This document provides revenue projections for three proposed casinos in Sumner County, Kansas - Harrah's Kansas, Penn National, and Marvel Gaming. It summarizes the methodology used, including defining the trade area and competitive casinos. It then provides visitor projections from the applicants and Wells Gaming Research, as well as revenue projections with and without a proposed Cherokee County casino. Specific statistics on revenue and expenses are also given for Penn National.
This document provides projections for gaming revenue from a proposed Penn National casino in Cherokee County, Kansas. It summarizes Wells Gaming Research's methodology for the projections, which included using a proprietary gravity model to define the trade area and population data, and developing scenarios accounting for the casino's proposed size and location. It then provides details on the assumptions for the Penn National Cherokee casino, presents gaming visit and revenue projections under various scenarios from 2010-2012, and compares the projections to an existing nearby casino.
This document provides casino revenue projections for a proposed generic casino in Wyandotte County, Kansas within the Northeast gaming zone. It summarizes the existing casino capacity and revenues in the region, and provides three scenarios estimating revenues in 2012 from existing casinos plus proposed expansions and new casinos, including the generic Wyandotte County casino. Under the scenarios, total casino revenues in the region are projected to increase from almost $923 million in 2007 to between $966 million and $989 million in 2012.
The document provides a market assessment for four gaming facility proposals in the Northeast Gaming Zone of Kansas. It analyzes demographic data within 30, 60, and 100 mile radii of the proposed facilities, including population size and growth, age distribution, racial composition, education levels, and financial metrics like income and net worth. For each demographic factor, data is presented for 2008 and projections for 2013 to understand trends. Caveats are also provided for some of the proposed facilities related to their golf courses, retail offerings, synergies with other attractions, and visitor research methodology.
The document provides details from a gaming revenue projection report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. It outlines the methodology used, including defining the trade area and population data, and assumptions made for four proposed Wyandotte County casino projects. It then provides projections for visitor numbers, gaming revenues, and income statements for the casino, rooms, food, beverage, and other departments for each proposed casino, comparing the projections to Nevada casino data. Biographical information is also provided on Richard Wells, founder and president of Wells Gaming Research.
The three proposed casino projects in Kansas Southeast Zone are similar in their Phase 1 concepts, having a minimum critical mass to win the bid but also achieve initial success. Camptown and Kansas Crossing propose smaller local casinos, while Castle Rock proposes a larger regional destination. All have similar potential for Phase 1 success despite different strengths and weaknesses. The key decision is whether to prefer two smaller local casinos or one larger regional casino. The regional casino has the greatest revenue potential but also the least room for error. The owner/team's ability to adapt may be more important than initial plans. However, the tax rate difference between Kansas and Oklahoma gives Oklahoma casinos an advantage in any marketing war.
This document summarizes Douglas Walker's presentation on forecasting economic impacts and competitive impacts of casinos in southeast Kansas. Some key points:
- Walker estimates that a new casino would result in a 9.9% increase in employment, 3.4% increase in average weekly wages, and 1.7% increase in the number of establishments in the county. Crawford County is estimated to see larger gains due to its larger population.
- 14 casinos in northeast Oklahoma located within 25 miles of the Kansas border could competitively impact the proposed southeast Kansas casinos. Walker uses a model of competition among Missouri casinos to analyze these competitive effects.
- Location and distance between casinos may impact competition based on Hot
The document provides an analysis of the potential fiscal impacts of three proposed gaming facilities - Camptown Casino, Kansas Crossing Casino, and Castle Rock Casino - in southeast Kansas. It summarizes the methodology used, including adjustments made to the revenue estimates provided by the applicants. Revenue estimates over 5 years are provided for the state of Kansas, local counties and cities, school districts, and other impacted entities. Estimated costs to local and state governments to provide services to each facility are also summarized. The analysis finds differences between the revenue and cost estimates provided by EEC and the original numbers submitted by the applicants.
Union Gaming Analytics was commissioned by the Kansas Lottery Gaming Facility Review Board to evaluate three applicants for a gaming license in southeast Kansas. The analysis included projections for gross gaming revenue, visitation numbers, tax revenue, and economic impacts for each applicant. The methodology involved examining demographic data within drive time radii of the proposed sites, establishing a theoretical gaming market, and applying proprietary capture rates to project revenues and visitation from local, near-local, and regional populations. Consultants then evaluated the economic and fiscal impacts, amenities, and financial suitability of each applicant.
This document provides projections for gaming revenue from a proposed Penn National casino in Cherokee County, Kansas. It summarizes Wells Gaming Research's methodology for the projections, which included using a proprietary gravity model to define the trade area and population data, and developing scenarios accounting for the casino's proposed size and location. It then provides details on the assumptions for the Penn National Cherokee casino, presents gaming visit and revenue projections under various scenarios from 2010-2012, and compares the projections to an existing nearby casino.
This document provides casino revenue projections for a proposed generic casino in Wyandotte County, Kansas within the Northeast gaming zone. It summarizes the existing casino capacity and revenues in the region, and provides three scenarios estimating revenues in 2012 from existing casinos plus proposed expansions and new casinos, including the generic Wyandotte County casino. Under the scenarios, total casino revenues in the region are projected to increase from almost $923 million in 2007 to between $966 million and $989 million in 2012.
The document provides a market assessment for four gaming facility proposals in the Northeast Gaming Zone of Kansas. It analyzes demographic data within 30, 60, and 100 mile radii of the proposed facilities, including population size and growth, age distribution, racial composition, education levels, and financial metrics like income and net worth. For each demographic factor, data is presented for 2008 and projections for 2013 to understand trends. Caveats are also provided for some of the proposed facilities related to their golf courses, retail offerings, synergies with other attractions, and visitor research methodology.
The document provides details from a gaming revenue projection report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. It outlines the methodology used, including defining the trade area and population data, and assumptions made for four proposed Wyandotte County casino projects. It then provides projections for visitor numbers, gaming revenues, and income statements for the casino, rooms, food, beverage, and other departments for each proposed casino, comparing the projections to Nevada casino data. Biographical information is also provided on Richard Wells, founder and president of Wells Gaming Research.
The three proposed casino projects in Kansas Southeast Zone are similar in their Phase 1 concepts, having a minimum critical mass to win the bid but also achieve initial success. Camptown and Kansas Crossing propose smaller local casinos, while Castle Rock proposes a larger regional destination. All have similar potential for Phase 1 success despite different strengths and weaknesses. The key decision is whether to prefer two smaller local casinos or one larger regional casino. The regional casino has the greatest revenue potential but also the least room for error. The owner/team's ability to adapt may be more important than initial plans. However, the tax rate difference between Kansas and Oklahoma gives Oklahoma casinos an advantage in any marketing war.
This document summarizes Douglas Walker's presentation on forecasting economic impacts and competitive impacts of casinos in southeast Kansas. Some key points:
- Walker estimates that a new casino would result in a 9.9% increase in employment, 3.4% increase in average weekly wages, and 1.7% increase in the number of establishments in the county. Crawford County is estimated to see larger gains due to its larger population.
- 14 casinos in northeast Oklahoma located within 25 miles of the Kansas border could competitively impact the proposed southeast Kansas casinos. Walker uses a model of competition among Missouri casinos to analyze these competitive effects.
- Location and distance between casinos may impact competition based on Hot
The document provides an analysis of the potential fiscal impacts of three proposed gaming facilities - Camptown Casino, Kansas Crossing Casino, and Castle Rock Casino - in southeast Kansas. It summarizes the methodology used, including adjustments made to the revenue estimates provided by the applicants. Revenue estimates over 5 years are provided for the state of Kansas, local counties and cities, school districts, and other impacted entities. Estimated costs to local and state governments to provide services to each facility are also summarized. The analysis finds differences between the revenue and cost estimates provided by EEC and the original numbers submitted by the applicants.
Union Gaming Analytics was commissioned by the Kansas Lottery Gaming Facility Review Board to evaluate three applicants for a gaming license in southeast Kansas. The analysis included projections for gross gaming revenue, visitation numbers, tax revenue, and economic impacts for each applicant. The methodology involved examining demographic data within drive time radii of the proposed sites, establishing a theoretical gaming market, and applying proprietary capture rates to project revenues and visitation from local, near-local, and regional populations. Consultants then evaluated the economic and fiscal impacts, amenities, and financial suitability of each applicant.
This document summarizes a presentation given to the Kansas Racing and Gaming Commission Facilities Review Board. It discusses the economic impact analysis conducted for three proposed gaming facility projects in the South Central zone of Kansas. The analysis examined the economic impacts of construction and operations for the proposed facilities, as well as potential competitive effects on non-gaming businesses. For both construction and operations, the largest project was found to have the greatest economic impacts in terms of output, employment and wages. The analysis also indicated some retail sectors in the region have excess demand that could be met by the proposed facilities.
This document provides a market assessment for three gaming facility proposals in the South Central Gaming Zone of Kansas. It analyzes demographic data within 30, 60, and 100 mile radii of the proposed Exit 19 and Exit 33 locations on Interstate 35. The assessments show that within all radii, the populations at both locations have similar characteristics in terms of size, age, race, education levels, and financial metrics. The document also provides an index of potential consumer behavior for residents within the market areas.
This document analyzes the potential economic impacts of three proposed gaming facilities in Sumner County, Kansas. It examines both the construction impacts from building the facilities in 2010 and the operating impacts during the first full year of operations in 2011. For construction, the largest project, Sumner Resorts/Harrah's, is estimated to generate $458.9 million in total economic output, support 4,380 jobs, and provide $179.1 million in wages for Kansans. For operations in 2011, Sumner Resorts/Harrah's is projected to produce $1.1 billion in total economic output, support over 5,000 jobs, and provide $230 million in wages. The analysis also considers potential
The document discusses Harrah's proposal for a casino in Mulvane, Kansas and provides supporting exhibits. It summarizes that the Sumner County Commission initially rejected the proposal, costing the county $4.1 million annually in lost revenue. This led the City of Mulvane to endorse Harrah's proposal. Exhibits show the city council resolution endorsing the proposal and its 14 findings of fact. Additional exhibits demonstrate support from 5,000 signatures in Mulvane and a survey finding that 56% of Mulvane residents support a casino, with 26% opposed. The proposal argues the selected Exit 33 location will generate more revenue than other locations due to its proximity to population, labor, tourism, and
Harrah's Entertainment is proposing a new casino resort called Harrah's Kansas in Sumner County. The vice chairman of Harrah's board, Charles Atwood, argues that it will deliver greater economic benefits to Sumner County and the state of Kansas compared to other proposals. Harrah's has experience successfully developing major casino resorts in other states that have generated hundreds of millions of dollars in investments.
The document provides a market assessment for two potential gaming facility locations in Kansas, examining demographic data and market potential within 30, 60, and 100 mile radii. It analyzes population characteristics like age, race, education, income, and propensity to participate in various entertainment activities. Existing amenities in the areas like hotels, conventions, entertainment, outdoor recreation, and golf are also reviewed. The analysis aims to evaluate each location's ability to maximize revenues, promote tourism, and benefit Kansas as outlined in the state's gaming legislation.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms for those who already suffer from conditions like depression and anxiety.
The document evaluates the non-gaming amenities proposed by Kansas Entertainment for a gaming facility in Wyandotte, KS. It finds that while the initial amenities are not extensive, they include some quality elements that could promote tourism and gaming revenue. However, the proposal may drive significantly more revenue if anticipated future developments like a hotel and entertainment district are built. The consultants conclude that Kansas Entertainment's marketing experience will help them realize more benefit from the existing amenities than other operators might.
Will Cummings of Cummings Associates presented gaming revenue projections for two proposed casinos in Kansas to the Lottery Gaming Facility Review Board. For the Kansas Entertainment casino in Phase 1 with 2,300 slots and no hotel, Cummings projected $203 million in annual revenue, attracting 110,400 tourists. For the full build with 3,000 slots and 500 hotel rooms, Cummings projected $261.6 million in annual revenue and 209,600 tourists. Cummings' projections were slightly below the applicant's projections for Phase 1 but 25% lower for the full build.
The document summarizes gaming revenue and casino visit projections for a proposed Northeast Gaming Zone and casino in Wyandotte County, Kansas. It outlines the methodology used, defines the trade area population of over 3 million people within a 125-mile radius, and compares the proposed casino's capacity and projected revenues to existing nearby casinos in Kansas, Missouri, and Oklahoma. The projections estimate that the new casino would generate $151.9 million in gaming revenues in Phase I and $255.1 million at full build out, and attract 2.15 million and 3.29 million visits respectively, though revenues and visits could vary by 16-18% and 8-10% from those estimates.
The document summarizes a meeting between Penn National Gaming, International Speedway Corporation, and the Kansas Lottery Gaming Facility Review Board. It outlines the partnership between Penn National and ISC to develop a casino and entertainment district at Kansas Speedway. It details the project timeline, estimated economic impacts and community benefits, and endorsements from local organizations.
This document analyzes the fiscal impact of a proposed entertainment facility in Kansas. It estimates that over a 7-year period the facility would generate $283 million in new revenue for the state and $70 million in surpluses for local governments. Revenues are projected from gaming, property and sales taxes, while costs are estimated for law enforcement, education and administration. The analysis assumes the developer will cover infrastructure costs and that few new residents will impact services or schools due to existing capacity. It concludes the facility would result in surpluses for all analyzed government entities.
The document summarizes presentations made at the KRGC Facilities Review Board meetings in Topeka, Kansas on September 2-3 regarding the proposed gaming facilities in the Northeast zone. Economic impact analyses were conducted on the construction and first full year of operations of four proposed facilities - Hard Rock/Speedway, Golden Heartland, Pinnacle, and Legends Sun. Construction was estimated to generate over $650 million in economic output and over 6,500 jobs. Annual operations were projected to produce over $200 million in economic output and around 2,000 jobs, with potential competitive effects on local retail, entertainment, and food and beverage businesses.
The document provides a summary of a gaming revenue projection report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. It outlines the methodology used, including defining the trade area and scenarios analyzed. It then provides projections for visitor numbers and gaming revenues for proposed casinos in Boot Hill and Dodge City under different scenarios, with Boot Hill projections showing higher visitation and revenue figures. Charts and tables compare the results to existing casinos and the applicants' own projections.
This document is a market study report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. It estimates gaming revenue projections for casinos in Kansas' four gaming zones. The report outlines the research methodology, which included developing custom gravity models for each zone. It summarizes the population and projected gaming capacity in each zone. Revenue projections under three scenarios are provided for each zone from 2008 to 2012, with estimates of low, mid, and high gaming revenues.
This document provides a summary of Wells Gaming Research's analysis of projected gaming revenues for proposed casinos in the South Central gaming zone of Kansas. It outlines the research methodology, including defining the trade area and competitive casinos within 150 miles. Gravity modeling was used to project revenues for three proposed casinos - Harrah's Kansas Resort, Penn National Sumner, and Marvel Gaming. Financial analyses were also provided for each casino's proposed balance sheet and income statement.
This document is a report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board assessing gaming revenue projections for a proposed Penn National Gaming casino in Cherokee County, Kansas. The report details the research methodology used, including analyzing population data, compiling casino capacity and amenities for competitors, and using a proprietary gravity model to project gaming revenues under different scenarios. Projected revenues were compared to Penn National's pro forma projections to evaluate feasibility. Limiting conditions are also outlined regarding the use and distribution of the report.
This document provides an overview and analysis of casino gaming projections for the Northeast Gaming Zone of Kansas, specifically focusing on the Hollywood Casino proposed for the Kansas Speedway site. It details the research methodology used, including defining the trade area, compiling facility and demographic data, developing a gravity model, and conducting comparative analyses. Projections are provided for casino visits and gaming revenues for the Hollywood Casino over the period of 2010-2015, taking into account factors like competition and the economic recession.
This document provides projections of casino visits and gaming revenues for the proposed Chisholm Creek Casino Resort in the South Central Gaming Zone of Kansas. It was prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. The report defines the trade area, describes the Chisholm Creek site and facilities, provides demographic data for the trade area, and projects casino visits and gaming revenues through 2015 using a proprietary gravity model. Comparisons are also made to the three applicants from 2008 and the impact of the economic recession is analyzed.
This document summarizes a presentation by Will Cummings to the Kansas Lottery Gaming Facility Review Board on projections for gaming revenue in the Southeast Gaming Zone of Kansas. Cummings presents his own projections, which are lower than those of Penn National due to differences in assumptions around how spending decreases with distance. Cummings' projections are based on gravity models showing that spending falls off sharply with increased distance from a casino, while Penn National's assume more consistent spending across distance. Charts show the significant differences between the two sets of projections, particularly regarding out-of-state counties.
The document summarizes a market assessment for a proposed gaming facility in southeast Kansas. It examines the demographic and financial characteristics of populations within 30, 60, and 90 minutes of the location. Entertainment and gambling preferences are also assessed. Significant competition from 50 casinos in Oklahoma is noted. The proposal suggests a casino with 900 slots and 30 tables along with various food and beverage options. However, it is assessed that the facility would likely operate as an overflow property and not significantly grow the existing market due to limited amenities and competition from nearby facilities.
The document analyzes gaming revenue and visit projections for two proposed casinos in South Central Kansas - Global Gaming's WinSpirit casino and Peninsula Gaming's Kansas Star casino. Wells Gaming Research customized proprietary models to project revenues and visits for each casino over multiple phases of development, accounting for existing and planned competition. Their projections show WinSpirit with higher revenues and visits initially, but Kansas Star surpassing it once fully built out. The addition of a 1,000 slot Wyandotte tribal casino would significantly reduce projections for both facilities by 17-43% according to the analysis.
This document summarizes a presentation given to the Kansas Racing and Gaming Commission Facilities Review Board. It discusses the economic impact analysis conducted for three proposed gaming facility projects in the South Central zone of Kansas. The analysis examined the economic impacts of construction and operations for the proposed facilities, as well as potential competitive effects on non-gaming businesses. For both construction and operations, the largest project was found to have the greatest economic impacts in terms of output, employment and wages. The analysis also indicated some retail sectors in the region have excess demand that could be met by the proposed facilities.
This document provides a market assessment for three gaming facility proposals in the South Central Gaming Zone of Kansas. It analyzes demographic data within 30, 60, and 100 mile radii of the proposed Exit 19 and Exit 33 locations on Interstate 35. The assessments show that within all radii, the populations at both locations have similar characteristics in terms of size, age, race, education levels, and financial metrics. The document also provides an index of potential consumer behavior for residents within the market areas.
This document analyzes the potential economic impacts of three proposed gaming facilities in Sumner County, Kansas. It examines both the construction impacts from building the facilities in 2010 and the operating impacts during the first full year of operations in 2011. For construction, the largest project, Sumner Resorts/Harrah's, is estimated to generate $458.9 million in total economic output, support 4,380 jobs, and provide $179.1 million in wages for Kansans. For operations in 2011, Sumner Resorts/Harrah's is projected to produce $1.1 billion in total economic output, support over 5,000 jobs, and provide $230 million in wages. The analysis also considers potential
The document discusses Harrah's proposal for a casino in Mulvane, Kansas and provides supporting exhibits. It summarizes that the Sumner County Commission initially rejected the proposal, costing the county $4.1 million annually in lost revenue. This led the City of Mulvane to endorse Harrah's proposal. Exhibits show the city council resolution endorsing the proposal and its 14 findings of fact. Additional exhibits demonstrate support from 5,000 signatures in Mulvane and a survey finding that 56% of Mulvane residents support a casino, with 26% opposed. The proposal argues the selected Exit 33 location will generate more revenue than other locations due to its proximity to population, labor, tourism, and
Harrah's Entertainment is proposing a new casino resort called Harrah's Kansas in Sumner County. The vice chairman of Harrah's board, Charles Atwood, argues that it will deliver greater economic benefits to Sumner County and the state of Kansas compared to other proposals. Harrah's has experience successfully developing major casino resorts in other states that have generated hundreds of millions of dollars in investments.
The document provides a market assessment for two potential gaming facility locations in Kansas, examining demographic data and market potential within 30, 60, and 100 mile radii. It analyzes population characteristics like age, race, education, income, and propensity to participate in various entertainment activities. Existing amenities in the areas like hotels, conventions, entertainment, outdoor recreation, and golf are also reviewed. The analysis aims to evaluate each location's ability to maximize revenues, promote tourism, and benefit Kansas as outlined in the state's gaming legislation.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms for those who already suffer from conditions like depression and anxiety.
The document evaluates the non-gaming amenities proposed by Kansas Entertainment for a gaming facility in Wyandotte, KS. It finds that while the initial amenities are not extensive, they include some quality elements that could promote tourism and gaming revenue. However, the proposal may drive significantly more revenue if anticipated future developments like a hotel and entertainment district are built. The consultants conclude that Kansas Entertainment's marketing experience will help them realize more benefit from the existing amenities than other operators might.
Will Cummings of Cummings Associates presented gaming revenue projections for two proposed casinos in Kansas to the Lottery Gaming Facility Review Board. For the Kansas Entertainment casino in Phase 1 with 2,300 slots and no hotel, Cummings projected $203 million in annual revenue, attracting 110,400 tourists. For the full build with 3,000 slots and 500 hotel rooms, Cummings projected $261.6 million in annual revenue and 209,600 tourists. Cummings' projections were slightly below the applicant's projections for Phase 1 but 25% lower for the full build.
The document summarizes gaming revenue and casino visit projections for a proposed Northeast Gaming Zone and casino in Wyandotte County, Kansas. It outlines the methodology used, defines the trade area population of over 3 million people within a 125-mile radius, and compares the proposed casino's capacity and projected revenues to existing nearby casinos in Kansas, Missouri, and Oklahoma. The projections estimate that the new casino would generate $151.9 million in gaming revenues in Phase I and $255.1 million at full build out, and attract 2.15 million and 3.29 million visits respectively, though revenues and visits could vary by 16-18% and 8-10% from those estimates.
The document summarizes a meeting between Penn National Gaming, International Speedway Corporation, and the Kansas Lottery Gaming Facility Review Board. It outlines the partnership between Penn National and ISC to develop a casino and entertainment district at Kansas Speedway. It details the project timeline, estimated economic impacts and community benefits, and endorsements from local organizations.
This document analyzes the fiscal impact of a proposed entertainment facility in Kansas. It estimates that over a 7-year period the facility would generate $283 million in new revenue for the state and $70 million in surpluses for local governments. Revenues are projected from gaming, property and sales taxes, while costs are estimated for law enforcement, education and administration. The analysis assumes the developer will cover infrastructure costs and that few new residents will impact services or schools due to existing capacity. It concludes the facility would result in surpluses for all analyzed government entities.
The document summarizes presentations made at the KRGC Facilities Review Board meetings in Topeka, Kansas on September 2-3 regarding the proposed gaming facilities in the Northeast zone. Economic impact analyses were conducted on the construction and first full year of operations of four proposed facilities - Hard Rock/Speedway, Golden Heartland, Pinnacle, and Legends Sun. Construction was estimated to generate over $650 million in economic output and over 6,500 jobs. Annual operations were projected to produce over $200 million in economic output and around 2,000 jobs, with potential competitive effects on local retail, entertainment, and food and beverage businesses.
The document provides a summary of a gaming revenue projection report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. It outlines the methodology used, including defining the trade area and scenarios analyzed. It then provides projections for visitor numbers and gaming revenues for proposed casinos in Boot Hill and Dodge City under different scenarios, with Boot Hill projections showing higher visitation and revenue figures. Charts and tables compare the results to existing casinos and the applicants' own projections.
This document is a market study report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. It estimates gaming revenue projections for casinos in Kansas' four gaming zones. The report outlines the research methodology, which included developing custom gravity models for each zone. It summarizes the population and projected gaming capacity in each zone. Revenue projections under three scenarios are provided for each zone from 2008 to 2012, with estimates of low, mid, and high gaming revenues.
This document provides a summary of Wells Gaming Research's analysis of projected gaming revenues for proposed casinos in the South Central gaming zone of Kansas. It outlines the research methodology, including defining the trade area and competitive casinos within 150 miles. Gravity modeling was used to project revenues for three proposed casinos - Harrah's Kansas Resort, Penn National Sumner, and Marvel Gaming. Financial analyses were also provided for each casino's proposed balance sheet and income statement.
This document is a report prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board assessing gaming revenue projections for a proposed Penn National Gaming casino in Cherokee County, Kansas. The report details the research methodology used, including analyzing population data, compiling casino capacity and amenities for competitors, and using a proprietary gravity model to project gaming revenues under different scenarios. Projected revenues were compared to Penn National's pro forma projections to evaluate feasibility. Limiting conditions are also outlined regarding the use and distribution of the report.
This document provides an overview and analysis of casino gaming projections for the Northeast Gaming Zone of Kansas, specifically focusing on the Hollywood Casino proposed for the Kansas Speedway site. It details the research methodology used, including defining the trade area, compiling facility and demographic data, developing a gravity model, and conducting comparative analyses. Projections are provided for casino visits and gaming revenues for the Hollywood Casino over the period of 2010-2015, taking into account factors like competition and the economic recession.
This document provides projections of casino visits and gaming revenues for the proposed Chisholm Creek Casino Resort in the South Central Gaming Zone of Kansas. It was prepared by Wells Gaming Research for the Kansas Lottery Gaming Facility Review Board. The report defines the trade area, describes the Chisholm Creek site and facilities, provides demographic data for the trade area, and projects casino visits and gaming revenues through 2015 using a proprietary gravity model. Comparisons are also made to the three applicants from 2008 and the impact of the economic recession is analyzed.
This document summarizes a presentation by Will Cummings to the Kansas Lottery Gaming Facility Review Board on projections for gaming revenue in the Southeast Gaming Zone of Kansas. Cummings presents his own projections, which are lower than those of Penn National due to differences in assumptions around how spending decreases with distance. Cummings' projections are based on gravity models showing that spending falls off sharply with increased distance from a casino, while Penn National's assume more consistent spending across distance. Charts show the significant differences between the two sets of projections, particularly regarding out-of-state counties.
The document summarizes a market assessment for a proposed gaming facility in southeast Kansas. It examines the demographic and financial characteristics of populations within 30, 60, and 90 minutes of the location. Entertainment and gambling preferences are also assessed. Significant competition from 50 casinos in Oklahoma is noted. The proposal suggests a casino with 900 slots and 30 tables along with various food and beverage options. However, it is assessed that the facility would likely operate as an overflow property and not significantly grow the existing market due to limited amenities and competition from nearby facilities.
The document analyzes gaming revenue and visit projections for two proposed casinos in South Central Kansas - Global Gaming's WinSpirit casino and Peninsula Gaming's Kansas Star casino. Wells Gaming Research customized proprietary models to project revenues and visits for each casino over multiple phases of development, accounting for existing and planned competition. Their projections show WinSpirit with higher revenues and visits initially, but Kansas Star surpassing it once fully built out. The addition of a 1,000 slot Wyandotte tribal casino would significantly reduce projections for both facilities by 17-43% according to the analysis.
Will Cummings of Cummings Associates presented gaming revenue projections for south-central Kansas to the Lottery Gaming Facility Review Board. The presentation discussed methodology using gravity models and factors such as location, size, and amenities. Projections were provided for two proposed casino sites, estimating market shares and slot machine performance ratings over time as facilities are expanded and competition changes. Location was emphasized as highly important to attracting customers, with visitation and spending found to decline rapidly with increased distance from gaming options.
The document summarizes gaming revenue and casino visit projections for a proposed casino in Sumner County, Kansas from a report by Wells Gaming Research presented to the Kansas Lottery Gaming Facility Review Board. It defines the trade area as 32 counties in Kansas and 21 in Oklahoma with a population of over 3 million adults. It also outlines the methodology used and compares the proposed Chisholm Creek casino's projected revenues and visits to prior applications and existing Oklahoma casinos. Projections estimate the Chisholm Creek casino would generate $139.8 million in gaming revenues in phase 1 and $206.1 million at full build out.
Global Gaming KS, LLC presented to the Kansas Lottery Gaming Facility Review Board in Topeka, Kansas on December 1, 2010. The presentation outlined flaws in the market analysis and estimates of other applicants, discussed Global Gaming's conservative development plans, and emphasized their financial capability, management experience, commitment to the Exit 19 location, and plans to support the Sumner County community. Global Gaming argued they are the best choice for the gaming license.
Will Cummings of Cummings Associates presented gaming revenue projections for the proposed Chisholm Creek casino in south-central Kansas. Cummings projected that phase 1 of the casino with 1,300 slots and no hotel would generate $163 million in total annual revenue. The full buildout with 2,000 slots and a 150-room hotel was projected to generate $192.8 million in total annual revenue. Cummings' projections were higher than the applicant's projections of $121.1 million for phase 1 and $230 million for the full buildout. Cummings also projected the casinos would result in $48.8 million in net exports and attract 73,300 tourists annually for phase 1,
Leg sun lottery review board rebutal-final finalkrgc
This document discusses the proposal for a new casino in Kansas by Legends Sun Management. It provides details to support why Legends Sun should be selected as the best plan. The key points made include:
1) Legends Sun has a proven track record of successful casino operations and delivering "wow factor" destinations.
2) Financial projections by independent gaming consultants show Legends Sun's proposal could achieve gaming revenue of $272-299 million annually, which Legends Sun is best positioned to attain due to its experience.
3) Legends Sun has the most extensive gaming experience compared to other applicants, including operating the highly successful Mohegan Sun casino in Connecticut.
This proposal argues Legends
The document is a response letter from an organization to the Kansas Racing and Gaming Commission addressing follow-up questions from a previous presentation. It provides data on gaming hold percentages, customer satisfaction and loyalty rates, travel patterns to an existing casino, and proposes plans to include a racetrack at a new facility to attract additional customers. Supporting research is presented showing auto racing fans are also likely to participate in gaming.
This presentation summarizes gaming revenue projections for four proposed casinos in the Northeast Kansas gaming zone. Cummings Associates projects that the Speedway casino will generate $271.6 million in annual revenue, followed by Golden Heartland at $258.8 million, Pinnacle at $239.2 million, and Legends Sun at $212 million. Location and size are significant factors, with larger facilities projected to earn more. The projections are lower than estimates from applicants, with Cummings noting key differences in modeling assumptions around local versus long-distance customers.
The document summarizes gaming revenue projections presented by Will Cummings to the Lottery Gaming Facility Review Board for casinos proposed in the South-Central gaming zone of Kansas. Cummings presented lower projections than the casino proponents, forecasting $202 million in revenue for Harrah's, $151 million for Marvel, and $143 million for Penn, compared to the proponents' higher estimates. The differences were largely due to Cummings using a gravity model based on spending decreasing with distance from a casino, while proponents assumed higher spending from areas further away.
The document provides a review and comparison of the ancillary development proposals of two applicants - Global Gaming Solutions (GGS) and Peninsula Gaming Partners (PGP) - for a gaming license in the South Central Zone of Kansas. It finds that both proposals involve investing $280-285 million to develop regional entertainment destinations relying largely on local gamers within 100 miles. While PGP forecasts higher gaming demand and revenue, GGS proposes comparable gaming capacity with lower projected spending per visitor. The review also compares the applicants' proposals for dining, bars, entertainment, hotels, retail, and parking, finding differences in concepts, capacity, and projected performance.
This group of experienced regional casino developers and operators proposes to build Kansas Crossing casino and hotel in southeast Kansas. The development is expected to generate $69 million in initial construction spending, create hundreds of jobs, and generate $10 million annually for state and local governments through taxes. As the largest entertainment venue in the region, Kansas Crossing aims to boost tourism by attracting out-of-state visitors and partnering with local organizations to promote southeast Kansas.
Civic Economics (Dan Houston, Matt Cunningham)krgc
The document analyzes the potential economic impacts of three proposed gaming facility projects in Kansas: Camptown, Kansas Crossing, and Castle Rock. It finds that Castle Rock would have the largest economic impact during construction, supporting over 900 jobs and contributing $134.2 million to total economic output. During operations in 2019, Castle Rock is estimated to support 584 jobs and contribute $72.9 million to economic output, more than the other two proposals. The analysis examines impacts from construction spending, facility operations, gaming revenues, and local resident spending.
The document analyzes and evaluates the financial suitability of three applicants for a gaming license in Southeast Kansas: Frontenac Development, Castle Rock Casino Resort, and Kansas Crossing Casino. For each applicant, it summarizes the ownership structure, project budget, proposed financing sources, and Union Gaming's analysis and conclusion on their financial viability and ability to fund the projects. While Frontenac and Kansas Crossing were deemed sufficiently capitalized, Castle Rock's ability to obtain the required debt financing was called into question due to uncertainties around land valuation and high projected leverage.
This document provides an overview and analysis of projections for new casinos proposed in southeastern Kansas. It discusses the use of gravity models to project gaming revenues and financial performance based on location, size, competition and other factors. Specifically, it examines how spending declines with distance from a casino based on players' club and other data. Bigger casinos are generally better due to economies of scale. The presentation compares various existing casinos' "power ratings" which reflect their overall attractiveness based on revenues adjusted for location.
Camptown Casino will be located in Frontenac, Kansas. It will include 750 slot machines, 20 table games, a 62-room hotel, and Gilley's Saloon entertainment venue. Phil Ruffin, an experienced casino operator, will personally finance the $84 million project. It is projected to create 300 jobs and attract nearly 1 million visitors annually from Missouri, Kansas, and other nearby states. Camptown aims to open sooner than competing proposals and will donate $50,000 annually to the local school district.
2015 LGFRB Presentation Castle Rock Casino Resort krgc
This document provides details about the proposed Castle Rock Casino Resort development project. It outlines the developers, architects, management company, contractors, and legal consultants involved. It also provides information on the size and amenities of the casino, hotel, meeting space, and other facilities. Projected revenues, taxes, employment, and visitation are presented. The management and development experience of the casino operator, American Casino and Entertainment Company, is summarized.
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.
The document discusses two proposed casino projects in Kansas - Kansas Star and WinSpirit. Kansas Star promises to invest $260 million, build amenities sooner including a 100,000 square foot event center and $25 million equestrian complex, and generate more gaming revenue, taxes, and jobs for the state. It argues Kansas Star's management team has more experience building and operating successful casino projects on time and on budget and will spend more on advertising to drive higher revenue. The document positions Kansas Star as the best and most lucrative choice for Kansas.
The document discusses the benefits of meditation for reducing stress and anxiety. Regular meditation practice can calm the mind and help prevent worrying thoughts. Meditation lowers stress levels in the body by reducing blood pressure and cortisol levels.
Dean Macomber summarizes his analysis of Global Gaming's proposal for a race track as a tourism generator. He finds that Global's projections of attracting a "Big Event" with 50,000-100,000 visitors are speculative given the limited number of comparable racing events and competition from existing tracks. Their projections of smaller events generating the remaining 50,000 visitors also seem aggressive. In contrast, an equestrian center like Peninsula proposes could attract equine, entertainment, and convention events more reliably as a tourism generator.
peninsula plans meet or exceed drainage standardskrgc
The document is a letter from Christopher Young, a civil engineering consultant, to the chairman of the Kansas Lottery Gaming Facility Review Board regarding a proposed drainage system for a proposed Kansas Star Casino development. Young serves as the City Engineer for Mulvane, Kansas and has reviewed drainage plans submitted by the developer. He concludes that the proposed drainage improvements, including a detention pond facility, will meet or exceed the City of Mulvane's stormwater drainage policy by having outflow rates less than existing conditions for 2-, 5-, 10-, and 100-year storm events.
This document is a response from Cummings Associates to submissions from Global Gaming Solutions regarding revenue projections and the effects of distance on revenues. Cummings disagrees with some of Global Gaming's assertions, such as that the revenue differential between two proposed casino sites is mostly due to attractiveness rather than distance. Cummings also argues that survey data is not an accurate predictor of economic behavior like casino spending. Overall, Cummings believes distance has a larger impact on revenues than Global Gaming suggests, based on Cummings' analysis of casino performance data from multiple markets.
The memorandum summarizes a request from the Kansas Lottery Gaming Facility Review Board for additional information about two competing casino applications in Kansas. Specifically, it provides details about 1) drainage and flooding issues at the proposed sites, 2) local approvals and endorsements for the sites, and 3) the experience of one applicant, Peninsula Gaming, with regulatory bodies in other states where criminal charges have been filed against the company and its executives related to campaign contributions. It concludes that the significant risks associated with approving Peninsula's application, including possible disqualification or inability to finance the project, outweigh any potential benefits over the other applicant, Global.
The marketing plan outlines a soft opening period followed by a grand opening 90 days later for a new casino in Sumner County, Kansas. The $1 million budget will be used for advertising, promotions, and community events to generate awareness and excitement. Key objectives include building a local player base within 100 miles, attracting travelers on Interstate 35, and establishing the casino as a new entertainment destination through gaming, restaurants, a hotel, and live entertainment events.
- The proposed Kansas Star Casino development will include new drainage infrastructure to improve drainage conditions for surrounding landowners.
- Runoff from the development and surrounding areas will be conveyed via three new swales to a 29.8-acre dry bottom detention basin located at the southeast corner of the site.
- Water in the detention basin will drain by gravity and pumping to existing culverts under 140th Avenue at a rate of 25 cfs or less, which is less than the culverts' capacity. This will ensure no adverse impacts from increased runoff.
lottery response re question from review board re peninsula's timelines exh...krgc
The document is an email from Keith Kocher of the Kansas Lottery providing comments on a timeline exhibit comparing the investment plans of two casino applicants - Kansas Star and WinSpirit. The summary includes:
1) The timelines appear fairly accurate but some clarifications are provided, including minor adjustments to WinSpirit's construction timeline and clarifying dates as maximums.
2) Some of WinSpirit's scheduled investments do not have corresponding dollar amounts in their contract.
3) The term "Tribal Gaming Facility" has a specific definition in WinSpirit's contract relating to location, ownership, and number of gaming devices.
20101204 peninsula response to board 1201 questions - description of ad astr...krgc
The document discusses a proposed $1.5 million annual scholarship program called the Kansas All Star Ad Astra Scholarship Program that would be funded by the proposed Kansas Star Casino. The program would provide $100 vouchers for K-12 students, $500 annually for teachers for supplies, and $1,000 scholarships for graduating seniors in Sumner County and Mulvane school districts. A local board of education leaders would govern the program and distribute the funds. Based on current enrollment numbers, the $1.5 million fund would exceed the anticipated costs of the program.
20101204 peninsula response to board 1201 questions - description of ad astr...
Wgr sc zone presentation
1. Task 4 - Project Specific Gaming Revenue Projections
South Central Gaming Zone - Sumner County, Kansas
Prepared For:
Kansas Lottery Gaming Facility Review Board
July 23, 2008
Wells Gaming Research
2. July 23, 2008 Wells Gaming Research 1
MethodologyMethodology
Used WGR’s proprietary gravity model
Defined trade area to include all counties that a 100-mile radius of Sumner
County encompasses or touches
Used 2007 data as status quo for baseline projections
Population data at census tract level 2000 through 2012
Utilized Harrah’s, Penn National’s, and Marvel Gaming’s size, scope, and
location assumptions for each of their proposed Sumner County casinos
Developed a custom gravity model for Harrah’s, Penn National’s, and
Marvel Gaming’s proposed casino projects
Defined and ran 2 scenarios with low, mid, and high cases for Harrah’s,
Penn National, and Marvel Gaming
Ran additional cases for Sumner County casinos without a Cherokee
County casino
Used WGR’s proprietary gravity model
Defined trade area to include all counties that a 100-mile radius of Sumner
County encompasses or touches
Used 2007 data as status quo for baseline projections
Population data at census tract level 2000 through 2012
Utilized Harrah’s, Penn National’s, and Marvel Gaming’s size, scope, and
location assumptions for each of their proposed Sumner County casinos
Developed a custom gravity model for Harrah’s, Penn National’s, and
Marvel Gaming’s proposed casino projects
Defined and ran 2 scenarios with low, mid, and high cases for Harrah’s,
Penn National, and Marvel Gaming
Ran additional cases for Sumner County casinos without a Cherokee
County casino
3. July 23, 2008 Wells Gaming Research 2
MethodologyMethodology
Visited existing casinos within the trade area and made the following
changes in assumptions:
Visited existing casinos within the trade area and made the following
changes in assumptions:
Adjusted Attraction Factors after Visits by RW:
1 Buffalo Run Casino -10%
2 Grand Lake Casino -10%
3 Kaw Southwind Casino -50%
4 Osage Million Dollar Elm Casino - Tulsa -10%
5 The Stables Casino -10%
6 Tonkawa Casino -20%
Unlikely Proposed Casinos Removed from Competitive Set:
1 Pawnee Nation Pawnee Planned OK
2 Ponca Fancy Dance Casino OK
3 Seneca-Cayuga Tribe of Oklahoma Planned OK
4 Shawnee Tribe Oklahoma Planned OK
5 Wichita & Affilated Tribes Hinton Planned OK
We estimate an additional 20M in revenue for Mulvane and 30M in
revenue for Wellington with these changes in assumptions
4. July 23, 2008 Wells Gaming Research 3
South Central - Sumner County Trade Area MapSouth Central - Sumner County Trade Area Map
5. July 23, 2008 Wells Gaming Research 4
SC Kansas - SumnerSC Kansas - Sumner
Trade area (approximate 125-mile radius) includes 34
counties in Kansas and 19 counties in Oklahoma
This trade area overlaps with the trade areas of
proposed Kansas Lottery casinos in the Northeastern,
Southeastern, and Southwestern Kansas gaming
zones
Trade area (approximate 125-mile radius) includes 34
counties in Kansas and 19 counties in Oklahoma
This trade area overlaps with the trade areas of
proposed Kansas Lottery casinos in the Northeastern,
Southeastern, and Southwestern Kansas gaming
zones
6. July 23, 2008 Wells Gaming Research 5
SC Kansas - SumnerSC Kansas - Sumner
The trade area population is 2,242,031; of which
1,549,257 are adults
Of the adult population, 500,054 (32%) live in
Sumner County and the nine contiguous counties
The trade area population is 2,242,031; of which
1,549,257 are adults
Of the adult population, 500,054 (32%) live in
Sumner County and the nine contiguous counties
7. July 23, 2008 Wells Gaming Research 6
Casinos Competing in the South Central
Kansas Trade Area
Casinos Competing in the South Central
Kansas Trade Area
Existing Casinos:
57 casinos in Oklahoma containing 28,821 slots, 287 pit tables, and 196
poker tables
6 Expansions & 8 Proposed New Casinos (eliminated 5
proposed):
14 casinos with 12,307 slots, 263 pit tables, and 32 poker tables
(including Harrah’s Kansas Sumner)
14 casinos with 12,307 slots, 278 pit tables, and 41 poker tables
(including Marvel Gaming)
14 casinos with 11,807 slots, 253 pit tables, and 23 poker tables
(including Penn National)
Existing Casinos:
57 casinos in Oklahoma containing 28,821 slots, 287 pit tables, and 196
poker tables
6 Expansions & 8 Proposed New Casinos (eliminated 5
proposed):
14 casinos with 12,307 slots, 263 pit tables, and 32 poker tables
(including Harrah’s Kansas Sumner)
14 casinos with 12,307 slots, 278 pit tables, and 41 poker tables
(including Marvel Gaming)
14 casinos with 11,807 slots, 253 pit tables, and 23 poker tables
(including Penn National)
8. July 23, 2008 Wells Gaming Research 7
Visitor Projections of Each Applicant
& WGR's Projections of Each Applicant
WGR's projections are based on Task 4, Scenario 3
2010 2011 2012 2013 2014 2015 CAGR Periods
Harrah's 785,527 3,142,106 3,316,668 3,491,229 3,491,229 3.57% 3
Marvel 3,011,250 3,282,263 3,577,666 3,756,549 3,944,377 6.32% 3
Penn National 189,970 2,148,083 2,516,040 2,764,841 2,951,166 3,100,865 9.61% 4
WGR's Projections 2010 2011 2012 CAGR Periods
Harrah's
Low 2,352,059 2,364,774 2,377,614 0.54% 2
Mid 2,891,551 2,906,746 2,922,106 0.53% 2
High 3,186,619 3,202,958 3,219,482 0.51% 2
Marvel
Low 1,234,630 1,240,235 1,245,896 0.46% 2
Mid 1,806,614 1,814,910 1,823,298 0.46% 2
High 2,169,163 2,179,072 2,189,096 0.46% 2
Penn National
Low 1,098,467 1,103,436 1,108,455 0.45% 2
Mid 1,645,117 1,652,697 1,660,359 0.46% 2
High 2,001,787 2,010,995 2,020,308 0.46% 2
Visitor ProjectionsVisitor Projections
9. July 23, 2008 Wells Gaming Research 8
Revenue Projections of Each Applicant
& WGR's Projections of Each Applicant
WGR's projections are based on Task 4, Scenario 3 data adjusted for inflation
2010 2011 2012 2013 2014 2015 2016 CAGR Periods
Harrah's $51,581,000 $206,323,000 $252,359,000 $273,610,000 $281,818,000 $290,273,000 $298,981,000 7.70% 5
Marvel $217,335,000 $236,895,000 $258,216,000 $271,126,000 $284,683,000 6.32% 3
Penn National $13,661,559 $158,044,873 $194,234,748 $217,644,057 $233,632,163 $246,530,066 11.76% 4
WGR's Projections 2010 2011 2012 CAGR Periods
Harrah's w/ inflation
Low $155,768,593 $159,688,052 $163,796,064 2.54% 2
Mid $193,997,484 $198,835,894 $203,911,008 2.52% 2
High $215,484,856 $220,823,216 $226,421,568 2.51% 2
Low $89,261,930 $91,440,902 $93,724,080 2.47% 2
Mid $131,775,139 $134,991,402 $138,363,216 2.47% 2
High $158,953,715 $162,824,770 $166,882,848 2.46% 2
Penn National w/ inflation
Low $79,202,589 $81,134,852 $83,161,008 2.47% 2
Mid $119,688,227 $122,612,240 $125,679,360 2.47% 2
High $146,340,547 $149,910,018 $153,653,616 2.47% 2
Marvel w/ inflation
Revenue ProjectionsRevenue Projections
10. July 23, 2008 Wells Gaming Research 9
WGR Attraction/Mass Factor Comparisons where Harrah's Kansas Mid = 100%
2011
% of Harrah's Kansas Mid 2008 Low Mid High Tuned
First Council Casino 26% 26% 26% 26% 26%
Harrah's Kansas 50% 100% 150% 114%
Marvel Gaming 47% 93% 140% 408%
Penn Sumner 39% 77% 116% 130%
WGR Revenue Projections w/ Inflation
2011
Harrah's Kansas Scenario 3 2008 Low Mid High Tuned
First Council Casino $31,965,780 $19,068,086 $15,366,564 $13,427,620 $14,726,020
Harrah's Kansas $159,688,052 $198,835,894 $220,823,216 $205,960,864
2011
Marvel Gaming Scenario 3 2008 Low Mid High Tuned
First Council Casino $31,965,780 $23,958,726 $19,557,150 $16,877,036 $10,506,220
Marvel Gaming $91,440,902 $134,991,402 $162,824,770 $236,468,936
2011
Penn Sumner Scenario 3 2008 Low Mid High Tuned
First Council Casino $31,965,780 $25,023,414 $20,767,908 $18,086,712 $17,327,148
Penn Sumner $81,134,852 $122,612,240 $149,910,018 $157,849,734
Harrah’s, Marvel, Penn & First CouncilHarrah’s, Marvel, Penn & First Council
11. July 23, 2008 Wells Gaming Research 10
Revenue Projections
(With & Without Cherokee Planned Casino)
Revenue Projections
(With & Without Cherokee Planned Casino)
WGR Revenue Projections Without Cherokee County Planned
Mid Case w/ Inflation 2010 2011 2012
Harrahs Kansas Resort $195,561,398 $200,437,254 $205,550,448
Marvel Gaming $133,566,107 $136,825,392 $140,242,224
Penn National Sumner $121,424,023 $124,391,048 $127,500,960
WGR Revenue Projections With Cherokee County Planned
Harrahs Kansas Resort $193,997,484 $198,835,894 $203,911,008
Marvel Gaming $131,775,139 $134,991,402 $138,363,216
Penn National Sumner $119,688,227 $122,612,240 $125,679,360
Difference of Revenue Projections With Cherokee County Planned
& Without Cherokee County Planned
Harrahs Kansas Resort $1,563,914 $1,601,360 $1,639,440
Marvel Gaming $1,790,968 $1,833,990 $1,879,008
Penn National Sumner $1,735,796 $1,778,808 $1,821,600
12. July 23, 2008 Wells Gaming Research 11
Specific Penn National StatisticsSpecific Penn National Statistics
WGR Revenue Projections Without Cherokee County Planned
Mid Case w/ Inflation 2010 2011 2012
Harrahs Kansas Resort $195,561,398 $200,437,254 $205,550,448
Marvel Gaming $133,566,107 $136,825,392 $140,242,224
Penn National Sumner $121,424,023 $124,391,048 $127,500,960
WGR Projections of Both Penn National Sites
Penn National Sumner
w/ Cherokee
$119,688,227 $122,612,240 $125,679,360
Penn National
Cherokee - Phase 1
$27,520,218 $28,372,204 $29,268,144
Total Both Penn
National Sites
$147,208,445 $150,984,444 $154,947,504
13. July 23, 2008 Wells Gaming Research 12
Summary Income Statement Accounts
As a Percent of Total Revenue
Harrah's, Penn National Sumner, & Marvel Gaming 2011 v FY2007 NV Gaming Abstract
Gaming
Revenue
Department
Expenses
Adv &
Prom
Interest
Exp
G&A
Payroll
Total G&A
Exp
EBITDAR
Statewide $72M+ w/ Hotel Rooms
w/o LV Strip FY 2007 64.5% 47.2% 2.7% 6.9% 6.8% 36.6% 24.0%
Statewide $72M+ w/ Hotel Rooms
w/ LV Strip FY 2007 46.9% 49.2% 1.5% 7.5% 6.4% 33.8% 25.2%
Clark County LV Strip $72M+ w/
Hotel Rooms FY 2007 40.8% 49.9% 1.0% 7.8% 6.2% 32.9% 25.6%
Harrah's Sumner Gaming JV LC
Pro Forma 2011 83.3% 56.6% 1.3% 12.0% 9.1% 52.2% 9.8%
Penn National 1st Full Year of
Operation Pro Forma for 2011 83.4% 49.1% 13.3% 17.3% 0.5% 50.5% 27.3%
Marvel Gaming 1st Full Year of
Operation Pro Forma for 2011 84.5% 59.7% 2.4% 10.4% 0.5% 27.3% 24.9%
Source: WGR, NV Gmg Abst, & Applicants Data
Summary Income StatementSummary Income Statement
14. July 23, 2008 Wells Gaming Research 13
Casino Department Income Statement Account
As a Percent of Total Assets
Harrah's, Penn National Sumner, & Marvel Gaming 2011 v FY2007 NV Gaming Abstract
Table
Revenue
Comp
Expense
Payroll
Tax &
Lic
Dept
Expense
Dept
Profit
Statewide $72M+ w/ Hotel Rooms
w/o LV Strip FY 2007 16.3% 13.8% 12.4% 7.8% 44.3% 55.7%
Statewide $72M+ w/ Hotel Rooms
w/ LV Strip FY 2007 34.6% 19.0% 15.2% 7.6% 53.9% 46.1%
Clark County LV Strip $72M+ w/
Hotel Rooms FY 2007 44.6% 21.8% 16.9% 7.4% 59.2% 40.8%
Harrah's Sumner Gaming JV LC
Pro Forma 2011 10.3% 12.9% 5.5% 27.0% 58.9% 41.1%
Penn National 1st Full Year of
Operation Pro Forma for 2011 12.0% 10.0% 9.8% 30.0% 49.9% 50.1%
Marvel Gaming 1st Full Year of
Operation Pro Forma for 2011 10.9% 12.3% 15.8% 25.6% 59.5% 40.5%
Source: WGR, NV Gmg Abst, & Applicants Data
Casino Department Income StatementCasino Department Income Statement
15. July 23, 2008 Wells Gaming Research 14
Rooms Department Income Statement Account
As a Percent of Total Assets
Harrah's, Penn National Sumner, & Marvel Gaming
2011 v FY2007 NV Gaming Abstract
Rooms as
% of Total
Rev
Comp Room
Sales
Payroll
Dept
Profit-
Loss
Statewide $72M+ w/ Hotel Rooms
w/o LV Strip FY 2007 11.7% 23.5% 29.6% 58.0%
Statewide $72M+ w/ Hotel Rooms
w/ LV Strip FY 2007 22.2% 16.5% 20.5% 67.6%
Clark County LV Strip $72M+ w/
Hotel Rooms FY 2007 25.8% 15.4% 19.2% 69.2%
Harrah's Sumner Gaming JV LC
Pro Forma 2011 3.2% 51.1% 23.6% 65.0%
Penn National 1st Full Year of
Operation Pro Forma for 2011 8.1% 50.0% 11.0% 79.0%
Marvel Gaming 1st Full Year of
Operation Pro Forma for 2011 3.1% 70.0% 39.5% 48.0%
Source: WGR, NV Gmg Abst, & Applicants Data
Rooms Department Income StatementRooms Department Income Statement
16. July 23, 2008 Wells Gaming Research 15
Food Department Income Statement Account
As a Percent of Total Assets
Harrah's, Penn National Sumner, & Marvel Gaming 2011 v FY2007 NV Gaming Abstract
Food as %
of Total
Rev
Comp Food
Sales
Cost of
Goods
Payroll
Dept
Profit-
Loss
Statewide $72M+ w/ Hotel Rooms
w/o LV Strip FY 2007 12.9% 29.2% 38.5% 59.6% -5.8%
Statewide $72M+ w/ Hotel Rooms
w/ LV Strip FY 2007 13.7% 20.2% 31.5% 54.1% 6.4%
Clark County LV Strip $72M+ w/
Hotel Rooms FY 2007 13.9% 17.3% 29.2% 52.4% 10.3%
Harrah's Sumner Gaming JV LC
Pro Forma 2011 12.2% 50.9% 33.0% 33.5% 22.3%
Penn National 1st Full Year of
Operation Pro Forma for 2011 4.0% 50.0% 30.8% 64.0% 5.1%
Marvel Gaming 1st Full Year of
Operation Pro Forma for 2011 5.5% 57.1% 54.0% 47.9% -3.6%
Source: WGR, NV Gmg Abst, & Applicants Data
Food Department Income StatementFood Department Income Statement
17. July 23, 2008 Wells Gaming Research 16
Beverage Department Income Statement Account
As a Percent of Total Assets
Harrah's, Penn National Sumner, & Marvel Gaming 2011 v FY2007 NV Gaming Abstract
Beverage
as % of
Total Rev
Comp
Beverage
Sales
Cost of
Goods
Payroll
Dept
Profit-
Loss
Statewide $72M+ w/Hotel Rooms
w/o LV Strip FY 2007 5.2% 56.9% 27.1% 30.5% 36.0%
Statewide $72M+ w/Hotel Rooms
w/ LV Strip FY 2007 5.3% 41.9% 21.4% 27.7% 41.0%
Clark County LV Strip $72M+ w/
Hotel Rooms FY 2007 5.4% 36.9% 19.4% 26.7% 42.7%
Harrah's Sumner Gaming JV LC
Pro Forma 2011 N/A N/A N/A N/A N/A
Penn National 1st Full Year of
Operation Pro Forma for 2011 1.0% 50.0% 30.0% 64.0% 6.0%
Marvel Gaming 1st Full Year of
Operation Pro Forma for 2011 4.1% 57.1% 29.4% 34.7% 30.2%
Source: WGR, NV Gmg Abst, & Applicants Data
Beverage Department Income StatementBeverage Department Income Statement
18. July 23, 2008 Wells Gaming Research 17
Other Department Income Statement Account
As a Percent of Total Assets
Harrah's, Penn National Sumner, & Marvel Gaming 2011 v FY2007 NV Gaming Abstract
Other as
% of Total
Rev
Comp Other
Sales
Cost of
Goods
Payroll
Dept
Profit-
Loss
Statewide $72M+ w/ Hotel Rooms
w/o LV Strip FY 2007 5.7% 9.5% 17.7% 26.3% 26.8%
Statewide $72M+ w/ Hotel Rooms
w/ LV Strip FY 2007 11.9% 5.1% 12.8% 22.5% 34.5%
Clark County LV Strip $72M+ w/
Hotel Rooms FY 2007 14.1% 4.4% 12.1% 21.9% 35.5%
Harrah's Sumner Gaming JV LC
Pro Forma 2011 1.3% 23.8% N/A 36.9% 30.7%
Penn National 1st Full Year of
Operation Pro Forma for 2011 3.5% 50.0% 50.0% 73.3% -23.3%
Marvel Gaming 1st Full Year of
Operation Pro Forma for 2011 2.8% 18.6% 43.8% 90.9% -65.9%
Source: WGR, NV Gmg Abst, & Applicants Data
Other Department Income StatementOther Department Income Statement
19. July 23, 2008 Wells Gaming Research 18
Richard H. Wells, Experience & Qualifications
Wells is founder and president of Wells
Gaming Research, a Nevada Corporation that
provides Casino Player Count Service™, a
market share tracking service, to over 160
casino clients in Nevada, Mississippi,
Louisiana, New Mexico, and California.
Wells Gaming Research also performs a wide
range of consulting and gaming research
assignments including casino market studies,
financial feasibility studies, financial
projections, due diligence, litigation support,
legislative issue support, and gaming industry
expert witness services for the gaming
industry.
Wells has fifteen years experience as a senior
executive in the casino-hotel industry with Holiday Inns, Harrah’s, and Bally’s. Wells
has also held positions in management, planning, and financial analysis for a large
regional bank and a major international oil company.
Wells has a B.S. degree in business from Oklahoma State University and completed a
post-graduate program in Systems Dynamics at M.I.T. Wells has participated in a wide
range of community service activities and is listed in Marquis Who’s Who in Finance
and Industry and Marquis Who's Who in America.