   ---------   ---------

NET INCREASE IN CASH AND
  CASH EQUIVALENTS                                    11,948       6,660      39,175

CASH AND CASH EQUIVALENTS:
  Beginning of period                                 45,835      39,175          --
                                                   ---------   ---------   ---------

  End of period                                    $  57,783   $  45,835   $  39,175
                                                   =========   =========   =========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW
  INFORMATION -
  Cash paid during the period for interest         $     279   $   1,348   $      --
                                                   =========   =========   =========


SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
  AND FINANCING ACTIVITIES -
  Capital lease additions                          $     201   $   2,128   $   1,380
                                                   =========   =========   =========

</TABLE>

   The accompanying notes are an integral part of these financial statements.
<PAGE>

SPIN FOR CASH JOINT VENTURE
AND MASTER LICENSE AGREEMENT

STATEMENTS OF VENTURERS' CAPITAL
YEARS ENDED OCTOBER 2, 1999 AND SEPTEMBER 30, 1998
AND THE PERIOD FROM DECEMBER 3, 1996 (INCEPTION)
THROUGH SEPTEMBER 30, 1997
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

(Dollars in thousands)

                                          Anchor        IGT       Total


<S>               <C>                   <C>         <C>                <C>
BALANCE, DECEMBER 3, 1996 (Inception)   $    --     $    --            $-

  Capital distributions                     3,100       2,843       5,943

  Net income                               14,574      14,574      29,148
                                        ---------   ---------   ---------

BALANCE, SEPTEMBER 30, 1997                17,674      17,417      35,091

  Capital distributions                   (51,200)    (50,943)   (102,143)

  Net income                               65,489      65,490     130,979
                                        ---------   ---------   ---------

BALANCE, SEPTEMBER 30, 1998                31,963      31,964      63,927

  Capital contributions                      --        22,275      22,275

  Capital distributions                   (79,675)    (79,675)   (159,350)

  Net income                               74,979      74,979     149,958
                                        ---------   ---------   ---------

BALANCE, SEPTEMBER 30, 1999             $  27,267   $  49,543   $  76,810
                                        =========   =========   =========

</TABLE>

   The accompanying notes are an integral part of these financial statements.
<PAGE>

SPIN FOR CASH JOINT VENTURE
AND MASTER LICENSE AGREEMENT

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------


1.  ORGANIZATION

    The Spin for Cash Joint Venture and Master License Agreement (the "Venture")
    is owned equally by IGT, a wholly owned subsidiary of International Game
    Technology and Anchor Gaming ("Anchor"). The Joint Venture Agreement was
    signed on December 3, 1996. The Master License Agreement, dated December 3,
    1996, is utilized in jurisdictions where the Spin for Cash Joint Venture has
    not been approved to operate. The first machines operated by the Venture
    were placed into operation on December 12, 1996.

    The Venture's primary purpose is to utilize IGT's experience and technology
    along with Anchor's proprietary game library in order to develop a variety
    of spinning reel slot, video top box, and other innovative games for the
    MegaJackpots-TM- and lease game markets. As of October 2, 1999, the Venture
    was operating in Indiana, Louisiana, Michigan, Missouri, Mississippi, Native
    American markets, Nevada, New Jersey, South Dakota, Canada, and cruise ship
    markets.

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    Basis of Presentation - A complete stand-alone set of books is maintained
    for the Venture in accordance with applicable generally accepted accounting
    principles.

    Revenues - Substantially all of the revenues of the Venture are from the
    operation of linked progressive slot machines. Revenues are recognized as
    earned.

    In New Jersey, each progressive system is operated by an independent trust
    managed by representatives from participating casinos. The Venture receives
    revenues based upon a set annual fee per machine per system. Payments to the
    jackpot winners are made by the trust.

    In Louisiana, Michigan, Missouri, Mississippi, Native American markets,
    Nevada, and South Dakota, the Venture provides the machines and operates the
    central monitoring system. The casinos pay a percentage of the play to the
    Venture.

    In Canada, Indiana, and the cruise ship markets, where machines are not
    linked, the Venture provides games for a set daily lease fee.

    Operating Expenses - IGT and Anchor provide most of the services associated
    with the operation of the Venture. The cost of these operations are billed
    to the Venture using methodologies that best approximate the actual cost of
    these services to the respective partner. Interest on payables balances
    greater than 30 days and on inventories held for the Venture is accrued at
    an annual rate of approximately five percent and is billed monthly.
    Management believes that the methods used to allocate these costs are
    reasonable.

    Third Party Expenses - All invoices received from third parties for the
    delivery of goods or services are paid by the partners. IGT and Anchor
    invoice the Venture for these costs and the amounts are properly recorded on
    the books of the Venture.
<PAGE>

    Research and Development - IGT and Anchor perform substantially all of the
    engineering development work for the Venture and invoice the Venture for
    these services at cost. Research and development charges are expensed as
    incurred.

    Cash and Cash Equivalents - Amounts include cash required for funding
    current progressive systems jackpot payments and purchasing investments to
    meet obligations for making payments to jackpot winners. Cash in excess of
    daily requirements is generally invested in various short-term marketable
    securities with maturities of 90 days or less. Such investments are stated
    at cost, which approximates market value.

    Prepaid Royalties - Amounts include prepayment of fees for trademarks used
    for various Venture products.

    Depreciation - Substantially all of the Venture's depreciable assets are
    directly used in gaming operations and are provided by IGT. IGT invoices the
    Venture for these assets at their approximate cost. Depreciation is recorded
    on the straight-line method over the following estimated useful lives:

      Gaming operations equipment                               1 1/2 to 3 years
      Furniture, fixtures, and equipment                              5 years

    Estimates - The preparation of financial statements in conformity with
    generally accepted accounting principles requires management to make
    estimates and assumptions that affect the reported amounts of assets and
    liabilities and disclosure of contingent assets and liabilities at the date
    of the financial statements and the reported amounts of revenues and
    expenses during the reporting period. Actual results could differ from those
    estimates.

    Reclassifications - Certain amounts in the 1998 and 1997 financial
    statements have been reclassified to be consistent with the presentation
    used in 1999.

3.  INVESTMENTS TO FUND LIABILITIES TO JACKPOT WINNERS

    Federal legislation, passed in October 1998, permits jackpot winners to
    elect to receive the discounted value of progressive jackpots won in lieu of
    annual installments. For jackpots won after the date of the legislation, the
    winner was able to make this election after July 1, 1999. Upon a winner's
    election after July 1, 1999, investments held by the Venture to fund the
    winner's liability were sold to settle the liability. The offer for these
    past winners to elect a single cash payment has now expired. Therefore,
    there will be no additional sales of held-to-maturity investments.

    The remaining investments represent discounted U.S. Treasury securities
    purchased to meet obligations for making payments to linked progressive
    systems jackpot winners. At October 2, 1999, the Venture has both the intent
    and ability to hold these investments to maturity and, therefore, has
    classified them as held-to-maturity. Accordingly, these investments are
    stated at cost, adjusted for amortization of premiums and accretion of
    discounts over the term of the security, using the interest method.
    Securities in this portfolio have maturity dates through 2018.




4.  CAPITAL LEASES

    Assets recorded under capital leases relate to the operation of Louisiana
    and Missouri linked progressive systems. The machines are leased from IGT at
    a rate of 1/36 of the value of the assets each month. As of October 2, 1999
<PAGE>

    and September 30, 1998, the assets had a net value of $398,000 and
    $2,120,000, respectively.

5.  LIABILITIES TO JACKPOT WINNERS

    From Louisiana, Michigan, Missouri, Mississippi, Native American, Nevada,
    and South Dakota systems, the Venture receives a percentage of the amount
    played or machine rental and service fees from the linked progressive
    systems to fund the related jackpot payments. Winners may elect to receive a
    single payment of the discounted value of the jackpot won or annual
    installments. Equal annual installments are paid over 20 to 26 years without
    interest.

    The following schedule sets forth the future fiscal-year payments for the
    jackpot winners under these systems at October 2, 1999:


<TABLE>
<CAPTION>


            Fiscal Year Ending                                Payment
            --------------------------------------------------------------------
            (Dollars in thousands)

            <S>                                          <C>
                2000                                          $9,523
                2001                                           9,523
                2002                                           9,523
                2003                                           9,523
                2004                                           9,523
                2005 and after                               141,303
                                                            --------
                                                            $188,918

</TABLE>


    Jackpot liabilities in the amount of the present value of the jackpots are
    recorded concurrently with the recognition of the related revenue. Jackpot
    liabilities include discounted payments due to winners for jackpots won and
    amounts accrued for jackpots not yet won that are contractual obligations of
    the Venture. Jackpot liabilities consist of the following:

<TABLE>
<CAPTION>


                                                          October 2,  September 30,
                                                            1999         1998
--------------------------------------------------------------------------------
(Dollars in thousands)

<S>                                                    <C>         <C>
Gross payments due to jackpot winners                     $ 188,918   $ 117,445
Unamortized discount on payments to jackpot winners        (138,608)    (57,397)
Accrual for jackpots not yet won                             42,416      34,730
                                                          ---------   ---------

Total jackpot liabilities                                    92,726      94,778
Less current liabilities                                    (12,383)     (7,826)
                                                          ---------   ---------

Long-term jackpot liabilities                             $  80,343   $  86,952
                                                          =========   =========
</TABLE>

<PAGE>

    The Venture amortizes the discount on the winner liabilities, recognizing it
    as interest expense. During fiscal years 1999, 1998, and 1997, the Venture
    recorded interest expense on jackpot liabilities of $4,234,000, $2,323,000,
    and $177,000, respectively. The Venture is required to maintain cash and
    investments relating to systems liabilities in separate accounts. During
    fiscal years 1999, 1998, and 1997, the Venture recorded interest income on
    jackpot investments of $4,213,000, $2,323,000, and $177,000, respectively.

6.  INCOME TAXES

    The Venture has not made any provision for federal income taxes due to its
    election to be taxed as a pass-through entity under Internal Revenue Code,
    Section 704A. Under this election, income of the Venture is taxable to the
    individual venturers.

7.  RELATED-PARTY TRANSACTIONS

    Substantially all of the goods and services recorded by the Venture are
    provided by and/or paid for by IGT and Anchor. These transactions are
    recorded on the books of the Venture as a trade payable. As of October 2,
    1999 and September 30, 1998, the payable to IGT had a balance of $27,997,000
    and $3,182,000, respectively. As of October 2, 1999 and September 30, 1998,
    there was $715,000 and $1,349,000, respectively, payable to Anchor. Interest
    expense to IGT of $50,000, $31,000, and $645,000 was recorded in 1999, 1998,
    and 1997, respectively.

8.    SUBSEQUENT EVENT

    IGT made an equity contribution of $22.0 million in September 1999 and
    Anchor made a $22.0 million equity contribution in October 1999 to fund
    certain contractual expenditures.

                                           ******