Kansas Racing & Gaming Commission Casino Proposal http://krgc.ks.gov/

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2. GOLDEN HEARTLAND
Revenue Projections
• Realistic approach
• Credibility
• Experience in a competitive market
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3. GOLDEN HEARTLAND
Cummings vs. Proponents
Cummings Proponent %
Golden $258.8 $284.7 110%
Speedway $271.6 $367.0 135%
Pinnacle $239.2 $425.9 178%
Legends $212.0 $295.6 139%
(all $ millions in 2013)
Cummings Associates presentation page 40.
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4. GOLDEN HEARTLAND
# of Casinos/
Market Size Targeted MSA
Gaming
Market GGI Products (annual rev) (population)
Establishments
in Market
Mardi Gras Casino
Black Hawk, CO Golden Gates Casino 25 $661 million 2.0 million
Central City, CO Golden Gulch Casino
5
Pahrump, Nevada Golden Pahrump $65 million 40,000
Nugget
Las Vegas, Nevada Golden Tavern Group
2,000+ $3.5 billion 2.2 million
Reno, Nevada Golden Route
Operations
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5. GOLDEN HEARTLAND
Size Matters
• Right size
• All about convenience, visibility,
accessibility
• Ability to expand through a master
planned design
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6. GOLDEN HEARTLAND
All Same Size
In 2013 Dollars
(at 2.5% per annum)
Gaming Facility / # Slots Power Slot Win win/slot/day Total Win
Location: Rating ($mn) ($mn)
Northeast Zone:
Golden Heartland 3,000 104.0 $234.5 $214 $282.3
PKN Kansas 3,000 104.0 $228.7 $209 $275.8
Speedway / Cordish 3,000 104.0 $225.8 $206 $272.2
Legends Sun 3,000 104.0 $209.2 $191 $252.6
Cummings Associates presentation page 14.
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7. GOLDEN HEARTLAND
Tourists / Visitation
• Tourist attractions could benefit
each of the applicants
• No displacement of normal business
• Designed to compliment not
compete
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8. GOLDEN HEARTLAND
Branding
Branding works when it’s the
right brand!
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9. GOLDEN HEARTLAND
Does brand/theme make a difference?
Slot Win per Unit Table Win per Unit
$190
$180 $3,500
$3,143
$170
$3,000
$150 $141
$2,500 $2,263
$130
$2,000
$110
$1,500 $1,258
$90
$90
$1,000
$70
$500
$50
Hard Rock Las Clark County Las Vegas Strip
Hard Rock Las Clark County Las Vegas Strip
Vegas Vegas
*9 months ending September 2006
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10. GOLDEN HEARTLAND
Economic Impact
• Construction Impact – Long term
view necessary.
• Operational Impact – Is the project
sustainable?
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11. GOLDEN HEARTLAND
Based on lottery contract tax structure for each proposed facility
$170
Legends
PNK
$150
Speedway
Golden
$130
$110
$90
$70
$50
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12. GOLDEN HEARTLAND
Local Fiscal Impact
• Broad distribution of fiscal benefits
• Equal retail uplift without dilution of
existing businesses
• Back-end revenue sharing not
considered
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13. GOLDEN HEARTLAND
Right Location
• Access
• Visibility
• Convenience
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14. GOLDEN HEARTLAND – RIGHT LOCATION
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15. GOLDEN HEARTLAND – SITE PLAN
Convenient and Accessible
GARAGE
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16. GOLDEN HEARTLAND
Right Team
• Experience in a competitive market
• Experience in the locals market
• Experience in this market
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17. GOLDEN HEARTLAND – THE RIGHT CHOICE
• RIGHT LOCATION
- Unmatched site (over 240 acres)
- Opportunity for future expansion
• RIGHT SIZE
- World-class facility
- Top quality amenities
• RIGHT TEAM
- Experienced operator delivering realistic promises
- Tom Watson designed championship golf course
- Friedmutter designed resort
• MOST REVENUE
- Most revenue to state of Kansas
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19. Lottery Gaming Facility Review
Board Presentation
September 3, 2008