Our projections are lower than the consultants' for a few key reasons: 1. We are being very conservative in our estimates given the current economic climate. We want to ensure we can meet our projections. 2. The consultants' estimates assume we will open with the maximum allowable slot machines and table games in Phase I. We have proposed a more modest start to ensure quality and demand. 3. The consultants' revenue estimates do not account for expenses like payroll, marketing, food & beverage costs etc. Our net revenue projections are lower to account for these expenses. 4. We want to build the business gradually through excellent customer service rather than an overly aggressive opening. This will lead to more sustainable growth over time

1. Lottery Gaming Facility Manager presentation
to the Lottery Gaming Facility Review Board
October 26, 2009
Presented by:
Lakes Entertainment, Inc.

2. REPRESENTATIVES
PRESENT
Lakes Entertainment, Inc: Parent company of proposed manager and equity partner
Lyle Berman
Tim Cope
Richard Bienapfl
Mike Montross
Och-Ziff Real Estate: Parent company of proposed equity partner
Nicholas Hecker
Mark Schwartz
Clairvest Group, Inc: Parent company of proposed equity partner
Aly Champsi
Hnedak Bobo Group: Architect
Rick Gardner
MKEC Engineering Consultants, Inc (MKEC): Civil Engineer
Kurt Yowell
Mark Buckingham
2

3. OWNERSHIP STRUCTURE
Lakes
Clairvest Group Och-Ziff Real Estate
Entertainment
33% 50%
17%
• Lakes, Clairvest & Och-Ziff are the only equity owners of Chisholm
Creek Casino Resort.
• Lakes Entertainment will manage Chisholm Creek Casino Resort.
• Three other groups that were involved in bringing the project together
(Foxwoods, Double Down, Rick Worner) are being paid fixed fees, but
have no ownership in the casino project & no casino management role role.
• Double Down will also develop and operate a hotel.
3

4. AGENDA
I. Key Review Board considerations
II. Wh
II Why Chisholm Creek Casino Resort is a
win for the citizens of Kansas:
» Project certainty
» First class destination casino
First-class
» Experienced management team
III. Answers to consultants’ questions
The images, renderings, drawings, written and oral statements contained in this presentation are for illustrative purposes only, since final engineering and
architectural plans are in the process of being developed and may vary from this presentation. In the event that any portion of this presentation, including but not
limited to the oral and written statements herein, conflict with Exhibit C of Chisholm Creek Casino Resort LLC’s Lottery Gaming Facility Management Contract,
Exhibit C shall control. 4

5. Key Review Board
y
Considerations
5

6. KEY
CONSIDERATIONS
Does this contract maximize revenues for the State of Kansas? Yes.
• Despite today’s economic conditions, the Review Board’s consultants project
revenues from Phase I to range from $144 to $163 million.
Does this contract encourage tourism? Yes.
• We will develop a true destination casino with a state-of-the-art gaming experience
and first-class non-gaming amenities that include a bar with a live entertainment
venue, three restaurants and a hotel with conference and meeting space.
• Exceptional design will create a must-see attraction. Unparalleled customer service
will generate repeat visitation.
g p
• The Review Board’s consultants estimate over two million annual visitors to
Chisholm Creek. This will make the destination one of the most visited tourist
attractions in the area.
Does this contract serve the interest of the people of Kansas? Yes.
• The all-cash proposal gives certainty.
• The property will be a first-class destination casino
first class casino.
• The property will be managed by an experienced operator.
6

7. Project Certainty
j y
7

8. PROJECT
CERTAINTY
• We are proposing a 100% equity-funded project in order to
provide maximum certainty and speed of opening to the
State f K
St t of Kansas.
• The
Th project would be phased, with an initial i
j t ld b h d ith i iti l investment
t t
(including privilege fee) of approximately $150 million - all
cash.
• The Review Board’s consultants have verified our
partnership s
partnership’s ability to fund this investment (if Lakes is
unable to meet its funding obligations, our partners have
agreed to cover any shortfalls).
8

9. PROJECT
CERTAINTY
Why choosing a responsible, all-equity project matters: numerous overly-
ambitious and undercapitalized casino projects sit unfinished across the
country today. Echelon
Seneca Casino
Buffalo,
Buffalo NY
Las Vegas, NV
Revel
Atlantic City, NJ
Fontainebleau
Las Vegas, NV
Margaritaville 9
Biloxi, MS

10. A First-Class Destination Casino
10

11. FIRST-CLASS
DESTINATION
•Chisholm Creek will be one of the top attractions in the region because of location, size
11
of the investment, first-class gaming experience and its quality service.

12. FIRST-CLASS
DESTINATION
Phase I
• Estimated $125 million initial investment excluding $25 million
privilege fee
• Direct access to I-35
• 1,500 guest parking spaces; 400 employee spaces and at least
25 oversized spaces
i d
• 1,300 slot machines with room to quickly expand to 1,500 if
demand dictates
• 30 t bl games i l di bl kj k craps, roulette, & b
table including blackjack, l tt baccarat t
• 250-seat or larger buffet
• 30-seat or larger café offering around-the-clock service
• 125-seat multi-function entertainment restaurant composed of a
steakhouse, elevated sports bar on the casino floor, and seating
that converts to a live music venue/nightclub
• Emergency services building to benefit all of Sumner County
12

13. FIRST-CLASS
DESTINATION
Potential interior styles for Phase I.
13

14. FIRST-CLASS
DESTINATION
Phase I (continued)
• Commitment from third-party developer to open hotel as
p y p p
part of Phase I
• Hotel to be operational no later than six months after the
casino opening
• Minimum of 100 hotel rooms
• Minimum of seven luxury suites
• Pool
• Exercise room
• 5,000
5 000 square f
feet of multi-function meeting and
f lif i i d
conference facilities
14

15. FIRST-CLASS
DESTINATION
Total build-out will include, at a minimum:
• $
$225 million total investment (
(excluding $ million
g $25
privilege fee)
• 2,000 slot machines
• 50 table games
• 12,000 square feet of convention space
• 150 hotel rooms
50 ote oo s
• Five restaurants
• 30,000 square feet of entertainment space
15

16. FIRST-CLASS
DESTINATION
A first-class development team.
• We have commenced an aggressive Harrah’s Prairie Band Hotel &
pre-development schedule to be able Convention Center
to start construction as soon as Hnedak Bobo Group
possible should we be awarded the
license.
Wind Creek Atmore
• Key members of the team include: Casino & Hotel
Hnedak Bobo Group
– Civil Engineer: MKEC
g
– Architect: Hnedak Bobo Group
– Interior Design: Cagley and Tanner
Design
– Structural: Uzun & Case Westin Memphis
Beale Street Hotel
– MEP/FP: FEA Consulting Engineers Hnedak Bobo Group
– Specialty Lighting: John Levy Lighting
– Landscape Architecture: TBG Partners
16

17. FIRST-CLASS
DESTINATION
The contemporary prairie-style theme is
appropriate for the market.
17

18. FIRST-CLASS
DESTINATION
The contemporary prairie-style theme is
appropriate for the market.

19. FIRST-CLASS
DESTINATION
Phase I Plan
Commitment from third-party developer to build Phase I hotel which may not
be physically connected to casino building as depicted in this rendering. 19

20. FIRST-CLASS
DESTINATION
Phase I will be a first-class destination.
Phase I Program
Commitment from third-party developer to build Phase I hotel which may not
be physically connected to casino building as depicted in this rendering. 20

21. FIRST-CLASS
DESTINATION
Site plan focused on ease of access, I-35
visibility and future build-out.
Master Plan
21

22. FIRST-CLASS
DESTINATION
Site plan focused on ease of access, I-35
visibility and future build-out.
Floor Plan
22

23. FIRST-CLASS
DESTINATION
MKEC Engineering Consultants, Inc. (MKEC) is
a Wichita-based, 160-member, full-service
engineering and land planning firm founded in
1982.
So f
S far on this project, MKEC h completed:
thi j t has l t d
• ALTA and topographic surveys
• Phase I environmental assessment
• USACE jurisdictional determination
• Assessment of utility corridors (right-of-way)
• Assessment of utility providers
A t f tilit id
• Assessment of potential roadway
improvements
23

24. FIRST-CLASS
DESTINATION
Project schedule will benefit from cooperation:
• Area municipalities
• Utility providers
• KDOT
• KTA
• SSumner County
C t
MKEC is actively addressing:
• Detailed drainage analysis
• Utility supplier agreements (water, sewer, gas, electric)
• Traffic study
• Platting
• Permitting and regulatory requirements
• Geotechnical investigation
24

25. FIRST-CLASS
DESTINATION
Local issues of water, sewer, gas, electric service &
traffic are being addressed by MKEC
25

26. FIRST-CLASS
DESTINATION
The I-35 location will be convenient for travelers and
mitigate local traffic impact.
26

27. FIRST-CLASS
DESTINATION
Preliminary site drainage plan.
27

28. Experienced Management Team
28

29. EXPERIENCED
MANAGMENT
• Lakes Entertainment, Inc. is a publically traded
company on NASDAQ: LACO.
• Lakes began as Grand Casinos, Inc. in 1991 and has
developed and managed 11 g
p g gaming destinations across
g
the United States.
• In total Lakes has overseen the operation and
total,
development of more than 6,000 hotel rooms; 60
restaurants; 50 retail outlets; 17,000 gaming devices
and multiple golf courses
courses.
• Lakes currently manages a total of 5,500 slot machines,
y g , ,
150 table games, 13 restaurants and 3,300 employees
at three separate locations.
29

30. EXPERIENCED
MANAGMENT
• Lakes has a full in-house staff to oversee development and operation.
• More details on Lakes can be found in the supplemental hand-out.
Lakes Entertainment
Organizational Chart
30

31. EXPERIENCED
MANAGMENT
• Lakes is a dedicated corporate citizen
– Last year Lakes managed properties & staff gave over $6 million to charities
and local organizations
– All L k senior l
Lakes i level property personal are encouraged t b
l t l d to become active
ti
members in the local community and join charitable, civic and tourism
organizations
– All Lakes managed p p
g properties have a responsible g
p gaming p g
g program
– All Lakes managed properties offer career development programs and
continuing education opportunities for employees
• Lakes
L k properties are fi t class with over 40 awards i th past year
ti first l ith d in the t
alone including:
– 20 first place awards – Midwest Gaming & Travel Magazine
– Best Customer Satisfaction in N. California – JD Powers & Associates
N
– Best Gaming – Casino Player Magazine
– Award of Excellence - Wine Spectator
– S e ddy
Silver Addy - American Advertising Federation
e ca d e t s g ede at o
31

32. EXPERIENCED
MANAGMENT
• Grand Casino Mille Lacs opened in 1991 with no hotel, 690 restaurant seats and
limited meeting space. In future phases the project was expanded to 284 hotel
rooms, over 800 restaurant seats and 18,000 sq. ft. of meeting space. 32

33. EXPERIENCED
MANAGMENT
• Grand Casino Hinckley opened in 1992 with no hotel and 2,000 sq. feet of
entertainment space. In future phases the project was expanded to over 450
rooms and 20,000 sq. feet of entertainment space. 33

34. EXPERIENCED
MANAGMENT
• Grand Casino Gulfport opened in 1993 with no hotel rooms or entertainment
space. It quickly grew to 1,000 rooms and 21,000 square feet of meeting and
entertainment space. 34

35. EXPERIENCED
MANAGMENT
• Grand Casino Biloxi opened in 1994 with no hotel and no meeting space. It
quickly grew to 1,492 rooms and 79,000 sq. feet of meeting and event space. 35

36. EXPERIENCED
MANAGMENT
• Grand Casino Coushatta opened in 1995 with no hotel and limited entertainment
space. It quickly grew to 380 rooms and 22,000 sq. feet of meeting and
36
entertainment space.

37. EXPERIENCED
MANAGMENT
• Grand Casino Tunica opened in 1996 with 756 rooms and modest entertainment
space. It grew to over 1,300 rooms and over 100,000 sq. feet of meeting and
37
entertainment space.

38. EXPERIENCED
MANAGMENT
• Four Winds Casino Resort opened in 2007. It consistently has over 95% occupancy
in its 165-room hotel. Phase II expansion plans are being reviewed now by Lakes’
38
tribal partner.

39. EXPERIENCED
MANAGMENT
• Red Hawk Casino held its grand opening earlier this year. The master plan
for this project include hotel rooms and an event center. 39

40. EXPERIENCED
MANAGMENT
• In addition to gaming product, we have developed and managed over
2,000 hotel rooms; over 10,000 restaurant seats; 47 retail outlets and
over 55,000 sq. feet of entertainment space in phase one of past
projects.
40

41. EXPERIENCED
MANAGMENT
Note: Cimarron has only been open for three years Development efforts for a second property are currently in process Four Winds has been
years. process.
open two years and expansion plans and plans for secondary locations are under review. Red Hawk has been open less than one year.
• After phase I, our projects have added over 4,000 hotel rooms, 12
restaurants, 4 golf courses and over 300,000 sq. ft. of meeting and
entertainment space.
space
• Lakes has a proven history of continually increasing the offerings at its
41
properties.

42. Answers to
Consultants’ Questions
42

43. CONSULTANTS’
QUESTIONS
Is funding for the project certain?
• Yes, this is an all-cash proposal.
• The Review Board’s consultants have verified our group’s ability to
perform.
• If Lakes is unable to meet its funding obligations, our partners have
agreed to cover any shortfalls.
43

44. CONSULTANTS’
QUESTIONS
Is this a destination casino?
• We will develop a true destination casino with a state-of-the-art
gaming experience and first-class non-gaming amenities that
include a bar with a live entertainment venue, three restaurants
and a hotel with conference and meeting space.
• Exceptional design will create a must-see attraction. Unparalleled
p g p
customer service will generate repeat visitation.
• The Review Board’s consultants estimate over two million annual
Board s
visitors to Chisholm Creek. This will make the destination one of
the most visited tourist attractions in the area.
44

45. CONSULTANTS’
QUESTIONS
When will you add a hotel?
• We recently signed a binding agreement with a third party that
obligates them to open a hotel on our site within six months after
the casino opens.
• We are subsidizing development and operation of this hotel.
• We ill
W will continue t add additional hotel rooms over time.
ti to dd dditi lh t l ti
45

46. CONSULTANTS’
QUESTIONS
Why are your projections so much lower than the consultants for Phase I
and so much higher than the consultants for Phase II?
• Given the uncertainty surrounding any new development, our
Phase I projections reflect a conservative estimate that we would
hope t exceed.
h to d
• Our Phase II projections were based on calendar year 2022 and
assumed an annual inflation rate of 3%. Cummings and Wells
Gaming Research b th used 2015 in their assumption. H d all
G i R h both d i th i ti Had ll
three groups used the same assumptions for the year 2022 we
would have projected $230 million, Cummings $237 million and
Wells $253 million.
million
46

47. CONSULTANTS’
QUESTIONS
What assurances are there that the project will be developed to its full
potential?
• We are committed to build out the full project.
• Rather than guess what the market wants we will add amenities
wants,
based on customer feedback, which will allow for a more
successful overall project for the State.
• Lakes has
L k h a proven t k record of adding amenities t existing
track d f ddi iti to i ti
projects.
47

48. CONSULTANTS’
QUESTIONS
Is this the best contract for Kansas?
• Absolutely. The proposal has certainty. It is a first-class
destination casino and will have an experienced management
team.
48

49. CONSULTANTS’
QUESTIONS
Does this contract maximize revenues for the State of Kansas? Yes.
• Despite today’s economic conditions, the Review Board’s consultants project
revenues from Phase I to range from $144 to $163 million.
Does this contract encourage tourism? Yes.
• We will develop a true destination casino with a state-of-the-art gaming experience
p g g p
and first-class non-gaming amenities that include a bar with a live entertainment
venue, three restaurants and a hotel with conference and meeting space.
• Exceptional design will create a must-see attraction. Unparalleled customer service
will generate repeat visitation.
visitation
• The Review Board’s consultants estimate over two million annual visitors to
Chisholm Creek. This will make the destination one of the most visited tourist
attractions in the area.
Does this contract serve the interest of the people of Kansas? Yes.
• The all-cash proposal gives certainty.
• The property will be a first-class destination casino.
• The property will be managed by an experienced operator.
49

50. Thank You
You.
Questions?
50