Chisholm creek presentation final

Download Chisholm creek presentation final

Post on 29-May-2015



Entertainment & Humor

0 download

Embed Size (px)


Kansas Racing & Gaming CommissionCasino Proposal


  • 1. Lottery Gaming Facility Manager presentation to the Lottery Gaming Facility Review Board September 16, 2009 Presented by:Lakes Entertainment, Inc.

2. FORWARD LOOKING STATEMENTSCertain information included in this document (as well as information included in oral statements) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and projections, and the effects of regulation (including gaming and tax regulation) and competition. Such information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, need for potential future financing to meet development needs, future economic conditions that affect the population generally, possible delays in completion of projects, including various regulatory, litigation and numerous other conditions which must be satisfied before completion of projects.In the event of a conflict or inconsistency between Exhibit C of the Chisholm Creek Management Contract and the document, Exhibit C controls. 3. AGENDA Introduction of Lakes Entertainment, Inc. Review of Proposal Gaming and non-gaming revenue projections Projected tourism and tourism spending Sources of capital Concept, theme and architectural features Potential for increasing gaming capacity Marketing strategies Development timeline Managerial and compliance strategy Responsible gambling Why Lakes Entertainment, Inc. 4. LAKES OVERVIEW This page intentionally left blank. Refer to Lakes Video 1. Tim Cope 5. Project Operators/Developers Lakes Entertainment, Inc. is a publically traded company on NASDAQ: LACO Lakes has developed, constructed, opened & operated casino resorts similar to the proposed project in the non- traditional gaming markets of Minnesota, Mississippi, Louisiana, Michigan, Oklahoma and California Lakes currently manages a total of 5,500 slot machines and 150 tables at three separate locations Lakes has a full complement of supporting corporate staff Lakes hires & trains a local staff to operate the resort day to day Local staff will report to an experienced corporate team Corporate staff will ensure a smooth opening and on-going oversight 6. PROJECTED REVENUEProjected revenue, resident spending and tourist spending is based on an estimated opening date of September 1, 2011. Projections assume1,300 slot machines; 30 table games and other amenities outline in this document not including a hotel. Additional amenities will be addedpursuant to the terms of Management Contract with Kansas Lottery and impact thereof is not reflected in these projections. 7. PROJECTED TOURISM & SPENDING 8. SOURCES OF CAPITAL Phase one sources of capital Kansas Gaming Holdings: up to $75 million (50%) CVG Kansas Gaming LP*: up to $50 million (33%) Lakes Entertainment: up to $25 million (17%) *CVG Kansas Gaming LP might take the form of an LLC rather than an LP 9. CONCEPT, THEMING & FEATURES Prairie Style genre that is historically European Arts & Crafts with use of heavy timber & stone that is indigenous to the area 10. CONCEPT, THEMING & FEATURES No temporary facilityis proposed Permanent facilitylocated on I-35 atExit 33 Property access via ProposedUS 81Project Approximately 1,500surface park guestspaces, 400employee spaces,25 oversize vehiclespaces 11. CONCEPT, THEMING & FEATURES Create a gaming floor that is full of excitement and energy yet blends with the natural environment Approximately 1,300 to 1,500 slot machinesslot floor concept Approximately 30 table games 12 blackjack games 2 craps games 2 roulette games 4 mini baccaratslot sign concept 10 other games 12. CONCEPT, THEMING & FEATURES Approximately 250-seat high energy buffet with action stations, wood-fire grill, Asian specialties, made-fresh salads, home cooking & dessert bar buffet concept Approximately 50-seat casual steakhouse Approximately 30-seat deli open 24/7 serving sandwiches, breakfast all day, and quick-grabdeli concept snacks 13. CONCEPT, THEMING & FEATURES Lakes is currently negotiating with third parties in order to potentially secure a hotel. Estimated 150 rooms Pool room concept Exercise facility Business center Meeting space 14. POTENTIAL TO INCREASE GAMING CAPACITY The gaming floor will open with approximately1,300 slot machines but contain enough squarefootage to be able to accommodate up to 1,500slot machines through floor reconfiguration withminimal disruption if demand warrants theincrease. Phase one will be designed to facilitatedevelopment of future phases and non-gamingamenities with minimal disruption to existingoperations. 15. MARKETING STRATEGIES Attract and generate trial Use mass media such as television, radio and newspaper to promote awareness and to establish a brand identity with residents Attract transient guests and tourists with outdoor advertising along the I-35 corridor Attract known gamblers in the region and tourists with targeted online advertising and direct marketing Retain and grow frequency Use in-house marketing efforts to enroll customer into the facilitys loyalty club/player tracking system Use the player tracking database along with data mining techniques and direct marketing to ensure the most profitable players return Use drawings and promotions to bolster repeat visits from residents and tourists Continually train and enforce process improvement to ensure the best possible guest service Recover and reactivate Use surveys and on-floor hosts to recognize areas of service improvement and correct immediately Use analysis of the player tracking database to evaluate customer trends and modify marketing plans accordingly Remember our standards Deliver a great gamble, great food and great service to encourage frequent and repeat visits from all guests Always be committed to quality Market responsibly 16. ESTIMATED TIMELINE Assumed award of gaming license: January, 2010 Solicitation of construction bids: July, 2010 Award construction contracts: August, 2010 Groundbreaking: September, 2010 Begin taking employment applications: March, 2011 Local supplier/vendor fair: March, 2011 Employment & training facilities open: April, 2011 Open dealer school: June, 2011 Installation of gaming equipment: July, 2011 Opening: September, 2011 Timing of future phases to be driven by market conditions 17. RESPONSIBLE GAMBLING Lakes is committed to responsible gambling. Prior to opening Lakes will develop a property specific responsible gambling plan for the facility. The plan will be submitted for regulators for approval and the plans compliance will be overseen by the facilitys compliance officer. The facilitys advertising will contain a responsible gambling message when possible. The facility will not buy advertising or utilize images that appeal to children. The facility will make responsible gambling information readily accessible at the facility and allow individuals to opt out of direct marketing programs. The facility will maintain a self exclusion list. Lakes will mandate that all facility employees attend a two day orientation program which includes a course on responsible gambling that utilizes materials developed by the American Gaming Association and materials developed by Lakes. Annual refresher courses will be given to all employees. 2% of gambling revenue will be paid to the problem gambling and addictions fund. 18. MANAGERIAL & COMPLIANCE The on-site staff will report to the on-site general manager who will act as the facilitys chief executive officer. In the absence of the general manger, casino shift managers will have responsibility of the daily conduct of the gaming business. The facilitys general manager and department heads will report to Lakes Entertainment corporate office. Lakes Entertainment corporate office will be responsible for strategic operating plans and policy creation. The on-site facility staff will be responsible for plan execution and day-to-day compliance. An on-site facility compliance officer will be a single point of contact for Commission questions and concerns. The compliance officer will be responsible for obtaining all internal approvals in order to streamline responses to the Commission. A whistle blowers hotline will be available to all employees of the facility. 19. VIDEO This page intentionally left blank. Refer to Lakes Video 2. 20. THANK YOU Thank you. Questions?