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

1. Frequency of Visit vs. Average Spend
4 4
2 2

3. Marketing
Founder & CEO,
The Navegante Group

4. Target Segments
Local Guests
Regional Guests (> 100 miles)
Seeking Dodge Hotel & Seeking Resort Highway
City Convention Casino Travelers &
Experience Guests Experience Tourists

5. Players Club/Rewards Program

6. Wild West Country Amenities

7. The Delivery Schedule
Douglas M. Smith John Bayless
Project Director, Chairman,
BNSC Cook, Flatt & Strobel
Engineers, P.A.

8. Interim Gaming Facility September, 2009
11/08 01/09
October, 2011
Permanent Gaming Facility
03/10 07/10

9. Interim Gaming
Facility Location

10. Interim Gaming Facility
 575 Gaming  10+ Table  Food & Beverage
Devices Games Offerings

11. Summary

12. Working Together
Richard L. Stevens
Vice-President, Finance
The Navegante Group

13.  Internal Control systems
 Financial Reporting Systems
● Revenue audit ● Central system interface
● Standard Financial Reporting ● Statistical Reporting
● Audited financial statements ● External compliance audits
 Surveillance Standards & Coverage
 Security Plan and Procedures
 Safety Plans & Procedures
 Internal Audit & Compliance
 Risk Management
 Patron Dispute Resolution
 Records Retention
 Standardized Policies and Procedures
 Federal Reporting Requirements – Title 31, SARC, CTRC’s, W2G’s
 Asset Protection and Maintenance
● Key control ● IT systems - data control & access
● Intellectual property ● Access control – sensitive areas

14.  Establish a culture of fairness and integrity with all constituencies
 Set up appropriate oversight committees:
● Compliance committee ● Audit committee
● Safety & security committees ● Marketing committee
 Structural Reporting Hierarchies
 Ensure well being of employees and customers
 Documented systems & procedures for all transactions
 Comprehensive review of all incidents and failures
 Periodic review & adjustment of all standard operating procedures
 Employee training, training and more training

16. Funding Picture
Douglas M. Smith
Project Director,
BNSC
Kent J. Schwerdt
Senior Vice-President,
Kaw Valley State Bank & Trust

17. Funding Commitments
$60.0 Interim Facility
Total = $50.0M
$50.0
Reserve Senior Debt
$14.5M Commitment
$40.0 $20.0M
Total = $35.5M
Org Costs $4.5M
$30.0
Privilege Fee $5.5M
Equity
$20.0 Infrastructure Commitments
Improvements $30.0
$10.0 $25.5M
$0.0
In Millions

18. Funding Commitments
$140.0
Through Permanent Facility
Total = $118.0M
$120.0 Reserve Cash From Ops $8.0M
$15.0M Total = $103.0M
$100.0
Org Costs Senior Debt
$80.0 $4.5M Commitment
$60.0 Privilege $80.0M
Fee Infrastructure
$5.5M Improvements
$40.0
$93.0M Equity
$20.0 Commitments
$30.0
$0.0
In Millions

19. Concluding Thoughts
Clark D. Stewart
President & CEO,
Butler National Service
Corporation

20. Revenue to Kansas
2,200 8,800 10,700 14,900 15,600
200 600 750 1,000 1,100
200 600 750 1,000 1,100
(In $ thousands)

23. Old West – New Excitement