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

2. 2

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

4. 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

5. Best Partner for State
& Local Government
Long history of working producDvely with
both the Unified Government & the State 5

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

7. ISC Has Na?onal Reach
7

8. Power of ISC Video
8

9. The Cordish Company
Privately Held for Four GeneraDons 9

10. The Cordish Company
Long Term Vision 10

11. The Cordish Company
Diverse Porolio & Developments 11

12. The Cordish Company
Extensive Development Reach & Assets
12

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

14. Cordish + ISC + Hard Rock
14

15. 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

16. The Cordish Company
Upscale Hotels 16

17. The Cordish Company
State of the Art Casinos 17

18. The Cordish Company
DesDnaDon Resort AmeniDes 18

19. The Cordish Company
Powerful Entertainment District 19

20. The Cordish Company
Full IntegraDon Drives VisitaDon 20

21. The Cordish Company
Non‐gaming desDnaDon entertainment
significantly increases gaming revenues 21

22. 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

23. 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

24. Cordish Hard Rock Florida Video
24

25. The Cordish Company
25

26. The Cordish Company
26

27. The Cordish Company
The Walk – AtlanDc City, NJ
27

28. The Cordish Company
Cordish Projects Change CommuniDes
28

29. The Cordish Company
Community Involvement
29

30. 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

31. 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

32. 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

33. 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

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

35. 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

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

37. 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

38. Community Video
38

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

40. 40

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

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

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

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

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

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

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

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

49. High Energy Casino
49

50. High Energy Casino
50

51. Modern Luxury Design
51

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

53. Integrated Design
Extensive MeeDng & ConvenDon FaciliDes
53

54. Community Shugle System
54

55. Temporary Casino
55

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

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

58. World‐Class Des?na?on
58

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

60. Global Brand Presence
60

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

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

63. 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

64. Regional Target Markets
64

65. 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

66. 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

67. 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

68. Unparalleled Rela?onships
With Corporate Leaders
68

69. 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

70. 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

71. 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

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

73. 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

74. 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)

75. 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)

76. 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

77. 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

78. 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

79. 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

80. 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

81. 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

82. 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

83. 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

84. 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

85. Financing Plan: Sources
$90
$141
$141
$333 (millions)
Delayed Draw Term Loan Term Loan(s) Cordish Equity / Cash ISC Equity / Cash
85

86. 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

87. Schedule
87

88. Final Video
88

89. 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

90. Appendix B
Proposed Fees Comparison
90

91. 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

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

93. Appendix E
Economic Impact – Residents VisitaDon
93

94. Appendix F
Economic Impact – Tourist VisitaDon
94

95. Appendix G
Summary Financial ProjecDons
95

96. Appendix H
Returns to Public Sector
96

97. Appendix I
Financing Plan: Sources & Uses
97