2. Pinnacle Proposal Highlights
Greatest Revenue Generator
Highest gaming revenues
Most money for Kansas
Most Tourists
Largest convention center
Largest and highest-quality hotel
Best Location
Superior access and visibility
Schlitterbahn
Proven Gaming Operator
Eleven casinos in operation
Experience in similar markets
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3. Who is Pinnacle?
NYSE-traded gaming company with
headquarters in Las Vegas, Nevada
Operations in Missouri, Nevada, Louisiana,
Indiana and Argentina
Build and operate high-quality casino
destinations customized for each market
Experienced management team with
extensive backgrounds in competitive gaming
environments
Over 8,600 employees
$1 Billion in annual revenues
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4. Pinnacle Properties
RENO
INDIANA
CENTRAL CITY
SACRAMENTO NEW YORK CITY
OAKLAND CHICAGO PHILADELPHIA
SAN FRANCISCO
DENVER INDIANAPOLIS
HEADQUARTERS CINCINNATI
ST. LOUIS
LEXINGTON
BOSSIER CITY
LOUISVILLE
ATLANTIC CITY
DALLAS/FORT WORTH
BATON ROUGE
AUSTIN
SAN ANTONIO
HOUSTON
SOUTH AMERICA
Pinnacle Properties
Pinnacle Development Sites NEW ORLEANS
Potential Future Development Sites
Large Regional Cities
33
LAKE CHARLES
8. Lumiére Place – St. Louis, Missouri
7 Lumiere Place: Casino Site
9. Lumiére Place – St. Louis, Missouri
8 Lumiere Place: Casino Site
10. Lumiére Place – Performance
Opened December 19, 2007
Year 1 projected gaming win = $134.9M
Year 1 (January 2008 – June 2008) actual
gaming win = $80.0M
Outperforming table game business
18.5% of table games in market
30.0% of table game revenue
Table games = high end play, tourism
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11. Internal Regulatory Process
Character, honesty, and integrity
Credibility is most valuable currency in the
gaming industry
Proven track record in other regulatory
jurisdictions
Comprehensive and effective compliance
program
Problem-Gaming Program
Member of AGA
Self-Exclusion
Training, Training, Training
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12. 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
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14. Site Selection
East side of I-435 allowed proximity to
infrastructure without west-side traffic
concerns
66 acres allows for future expansion
Proximity to Schlitterbahn’s planned 1,600
hotel rooms creates unmatched destination
13
15. Selected Jerde Partnership Projects
Morongo Casino Resort & Spa The Gatew
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kuoka, Jap Cabazon, California ay, Salt La
Hakata, Fu Utah ke City,
Canal City
Palms Casino Resort Bellagio
Treasure Island Wynn
Las Vegas, Nevada Las Vegas, Nev evada
ada Las Vegas, Nevada Las Vegas, N
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19. Project Components
100,000-square-foot casino
100,000 square foot convention center
Designed to expand to 200,000 square feet
50,000 square foot entertainment venue
200 five-star hotel rooms
300 four-star hotel rooms
Full service spa and salon
Dining options ranging from gourmet to fast
casual
Center island performance stage and
nightclub
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20. Casino
100,000 square feet of gaming
2,300 slots; 60 table games; 25 poker tables
Designed for future expansion
A casino is not a commodity; it requires
operational expertise and knowledge to
operate successfully
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21. Convention Center
Largest convention center of any applicant
100,000 CONTIGUOUS square feet
Designed to expand to 200,000 square feet
Key for mid-week and off-season hotel
occupancy to create year-round destination
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22. Hotel
Largest hotel of any applicant
500 total rooms, including:
Experience developing
luxury-branded hotels
Four Seasons Hotel at Lumière
Place in St. Louis
Schlitterbahn plans
include 1,600
hotel rooms
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23. Restaurants and Lounges
Variety of outlets from casual to gourmet
History of using nationally and locally
renowned chefs
Hubert Keller
Jeff Ruby
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24. Entertainment
50,000 square-foot indoor venue for live
events
4,000 seats
Existing network of entertainment booking for
other Pinnacle properties
Outdoor stage for live events
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25. Retail
15,000 square feet of retail
Village West area is already a shopping
destination with three million existing square
feet of retail
Schlitterbahn is building 750,000 square feet
of retail
Goal of boutique retail is to complement
existing retail, not compete with it
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27. Schlitterbahn
Travel Channel rated #1 place to “Cool Off in
America”
2007 Golden Ticket award for #1 indoor
waterpark in the U.S.
Named #1 water park in the U.S. by the
Travel Channel (2006)
Amusement Today magazine readers voted
Schlitterbahn the world's best water park in
1998, an honor the park has received
annually ever since
Schlitterbahn was voted the nation's number
one water park by the readers of Inside Track
magazine in 1996
Lead into travel channel video…
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28. Integrated Site Plan
Will create a
strong super-
regional
destination
with over
2,000 hotel
rooms
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29. Family Destinations
Disneyland – Anaheim, CA
Downtown Disney
Disneyworld – Orlando, FL
Pleasure Island
Must be 21 to enter
Atlantis Paradise
Island – Bahamas
Multiple resort
hotels
Water park
integrated
with casino
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30. Project Schedule
September 2008: Management contract
awarded
November 2008: Kansas Racing & Gaming
ratifies selection
July 2009: Temporary casino opens – Kansas
begins receiving gaming revenues
Early 2011: Permanent casino opens with all
guaranteed components
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31. Senate Bill 66
“The board shall determine
which contract best maximizes
revenue, encourages tourism
and otherwise serves the
interests of the people of
Kansas.”
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32. Senate Bill 66
“The board shall determine
which contract best
maximizes revenue,
encourages tourism and
otherwise serves the interests
of the people of Kansas.”
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33. Most Revenues
Pinnacle will produce the highest revenues
Gaming revenue = $401.5M
Non-Gaming revenue = $86.8M
Development and operating expertise
No traffic congestion with existing development west
of I-435
MyChoice program
National database of 4.7 million GAMERS
Pinnacle will cross-market Kansas casino with its
national network of existing casinos
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34. Senate Bill 66
“The board shall determine
which contract best maximizes
revenue, encourages tourism
and otherwise serves the
interests of the people of
Kansas.”
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35. Most Tourists
Pinnacle will draw the most tourists
Number of tourist visits = 441K
Total tourist spend = $86.3M
Largest hotel of any applicant
Largest convention center of any applicant
With adjacent Schlitterbahn project, will
create a national destination with over 2,000
hotel rooms
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36. Senate Bill 66
“The board shall determine
which contract best maximizes
revenue, encourages tourism
and otherwise serves the
interests of the people of
Kansas.”
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37. Economic Impact
Create 2,000 union construction jobs
Employ 1,500 people
Generate over $17 million/year in new
property taxes, including
Over $7 million/year for the KCK (USD #500)
school district
Pinnacle Proposal is the ONLY gaming proposal in
the USD #500 school district
Attract millions of incremental new visitors
Purchase over $50 million in annual goods
and services from local suppliers
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38. School District Comparison
Students Free/Reduced Graduation
Lunch Rate
Kansas City, 18,203 82% 78%
Kansas (USD
#500)
Bonner 2,337 35% 88%
Springs/Edwa
rdsville (USD
#204)
Piper (USD 1,530 8% 97%
#203)
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Source: Kansas State Department of Education
41. GVA Marquette Site Comparison
“We believe the Pinnacle site is the superior site among
the five sites evaluated. A casino at this location, in
combination with the Schlitterbahn attraction and
lodging units, would create a unique gaming
destination that would expand the regional gaming
market, thus maximizing the amount of revenue
generated by visitors from outside the local market…
For these reasons we believe that this site is likely to
generate the highest gaming revenues of the five sites
evaluated.”
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42. Casino Expertise
Proven casino operating expertise
Operate 13,000 gaming positions across 13 properties
Proven casino development expertise
Over $1 billion of new casino/hotel development within
the past 3 years
Kansas needs an operator that can generate
the most gaming revenues
Well-established competition in Missouri
Able to generate higher gaming revenues
than our competitors
Least traffic congestion
Rewards program linked to national network of
properties
Best complement to existing tourism
destination
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44. Project Comparison
Municipality Hotel Convention Traffic School District
Rooms Center Impact
Pinnacle Kansas City, 500 100,000 Negligible KCK (USD #500)
Kansas
Cordish/ Kansas City, 300 58,000 Significant Bonner (USD
Speedway Kansas #204)
Mohegans/ Kansas City, 350 35,500 Significant Piper (USD #203)
Red Kansas
Golden Edwardsville, 300 35,000 Moderate Bonner (USD
Gaming Kansas #204)
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45. Pinnacle Commitments
Work with local communities to have lasting positive
effect on neighborhood
Strive to be excellent corporate citizen with dedication
to local charities and community service
Community enhancement projects
Commitment to Wyandotte County:
$1 million upon opening
$1 million ANNUALLY during operations
Aggressive diversity goals in hiring and working with
minorities and women
Convert Western Wyandotte County from a regional
destination into a national destination
Convention Center
Luxury Hotel
World-Class Casino
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46. Conclusion
HIGHEST Revenues
Best site
Experience, experience, experience
Most Tourists
Largest hotel
Largest convention center
Adjacent to Schlitterbahn
Best Interests of Kansas
Proven track record
Keep our promises
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