wells gaming ppt 2010

South Central Gaming Zone

Prepared For:Kansas Lottery Gaming Facility Review Board Meeting

December 1, 2010

Wells Gaming Research

December 1, 2010 Wells Gaming Research 1

Methodology• Customized WGR’s proprietary gravity

models• Tested and calibrated models on casino

markets in MO, OK, & KS where actual or highly reliable estimates of gaming revenues were available

• Updated population data at census tract level for 2000 and 2009 thru 2017 for the trade area

• Defined and ran 5 scenarios for Kansas Star and 6 scenarios for WinSpirit to evaluate build out phases and impact of Wyandotte casino


SC Kansas Trade Area• Trade area is slightly more than a 100-mile

radius to the north, extending 150 miles south (OKC) and 140 miles southeast (TUL)

• Includes 32 counties in Kansas, 21 counties in Oklahoma, and 850 census tracts

• Total population is 3,032,068; of which 2,098,260 are adults

• Of the adult population, 455,119 (22%) live in Sumner County and the seven contiguous counties, 1,396,778 (67%) live in Oklahoma


SC Kansas Trade Area Map


Existing and Planned Casinos• Existing competition includes 1 casino in Kansas and

62 casinos in Oklahoma• Total existing capacity: 37,237 slots, 338 pit tables,

170 poker tables, 817 hotel rooms• Expansions at Boot Hill Casino (291 slots, 3 pit

tables, 19,776 sq. ft. convention, 108 rooms, 1 restaurant and 2 entertainment venues)

• Expansions at First Council Casino (88 rooms and an events center) and Lucky Star Casino in Concho (600 slots)

• Planned casino in Chilocco (300 slots, 1 food & bev)

Global Gaming’s WinSpirit


Capacities and AmenitiesWinSpirit Phase 1a Phase 1b Phase 1c

FBO 2016 - 2024

Years 2012 2014 2016 2016

Casino:Square Footage 72,979 72,979 72,979 72,979Slots Machines 1,300 1,550 1,800 2,000Table Games 30 40 40 40Poker Tables 20 20 20 20

Restaurants & Bar / Lounges:# of Restaurants 2 2 2 4# of Bar / Lounges 3 3 3 3

Event / Convention Center:# of Seats 1,400 1,400 1,400 1,400

Hotel:# of Rooms 80 80 80 200

Travel Plaza:# of Fueling Positions 0 12 12 12

Parking:# of Spaces 2,357 2,357 2,357 3,323

RV Park:# of Spaces 0 0 0 90


Gaming Revenue Projections

WinSpiritPhase 1a

2012Phase 1b

2014Phase 1c

2016Full Build Out

2016

Global Gaming Projections: 1/2 year 2016 - 2024Residential $53,043,900 $118,328,700 $130,569,600 N/ATourist $10,217,500 $22,110,000 $25,125,000 N/ATotal $63,261,400 $140,438,700 $155,694,600 N/A

WGR Projections :Trade Area $45,102,500 $103,654,000 $115,162,000 $130,048,000Incremental from Travel Plaza $0 $5,031,160 $5,337,558 $5,337,558Total $45,102,500 $108,685,160 $120,499,558 $135,385,558Difference - Global Gaming vs WGR $18,158,900 $31,753,540 $35,195,042 N/A% Difference 29% 23% 23% N/A

Impact of the Wyandotte Phase 1: 1,000 slots 1,000 slots 1,000 slots 1,000 slotsWith Wyandotte Tribe Casino $34,908,000 $86,705,160 $96,961,558 $112,832,558Impact -$10,194,500 -$21,980,000 -$23,538,000 -$22,553,000% Impact -23% -20% -20% -17%

Impact of the Wyandotte FBO: 1,000 slots 1,000 slots mirror WinSpirit mirror WinSpiritWith Wyandotte Tribe Casino $34,908,000 $86,705,160 $71,094,558 $77,063,558Impact -$10,194,500 -$21,980,000 -$49,405,000 -$58,322,000% Impact -23% -20% -41% -43%


Gaming Visit Projections

WinSpiritPhase 1a

2012Phase 1b

2014Phase 1c

2016Full Build Out

2016

Global Gaming Projections: 1/2 year 2016 - 2024Residential 845,224 1,822,271 2,028,148 N/ATourist 161,572 360,567 401,304 N/ATotal 1,006,796 2,182,838 2,429,452 N/A

WGR Projections :Trade Area 609,194 1,318,865 1,380,775 1,558,256Incremental from Travel Plaza 0 100,623 100,623 100,623Total 609,194 1,419,488 1,481,398 1,658,879Difference - Global Gaming vs WGR 397,603 763,350 948,054 N/A% Difference 39% 35% 39% N/A

Impact of the Wyandotte Phase 1: 1,000 slots 1,000 slots 1,000 slots 1,000 slotsWith Wyandotte Tribe Casino 493,470 1,188,578 1,251,051 1,449,656Impact -115,724 -230,910 -230,347 -209,223% Impact -19% -16% -16% -13%

Impact of the Wyandotte FBO: 1,000 slots 1,000 slots mirror WinSpirit mirror WinSpiritWith Wyandotte Tribe Casino 493,470 1,188,578 922,769 996,133Impact -115,724 -230,910 -558,629 -662,746% Impact -19% -16% -38% -40%

Peninsula Gaming’sKansas Star


Capacities and AmenitiesKansas Star Phase 1a Phase 1b FBO

Years 2012 2014 2016

Casino:Square Footage 44,100 47,200 63,700Slots Machines 1,310 1,500 2,000Table Games 32 42 50Poker Tables 0 10 10

Restaurants & Bar / Lounges:# of Restaurants 2 3 3# of Bar / Lounges 1 2 2

Event / Convention Center:# of Seats 0 3,000 3,000

Hotel:# of Rooms 0 150 300

Parking:# of Spaces 1,820 2,520 3,965

RV Park:# of Spaces 0 20 90



Kansas StarPhase 1a

2012Phase 1b

2014Full Build Out

2016

Peninsula Gaming Projections: Full YearResidential $112,900,817 $146,229,083 $174,104,835Tourist $6,007,106 $19,583,472 $28,237,904Total $118,907,923 $165,812,555 $202,342,739

WGR Projections :Trade Area $132,614,000 $176,228,000 $206,167,000Incremental from Equine Events $0 $2,455,731 $3,016,759Total $132,614,000 $178,683,731 $209,183,759Difference - Peninsula Gaming vs WGR -$13,706,077 -$12,871,176 -$6,841,020% Difference -12% -8% -3%

Impact of the Wyandotte Phase 1: 1,000 slots 1,000 slots 1,000 slotsWith Wyandotte Tribe Casino $92,030,000 $138,977,731 $171,624,759Impact -$40,584,000 -$39,706,000 -$37,559,000% Impact -31% -22% -18%

Impact of the Wyandotte FBO: 1,000 slots 1,000 slots mirror Kansas StarWith Wyandotte Tribe Casino $92,030,000 $138,977,731 $123,326,759Impact -$40,584,000 -$39,706,000 -$85,857,000% Impact -31% -22% -41%

Gaming revenue for alternate site estimated at 2% to 4% less than primary site



Kansas StarPhase 1a

2012Phase 1b

2014Full Build Out

2016

Peninsula Gaming Projections: Ful YearResidential 1,727,792 2,132,782 2,407,199Tourist 99,911 169,012 240,461Total 1,827,703 2,301,794 2,647,660

WGR Projections :Trade Area 1,878,740 2,344,040 2,580,203Incremental from Equine Events 0 33,640 39,179Total 1,878,740 2,377,680 2,619,382Difference - Peninsula Gaming vs WGR -51,037 -75,886 28,278% Difference -3% -3% 1%

Impact of the Wyandotte Phase 1: 1,000 slots 1,000 slots 1,000 slotsWith Wyandotte Tribe Casino 1,324,033 1,879,085 2,184,432Impact -554,707 -498,595 -434,950% Impact -30% -21% -17%

Impact of the Wyandotte FBO: 1,000 slots 1,000 slots mirror Kansas StarWith Wyandotte Tribe Casino 1,324,033 1,879,085 1,566,606Impact -554,707 -498,595 -1,052,776% Impact -30% -21% -40%

Casino visits for alternate site estimated at 2% to 4% less than primary site

Global’s WinSpirit vs

Peninsula’s Kansas Star


Capacities and AmenitiesWinSpirit Kansas Star

Phase 1a Phase 1c FBO Phase 1a FBOCapacities & Amenities 2012 2016 2016 - 2024 2012 2016

Casino:Square Footage 72,979 72,979 72,979 44,100 63,700Slots Machines 1,300 1,800 2,000 1,310 2,000Table Games 30 40 40 32 50Poker Tables 20 20 20 0 10

Restaurants & Bar / Lounges:# of Restaurants 2 2 4 2 3# of Bar / Lounges 3 3 3 1 2

Event / Convention Center:# of Seats 1,400 1,400 1,400 0 3,000

Hotel:# of Rooms 80 80 200 0 300

Travel Plaza:# of Fueling Positions 0 12 12 0 3965

Parking:# of Spaces 2,357 2,357 3,323 1,820 90

RV Park:# of Spaces 0 0 90 0 100



2012 2014 2016

Revenue Projections (in thousands)

WinSprit Phase 1a (1/2 Year)

Kansas Star

Phase 1a (Full Year) Difference

WinSprit Phase 1b

Kansas Star

Phase 1b DifferenceWinSprit Phase 1c

Kansas Star FBO Difference

Applicants $63,261 $118,908 $55,647 $140,439 $165,813 $25,374 $155,695 $202,343 $46,648Wells Gaming Research $45,103 $132,614 $87,512 $108,685 $178,684 $69,999 $120,500 $209,184 $88,684Dif - Applicant vs WGR $18,159 -$13,706 -$31,865 $31,754 -$12,871 -$44,625 $35,195 -$6,841 -$42,036% Difference 29% -12% -57% 23% -8% -176% 23% -3% -90%

Net Revenue with Wyandotte (WGR's Projections) $34,908 $92,030 $57,122 $86,705 $138,978 $52,273 $71,095 $123,327 $52,232

Impact of the Wyandotte Casino -$10,195 -$40,584 -$30,390 -$21,980 -$39,706 -$17,726 -$49,405 -$85,857 -$36,452% of Impact -23% -31% -35% -20% -22% -25% -41% -41% -41%Wyandotte Casino Assumption 1,000 Slots 1,000 Slots 1,000 Slots 1,000 Slots mirror mirror



2016

Revenue Projections (in thousands)

WinSprit FBO

(2016 - 2024)Kansas Star

FBO DifferenceApplicants N/A $202,343 N/AWells Gaming Research $135,386 $209,184 $73,798Dif - Applicant vs WGR N/A -$6,841 N/A% Difference N/A -3% N/ANet Revenue with Wyandotte

(WGR's Projections) $77,064 $123,327 $46,263Impact of the Wyandotte Casino -$58,322 -$85,857 -$27,535% of Impact -43% -41% -37%Wyandotte Casino Assumption mirror mirror



2012 2014 2016

Visit Projections

WinSprit Phase 1a (1/2 Year)

Kansas Star

Phase 1a (Full Year) Difference

WinSprit Phase 1b

Kansas Star

Phase 1b DifferenceWinSprit Phase 1c

Kansas Star FBO Difference

Applicants 1,006,796 1,827,703 820,907 2,182,838 2,301,794 118,956 2,429,452 2,647,660 218,208Wells Gaming Research 609,194 1,878,740 1,269,547 1,419,488 2,377,680 958,192 1,481,398 2,619,382 1,137,984Dif - Applicant vs WGR 397,603 -51,037 -448,640 763,350 -75,886 -839,236 948,054 28,278 -919,776% Difference 39% -3% -55% 35% -3% -706% 39% 1% -422%

Net Visits with Wyandotte (WGR's Projections) 493,470 1,324,033 830,564 1,188,578 1,879,085 690,507 922,769 1,566,606 643,837

Impact of the Wyandotte Casino -115,724 -554,707 -438,983 -230,910 -498,595 -267,685 -558,629 -1,052,776 -494,147% of Impact -19% -30% -35% -16% -21% -28% -38% -40% -43%Wyandotte Casino Assumption 1,000 Slots 1,000 Slots 1,000 Slots 1,000 Slots mirror mirror



2016

Visit Projections

WinSprit FBO

(2016 - 2024)Kansas Star

FBO DifferenceApplicants N/A 2,647,660 N/AWells Gaming Research 1,658,879 2,619,382 960,503Dif - Applicant vs WGR N/A 28,278 N/A% Difference N/A 1% N/A

Net Visits with Wyandotte (WGR's Projections) 996,133 1,566,606 570,473

Impact of the Wyandotte Casino -662,746 -1,052,776 -390,030% of Impact -40% -40% -41%Wyandotte Casino Assumption mirror mirror

Richard H. Wells, Experience & Qualifications

Wells is founder and president of Wells Gaming Research, a Nevada Corporation that provides Casino Player Count ServiceŖ, a market share tracking service to clients for 335 casinos in Nevada, Mississippi, Louisiana, New Mexico, California, and Asia. Wells Gaming Research also performs a wide range of consulting and gaming research assignments including casino market studies, financial feasibility studies, financial projections, due d iligence, litigation support, legislative issue support, and gaming industry expert witness services for the gaming industry. Wells has fifteen years experience as a senior executive in the casino-hotel industry with Holiday Inns, HarrahÕs, and BallyÕs. Wells has also held positions in management, planning, and financial analysis for a large regional bank and a major international oil company. Wells has a B.S. degree in business from Oklahoma State University and completed a post-graduate program in Systems Dynamics at M.I.T. Wells has participated in a wide range of community service activities and is listed in Marquis WhoÕs Who in Finance and Industry and Marquis Who's Who in America.

wells gaming ppt 2010

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