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Presentation to the Missouri Gaming Commission
October 20, 2010
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James B. PerryCEO and Chairman of the Board
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Facts about Isle of Capri
Bettendorf, Iowa
Biloxi, Mississippi
Black Hawk, Colorado
Boonville, Missouri
Caruthersville, Missouri
Davenport, Iowa
Kansas City, Missouri
Lake Charles, Louisiana
Lula, Mississippi
Marquette, Iowa
Natchez, Mississippi
Pompano Beach, Florida
Vicksburg, Mississippi
Waterloo, Iowa
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7
Isle of Capri CasinosIsle of Capri Casinos
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5
Over $1 billion in revenue
Operating 15 casino properties in 6 states
Total rooms | 3,000
Total dining outlets | 40+
Total slots | 15,000
Total table games | 350+
Meetings | Convention Center | Race Track
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Executive team with more than 15 years experience in Missouri (Argosy & Isle)
Relocated Isle’s corporate office to Missouri five years ago
Deep Commitment to Missouri
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Over 200 years of experience in the gaming and
entertainment industry
Having managed more than 75 properties in 20
states
The Isle Management Team Represents
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6
St. Louis Headquarters150 Employees
Marketing
Information Technology
Internal Audit / Compliance
Corporate Finance
Construction & Development
Human Resources
Legal
Operations
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Virginia McDowellPresident and
Chief Operating Officer
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10
Our Missouri Experience
Boonville
Kansas City
Caruthersville
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Total Missouri Jobs: 1,400(including Corporate)
Total Missouri Payroll: $66.0M
Isle fiscal year 2010
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Total Gaming Taxes Paid in Missouri
$53,000,000 Isle fiscal year 2010
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1818
American Red Cross
United Way | Pacesetter
Central Missouri Community Action
Friends of The River
Ronald McDonald House
Hope House
Habitat for Humanity
Harvest House
Central Missouri Food Bank
Toys for Tots
United Negro College Fund
Special Olympics
Missouri Colleges Fund
We SupportOver 150
Organizations
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Utilization of MBE/WBEContractors
Isle is committed to utilizing minority and women-owned vendors
Existing Missouri Isle properties:
•have recruited and encouraged the utilization of minority and women-owned businesses in their communities
•continued to work with the Missouri Gaming Commission and John Nathan to increase utilization of MBE/WBE vendors
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Focus on Responsible Gaming
Isle of Capri Casino is dedicated to identifying and assisting problem gamers and preventing underage gaming:
• Active member of Missouri Alliance to Curb Problem Gambling through the Missouri Gaming Association
• Adhere to the Code of Conduct of the American Gaming Association
• Conduct annual training for compulsive and underage gaming for all team members
• Promotion of Missouri DAP program and self-exclusion program, both of which will exclude impacted patrons from all Isle of Capri properties
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Gaming Market Advisors
Steve Gallaway
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�Offices in Las Vegas and Denver
�Domestic, International and Native American Markets in US and Canada
�Have performed work in 16 countries for 6 public companies and numerous private gaming companies, financial institutions and Native American tribes
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� Gaming Market Assessments
� Hotel Feasibility Studies
� Expansion/Relocation Analysis
� Master Planning Recommendations
� Marketing Plan Development
� Business Plan Development
� Player Rewards Program Design
� Market Research
� Operations & Financial Analysis
� Marketing Audits
About Gaming Market AdvisorsAbout Gaming Market AdvisorsAbout Gaming Market AdvisorsAbout Gaming Market Advisors
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Numerous methods for projecting gaming revenues, but some are better than others
o Basic Market Carve out Model
o Concentric Ring Analysis
o Benchmark Analysis
o Gravity Model (considered most
advanced)
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� Is calibrated to current market conditions
� Predictive model for future revenues based on nationally expected trends in population and income
� Every casino in the market must be entered into the model.
� Cannibalization is a simple matter of subtracting a “With Competition” scenario from the “Without Competition” scenario.
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Rings10 mile radius
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Rings10 mile radius
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Rings10 mile radius
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Rings10 mile radius
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Rings10 mile radius
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Cape
Rings10 mile radius25 mile radius
Missouri
Illinois
Indiana
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Rings10 mile radius25 mile radius
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Casino Celebration
Relevant
Competition*
TOTAL Relevant
Missouri
2014 As Is Revenues N/A 876,113,107$ 876,113,107$
2014 Casino Celebration Revenu 106,791,269$ 805,129,525$ 911,920,794$
2014 As Is Taxes
21% AGR Tax N/A 183,983,753$ 183,983,753$
$2 Admission Tax N/A 46,382,006$ 46,382,006$
GROSS TAX REVENUE N/A 230,365,759$ 230,365,759$
2014 Casino Celebration Taxes
21% AGR Tax 22,426,166$ 169,077,200$ 191,503,367$
$2 Admission Tax 5,331,357$ 42,446,296$ 47,777,653$
GROSS TAX REVENUE 27,757,523$ 211,523,496$ 239,281,020$
2014 Incremental Tax Revenue
21% AGR Tax 22,426,166$ (14,906,552)$ 7,519,614$
$2 Admission Tax 5,331,357$ (3,935,710)$ 1,395,647$
GROSS TAX REVENUE 27,757,523$ (18,842,262)$ 8,915,261$
*Includes:River City, Lumiere Place, Harrah's MH and Ameristar SC
Source: GMA
Casino Celebration Missouri Tax Impact
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Casino Celebration - Chain of Rocks
Projected Gaming Revenue Sources(millions)
$35.8
$71.0
New Existing
$106.8M
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North County
Casnio
Relevant
Competition*
TOTAL Relevant
Missouri
2014 As Is Revenues N/A 876,113,107$ 876,113,107$
2014 North County Revenues 117,199,378$ 798,691,852$ 915,891,231$
2014 As Is Taxes
21% AGR Tax N/A 183,983,753$ 183,983,753$
$2 Admission Tax N/A 46,382,006$ 46,382,006$
GROSS TAX REVENUE N/A 230,365,759$ 230,365,759$
2014 North County Taxes
21% AGR Tax 24,611,869$ 167,725,289$ 192,337,158$
$2 Admission Tax 5,850,963$ 42,100,033$ 47,950,995$
GROSS TAX REVENUE 30,462,832$ 209,825,322$ 240,288,154$
2014 Incremental Tax Revenue
21% AGR Tax 24,611,869$ (16,258,464)$ 8,353,406$
$2 Admission Tax 5,850,963$ (4,281,973)$ 1,568,989$
GROSS TAX REVENUE 30,462,832$ (20,540,437)$ 9,922,395$
*Includes:River City, Lumiere Place, Harrah's MH and Ameristar SC
Source: GMA
North County Development Casino Missouri Tax Impact
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North County Casino
Projected Gaming Revenue Sources(millions)
$39.8
$77.4
New Existing
$117.2M
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North County
Casnio
Relevant
Competition*
TOTAL Relevant
Missouri
2014 As Is Revenues N/A 876,113,107$ 876,113,107$
2014 North County Revenues 117,199,378$ 798,691,852$ 915,891,231$
2014 As Is Taxes
21% AGR Tax N/A 183,983,753$ 183,983,753$
$2 Admission Tax N/A 46,382,006$ 46,382,006$
GROSS TAX REVENUE N/A 230,365,759$ 230,365,759$
2014 North County Taxes
21% AGR Tax 24,611,869$ 167,725,289$ 192,337,158$
$2 Admission Tax 5,850,963$ 42,100,033$ 47,950,995$
GROSS TAX REVENUE 30,462,832$ 209,825,322$ 240,288,154$
2014 Incremental Tax Revenue
21% AGR Tax 24,611,869$ (16,258,464)$ 8,353,406$
$2 Admission Tax 5,850,963$ (4,281,973)$ 1,568,989$
GROSS TAX REVENUE 30,462,832$ (20,540,437)$ 9,922,395$
*Includes:River City, Lumiere Place, Harrah's MH and Ameristar SC
Source: GMA
North County Development Casino Missouri Tax Impact
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Paragon - Sugar Creek
Projected Gaming Revenue Sources(millions)
$35.3
$58.6
New Existing
$93.9M
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Isle Cape
Girardeau
Relevant
Competition*
TOTAL Relevant
Missouri
2014 As Is Revenues N/A 96,294,804$ 96,294,804$
2014 Cape Revenues 79,375,273$ 83,811,763$ 163,187,036$
2014 As Is Taxes
21% AGR Tax N/A 20,221,909$ 20,221,909$
$2 Admission Tax N/A 5,018,467$ 5,018,467$
GROSS TAX REVENUE N/A 25,240,376$ 25,240,376$
2014 Cape Taxes
21% AGR Tax 16,668,807$ 17,600,470$ 34,269,278$
$2 Admission Tax 4,061,731$ 4,359,159$ 8,420,890$
GROSS TAX REVENUE 20,730,538$ 21,959,629$ 42,690,167$
2014 Incremental Tax Revenue
21% AGR Tax 16,668,807$ (2,621,439)$ 14,047,369$
$2 Admission Tax 4,061,731$ (659,308)$ 3,402,423$
GROSS TAX REVENUE 20,730,538$ (3,280,746)$ 17,449,792$
*Includes:Lady Luck, River City, Lumiere Place, Harrah's MH, Ameristar SC and Isle Booneville
Source: GMA
Isle Cape Girardeau Missouri Tax Impact
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Isle Cape Girardeau
Projected Gaming Revenue Sources(millions)
$12.5
$66.9
New Existing
$79.4M
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Cape Girardeau
Scenario
Casino
Celebration
North County
Scenario
Paragon Casino
Scenario
Incremental Gaming Revenue 66,892,232$ 35,807,687$ 39,778,123$ 35,305,792$
Incremental Tax Revenue 17,449,792$ 8,915,261$ 9,922,395$ 9,546,832$
Source: GMA
Missouri 13th License Impact on 2014 Gaming Taxes
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Projected New Gaming Revenue vs.
Cannibalized Revenue
-$100.0
-$75.0
-$50.0
-$25.0
$0.0
$25.0
$50.0
$75.0
$100.0
Isle - Cape Nor. Co. Chain of Rocks Sugar Creek
New Revenue Existing Revenue
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�The Isle project in Cape Girardeau will produce nearly twice the incremental tax revenue for the state of Missouri as compared to the other applicants.
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Monthly St. Louis Area Gaming Revenues
Pinnacle River City(2010 data, millions)
$0.0
$3.0
$6.0
$9.0
$12.0
$15.0
$18.0
Feb Mar Apr May Jun Jul Aug Sep
* - River City Casino opened March 2010.
River City opens
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Monthly St. Louis Area Gaming Revenues
Harrah's Maryland Heights(2010 data, millions)
$19.0
$20.0
$21.0
$22.0
$23.0
$24.0
$25.0
$26.0
Feb Mar Apr May Jun Jul Aug Sep
Monthly St. Louis Area Gaming Revenues
Ameristar St. Charles(2010 data, millions)
$21.0
$22.0
$23.0
$24.0
$25.0
$26.0
Feb Mar Apr May Jun Jul Aug Sep
Monthly St. Louis Area Gaming Revenues
Pinnacle Lumiere Place(2010 data, millions)
$12.0
$13.0
$14.0
$15.0
$16.0
$17.0
$18.0
$19.0
Feb Mar Apr May Jun Jul Aug Sep
Monthly St. Louis Area Gaming Revenues
Pinnacle President(2010 data, millions)
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Feb Mar Apr May Jun Jul Aug Sep
Revenue comes from existing properties
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Monthly St. Louis Area Gaming Revenues
Total - Missouri Properties(2010 data, millions)
$65.0
$70.0
$75.0
$80.0
$85.0
Feb Mar Apr May Jun Jul Aug Sep
Missouri properties flat since River City opened
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Annual Kansas City Area Gaming Revenues
Argosy (with expansion)(millions)
$199.0$192.3
$169.4
$161.1
$150.0
$160.0
$170.0
$180.0
$190.0
$200.0
2006 2007 2008 2009
Major expansion improves revenue
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Annual Kansas City Area Gaming Revenues
Harrah's Entertainment(millions)
$202.2
$195.6
$198.3
$202.3
$190.0
$195.0
$200.0
$205.0
2006 2007 2008 2009
Annual Kansas City Area Gaming Revenues
Ameristar(millions)
$259.2
$252.6
$248.8
$242.1
$240.0
$245.0
$250.0
$255.0
$260.0
2006 2007 2008 2009
Annual Kansas City Area Gaming Revenues
Isle of Capri(millions)
$90.9
$83.8
$79.9
$83.3
$75.0
$80.0
$85.0
$90.0
$95.0
$100.0
2006 2007 2008 2009
Revenue comes from existing properties
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Annual Kansas City Area Gaming Revenues
Total - Missouri(millions)
$720.0$719.3
$708.1$713.4
$650.0
$675.0
$700.0
$725.0
$750.0
2006 2007 2008 2009
Kansas City market nearly flat
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�Greater Cape Girardeau market is notsaturated
�St. Louis and Kansas City are saturated markets
�Kansas City will be further diluted when Penn National opens in Kansas
�Best remaining market in Missouri is Cape Girardeau
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Scott MeyerCity Manager, Cape Girardeau
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Existing conditions
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5631
Isle of Capri site
Old Town Cape Historic District
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• A former shoe factory site - inactive for 30+ years
• Entirely protected by the levee
• Excellent access to Downtown, the Show Me Center, and I-55. No significant traffic concerns
• All infrastructure available on site
• Police and Fire capabilities are sufficient
Anchor for Downtown Revitalization
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Richard MeisterVice President, Design and
Construction
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Isle at Cape GirardeauArtist Rendering
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Promenade
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Skydeck Grill and Terrace
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Lone Wolf Lounge
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Lone Wolf and Outdoor Patio
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Event and Conference Center
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Farm fresh...
Straight to you.
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Paul KellerChief Development Officer
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Our two brand strategyexpands the customer base
with two products in the same family
Focus on close proximity patrons Focus on regional patrons
Limited amenities Expanded amenitiesProduct driven (gaming devices) Conference and experience driven
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Creating another reason for people to come
downtown
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33Regional Markets
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600,000 visits will be from outside Cape/Jackson MSA
Markets will extend into in 6 States
1. northern Arkansas
2. southern Illinois
3. mid Missouri
4. western Tennessee
5. western Kentucky
6. southern Indiana
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30
Estimated weekly visitation: 25,000
Estimated new annual visits: Over 1,000,000
Significant increase in visits to downtown Cape Girardeau
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30
Harrah’s Metropolis, Illinois: 68 miles
Lady Luck Caruthersville: 85 miles
River City, St. Louis County: 109 miles
Proximity to other casinos
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BO
ON
VIL
LE
CAPE
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Dale BlackChief Financial Officer
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• Established public Company with proven
track record of accessing multiple
financial markets
• Ability to use financing that is already in
place
• Many long term relationships with
commercial banks and holders of public
securities
Financial Overview
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Debt HoldersInstitutions that are currently invested in debt
instruments of Isle of Capri Casinos, Inc. include the following:
JP Morgan Chase Wells Fargo Captial One
US Bank National City Bank Deutsche Bank
GE Capital Credit Suisse Societe GeneraleBank of Scotland CIBC The Peoples Bank
Commerzbank Bank of NY Mellon SSB and Trust
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Equity Shareholders
The following are examples of Isle’s institutional shareholders:
Source: Institutional investment managers’ Form 13F dated June 30, 2010
Vanguard Group, Inc.
JPMorgan Asset Management, Inc.
PAR Capital Management, Inc.BlackRock Fund Advisors
Addison Clark Management LLC
Scepter Holdings, Inc.Loomis, Sayles & Co. LP
Integrity Asset Management LLC
Dimensional Fund Advisors, Inc.D. E. Shaw & Co., Inc.
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• Our existing credit facility, and our
operating cash flows are sufficient to build
this project
• In addition, we have access to alternative
debt sources should we choose to finance
as a stand alone project
Financing Options
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Harry RedigerMayor of Cape Girardeau
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• Cape Girardeau Chamber of Commerce
• Cape Girardeau Area MAGNET
• Old Town Cape, Inc.
• IAFF 1084
• Cape Girardeau Convention and Tourism Bureau
• Drury Southwest, Inc.
Endorsements
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27
Jobs. Investment. Revitalization.
A Comprehensive Vision
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48
5 Reasons Isle is Uniquely Qualified
1. Billion dollar revenue company with 15 properties
2. Already licensed in Missouri with 3 properties
3. Significant development experience
4. Best location to generate new Missouri tax revenue
5. Existing financial capability to build the project
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34
This conceptual plan is for informational purposes only and is subject to revision.
Questions and Answers
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� Based on Newton’s Universal Law of Gravitation
Distance= √ ((C lat – B lat)² + (C lon – B lon) ²)
The model calculates the likely visitation based on census and other factors after the model is calibrated to comparable facilities ?????
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� Advantages of Gravity Model:� Market split into block groups or zip codes
� Adjusts for population density and variations in income
� Instead of less than 10 markets, usually have over 1,000
� Main Inputs Include:� Propensity to gamble
� % AAHI to Gaming
� % Revenue to casino in market
� Individual casino and market attraction factors
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Missouri pro-forma
economic concentration
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Estimated Annual Missouri AGR(including Isle – Cape Girardeau)
Millions
Isle Ameristar
PinnacleHarrah’s
Other
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