Kansas Casino Market Study Estimates of gaming revenues for one generic casino to be located in each

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Kansas Casino Market StudyEstimates of gaming
revenues for one generic casino to be located in
each gaming zone
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Methodology

• Used WGRs proprietary gravity model
• Defined trade areas as approximate 100-mile
  radius of each site (adjacent trade areas have
  50-100 mile overlaps)
• Used 2007 data as status quo for baseline
  projections
• Population data at census tract level 2000
  through 2012
• Identified existing casinos, expansions, and
  proposed new casinos within 150 miles of each
  site
• Developed size, scope, and location assumptions
  for proposed Kansas Lottery generic casinos and
  racetrack slots without reference to applicant
  proposals or other consultants work
• Developed and calibrated a custom gravity model
  for each gaming zone
• Defined and ran three to seven scenarios for each
  zone
• Low, mid, and high multi-year gaming revenue
  estimates

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Combined Map of Casino Proposals
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Exhibit 1-1 Total Adult Population by State for
the Gaming Zones
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Exhibit 1-2 Capacity by State Includes Existing,
Proposed Expansions New Casinos
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Exhibit 1-3 Status Quo Casino Gaming Revenues
for 2007 Projections for 2012(Stated in
Millions of Dollars)
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Exhibit 1-4 Casino Revenue Projections w/ New
Casinos Expansions (Stated in Millions of
Dollars)
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Total Trade Area - All Four ZonesEstimated
Annual GGR Spending per Adult
2007
2012 (w/ 13 inflation)
Annual Spend
485
574
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NE Kansas - Wyandotte

• trade area (100-mile radius) includes 32 counties
  in Kansas, the southeastern corner of Nebraska (3
  counties), and northwestern Missouri (36
  counties)
• this overlaps with the trade areas of proposed
  Kansas Lottery casinos in the southeastern and
  south central Kansas gaming zones

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NE Kansas - Wyandotte

• the population in the trade area is 3,121,829 of
  which 2,174,051 are adults
• of the adult population, 1,190,250 (55) live in
  the counties immediately surrounding Kansas City
  on both the Kansas and Missouri sides of the
  state line

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Northeast Zone Map
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Capacity Statistics for Current and Future
Proposed Casinos Competing in the Northeast
Kansas Trade Area

• Existing Casinos
• 18 casinos containing 16,914 slots, 367 pit
  tables, and 73 poker tables
• One Expansion and Six Proposed New Casinos
• With 6,750 slots, 100 pit tables, and 15 poker
  tables
• Represent a 40 increase in slots and a 27
  increase in pit tables in this trade area

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Assumptions for Projected Generic Casino
Wyandotte County, Northeast Zone

• WGRs assumptions for a new casino
• 3,000 slots, 100 table games, 100,000 sq. ft. of
  convention space, 500 hotel rooms, 6
  restaurants, 5 entertainment venues
• The casino location is assumed to be near the
  intersection of U.S. 435 Hwy 24, adjacent to
  the Speedway

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Northeast Zone
Scenario 3A is the same as Scenario 3, but
without the Wild Rose Entertainment Casino
planned for Sugar Creek, Missouri.
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SE Kansas - Cherokee

• trade area (approximate 100-mile radius) includes
  18 counties in Kansas, 24 counties in
  southwestern Missouri, 15 counties in
  northeastern Oklahoma, and 8 counties in
  northwestern Arkansas
• this trade area overlaps with the trade areas of
  proposed Kansas Lottery casinos in the
  northeastern and and south central Kansas gaming
  zones

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SE Kansas -Cherokee

• the trade area population is 2,976,480
• of which 2,072,654 are adults
• of the adult population, only 254,869 (12) live
  in Cherokee County and the surrounding Counties

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Southeast Zone Map
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Capacity Statistics for Casinos Competing in the
Southeast Kansas Trade Area

• Existing Casinos
• 53 casinos with 30,846 slots, 409 pit tables, and
  182 poker tables
• 4 Expansions 16 Proposed New Casinos
• 20 casinos with 20,614 slots, 411 pit tables, and
  23 poker tables
• These expansions would represent a 67 increase
  in slots and a 110 increase in pit tables in
  this trade area

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Assumptions for the Projected Generic Casino in
the Southeast Zone

• WGRs assumptions for a new casino in Cherokee
  County 1,200 slots, 40 table games, 10,000 ft.
  of convention space, 250 hotel rooms, 3
  restaurants, and 2 entertainment venues
• The casino location is assumed to be near the
  intersection of U.S. 166 and S.E. Bagdad Road,
  approximately 2.4 miles NW of the Will Rogers
  Turnpike

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Southeast Zone
Scenario 3 includes the assumptions of Scenario
1, plus four Expansions and 16 proposed casinos
in Kansas, Missouri, and Oklahoma.
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SC Kansas - Sumner

• trade area (approximate 100 mile radius) includes
  34 counties in Kansas and 19 counties in Oklahoma
• this trade area overlaps with the trade areas of
  proposed Kansas Lottery casinos in the
  northeastern, southeastern, and southwestern
  Kansas gaming zones

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SC Kansas - Sumner

• the trade area population is 2,242,031 of which
  1,549,257 are adults
• of the adult population, 500,054 (32) live in
  Sumner and surrounding counties

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South Central Zone
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Current and Future Proposed Casinos Competing in
the South Central Kansas Trade Area

• Existing Casinos
• 54 casinos in Oklahoma containing 28,532 slots,
  271 pit tables, and 196 poker tables
• 6 Expansions 12 Proposed New Casinos
• with 18,431 slots, 405 pit tables, and 23 poker
  tables
• These expansions would represent a 65 increase
  in slots and a 149 increase in pit tables in
  this trade area

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Assumptions for Projected Generic Casino in the
South Central Zone

• Assumptions for a new casino in Sumner County
  2,000 slots, 50 table games, 30,000 ft. of
  convention space, 275 hotel rooms, 4 restaurants,
  and 3 entertainment venues
• The location assumed for the casino location is
  the intersection of I-35 and U.S. 160 near the
  Wellington exit

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South Central Zone
Scenario 3 includes the assumptions of Scenario
1, plus six Expansions and 12 proposed casinos
in Kansas, Missouri, and Oklahoma.
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SW Kansas - Ford

• trade area (approximate 100-mile radius) includes
  51 counties in Kansas, 7 counties in Oklahoma,
  and 2 counties in the Texas panhandle
• this trade area overlaps with the trade area of
  proposed Kansas Lottery casino in the south
  central Kansas gaming zone

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SW Kansas - Ford

• the trade area population is 504,936
• of which 343,002 are adults
• of the adult population, 60,767 (18) live in
  Ford and surrounding counties

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Southwest Zone Map
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Casino Competition
There are no existing casinos in this zone, and
the only other proposed casino is the Kansas
Lottery proposed casino in Sumner County. WGR
has projected this Sumner County casino to have
2,000 slots and 50 table games. Other Oklahoma
casinos more than 150 miles away compete for
business within this trade area
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Assumptions for the Projected Generic Casino in
the Southwest Zone

• Assumptions for the new casino 800 slots, 20
  table games, 10,000 ft. of convention space, 100
  hotel rooms, 3 restaurants, and 3 entertainment
  venues
• The casino location is assumed to be on the
  western outskirts of Dodge City to the north of
  Hwy. 50

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Southwest Zone
Scenario 3 includes the assumptions of Scenario
1, plus the addition of 11 proposed casinos in
Kansas, and Oklahoma.
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