pinnacle presentation 2

122
PINNACLE ENTERTAINMENT Kansas Lottery Gaming Facility Review Board AUGUST 13, 2008 1

Upload: krgc

Post on 19-Jun-2015

472 views

Category:

Entertainment & Humor


0 download

DESCRIPTION

Kansas Racing & Gaming CommissionCasino Proposalhttp://krgc.ks.gov/

TRANSCRIPT

Page 1: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Kansas Lottery Gaming FacilityReview BoardA U G U S T 1 3 , 2 0 0 8

1

Page 2: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

2

Page 3: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Kansas Lottery Gaming FacilityReview BoardA U G U S T 1 3 , 2 0 0 8

3

Page 4: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

PINNACLE PROPOSAL HIGHLIGHTSHighest Quality Project

+Most Experienced Company

+Most Competitive Facility

=Greatest Revenue Generator

Most Money For Kansas

4

Page 5: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

PINNACLE PROPOSAL HIGHLIGHTS

Greatest Revenue Generator

Most TouristsLargest convention centerLargest and highest-quality hotel

5

Page 6: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

PINNACLE PROPOSAL HIGHLIGHTS

Greatest Revenue Generator

Most Tourists

Best LocationSuperior access and visibilitySchlitterbahn

6

Page 7: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

PINNACLE PROPOSAL HIGHLIGHTS

Greatest Revenue Generator

Most Tourists

Best Location

Proven Gaming OperatorEight major casinos in operationExperience in similar markets

7

Page 8: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

PINNACLE PROPOSAL HIGHLIGHTS

Greatest Revenue Generator

Most Tourists

Best Location

Proven Gaming Operator

8

Page 9: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

NYSE-traded gaming company with operations in Missouri, Nevada, Louisiana, Indiana and Argentina

WHO IS PINNACLE?

9

Page 10: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

NYSE-traded gaming company with operations in Missouri, Nevada, Louisiana, Indiana and Argentina

Build and operate high-quality casino destinations customized for each market

WHO IS PINNACLE?

10

Page 11: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

NYSE-traded gaming company with 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

WHO IS PINNACLE?

11

Page 12: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

NYSE-traded gaming company with 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

WHO IS PINNACLE?

12

Page 13: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

NYSE-traded gaming company with 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

Annual revenues = $1 Billion

WHO IS PINNACLE?

13

Page 14: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

NYSE-traded gaming company with 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

Annual revenues = $1 Billion

WHO IS PINNACLE?

14

Page 15: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

SOUTH AMERICA

PINNACLE PROPERTIES

15

Page 16: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

BELTERRA RESORT & CASINOV E V A Y, I N D I A N A

16

Page 17: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

BELTERRA RESORT & CASINOV E V A Y, I N D I A N A

17

Page 18: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

BELTERRA RESORT & CASINOV E V A Y, I N D I A N A

18

Page 19: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

BELTERRA RESORT & CASINOV E V A Y, I N D I A N A

19

Page 20: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

BELTERRA RESORT & CASINOV E V A Y, I N D I A N A

20

Page 21: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

21

Page 22: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

22

Page 23: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

23

Page 24: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

24

Page 25: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

25

Page 26: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

26

Page 27: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

27

Page 28: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

28

Page 29: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LACL A K E C H A R L E S , L O U I S I A N A

29

Page 30: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LʼAUBERGE DU LAC – PERFORMANCEOpened May 23, 2005

Last casino in Lake Charles market

Last twelve months gaming win = $323.6 million

Dominant market share20.9% of market’s gaming positions37.2% of market’s gaming win

Slot daily win per unit = $405

30

Page 31: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

31

Page 32: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

32

Page 33: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

33

Page 34: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

34

Page 35: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

35

Page 36: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

36

Page 37: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

37

Page 38: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACES T . L O U I S , M I S S O U R I

´

38

Page 39: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACE – PERFORMANCE

Opened December 19, 2007

´

39

Page 40: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACE – PERFORMANCE

Opened December 19, 2007

Projected Year 1 gaming win = $134.9M

´

40

Page 41: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACE – PERFORMANCE

Opened December 19, 2007

Projected Year 1 gaming win = $134.9M

Actual Year 1 gaming win = $161.7M (annualized)

´

41

Page 42: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACE – PERFORMANCE

Opened December 19, 2007

Projected Year 1 gaming win = $134.9M

Actual Year 1 gaming win = $161.7M (annualized)

Outperforming table game business18.5% of table games in market30.0% of table game revenueTable games = high end play, tourism

´

42

Page 43: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

LUMIERE PLACE – PERFORMANCE

Opened December 19, 2007

Projected Year 1 gaming win = $134.9M

Actual Year 1 gaming win = $161.7M (annualized)

Outperforming table game business

´

43

Page 44: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Character, honesty, and integrity

INTERNAL REGULATORY PROCESS

44

Page 45: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Character, honesty, and integrity

Proven track record in other regulatory jurisdictionsMissouri, Nevada, Louisiana, Indiana and Argentina

INTERNAL REGULATORY PROCESS

45

Page 46: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Character, honesty, and integrity

Proven track record in other regulatory jurisdictions

Comprehensive and effective compliance program

INTERNAL REGULATORY PROCESS

46

Page 47: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Character, honesty, and integrity

Proven track record in other regulatory jurisdictions

Comprehensive and effective compliance program

Problem-Gaming ProgramMember of AGASelf-ExclusionTraining, Training, Training

INTERNAL REGULATORY PROCESS

47

Page 48: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Character, honesty, and integrity

Proven track record in other regulatory jurisdictions

Comprehensive and effective compliance program

Problem-Gaming Program

INTERNAL REGULATORY PROCESS

48

Page 49: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

As of June 30, Pinnacle had $130 million in cash and $500 million of unused credit line

FINANCIAL STRENGTH

49

Page 50: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

As of June 30, Pinnacle had $130 million in cash and $500 million of unused credit line

Strong relationship with Wall Street

FINANCIAL STRENGTH

50

Page 51: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

As of June 30, Pinnacle had $130 million in cash and $500 million of unused credit line

Strong relationship with Wall Street

FINANCIAL STRENGTH

Boomtown New Orleans L'Auberge Belterra Boomtown Bossier CityBoomtown Reno Lumiere Place Int'l & Other

A N N U A L R E V E N U E S

51

Page 52: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

RECENT CAPITAL-RAISING HISTORYMay 2003 $240 million credit facilitySept 2003 $135 million senior subordinated notesDec 2003 $300 million credit facilityFeb 2004 $128 million equity offeringMar 2004 $200 million senior subordinated notesAug 2004 $400 million amended credit facilityDec 2004 $100 million senior subordinated notesDec 2004 $84 million equity offeringDec 2005 $750 million credit facilityJan 2006 $189 million equity offeringNov 2006 $1 billion amended credit facilityJan 2007 $368 million equity offering

June 2007 $385 million senior subordinated notes

TOTAL $4.3 BILLION

52

Page 53: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

SITE MAP

53

Page 54: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proximity to Schlitterbahn’s planned 1,600 hotel rooms creates unmatched destination

SITE SELECTION

54

Page 55: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proximity to Schlitterbahn’s planned 1,600 hotel rooms creates unmatched destination

66 acres allows for future expansion

SITE SELECTION

55

Page 56: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proximity to Schlitterbahn’s planned 1,600 hotel rooms creates unmatched destination

66 acres allows for future expansion

East side of I-435 provides proximity to infrastructure without west-side traffic concerns

SITE SELECTION

56

Page 57: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proximity to Schlitterbahn’s planned 1,600 hotel rooms creates unmatched destination

66 acres allows for future expansion

East side of I-435 provides proximity to infrastructure without west side traffic concerns

SITE SELECTION

57

Page 58: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

SELECTED JERDE PARTNERSHIP PROJECTS

Palms Casino Resort Las Vegas, Nevada

Canal City Hakata

Fukuoka, Japan

Bellagio Las Vegas, Nevada

Morongo Casino Resort & SpaCabazon, California

Treasure Island Las Vegas, Nevada

The GatewaySalt Lake City, Utah

Wynn Las Vegas, Nevada

58

Page 59: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

59

Page 60: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

60

Page 61: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

61

Page 62: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

62

Page 63: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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 perform successfully

CASINO

63

Page 64: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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

CONVENTION CENTER

64

Page 65: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Largest hotel of any applicant500 total roomsExperience developing luxury-branded hotelsSchlitterbahn plans include 1,600 hotel rooms

HOTEL

65

Page 66: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Variety of outlets from casual to gourmet

History of using nationally and locally renowned chefs

Hubert KellerJeff Ruby

RESTAURANTS & LOUNGES

66

Page 67: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

50,000-square foot indoor concert venue4,000 seats

Existing network of entertainment booking for other Pinnacle properties

Outdoor stage for live events

ENTERTAINMENT

67

Page 68: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Bill Cosby Dwight Yoakum Michael BoltonWillie Nelson Chicago Wynonna Judd

B.B. King Jerry Lee Lewis Wayne Newton Lyle Lovett Jay Leno Blood, Sweat & Tears

Diamond Rio The Four Tops The Neville Brothers Julio Iglesias

RECENT PINNACLE PERFORMERS

68

Page 69: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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 sq.ft. of retail

Goal of boutique retail is to complementexisting retail, not compete with it

RETAIL

69

Page 70: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Voted 1988 World’s Best Water Park, an honor the

park has received annually ever since

~ readers of Amusement Today (1998)

#1 Water Park in the U.S.~ The Travel Channel (2006)

SCHLITTERBAHN

#1 Place to “Cool Off in America”

~ The Travel Channel

#1 Indoor Water Park in the U.S.

~ Golden Ticket Award (2007)

Voted Nation’s #1 Water Park

~ readers of Inside Track (1996)

70

Page 71: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Will create a strong super – regional destination with over 2,000 hotel rooms

INTEGRATED SITE PLAN

71

Page 72: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Disney World – Orlando, FLPleasure IslandMust be 21 to enter

RESORT DESTINATIONS

72

Page 73: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Disney World – Orlando, FLPleasure IslandMust be 21 to enter

RESORT DESTINATIONS

73

Page 74: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Disney World – Orlando, FL

Atlantis Paradise Island – BahamasMultiple resort hotelsWater park integrated with casino

RESORT DESTINATIONS

74

Page 75: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Disney World – Orlando, FL

Atlantis Paradise Island – BahamasMultiple resort hotelsWater park integrated with casino

RESORT DESTINATIONS

75

Page 76: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Disney World – Orlando, FL

Atlantis Paradise Island – Bahamas

RESORT DESTINATIONS

76

Page 77: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine which contract best maximizes revenue, encourages tourism and otherwise serves the interests of the people of Kansas.”

SENATE BILL 66

77

Page 78: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine which contract best maximizes revenue, encourages tourism and otherwise serves the interests of the people of Kansas.”

SENATE BILL 66

78

Page 79: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine which contract best maximizes revenue, encourages tourism and otherwise serves the interests of the people of Kansas.”

SENATE BILL 66“BEST MAXIMIZES REVENUE”

79

Page 80: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Gaming revenue = $401.5MNon-Gaming revenue = $86.8M

“BEST MAXIMIZES REVENUE”

80

Page 81: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Gaming revenue = $401.5MNon-Gaming revenue = $86.8M

Development and operating expertise

“BEST MAXIMIZES REVENUE”

81

Page 82: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Gaming revenue = $401.5MNon-Gaming revenue = $86.8M

Development and operating expertise

Not impacted by traffic on the west side of I-435

“BEST MAXIMIZES REVENUE”

82

Page 83: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Gaming revenue = $401.5MNon-Gaming revenue = $86.8M

Development and operating expertise

Not impacted by traffic on the west side of I-435

MyChoice programNational database of 4.7 million PNK casino customersPinnacle will cross-market Kansas casino with its national network of existing properties

“BEST MAXIMIZES REVENUE”

83

Page 84: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Gaming revenue = $401.5MNon-Gaming revenue = $86.8M

Development and operating expertise

Not impacted by traffic on the west side of I-435

MyChoice program

“BEST MAXIMIZES REVENUE”

84

Page 85: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine which contract best maximizes revenue, encourages tourism and otherwise serves the interests of the people of Kansas.”

SENATE BILL 66

85

Page 86: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine which contract best maximizes revenue, encourages tourism and otherwise serves the interests of the people of Kansas.”

SENATE BILL 66“ENCOURAGES TOURISM”

86

Page 87: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Number of tourist visits = 441,000/yearTotal tourist spend = $86.3M+

“ENCOURAGES TOURISM”

87

Page 88: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Number of tourist visits = 441,000/yearTotal tourist spend = $86.3M+

Largest hotel of any applicant

“ENCOURAGES TOURISM”

88

Page 89: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Number of tourist visits = 441,000/yearTotal tourist spend = $86.3M+

Largest hotel of any applicant

Largest convention center of any applicant

“ENCOURAGES TOURISM”

89

Page 90: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Number of tourist visits = 441,000/yearTotal 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

“ENCOURAGES TOURISM”

90

Page 91: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Number of tourist visits = 441,000/yearTotal 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

“ENCOURAGES TOURISM”

91

Page 92: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine whichcontract best maximizes revenue, encourages tourism and otherwiseserves the interests of the people of Kansas.”

SENATE BILL 66

92

Page 93: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

“The board shall determine whichcontract best maximizes revenue, encourages tourism and otherwiseserves the interests of the people of Kansas.”

SENATE BILL 66“SERVES THE INTERESTS OF...KANSAS”

93

Page 94: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

“SERVES THE INTERESTS OF...KANSAS”

94

Page 95: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

Employ 1,500 people

“SERVES THE INTERESTS OF...KANSAS”

95

Page 96: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

Employ 1,500 people

Attract millions of incremental new visitors

“SERVES THE INTERESTS OF...KANSAS”

96

Page 97: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

Employ 1,500 people

Attract millions of incremental new visitors

Purchase over $50 million in annual goods and services from local suppliers

“SERVES THE INTERESTS OF...KANSAS”

97

Page 98: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

Employ 1,500 people

Attract millions of incremental new visitors

Purchase over $50 million in annual goods and services from local suppliers

Generate over $17 million/year in new property taxes

“SERVES THE INTERESTS OF...KANSAS”

98

Page 99: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

Employ 1,500 people

Attract millions of incremental new visitors

Purchase over $50 million in annual goods and services from local suppliers

Generate over $17 million/year in new property taxes

Over $7 million/year for the KCK (USD #500) school district

“SERVES THE INTERESTS OF...KANSAS”

99

Page 100: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Create 2,000 construction jobs

Employ 1,500 people

Attract millions of incremental new visitors

Purchase over $50 million in annual goods and services from local suppliers

Generate over $17 million/year in new property taxes

Over $7 million/year for the KCK (USD #500) school district

“SERVES THE INTERESTS OF...KANSAS”

100

Page 101: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Source: Kansas State Department of Education

ONLY SITE LOCATEDIN KCK SCHOOL DISTRICT

Students At Risk Students Graduation Rate

Kansas City, KS(USD #500) 18,203 82% 78%

Bonner Springs / Edwardsville(USD #204) 2,337 35% 88%

Piper(USD #203) 1,530 8% 97%

101

Page 102: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

GVA MARQUETTE – REVENUE SOURCE

102

Page 103: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

GVA MARQUETTEREVENUE PROJECTIONS (2012)

Local Win $262 MTourist Win:

Tertiary Market $8 MKC Visitors $14 MHotel Visitors $74 MHighway $8 M

Total Tourist Win $104 MTotal Projected Win $366 M

103

Page 104: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Major Commercial

CasinosTribal

Casinos Racinos Countries/States

Hotel Rooms

SlotMachines

Table Games

Pinnacle 8 N/A N/A 6 2,634 10,695 360

Golden 4 0 0 2 70 1,668 40

Cordish 0 0 1 1 0 2,000 0

Mohegans 0 1 1 2 1,176 8,400 318

APPLICANT COMPARISON

104

Page 105: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

GVA MARQUETTE SITE COMPARISON 4 = HIGHEST POSSIBLE SCORE 1 = LOWEST

CharacteristicProximity to Village West

and other Amenities

Visibility from I-70

Visibility from I-435

Access

Total Score

Pinnacle Golden Cordish Mohegans

Weight Rank Score Rank Score Rank Score Rank Score

4 4 16 2 8 3 12 4 16

3 2 6 4 12 3 9 2 6

2 4 8 3 6 3 6 1 2

1 4 4 4 4 3 3 1 1

34 30 30 25

105

Page 106: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proven casino operating expertiseOperate 13,000 gaming positions across 12 properties

CASINO EXPERTISE

106

Page 107: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proven casino operating expertise

Proven casino development expertiseOver $1 billion of new casino/hotel development within the past 3 years

CASINO EXPERTISE

107

Page 108: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proven casino operating expertise

Proven casino development expertise

Kansas needs an operator that can generate the most gaming revenues

Well-established competition in Missouri

CASINO EXPERTISE

108

Page 109: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proven casino operating expertise

Proven casino development expertise

Kansas needs an operator that can generate the most gaming revenues

Able to generate higher gaming revenues than our competitors

Least traffic congestionRewards program linked to national network of properties

CASINO EXPERTISE

109

Page 110: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proven casino operating expertise

Proven casino development expertise

Kansas needs an operator that can generate the most gaming revenues

Able to generate higher gaming revenues than our competitors

Best complement to existing tourism destination

CASINO EXPERTISE

110

Page 111: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Proven casino operating expertise

Proven casino development expertise

Kansas needs an operator that can generate the most gaming revenues

Able to generate higher gaming revenues than our competitors

Best complement to existing tourism destination

CASINO EXPERTISE

111

Page 112: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

PROJECT COMPARISONMunicipality School

DistrictHotel

RoomsConvention

Center Traffic Impact

Pinnacle Kansas City, KS KCK(USD #500)

500 100,000 Negligible

Golden Edwardsville, KS Bonner(USD #204)

300 35,000 Negligible

Cordish Kansas City, KS Bonner(USD #204)

300 58,000 Significant

Mohegans Kansas City, KS Piper(USD #203)

350 35,000 Significant

112

Page 113: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Work with local communities to have lasting positive effect on neighborhood

PINNACLE COMMITMENTS

113

Page 114: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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 projectsAnnual commitment of at least $1 million to local charities

PINNACLE COMMITMENTS

114

Page 115: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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

Aggressive diversity goals in hiring and working with minorities and women

PINNACLE COMMITMENTS

115

Page 116: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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

Aggressive diversity goals in hiring and working with minorities and women

Convert Western Wyandotte County from a regional destination into a national destination

Convention CenterLuxury HotelWorld-Class Casino

PINNACLE COMMITMENTS

116

Page 117: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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

Aggressive diversity goals in hiring and working with minorities and women

Convert Western Wyandotte County from a regional destination into a national destination

PINNACLE COMMITMENTS

Convention CenterLuxury HotelWorld-Class Casino

117

Page 118: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

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

Aggressive diversity goals in hiring and working with minorities and women

Convert Western Wyandotte County from a regional destination into a national destination

PINNACLE COMMITMENTS

118

Page 119: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Highest RevenuesBest siteExperience, experience, experience

CONCLUSION

119

Page 120: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Highest RevenuesBest siteExperience, experience, experience

Most TouristsLargest hotelLargest convention centerSchlitterbahn

CONCLUSION

120

Page 121: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

CONCLUSIONHighest Revenues

Best siteExperience, experience, experience

Most TouristsLargest hotelLargest convention centerSchlitterbahn

Best Interests of KansasProven track recordKeep our promises

121

Page 122: Pinnacle presentation 2

P I N N A C L E E N T E R T A I N M E N T

Kansas Lottery Gaming FacilityReview BoardA U G U S T 1 3 , 2 0 0 8

122