Ks lotteryreviewboard 28october2010-(final)

Kansas Lottery Gaming Facility Review Board
Presented by: Global Gaming KS, LLC
In Sumner County, Kansas
on October 28, 2010

Global Gaming KS, LLC
Kansas Lottery Gaming Facility Review Board Meeting
Wellington, Sumner County, Kansas.
October 28, 2010
Presentation Outline
1. Global Gaming Solutions and Our Strategic Business Partners
2. Global Gaming Introduction – Video
3. Key Advantages of Global Gaming Solutions as the State’s Operator
4. Key Advantages of Our Proposed Destination Site at Exit 19
5. WinSpirit Casino Development
6. Our Ability to Execute
7. Driving Success for Kansas
8. Closing and Questions
1

1. The Chickasaw Nation, Global Gaming Solutions,
LLC, and Global Gaming KS, LLC
Chickasaw Nation
Global Gaming Solutions, LLC
(a Delaware LLC)
(Bidding entity, a Delaware LLC)
October 28, 2010
(Bidding entity, a Kansas LLC)
2

1. Our Strategic Business Partners
October 28, 2010
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October 28, 2010
4

2. Introducing WinSpirit Casino and Global Gaming
October 28, 2010
5

October 28, 2010
6

• I-35 destination market experience.
• Proven development and
operational expertise in destination
properties.
• Substantial financial capability.
• Proven record in economic
development in local communities.
• Proven record in expanding
facilities to extract market
potential.
3. Key Advantages of Global Gaming as the State’s
Operator
October 28, 2010
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October 28, 2010
8

• Central
• Clean site
• Overwhelming
community
support
• Leveraging
existing
community assets
• Growth potential
October 28, 2010
4. Key Advantages of WinSpirit Casino
Site at Exit 19
9

October 28, 2010
4. Key Advantages of WinSpirit Casino
Site at Exit 19
We believe that the site we have selected at Exit 19 off I-35 in Sumner County is the very best possible site in
the South Central gaming zone for these reasons:
• It is in the center of Sumner County for economic development impact,
• It is immediately adjacent to I-35 with clear visibility,
• It has readily available infrastructure with plans to connect already in-place,
• It is 60-feet above flood plain with good drainage,
• It has the best potential for jobs creation in Sumner County due to its central location,
• We have access to approximately 600 acres of land allowing long term economic development,
• It has the complete support of the local community; and unanimous endorsement of Sumner
County’s Board of Commissioners, and
• It was zoned on August 19 unconditionally.
• It can leverage existing community assets such as the Wellington Municipal Golf Course and KOA RV
Park to create more immediate destination facilities.
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October 28, 2010
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5. WinSpirit Casino Development:
Overall Master Plan
• Timing of development
phases/overall master
plan
• Funding contributions:
Global Gaming or
Strategic Partners
• Floor plans
• Amenity plans
• Power, water and traffic
access
• Initial construction plans
October 28, 2010
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19

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October 28, 2010
Actual photograph of Riverwind Event Center
which is being used as a model for Sumner County.
Entertainment and Events Center
25

Our strategic partners are:
• OnCue Express, and
• Danielson Fuel Services.
October 28, 2010
Travel Center to Maximize
Revenues from I-35
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October 28, 2010
Our strategic Food &
Beverage partner is:
• Emerging Brands
Restaurant Group.
Bringing World-Class Culinary Options
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Steakhouse Concept
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Brewhouse Concept
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Our strategic partner is New Century Investments Hotels.
October 28, 2010
Bringing Top-Quality Hotel Brands
32

Wellington Municipal Golf Course:
• Our plans include a partnership that will upgrade the
community golf course to destination standards with a
new club house and upgraded greens.
RV Park:
• Our plans include a partnership with the local KOA RV
park operators to extend capacity to our site.
High Commitment to Local Collaboration
33

October 28, 2010
High Commitment to Local Collaboration
14-acre,
90-spaces
RV Park
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October 28, 2010
Multi-Use Motor Racing Course
35

Multi-Use Motor Racing Course
36

Overall Master Plan
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October 28, 2010
EMS and Police Sub-Station Facilities
Public Safety Facility:
• Our plans include a 3,000 square foot
on-site facility provided to the city and
county for ambulance, fire, and sheriff.
• Within the main facility, there will be a
City of Wellington police substation
provided.
• Current response time on all services is
less than 5 minutes which will be
further reduced by the above
investment.
38

October 28, 2010
Water Connection to the Site
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October 28, 2010
Sewer Connection to the Site
40

October 28, 2010
Electric and Gas Connection to the Site
41

Seneca
Drive
October 28, 2010
Traffic and Turnpike (I-35) Access
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October 28, 2010
5. Proposed
Construction
Timeline
43

Summary of Master Plan
• Timing of development
phases/overall master
plan
• Funding contributions:
Global Gaming or
Strategic Partners
• Floor plans
• Amenity plans
• Power, water and traffic
access
• Initial construction plans
October 28, 2010
44

October 28, 2010
45

October 28, 2010
• Substantial financial capability.
• Proven development capability.
• Extensive operational experience and resources.
• Our dominant I-35 knowledge.
• A clean site supported by the community.
• Management Matters.
46

October 28, 2010
6. Our Ability to Execute:
Substantial Financial Commitment
From the State’s financial expert’s, Mr. Richard Schuetz,
report to Kansas Lottery:
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October 28, 2010
• As stated in our application, we see no issues in financing the development and operation of
this project. Sources of funds will come from Global Gaming and from the debt market.
• Global Gaming Solutions has committed to provide the equity needed as described in the
forecast submitted along with the project.
• As stated by Richard Schuetz, financial consultant for the Lottery Commission, “there is a high
level of confidence that ‘Global Gaming KS, LLC’ will not have any problems in securing the
funding for their proposed project in Kansas.
• Global Gaming Solutions has retained Jefferies & Company, Inc. to provide the debt financing
for the project. Jefferies or one of its affiliates is prepared to provide Global Gaming Solutions
with committed financing subject to certain conditions. Those conditions are ones found in the
ordinary course of business by lenders who are funding the construction of new properties.
Substantial Financial Capability
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October 28, 2010
Proven Development Capability
Riverwind Casino and Hotel in Norman, Oklahoma.
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October 28, 2010
Extensive Experience
• Experienced team.
• Experienced strategic business partners.
• Substantial in-house resources and personnel.
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October 28, 2010
Our Dominant I-35 Knowledge
• Four properties located on I-35.
• 2.3 million customers in our database.
• A clean site supported by the community.
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October 28, 2010
6. Our Ability to Execute: Management Matters!
• Growth in Oklahoma.
• The Remington Park story.
• Winstar and Riverwind.
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October 28, 2010
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a. Sustainable Revenue Projections
b. Tourism and Visitation
c. Marketing Strategies
d. Our ability to Grow the Market
e. No Revenue Differential Between Exit 33 vs. Exit 19
f. Management Matters
• Regulatory Approval
• Responsible Gaming
• Training
• Community Relations
October 28, 2010
54

October 28, 2010
7. Driving Success for Kansas:
(a) Sustainable Revenue Projections
Global Gaming KS, LLC Prior and Other Bidders
No. of Slots 1300 – 2000 1300 - 2000
No of Tables 60 30 - 65
Gaming revenues $172M $170M - $180M
Win-per-unit $205 $200 - $250
Employees (FTE's) 1016 600 - 1200
Estimated visitations per year 2.4M 2M – 3M
Total investment $280M $225M - $260M
Incremental Non-gaming revenue: 15% 11% - 19%
Today’s dollars (no inflation)
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October 28, 2010
• Estimated sustainable visitations per year of 2.4 million.
• 350,000 tourist visits (more than 100 miles away) per year.
• Additional tourists visits not quantified.
(b) Tourism and Visitations
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October 28, 2010
• Billboards and other signage visibility.
• Promote and grow player development program.
• Big entertainment events marketing (please see examples at right).
• Promote destination amenities.
• Specific weekly promotion campaigns leveraging promotional credits
advantages over neighboring states.
• Extract synergies with our existing properties on the I-35 corridor.
• Mass advertising to create destination brand awareness.
• Social media strategies.
(c) Marketing Strategies
Indicative Entertainment
Artists Who May Be Booked
for WinSpirit Casino
Merle Haggard
Heart
Tony Bennett
4 Tops
Willie Nelson
Jewel
Larry the Cable Guy
Doobie Brothers
Wynonna
and more others …
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October 28, 2010
• Oklahoma’s State Compact Tax growth
• WinStar’s expansion
• Our customer database
• Our facility and product refresh experience
(d) Our Ability to Grow the Market
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October 28, 2010
(e) Flaws with the Gravity Model’s Assumptions,
Exit 33 v. Exit 19 on I-35
• Our I-35 corridor experience
• Local market research
• Other issues with Gravity Model:
• Quality of proposed facility and amenities
• Gravity Model’s specific assumptions issues
• Other bidders have produced similar revenue forecasts
between the two exits
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• I-35 customers’ behavior is similar to national trends.
• Jayhawk Consulting Services, a respected pollster who collected
local data to specifically test attitudes in the Wichita marketplace,
concluded in their research:
“We can say with complete certainty and professional confidence
that … there would be no real difference in the number of
gamblers, or amount of gambler participation, with a casino
location difference of 10 minutes travel time.”
October 28, 2010
I-35 Corridor Experience and Local Market Research
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October 28, 2010
Other Issues with Gravity Model
• Practical market experience does not support quality assumptions in the
Gravity Model on financial performance.
• The rate of decline in casino visitation with increased distance is not as
drastic as the model suggests.
• The model incorrectly assumes that northern Oklahoma facilities are a
destination.
• Other bidders have produced similar revenue forecasts for the two exits.
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October 28, 2010
• We will foster a cooperative relationship
• Dedicated Compliance Manager
• Rigorous standard operating procedures
7. Driving Success for Kansas: Management Matters
(f) Our Managerial Responsibilities and Compliance
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October 28, 2010
• Global Gaming Solutions, LLC believes that
informed and educated employees can be a very
effective tool in identifying many of the most serious
consequences of problem gaming.
• All employees will be trained in our policies and on
the Kansas Racing and Gaming Commission’s
requirements on Responsible Gaming.
(f) Our Approach to Responsible Gaming
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October 28, 2010
• Dedicated training department
• Mock casino
(f) Our Approach to Training
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October 28, 2010
• Wellington community
• Chickasaw Nation experience
(f) Our Approach to Community Relationships
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October 28, 2010
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October 28, 2010
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to all Sumner County residents and to the
Kansas Lottery Gaming Facility Review Board.
68

Ks lotteryreviewboard 28october2010-(final)

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