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Ks lotteryreviewboard 28october2010-(final)

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  • 1. Kansas Lottery Gaming Facility Review Board Presented by: Global Gaming KS, LLC In Sumner County, Kansas on October 28, 2010
  • 2. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions 1
  • 3. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 1. The Chickasaw Nation, Global Gaming Solutions, LLC, and Global Gaming KS, LLC Chickasaw Nation Global Gaming Solutions, LLC (a Delaware LLC) Global Gaming KS, LLC (Bidding entity, a Delaware LLC) Wellington, Sumner County, Kansas. October 28, 2010 (Bidding entity, a Kansas LLC) 2
  • 4. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 1. Our Strategic Business Partners Wellington, Sumner County, Kansas. October 28, 2010 3
  • 5. Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 4
  • 6. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 2. Introducing WinSpirit Casino and Global Gaming Wellington, Sumner County, Kansas. October 28, 2010 5
  • 7. Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions 6
  • 8. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting • I-35 destination market experience. • Proven development and operational expertise in destination properties. • Substantial financial capability. • Proven record in economic development in local communities. • Proven record in expanding facilities to extract market potential. 3. Key Advantages of Global Gaming as the State’s Operator Wellington, Sumner County, Kansas. October 28, 2010 7
  • 9. Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions 8
  • 10. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting • Central • Clean site • Overwhelming community support • Leveraging existing community assets • Growth potential Wellington, Sumner County, Kansas. October 28, 2010 4. Key Advantages of WinSpirit Casino Site at Exit 19 9
  • 11. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 4. Key Advantages of WinSpirit Casino Site at Exit 19 We believe that the site we have selected at Exit 19 off I-35 in Sumner County is the very best possible site in the South Central gaming zone for these reasons: • It is in the center of Sumner County for economic development impact, • It is immediately adjacent to I-35 with clear visibility, • It has readily available infrastructure with plans to connect already in-place, • It is 60-feet above flood plain with good drainage, • It has the best potential for jobs creation in Sumner County due to its central location, • We have access to approximately 600 acres of land allowing long term economic development, • It has the complete support of the local community; and unanimous endorsement of Sumner County’s Board of Commissioners, and • It was zoned on August 19 unconditionally. • It can leverage existing community assets such as the Wellington Municipal Golf Course and KOA RV Park to create more immediate destination facilities. 10
  • 12. Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions 11
  • 13. 5. WinSpirit Casino Development: Overall Master Plan Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting • Timing of development phases/overall master plan • Funding contributions: Global Gaming or Strategic Partners • Floor plans • Amenity plans • Power, water and traffic access • Initial construction plans Wellington, Sumner County, Kansas. October 28, 2010 12
  • 14. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 13
  • 15. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 14
  • 16. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 15
  • 17. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 16
  • 18. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 17
  • 19. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 18
  • 20. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 19
  • 21. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 20
  • 22. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 21
  • 23. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development 22
  • 24. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development 23
  • 25. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development 24
  • 26. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 Actual photograph of Riverwind Event Center which is being used as a model for Sumner County. 5. WinSpirit Casino Development: Entertainment and Events Center 25
  • 27. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Our strategic partners are: • OnCue Express, and • Danielson Fuel Services. Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Travel Center to Maximize Revenues from I-35 26
  • 28. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 Our strategic Food & Beverage partner is: • Emerging Brands Restaurant Group. 5. WinSpirit Casino Development: Bringing World-Class Culinary Options 27
  • 29. Steakhouse Concept Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 28
  • 30. Brewhouse Concept Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 29
  • 31. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 30
  • 32. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 31
  • 33. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Our strategic partner is New Century Investments Hotels. Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Bringing Top-Quality Hotel Brands 32
  • 34. Wellington Municipal Golf Course: • Our plans include a partnership that will upgrade the community golf course to destination standards with a new club house and upgraded greens. RV Park: • Our plans include a partnership with the local KOA RV park operators to extend capacity to our site. 5. WinSpirit Casino Development: High Commitment to Local Collaboration Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 33
  • 35. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: High Commitment to Local Collaboration 14-acre, 90-spaces RV Park 34
  • 36. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Multi-Use Motor Racing Course 35
  • 37. 5. WinSpirit Casino Development: Multi-Use Motor Racing Course Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 36
  • 38. 5. WinSpirit Casino Development: Overall Master Plan Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 37
  • 39. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: EMS and Police Sub-Station Facilities Public Safety Facility: • Our plans include a 3,000 square foot on-site facility provided to the city and county for ambulance, fire, and sheriff. • Within the main facility, there will be a City of Wellington police substation provided. • Current response time on all services is less than 5 minutes which will be further reduced by the above investment. 38
  • 40. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Water Connection to the Site Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 39
  • 41. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Sewer Connection to the Site Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 40
  • 42. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Electric and Gas Connection to the Site Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 41
  • 43. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Seneca Drive Wellington, Sumner County, Kansas. October 28, 2010 5. WinSpirit Casino Development: Traffic and Turnpike (I-35) Access 42
  • 44. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 5. Proposed Construction Timeline Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 43
  • 45. 5. WinSpirit Casino Development: Summary of Master Plan Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting • Timing of development phases/overall master plan • Funding contributions: Global Gaming or Strategic Partners • Floor plans • Amenity plans • Power, water and traffic access • Initial construction plans Wellington, Sumner County, Kansas. October 28, 2010 44
  • 46. Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions 45
  • 47. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 6. Our Ability to Execute • Substantial financial capability. • Proven development capability. • Extensive operational experience and resources. • Our dominant I-35 knowledge. • A clean site supported by the community. • Management Matters. 46
  • 48. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 6. Our Ability to Execute: Substantial Financial Commitment From the State’s financial expert’s, Mr. Richard Schuetz, report to Kansas Lottery: 47
  • 49. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • As stated in our application, we see no issues in financing the development and operation of this project. Sources of funds will come from Global Gaming and from the debt market. • Global Gaming Solutions has committed to provide the equity needed as described in the forecast submitted along with the project. • As stated by Richard Schuetz, financial consultant for the Lottery Commission, “there is a high level of confidence that ‘Global Gaming KS, LLC’ will not have any problems in securing the funding for their proposed project in Kansas. • Global Gaming Solutions has retained Jefferies & Company, Inc. to provide the debt financing for the project. Jefferies or one of its affiliates is prepared to provide Global Gaming Solutions with committed financing subject to certain conditions. Those conditions are ones found in the ordinary course of business by lenders who are funding the construction of new properties. 6. Our Ability to Execute: Substantial Financial Capability 48
  • 50. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 6. Our Ability to Execute: Proven Development Capability Riverwind Casino and Hotel in Norman, Oklahoma. 49
  • 51. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 6. Our Ability to Execute: Extensive Experience • Experienced team. • Experienced strategic business partners. • Substantial in-house resources and personnel. 50
  • 52. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 6. Our Ability to Execute: Our Dominant I-35 Knowledge • Four properties located on I-35. • 2.3 million customers in our database. • A clean site supported by the community. 51
  • 53. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 6. Our Ability to Execute: Management Matters! • Growth in Oklahoma. • The Remington Park story. • Winstar and Riverwind. 52
  • 54. Wellington, Sumner County, Kansas. October 28, 2010 Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 53
  • 55. Presentation Outline 7. Driving Success for Kansas a. Sustainable Revenue Projections b. Tourism and Visitation c. Marketing Strategies d. Our ability to Grow the Market e. No Revenue Differential Between Exit 33 vs. Exit 19 f. Management Matters • Regulatory Approval • Responsible Gaming • Training • Community Relations Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting 54
  • 56. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 7. Driving Success for Kansas: (a) Sustainable Revenue Projections Global Gaming KS, LLC Prior and Other Bidders No. of Slots 1300 – 2000 1300 - 2000 No of Tables 60 30 - 65 Gaming revenues $172M $170M - $180M Win-per-unit $205 $200 - $250 Employees (FTE's) 1016 600 - 1200 Estimated visitations per year 2.4M 2M – 3M Total investment $280M $225M - $260M Incremental Non-gaming revenue: 15% 11% - 19% Today’s dollars (no inflation) 55
  • 57. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • Estimated sustainable visitations per year of 2.4 million. • 350,000 tourist visits (more than 100 miles away) per year. • Additional tourists visits not quantified. 7. Driving Success for Kansas: (b) Tourism and Visitations 56
  • 58. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • Billboards and other signage visibility. • Promote and grow player development program. • Big entertainment events marketing (please see examples at right). • Promote destination amenities. • Specific weekly promotion campaigns leveraging promotional credits advantages over neighboring states. • Extract synergies with our existing properties on the I-35 corridor. • Mass advertising to create destination brand awareness. • Social media strategies. 7. Driving Success for Kansas: (c) Marketing Strategies Indicative Entertainment Artists Who May Be Booked for WinSpirit Casino Merle Haggard Heart Tony Bennett 4 Tops Willie Nelson Jewel Larry the Cable Guy Doobie Brothers Wynonna and more others … 57
  • 59. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • Oklahoma’s State Compact Tax growth • WinStar’s expansion • Our customer database • Our facility and product refresh experience 7. Driving Success for Kansas: (d) Our Ability to Grow the Market 58
  • 60. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 7. Driving Success for Kansas: (e) Flaws with the Gravity Model’s Assumptions, Exit 33 v. Exit 19 on I-35 • Our I-35 corridor experience • Local market research • Other issues with Gravity Model: • Quality of proposed facility and amenities • Gravity Model’s specific assumptions issues • Other bidders have produced similar revenue forecasts between the two exits 59
  • 61. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting • I-35 customers’ behavior is similar to national trends. • Jayhawk Consulting Services, a respected pollster who collected local data to specifically test attitudes in the Wichita marketplace, concluded in their research: “We can say with complete certainty and professional confidence that … there would be no real difference in the number of gamblers, or amount of gambler participation, with a casino location difference of 10 minutes travel time.” Wellington, Sumner County, Kansas. October 28, 2010 7. Driving Success for Kansas: (e) Flaws with the Gravity Model’s Assumptions, I-35 Corridor Experience and Local Market Research 60
  • 62. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 7. Driving Success for Kansas: (e) Flaws with the Gravity Model’s Assumptions, Other Issues with Gravity Model • Practical market experience does not support quality assumptions in the Gravity Model on financial performance. • The rate of decline in casino visitation with increased distance is not as drastic as the model suggests. • The model incorrectly assumes that northern Oklahoma facilities are a destination. • Other bidders have produced similar revenue forecasts for the two exits. 61
  • 63. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • We will foster a cooperative relationship • Dedicated Compliance Manager • Rigorous standard operating procedures 7. Driving Success for Kansas: Management Matters (f) Our Managerial Responsibilities and Compliance 62
  • 64. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • Global Gaming Solutions, LLC believes that informed and educated employees can be a very effective tool in identifying many of the most serious consequences of problem gaming. • All employees will be trained in our policies and on the Kansas Racing and Gaming Commission’s requirements on Responsible Gaming. 7. Driving Success for Kansas: Management Matters (f) Our Approach to Responsible Gaming 63
  • 65. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • Dedicated training department • Mock casino 7. Driving Success for Kansas: Management Matters (f) Our Approach to Training 64
  • 66. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 • Wellington community • Chickasaw Nation experience 7. Driving Success for Kansas: Management Matters (f) Our Approach to Community Relationships 65
  • 67. Wellington, Sumner County, Kansas. October 28, 2010 Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Presentation Outline 1. Global Gaming Solutions and Our Strategic Business Partners 2. Global Gaming Introduction – Video 3. Key Advantages of Global Gaming Solutions as the State’s Operator 4. Key Advantages of Our Proposed Destination Site at Exit 19 5. WinSpirit Casino Development 6. Our Ability to Execute 7. Driving Success for Kansas 8. Closing and Questions 66
  • 68. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting Wellington, Sumner County, Kansas. October 28, 2010 8. Closing and Questions 67
  • 69. Global Gaming KS, LLC Kansas Lottery Gaming Facility Review Board Meeting to all Sumner County residents and to the Kansas Lottery Gaming Facility Review Board. 68