0
2

Overview


•  Best
Team

•  Best
Project

•  Best
Brands

•  Best
Financial
Return
for
Kansas




                        ...
Ownership
Structure


                  Kansas
Entertainment,
LLC


         50%
                                         ...
Best
Partner
for
State


          &
Local
Government





Long
history
of
working
producDvely
with

both
the
Unified
Gover...
Best
Partner
for
State

         &
Local
Government





Partnership
with
the
Kansas
LoRery
has

 shown
outstanding
return...
ISC
Has
Na?onal
Reach





                         7

Power
of
ISC
Video




                      8

The
Cordish
Company





Privately
Held
for
Four
GeneraDons
   9

The
Cordish
Company





  Long
Term
Vision
    10

The
Cordish
Company





Diverse
Porolio
&
Developments
   11

The
Cordish
Company





Extensive
Development
Reach
&
Assets

                                    12

Cordish
+
ISC
+
Hard
Rock





Tremendous
Combined
Strength
   13

Cordish
+
ISC
+
Hard
Rock





                             14

The
Cordish
Company





                   DesDnaDon
Gaming
Development

The
image
above
and
those
used
on
subsequent
pag...
The
Cordish
Company





   Upscale
Hotels
     16

The
Cordish
Company





State
of
the
Art
Casinos
   17

The
Cordish
Company





DesDnaDon
Resort
AmeniDes
   18

The
Cordish
Company





Powerful
Entertainment
District
   19

The
Cordish
Company





Full
IntegraDon
Drives
VisitaDon
   20

The
Cordish
Company





Non‐gaming
desDnaDon
entertainment

significantly
increases
gaming
revenues

   21

The
Cordish
Company

                      12




                      10

(years
to
payback)





                      ...
The
Cordish
Company

                                                                                     2007
Opera?ng
In...
Cordish
Hard
Rock
Florida
Video





                                   24

The
Cordish
Company





                       25

The
Cordish
Company





                       26

The
Cordish
Company





The
Walk
–
AtlanDc
City,
NJ


                                27

The
Cordish
Company





Cordish
Projects
Change
CommuniDes

                                      28

The
Cordish
Company





 Community
Involvement

                          29

The
Cordish
Company


                                              REPRESENTATIVE
PROJECTS


Developer:
                 ...
Management


•  Dennis
Gomes

  –  34
Years
Gaming
Experience

  –  Licensed
in
Nevada
&
New
Jersey

  –  Background
Inclu...
Management



                                                   Dennis
Gomes

                                           ...
Management

                                                          YEARS
OF
GAMING

                                   ...
Gaming
Compliance
Exper?se





OperaDons
team
has
decades
of
experience
running

  venues
in
the
most
demanding
gaming
ma...
Gaming
Compliance
Exper?se


•  MulDple
members
of
the
team
have
had

   significant
experience
in
gaming
regulaDon

   and...
Gaming
Compliance
Exper?se





   Security
&
Surveillance,
Internal
Controls
&

InformaDon
Technology
Plans
are
fully
dev...
Commitment
to
Diversity

          Kansas
Speedway
‐

         Materials
/
Supplies

         Kansas
Speedway
‐

        C...
Community
Video





                   38

Overview


•  Best
Team

•  Best
Project

•  Best
Brands

•  Best
Financial
Return
for
Kansas




                        ...
40

Best
Loca?on





Only
locaDon
with
easy
access
and

 visibility
to
both
I‐70
and
I‐435
   41

Best
Loca?on





Only
Site
With
Infrastructure
In
Place

                                          42

Integrated
Design





• Intelligent
Master
planning
 • IntegraDon
with
Kansas
Speedway

            • 
Unmatched
Ability
...
Luxury
Des?na?on
Resort





300
Room
Luxury
Hotel
with
50
Suites

                                        44

High
Energy
Casino





3,000
Slots
&
140
Tables
at
Opening
With
Room
for
Expansion
45

Integrated
Design





•  275,000
Square
Feet
DesDnaDon
Retail,
Dining
&
Entertainment

•  Live
Music
Venue
              ...
Integrated
Design





• 1.5
million
square
feet
   • Underground
structured
parking

            • Cross‐Current
of
Pedes...
Integrated
Design





DesDnaDon
pool,
fitness
center
&
spa
overlooking
speedway

                                         ...
High
Energy
Casino





                      49

High
Energy
Casino





                      50

Modern
Luxury
Design





                        51

Integrated
Design





Live!
District
Drives
Tourism
&
Gaming
Revenue

                                              52

Integrated
Design





Extensive
MeeDng
&
ConvenDon
FaciliDes

                                          53

Community
Shugle
System





                           54

Temporary
Casino





                    55

Temporary
Casino


         •  Open
In
Eight
Months


         •  $209
Million
Annual

            Revenue


         •  2...
Expansion
Capabili?es





                            Hotel
/

  Casino

                             Casino

Expansion

...
World‐Class
Des?na?on





                         58

Overview


•  Best
Team

•  Best
Project

•  Best
Brands

•  Best
Financial
Return
for
Kansas




                        ...
Global
Brand
Presence





                         60

Unparalleled
Brand

                                      Recogni?on





                                                ...
Hard
Rock
Drives
Tourism





                                              76%

     NaDonal
Visitors
to
Hard
Rock

     ...
Familiarity
With

                                             Hard
Rock
Brand

                        51

             5...
Regional
Target
Markets





                           64

Brand
Strength
=
Visits


                                  47
                                            Statewide
inter...
Hard
Rock
Preference

                                     Is
Clear

                                                     ...
Affluent
Customers
Love

                                       Hard
Rock

                           58                    ...
Unparalleled
Rela?onships

 With
Corporate
Leaders





                             68

Corporate
Decisions
Makers

        Visit
Kansas
Speedway

•  There
were
over
550
companies
involved

   as
sponsors
in
NA...
Racing
Fans
Like
Casinos


•  57.5%
of
Kansas
Speedway
fans
visited
a

   casino
in
the
past
12
months

•  Our
fans
are
27...
General
Marke?ng
Strategy


•  Cross‐market
with
Speedway
&
tenants

•  Create
unique
VIP
experiences
for
best

   custome...
Overview


•  Best
Team

•  Best
Project

•  Best
Brands

•  Best
Financial
Return
for
Kansas




                        ...
Best
Overall
Return


                  27%
                            29%
       31%



        Fee
Percentage
to
Public...
Best
Total
Financial
Package


                          $113M


$115,000,000

                                $111M

    ...
Best
Total
Financial
Package


                              $147M


$150,000,000


                                      ...
Gaming
Revenue
Forecast

                                                                                              $38...
Non‐Gaming
Revenue
Forecast

              $80
                       $67.7M
          $69.9M
              $72M
         ...
Resident
Visita?on


6,000,000






5,000,000






4,000,000






3,000,000






2,000,000






1,000,000





      ...
Resident
Economic
Impact


              $365


              $355


              $345


              $335

(millions)

...
Tourist
Visita?on



3,500,000





3,000,000





2,500,000





2,000,000





1,500,000





1,000,000




 
500,000


...
Tourist
Economic
Impact

              $100


               $90


               $80


               $70


             ...
Forecast
Summary

              
$500






              
$450






              
$400


(millions)





              ...
Public
Sector
Summary

              $140



              $120



              $100

(millions)





               $80
...
Keynotes
of
Financing
Plan


•  Owners
of
Kansas
Entertainment
have

   significant
liquidity
and
financing
capabiliDes

   ...
Financing
Plan:
Sources

                                                       
$90


                      
$141






 ...
Financing
Plan:
Uses

                               $80

                      $15



             $9
      $25



      ...
Schedule





            87

Final
Video





               88

Appendix
A

                   Summary

•  Fee
Percentage
Proposal
to
State:

  –  27%
total
tax
on
first
$350mm
of
Annual
...
Appendix
B

Proposed
Fees
Comparison





                            90

Appendix
C

                 Gaming
Revenue
ProjecDon

All figures in $000’s




 •  Gaming revenue forecasts based on det...
Appendix
D

         Non‐Gaming
Revenue
ProjecDon

All figures in $000’s




                                         92

Appendix
E

Economic
Impact
–
Residents
VisitaDon





                                         93

Appendix
F

Economic
Impact
–
Tourist
VisitaDon





                                       94

Appendix
G

Summary
Financial
ProjecDons





                                95

Appendix
H

Returns
to
Public
Sector





                            96

Appendix
I

Financing
Plan:

Sources
&
Uses





                                   97

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Casino Proposal
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Transcript of "Kansas entertainment presentation"

  1. 1. 2

  2. 2. Overview
 •  Best
Team
 •  Best
Project
 •  Best
Brands
 •  Best
Financial
Return
for
Kansas
 3

  3. 3. Ownership
Structure
 Kansas
Entertainment,
LLC
 50%
 50%
 Cordish
Company
EnDty:
 ISC
EnDty:
 Kansas
Entertainment
 Kansas
Speedway
 Investors,
LLC
 Development
Corp.
 Joe
Weinberg,
President
 Jeff
Boerger,
President
 Development
,
Retail
&
 Gaming
/
Hotel
 Event
/
Race
 Entertainment
 Opera?ons:
 Opera?ons:
 Opera?ons:
 Dennis
Gomes
 Jeff
Boerger
 Joe
Weinberg
 4

  4. 4. Best
Partner
for
State

 &
Local
Government
 Long
history
of
working
producDvely
with
 both
the
Unified
Government
&
the
State
 5

  5. 5. Best
Partner
for
State
 &
Local
Government
 Partnership
with
the
Kansas
LoRery
has
 shown
outstanding
returns
for
Kansas
 6

  6. 6. ISC
Has
Na?onal
Reach
 7

  7. 7. Power
of
ISC
Video
 8

  8. 8. The
Cordish
Company
 Privately
Held
for
Four
GeneraDons
 9

  9. 9. The
Cordish
Company
 Long
Term
Vision
 10

  10. 10. The
Cordish
Company
 Diverse
Porolio
&
Developments
 11

  11. 11. The
Cordish
Company
 Extensive
Development
Reach
&
Assets
 12

  12. 12. Cordish
+
ISC
+
Hard
Rock
 Tremendous
Combined
Strength
 13

  13. 13. Cordish
+
ISC
+
Hard
Rock
 14

  14. 14. The
Cordish
Company
 DesDnaDon
Gaming
Development
 The
image
above
and
those
used
on
subsequent
pages
are
of
Hard
Rock
Hotel
and
Casinos
 15
 that
were
developed
by
a
Cordish
Company
affiliate
for
the
Seminole
Tribe
of
Florida

  15. 15. The
Cordish
Company
 Upscale
Hotels
 16

  16. 16. The
Cordish
Company
 State
of
the
Art
Casinos
 17

  17. 17. The
Cordish
Company
 DesDnaDon
Resort
AmeniDes
 18

  18. 18. The
Cordish
Company
 Powerful
Entertainment
District
 19

  19. 19. The
Cordish
Company
 Full
IntegraDon
Drives
VisitaDon
 20

  20. 20. The
Cordish
Company
 Non‐gaming
desDnaDon
entertainment
 significantly
increases
gaming
revenues

 21

  21. 21. The
Cordish
Company
 12
 10
 (years
to
payback)
 8
 6
 4
 2
 0
 Florida
 Mirage
 Mohegan
 Borgota
 Paris
 Bellagio
 Taj
Mahal
 Beau
 Mandalay
 Hard
Rock
 Sun
 Rivage
 Hotel
&
 Casinos
 Shortest
Payback
of
Any
Major
Casinos
 Source:
Seminole
Tribe
of
Florida
 22

  22. 22. The
Cordish
Company
 2007
Opera?ng
Income
 $800
 $700
 $600
 $500
 $400
 $300
 $200
 $100
 $0
 Florida
Hard
 Penn
Natl(3)
 Wynn
(2)
 Boyd
(2)
 Las
Vegas
 Ameristar
(2)
 Mohegan
 Pinnacle
 Rocks
(1)
 Sands(2)
 Gaming(4)
 Enter.(2)
 Superior
Financial
Results
 1
Source:
Seminole
Tribe
of
Florida



2
Source:
Thomas
Weisel
Partners
LLC
Research
Report




3
Source:
Goldman
Sachs
Global
Investment
Research














































 (4)
Source:
Mohegan
Tribal
Gaming
Authority,
SEC
Filing,
10‐K
Filing,
NOTE:
OperaDng
Income
shown
for
FY
2007
ended
Sept.
30,
2007
 23

  23. 23. Cordish
Hard
Rock
Florida
Video
 24

  24. 24. The
Cordish
Company
 25

  25. 25. The
Cordish
Company
 26

  26. 26. The
Cordish
Company
 The
Walk
–
AtlanDc
City,
NJ

 27

  27. 27. The
Cordish
Company
 Cordish
Projects
Change
CommuniDes
 28

  28. 28. The
Cordish
Company
 Community
Involvement
 29

  29. 29. The
Cordish
Company
 REPRESENTATIVE
PROJECTS
 Developer:
 Seminole
Hard
Rock
Hotel
&
Casino

 The
Cordish
Company
 Hollywood
&
Tampa;
Indiana
Live!
 Lead
Architect:
 Mandalay
Bay;
“W”
Las
Vegas;

 Klai
Juba
Architects
 Hard
Rock
Las
Vegas;
Four
Season
Las
Vegas
 Interior
Designers:
 Cleo
Design
 MGM
Casino
Las
Vegas;
MGM
Casino
Detroit;
Beau
 Rivage
Biloxi;
Hilton
Las
Vegas
 Borgata
AtlanDc
City;
Hard
Rock
Hollywood
&
 Laurence
Lee
 Tampa;
Kapalua
Bay
Hawaii
 Associates
 Engineer:
 Sprint
Center
Kansas
City;
Truman
Sports
Complex

 Burns
&
McDonnell
 Kansas
City
 World
Class
Design
Team
 30

  30. 30. Management
 •  Dennis
Gomes
 –  34
Years
Gaming
Experience
 –  Licensed
in
Nevada
&
New
Jersey
 –  Background
Includes:
 •  President
&
CEO,
Resort
OperaDons
‐
Tropicana
Hotels
&
 Casinos,
Las
Vegas,
NV
&
AtlanGc
City,
NJ
(Aztar
Corp.)
 •  President
&
COO
–
Trump
Taj
Majal
 •  President
&
COO
–
Golden
Nugget
Hotel
&
Casino
 •  Sr.
Vice
President,
Casino
OperaDons
–
Hilton
Hotels
&
 Casinos,
Las
Vegas,
NV
 31

  31. 31. Management
 Dennis
Gomes
 CEO
 Gaming
/
Hotel

Opera?ons
 Robert
ZiRo
 Sherry
Amos
 Robert
Ambrose
 Don
Kneisel
 David
GenDle
 Fred
Burford
 EVP
 EVP
 EVP
 EVP
 EVP
 EVP
 Food
&
Beverage
 Marke?ng
 Slot
Opera?ons
 I.T.
 Administra?on
 Finance
 Aaron
Gomes
 Peter
Ing
 Jean
Price
 Shawn
McCloud
 VP
 VP
 Director
 VP
 Marke?ng
 Slot
Opera?ons
 Administra?on
 Finance
 Latorua
Chinn
 Manager
 Diversity
Compliance
 32

  32. 32. Management
 YEARS
OF
GAMING
 EXPERIENCE
 Sherry
Amos
 ExecuDve
V.P.
‐
MarkeDng
 24
 Robert
Ambrose
 V.P.
‐
Slot
OperaDons
 20
 Fred
Burford
 ExecuDve
V.P.
‐
Finance
 25
 David
A.
GenDle 

 V.P.
‐
AdministraDon
 24
years
with
FBI
 Peter
Ing
 V.P.
–
Slot
OperaDons
 12
 Donald
W.
Kneisel,
II
 V.P.
‐
Info.
Technology
 24
 Aaron
Gomes 

 V.P.
‐
OperaDons

 3
 Shawn
K.
McCloud
 V.P.
‐

Strategic
Planning
 15
 Jean
Price
PreikszaiDs
 Director
of
Corp.
Admin.
 28
 Robert
ZiRo 

 ExecuDve
V.P.
‐
Food
&
Bev.
 28
 33

  33. 33. Gaming
Compliance
Exper?se
 OperaDons
team
has
decades
of
experience
running
 venues
in
the
most
demanding
gaming
markets
34

  34. 34. Gaming
Compliance
Exper?se
 •  MulDple
members
of
the
team
have
had
 significant
experience
in
gaming
regulaDon
 and
law
enforcement
 •  Nevada
Gaming
Control
Board
 •  New
Jersey
Division
of
Gaming
 Enforcement
 •  FBI
 35

  35. 35. Gaming
Compliance
Exper?se
 Security
&
Surveillance,
Internal
Controls
&
 InformaDon
Technology
Plans
are
fully
developed
 and
have
been
submiRed
 36

  36. 36. Commitment
to
Diversity
 Kansas
Speedway
‐
 Materials
/
Supplies
 Kansas
Speedway
‐
 Construc?on
Services
 Kansas
Speedway
‐
 Professional
Services
 Power
Plant
 Kansas
City
Live!
 Construc?on
Services
 Kansas
City
Live!
Professional
 Services
 Pier
4
Office
Building
 Capital
Center
‐
Phase
II
 Capital
Center
‐
Phase
I
 4th
Street
Live!
 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% Goal
 Performance
 Kansas
Speedway
and
Cordish
meet
or
exceed
 MBE
/
WBE
/
LBE
Goals

 37

  37. 37. Community
Video
 38

  38. 38. Overview
 •  Best
Team
 •  Best
Project
 •  Best
Brands
 •  Best
Financial
Return
for
Kansas
 39

  39. 39. 40

  40. 40. Best
Loca?on
 Only
locaDon
with
easy
access
and
 visibility
to
both
I‐70
and
I‐435
 41

  41. 41. Best
Loca?on
 Only
Site
With
Infrastructure
In
Place
 42

  42. 42. Integrated
Design
 • Intelligent
Master
planning
 • IntegraDon
with
Kansas
Speedway
 • 
Unmatched
Ability
to
Expand
 43

  43. 43. Luxury
Des?na?on
Resort
 300
Room
Luxury
Hotel
with
50
Suites
 44

  44. 44. High
Energy
Casino
 3,000
Slots
&
140
Tables
at
Opening
With
Room
for
Expansion
45

  45. 45. Integrated
Design
 •  275,000
Square
Feet
DesDnaDon
Retail,
Dining
&
Entertainment
 •  Live
Music
Venue
 46

  46. 46. Integrated
Design
 • 1.5
million
square
feet
 • Underground
structured
parking
 • Cross‐Current
of
Pedestrian
Traffic
 47

  47. 47. Integrated
Design
 DesDnaDon
pool,
fitness
center
&
spa
overlooking
speedway
 48

  48. 48. High
Energy
Casino
 49

  49. 49. High
Energy
Casino
 50

  50. 50. Modern
Luxury
Design
 51

  51. 51. Integrated
Design
 Live!
District
Drives
Tourism
&
Gaming
Revenue
 52

  52. 52. Integrated
Design
 Extensive
MeeDng
&
ConvenDon
FaciliDes
 53

  53. 53. Community
Shugle
System
 54

  54. 54. Temporary
Casino
 55

  55. 55. Temporary
Casino
 •  Open
In
Eight
Months
 •  $209
Million
Annual
 Revenue
 •  2000
slots
 •  75
table
games
 56

  56. 56. Expansion
Capabili?es
 Hotel
/
 Casino
 Casino
 Expansion
 Expansion
 57

  57. 57. World‐Class
Des?na?on
 58

  58. 58. Overview
 •  Best
Team
 •  Best
Project
 •  Best
Brands
 •  Best
Financial
Return
for
Kansas
 59

  59. 59. Global
Brand
Presence
 60

  60. 60. Unparalleled
Brand
 Recogni?on
 85%
 NaDonal
familiarity
with
Hard
 Rock
Brand
 Source:
Zogby
InternaGonal
Research
 61

  61. 61. Hard
Rock
Drives
Tourism
 76%
 NaDonal
Visitors
to
Hard
Rock
 ProperDes
From
Out
of
State
 Source:
Zogby
InternaGonal
Research
 62

  62. 62. Familiarity
With
 Hard
Rock
Brand
 51 50 Hard Rock Is Exponentially Stronger Than Other Options: 40 36 33 •  2.5 – 50 Times Better Nationally •  8 – 12 Times Better Statewide (percent)
 30 22 •  5.5 – 11 Times Better in KC 20 10 6 4 4 3 3 3 3 0 0 Hard Rock Mohegan Sun Pinnacle Golden National Kansas Statewide KC DMA Source:
Zogby
InternaGonal
Research
 63

  63. 63. Regional
Target
Markets
 64

  64. 64. Brand
Strength
=
Visits
 47
 Statewide
interest
in
 50
 visi?ng
a
Hard
Rock
is
at
 42
 least
double
that
of
any
 45
 other
possible
casino.
 40
 35
 30
 27
 21
 20
 22
 25
 20
 15
 10
 3
 3
 5
 0
 Hard
Rock
 Legends
Sun
 Pinnacle
 Golden
 Kansas
Statewide
 KC
DMA
 Source:
Zogby
InternaGonal
Research
 65

  65. 65. Hard
Rock
Preference
 Is
Clear
 Among
those
who
say
they
 80 are
“Very
Interested”
in
 71 visi?ng
a
casino
in
the
 future,
more
say
they
are
 70 very
interested
in
visi?ng
 Hard
Rock
over
other
 60 possible
casino
brands.
 46 50 43 40 40 35 (percent)
 30 20 11 8 8 10 0 Hard
Rock
 Legends
Sun
 Pinnacle
 Golden
 Source:
Zogby
InternaGonal
Research
 Kansas Statewide KC DMA 66

  66. 66. Affluent
Customers
Love
 Hard
Rock
 58 Those making more 60 than $75,000 a year say 54 they are more likely to visit the Hard Rock than 50 any other brands. Hard Rock scores much better as a regional destination than other 40 brands. (percent) 30 28 29 30 20 10 9 8 10 0 Hard Rock Legends Sun Pinnacle Golden Source:
Zogby
InternaGonal
Research
 67
 Kansas Statewide KC DMA
  67. 67. Unparalleled
Rela?onships
 With
Corporate
Leaders
 68

  68. 68. Corporate
Decisions
Makers
 Visit
Kansas
Speedway
 •  There
were
over
550
companies
involved
 as
sponsors
in
NASCAR
last
year
 •  Our
team
is
uniquely
posiDoned
to
 leverage
events
at
the
Speedway
to
bring
 convenDon
business
to
KCK
 •  Decision‐making
execuDves
spend
their
 enDre
day
on
Speedway
property
 69

  69. 69. Racing
Fans
Like
Casinos
 •  57.5%
of
Kansas
Speedway
fans
visited
a
 casino
in
the
past
12
months
 •  Our
fans
are
27%
more
likely
than
the
 average
person
in
Kansas
City
to
visit
a
 casino
 •  Fans
of
the
Indy
Racing
League
are
85%
 more
likely
to
visit
a
casino
 Source: Scarborough Research 2007 70

  70. 70. General
Marke?ng
Strategy
 •  Cross‐market
with
Speedway
&
tenants
 •  Create
unique
VIP
experiences
for
best
 customers
 •  Use
Rewards
Program
and
CRM
to
 maximize
customer
value
 •  Leverage
Hard
Rock
brand
strength
and
 racing
events
in
markeDng
that
targets
 tourists
 71

  71. 71. Overview
 •  Best
Team
 •  Best
Project
 •  Best
Brands
 •  Best
Financial
Return
for
Kansas
 72

  72. 72. Best
Overall
Return
 27%
 29%
 31%
 Fee
Percentage
to
Public
Sector
 0
 100
 200
 300
 400
 500
 600
 Gross
Gaming
Revenues
(millions)
 AddiDonal
1%
Voluntary
Fee

 to
Unified
Government
 73

  73. 73. Best
Total
Financial
Package

 $113M
 
$115,000,000

 $111M
 $108M
 $108M
 
$110,000,000

 
$105,000,000

 
$100,000,000

 
$95,000,000

 
$90,000,000

 
$85,000,000

 
$80,000,000

 
$75,000,000

 Hard
Rock
 Golden
 Pinnacle
 Legends
Sun
 


Fees
to
Kansas
 


Fees
to
Problem
Gaming
 


Fees
to
Local
Government
 74
 (Assumes
$400
million
gross
gaming
revenue)

  74. 74. Best
Total
Financial
Package

 $147M
 
$150,000,000

 $142.5M
 
$145,000,000

 
$140,000,000

 $135M
 $135M
 
$135,000,000

 
$130,000,000

 
$125,000,000

 
$120,000,000

 
$115,000,000

 
$110,000,000

 
$105,000,000

 Hard
Rock
 Golden
 Pinnacle
 Legends
Sun
 


Fees
to
Kansas
 


Fees
to
Problem
Gaming
 


Fees
to
Local
Government
 75
 (Assumes
$500
million
gross
gaming
revenue)

  75. 75. Gaming
Revenue
Forecast
 $385.6M
 
$390

 $376.2M
 
$380

 $367M
 
$370

 $358M
 
$360

 $349.3M
 
$350

 (Millions)
 
$340

 
$330

 
$320

 
$310

 
$300

 
Year
1

 
Year
2

 
Year
3

 
Year
4

 
Year
5

 Slot
machines
 Pit
Revenue

 Poker
&
card
games
 (Assumes
3,000
slot
machines
and
140
table
games)
 76

  76. 76. Non‐Gaming
Revenue
Forecast
 $80
 $67.7M
 $69.9M
 $72M
 $74.2M
 $65.4M
 $70
 $60
 $50
 (millions)
 $40
 $30
 $20
 $10
 $0
 Year
1
 Year
2
 Year
3
 Year
4
 Year
5
 Hotel
 Food

 Beverage
 Conven?on
 Entertainmnent
 Retail
 Other
 77

  77. 77. Resident
Visita?on
 
6,000,000

 
5,000,000

 
4,000,000

 
3,000,000

 
2,000,000

 
1,000,000

 
‐



 Year
1
 Year
2
 Year
3
 Year
4
 Year
5
 Total
Gaming
Visits
Per
Year
 Total
Non‐Gaming
Visits
Per
Year
 78

  78. 78. Resident
Economic
Impact
 $365
 $355
 $345
 $335
 (millions)
 $325
 $315
 $305
 $295
 $285
 $275
 Year
1
 Year
2
 Year
3
 Year
4
 Year
5
 Gaming
Spend
Per
Year
 Non‐Gaming
Spend
Per
Yr.
 79

  79. 79. Tourist
Visita?on
 
3,500,000

 
3,000,000

 
2,500,000

 
2,000,000

 
1,500,000

 
1,000,000

 
500,000

 
‐



 Year
1
 Year
2
 Year
3
 Year
4
 Year
5
 Total
Gaming
Visits
Per
Year
 Total
Non‐Gaming
Visits
Per
Yr.
 80

  80. 80. Tourist
Economic
Impact
 $100
 $90
 $80
 $70
 $60
 (millions)
 $50
 $40
 $30
 $20
 $10
 $0
 Year
1
 Year
2
 Year
3
 Year
4
 Year
5
 Gaming
Spend
Per
Year
 Non‐Gaming
Spend
Per
Yr.
 81

  81. 81. Forecast
Summary
 
$500

 
$450

 
$400

 (millions)
 
$350

 
$300

 
$250

 
Year
1

 
Year
2

 
Year
3

 
Year
4

 
Year
5

 Gaming
Total
 Non‐Gaming
Total
 82

  82. 82. Public
Sector
Summary
 $140
 $120
 $100
 (millions)
 $80
 $60
 $40
 $20
 $0
 Year
1
 Year
2
 Year
3
 Year
4
 Year
5
 State
Revenue
 Property
Taxes
 Sales
&
Use
Tax
 83

  83. 83. Keynotes
of
Financing
Plan
 •  Owners
of
Kansas
Entertainment
have
 significant
liquidity
and
financing
capabiliDes
 in‐house
 •  Owners
have
impeccable
track
records
with
 financing
community
over
several
decades
 •  MulDple
third‐party
sources
indicated
high
 confidence
in
debt
financing
for
our
project
 84

  84. 84. Financing
Plan:
Sources
 
$90

 
$141

 
$141

 
$333

 (millions)
 


Delayed
Draw
Term
Loan
 


Term
Loan(s)
 Cordish
Equity
/
Cash
 ISC
Equity
/
Cash
 85

  85. 85. Financing
Plan:
Uses
 $80
 $15
 $9
 $25
 $25
 $32
 $415
 $105
 (millions)
 


Hard
Costs
 


Sop
Costs
 


Con?ngency
 Financing
Costs
&
Fees
 Pre‐Opening
Opera?ons
 Licensing
Fee

 Cage
Cash
&
Working
Capital
 Pre‐Funded
Interest
Reserve
 86

  86. 86. Schedule
 87

  87. 87. Final
Video
 88

  88. 88. Appendix
A
 Summary
 •  Fee
Percentage
Proposal
to
State:
 –  27%
total
tax
on
first
$350mm
of
Annual
Gross
 Gaming
Revenue
 –  29%
total
tax
on
GGR
between
$350mm
and
 $400mm
 –  31%
total
tax
on
GGR
above
$400mm
 •  Highest
Charitable
ContribuDons: 

 –  AddiDonal
1%
of
GGR
to
Unified
Government
beyond
 statutory
minimum
 89

  89. 89. Appendix
B
 Proposed
Fees
Comparison
 90

  90. 90. Appendix
C
 Gaming
Revenue
ProjecDon
 All figures in $000’s •  Gaming revenue forecasts based on detailed market assessment by Innovation Group, the market leader in gaming market analyses. •  Based on 3,000 slot machines and 140 table games. •  Kansas Entertainment, LLC believes 3,000 machines is correct and realistic initial number. This is also consistent with finding of Christiansen Capital Advisors, advisors to State. •  Slot machine capacity would be increased if validated by market demand. 91

  91. 91. Appendix
D
 Non‐Gaming
Revenue
ProjecDon
 All figures in $000’s 92

  92. 92. Appendix
E
 Economic
Impact
–
Residents
VisitaDon
 93

  93. 93. Appendix
F
 Economic
Impact
–
Tourist
VisitaDon
 94

  94. 94. Appendix
G
 Summary
Financial
ProjecDons
 95

  95. 95. Appendix
H
 Returns
to
Public
Sector
 96

  96. 96. Appendix
I
 Financing
Plan:

Sources
&
Uses
 97

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