This document summarizes presentations made to the Kansas Lottery Gaming Facility Review Board on September 3, 2008. It includes details on Pinnacle Entertainment's proposal for a $650 million casino resort in Kansas, including their plans to fund the project through existing cash, credit facilities, and future cash flows. It also reviews Pinnacle's financial performance and leverage, experience operating casinos, and alternatives for financing their current development pipeline.

1. Kansas Lottery Gaming
Facility Review Board
September 3, 2008

2. GVA Marquette Revenue Projections

3. (r) (r)
Pinnacle

4. Atlantis Paradise Island, Bahamas

5. Pinnacle/Schlitterbahn Separation
400 Acres
Connected
by River
Separated
by Road

6. San Antonio Riverwalk

12. Quality Matters
Build a Better Mousetrap
Riviera Las Vegas Wynn Las Vegas
Location Las Vegas Strip Las Vegas Strip
Hotel Rooms 2,072 2,716
Slot Machines 994 1,972
Annual Gaming
$54 Million $640 Million
Revenue

13. L’Auberge Du Lac
Gaming Positions Gaming Revenue
L'Auberge Du Lac
Coushatta (est)
20.9%
25.3%
Coushatta (est) L'Auberge Du Lac
37.1% 37.2%
Isle of Capri 25.3% Delta Downs 19.2%
Delta Downs 16.6% Isle of Capri 18.4%
Pinnacle Fair-Share Premium = 178%

14. Pinnacle Casino
Corporate Structure
County: Wyandotte
Property Name: Pinnacle Casino
Company Name: PNK Kansas
Parent Company:
Pinnacle Entertainment Inc. 100% owner
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15. Pinnacle Casino
Sources of Funds for Proposal
Total proposal costs: $650,000,000
Intention is to fund this project like all of
development projects: from a combination of
existing cash resources ($203 million cash
balance at 3/31/08), credit facility (currently set
at $625 million), ongoing cash flow generated
by current and future operations, and/or
additional capital raises from the financial
markets.
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16. Assuming Current Market
Requirements of 35% Equity
Total proposal costs $650 m
35% equity contribution $227.5 m
65% debt $422.5 m
15

17. Financial Viability
A review of the last four years has found
a huge swing in earnings from year to
year. While revenues have continued to
grow, expenditures are growing at a
faster rate.
Pinnacle has opened several properties
in the last several years resulting in large
amounts of Pre-opening costs and
interest costs
16

18. Financial Viability
While Exhibit 1 show losses every other
year, CFO has been positive
CFO decreased 35% between 2006 and
2007 in CFO from $207 million to $153
million
Last four years show major reduction in
Debt/Equity Ratio
A low Debt/Equity ratio provides the
company with financing flexibility
17

19. Financial Viability
Capital expenditures and free cash flow
figures point to the need for future
caution.
2007 capital expenditures $546 m
2007 CFO $153 m
18

20. Pinnacle
Credit Facilities
As of March 31, 2008, Pinnacle had a $625
million revolving credit facility that matures in
December 2010. Utilization of the Credit
Facility is currently limited to $350 million by
the indenture governing the 8.75% senior
subordinated notes due 2013.
As of March 31, 2008, Pinnacle had $203
million of cash and cash equivalents and
approximately $178 million of availability under
the Credit Facility.
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21. Current Committed Projects
By Pinnacle
Pinnacle Projects 2008 2009 2010 Total
St. Louis County - River City $ 127,094,442 $ 191,535,248 $ 318,629,689
Lake Charles - Sugarcane Bay $16,500,000 $137,392,576 $184,558,753 $338,451,328
Baton Rouge - Rivere $11,444,444 $99,377,963 $129,446,476 $240,268,883
Total Cash Flow of Projects $ 155,038,886 $ 428,305,786 $314,005,229 $ 897,349,901
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22. Performance for 6 months ending
June 30, 2008
Revenues increased by approximately 12.5%.
It went from $466 million to $524 million
Income from continuing operations before
taxes dropped from $6.6 million to a loss of
$75.0 million.
EBITDA dropped 20% (from $89,779,000 to
$72,519,000 in 2008).
Cash and cash equivalents dropped from $191
million down to $129 million.
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23. Comments by Pinnacle
In order to fully execute the current
development pipeline, additional funding
will be needed.
If the credit markets do not improve, it
may be in the shareholders’ best
interests to temporarily delay some of
the construction projects.
Source: March 31, 2008 Quarterly Report
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24. Pinnacle
Bank Financing
Company is trying to be flexible in terms
of possible debt and equity mix.
At the August 13, 2008 meeting
Pinnacle indicated that Entertainment
Properties Trust (EPR) was interested in
working the Pinnacle proposal.
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25. Conclusions
Pinnacle has the ability to fund the
Kansas proposal based on
Cash holdings
Available credit facilities
Cash flow from operations
24

26. Income From Continuing Operations
For first 6 months 2008 vs 2007
($ million)
2008 2007 Difference
Depreciation & Amortization 60 40 20
Pre-Opening Expenses 31 25 6
Ameristar Stock Decline 23 0 23
Two Surplus Riverboats 7 0 7
Interest Expense, Net 24 16 8
64
EBITDA 72 89 -17
81
Income from Continuing Operations -75 6 81

27. Pinnacle Entertainment Quarterly Filing

28. Gaming Industry Leverage
Net Debt / LTM EBITDA
12.0x 11.4x
9.9x
10.0x 9.2x
8.6x 8.3x
7.5x Average
8.0x 6.8x
6.0x 5.1x 5.0x 4.7x 4.6x
4.0x 3.5x 3.3x
2.0x
2.0x
0.0x
(1) (3) (2)
TRMP Station LVS Tropicana Harrah's ISLE MGM ASCA BYD PNK PF PNK WYNN PENN
___________________________
1. Adjusted to include 50% of Borgata debt and operating income.
2. Pro forma for termination of merger agreement.
3. Assumes normalized St. Louis City EBITDA of $50 million.

29. Recent Capital Raising History
May 2003 $240 million credit facility
Sept 2003 $135 million senior subordinated notes
Dec 2003 $300 million credit facility
Feb 2004 $128 million equity offering
Mar 2004 $200 million senior subordinated notes
Aug 2004 $400 million amended credit facility
Dec 2004 $100 million senior subordinated notes
Dec 2004 $84 million equity offering
Dec 2005 $750 million credit facility
Jan 2006 $189 million equity offering
Nov 2006 $1 billion amended credit facility
Jan 2007 $368 million equity offering
June 2007 $385 million senior subordinated notes
TOTAL $4.3 Billion

30. Financing Plan ($ millions)
Anticipated Uses of Funds
River City 280 Remaining spend on $375M total budget
Sugarcane Bay 350
Baton Rouge 250
Kansas 235 $650M X 40% equity less $25M license fee
1,115
Sources of Funds
as of June 30, 2008
Cash and cash equivalents 129
Available credit facility 203 $625M line restricted to $350M by bond indentures
332
Capital Funding Needs = Approximately $780 Million

31. Financing Scenario ($ millions)
Planned Sources of Funds
Est. Insurance Recovery 40
2H08 EBITDA* 90
JPMorgan
2009 EBITDA* 201
* Equity Research Report
2010 EBITDA 245
August 6, 2008
Less Interest Expense, Net (108)
Less Maintenance CAPEX (88) Maint capex = ~$35m/yr
Liquidity from Bond Refinancings 275 Bonds are callable 10/15/08
Credit Facility Increase to $750M 125 Credit facility was $1B until mid '07
$ 781
*EBITDA has been defined by JPMorgan as earnings before, net interest expense and
other, depreciation and amortization, , income tax (benefit), pre-opening expense, early
retirement of debt/other, discontinued operations, net of tax.

32. Alternative Financing Scenarios
Asset Sales
Sold California gaming assets in 2006 for $40.7 million
Equity Issuance
Feb 2004 $128 million
Dec 2004 $84 million
Jan 2006 $189 million
Jan 2007 $368 million
Convertible Bonds
Partnerships

33. Experience Matters
Major Tribal Countries/ Hotel Slot Table
Racinos
Casinos Casinos States Rooms Machines Games
Pinnacle 9 0 0 6 2,634 10,695 360
Cordish 0 0 1 1 0 2,000 0
Golden
Gaming 4 0 0 2 70 1,668 40
Mohegans 0 1 1 2 1,176 8,400 318

34. Pinnacle Experience
Financing experience
Over $4 billion in capital raised in last 5 years
Operating experience
Proven track record operating successful casino resorts in
highly-competitive gaming markets
National MyChoice program with 4.7 million gamers
Development experience
Over $1 billion of casino construction in past 4 years

35. Conclusion
Anyone can build you a
bigger mousetrap;
Who will build you the
BEST mousetrap?

36. Kansas Lottery Gaming
Facility Review Board
September 3, 2008