Global Gaming KS, LLC presented to the Kansas Lottery Gaming Facility Review Board on their proposal for a gaming facility. They argued that their selected Exit 19 site is clean with infrastructure, has community support, and avoids legal issues. Their planned 260,000 square foot facility with hotel would open fully within 14 months. While an interim facility lacks appeal, their permanent destination-quality development would include restaurants, entertainment, and gaming expansion over time. They believe revenue differences between Exit 19 and 33 sites are negligible and addressed counterarguments.
lottery response re question from review board re peninsula's timelines exh...
global gaming 15-december2010_(final)
1. Kansas Lottery Gaming Facility Review Board
Summary Review by: Global Gaming KS, LLC
In Topeka, Kansas, December 15, 2010
2. Opening Remarks
Global Gaming KS, LLC 2
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
3. Summary Review
1. Exit 19 Site Selection
2. Quality Considerations
3. Development Plan Considerations
4. Other Amenities
5. Operational and Financial Capability Considerations
6. Final Comments on the Revenue Debate
Global Gaming KS, LLC 3
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
4. 1. Exit 19 Site Selection –
One Clean Site from Day 1
• We do not believe a material difference in revenue exists between Exits 33 & 19.
• Exit 19 Site is clean and has readily available infrastructure.
• Exit 19 has overwhelming community support and unanimous zoning approval.
• Exit 19 is free of legal claims and zoning issues, and as such does not require
alternative sites that may have a significantly lower revenue profile.
• Exit 19 is centrally located in Sumner County for long term economic impact.
Global Gaming KS, LLC 4
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
5. 2. Quality Considerations
• We have highlighted our permanent 260,000 square feet facility
with 80 to 100 hotel rooms: All to open on Day-1.
• The facility will open 14 months from start of construction,
and will have:
• 1,400-seat entertainment and events center,
• Six restaurants, and
• 73,000 square feet gaming floor with 1,300 slots.
• Our plans are 70% complete.
• Focused on Core destination quality: 80/ 20 Rule.
• We do not feel an interim facility is a destination: no WOW factor.
Global Gaming KS, LLC 5
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
6. 3. Development Plan Considerations
• Practical Considerations
• Within 36 months: Travel Plaza, Games Expansion, Golf
Course Upgrades, Second Hotel, and more
• Wyandotte matter: 500+ games criteria
Global Gaming KS, LLC
Kansas Lottery Gaming Facility Review Board Meeting 6
7. 4. Other Amenities
• Our focus is, and always has been, on the quality of the
Core destination, and that other amenities will assist
incremental gaming revenue: the 80/ 20 Rule.
• We can say with certainty that Travel Plaza incremental
gaming revenue exceeds that of an equestrian center.
• We have actual data showing Auto Sports customers
command a 34% premium (in gaming spend) over
equestrian customers.
Global Gaming KS, LLC 7
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
8. 5. Operational and Financial Capability
Considerations
• Financial Capability is not a simple Pass/ Fail test.
• Experience at this scale of development matters !
• Resources availability matters !
Global Gaming KS, LLC 8
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
9. 6. Final Comments on the Revenue Debate –
The Revenue difference is negligible between Exits 33 & 19.
Gravity Model, 27% Equivalent to $3.6m for each mile of travel, or
2010 difference prediction: (was 22% in 2008 ~$200K for the length of a football field.
analysis – WHY?)
Distance Adjustments: – 10% Based on:
• Two statistically valid polls of Wichita residents
(registered voters and general public)
• Riverwind data/ Experience
Destination Appeal & – 8% Based on:
• CBRE’s analysis
Attractiveness Adjustments: • Riverwind data/ Experience
Traffic Intercept & Travel – 5% Based on:
• Actual data/ Experience
Plaza Adjustments: • Correcting Gravity Model’s methodology consistency
• CBRE’s analysis
Resulting Revenue Difference: = 4% This is statistically negligible given other real-
world factors at play.
Global Gaming KS, LLC 9
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting
10. Closing Remarks
Global Gaming KS, LLC 10
Topeka, Kansas, 15 December 2010
Kansas Lottery Gaming Facility Review Board Meeting