Seabrook Greyhound Park

1
Seabrook Greyhound Park
Providing jobs, tax revenue, charitable
contributions, and support to local businesses
for over 35 years
July 7, 1973 Ribbon Cutting Ceremony
and now poised to do even more.
Today

• Presentation to the
• New Hampshire Gaming Study
  Commission
• October 20, 2009
• v.1.2.

Tomorrow
Tomorrow
2
Presentation Outline

• Introduction
• Location where and the importance of where.
• Development Options tax revenue vs. jobs vs.
  investment and the sum of the parts.
• Seabrook Proposal optimize the opportunity for
  all stakeholders.
• Execution Seabrooks ability to develop, fund,
  open, and manage.
• Summary

Pg. 1, 10/20/09 v.1.2.
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Key Takeaways

• Seabrook Greyhound Park (SGP) is the logical
  business choice for a slot
  machine gaming license because
• SGP is one of two southern New Hampshire
  locations poised to maximize out-of-state revenue
  from Boston/Massachusetts and northbound
  tourists.
• SGP has been contributing jobs, tax revenue,
  charitable contributions, and support to local
  businesses for 36 years.
• SGP is experienced, capable, and ready to invest
  at least 100 million in a renovation of the
  existing 70,000 facility as well as the addition
  of a permanent gaming facility that will include
• 2000 video lottery terminals (VLTs).
• Gourmet buffet, 200-seat casual dining
  restaurant, 100-seat fine dining restaurant,
  lounges, and entertainment center.
• SGP will joint venture with an experienced casino
  company to
• complement SGPs local, regional, and state
  pari-mutuel, poker, and charitable gaming
  experience and to
• bring casino machine-style gaming development,
  operating, and marketing expertise as well as
  capital to the expanded operation.

Pg. 2, 10/20/09 v.1.2.
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Introduction to Seabrook

• Seabrook Greyhound Park (SGP) opened July 2,
  1973.
• Since opening SGP has raised 130 million in
  State taxes.
• Raised 3 million for charities since 2006.
• SGP currently provides 75 jobs generating a 2008
  payroll of 2 million.
• SGP is a full, year round leisure/entertainment
  destination catering to adjacent out-of-state
  residents, northbound tourists, and local
  residents with
• Year-round simulcast thoroughbred, harness, and
  greyhound racing of over 50 tracks nationwide.
• Telephone wagering.
• Charitable games of chance blackjack, craps,
  roulette, and poker.
• NH lottery and scratch tickets.
• Dining room and buffet, concessions, and lounges.

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Location
SEABROOK
NH
SGP
RP
Seabrook
Rockingham Park
Rockingham Park
BOSTON
MA
Boston
Boston
Population Density Source Wikipedia
Highway Routes Source Google Maps
Gaming Competition Current Source Cummings
Associates

• SGP provides one of the two best locations to
  access residents of the Greater
  Manchester-Boston/Massachusetts Market Area and
  northbound tourists.
• Distance matters double the distance and demand
  decreases by three-quarters.

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Competitor Locations
11
Pg. 5, 10/20/09 v.1.2.
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Development Options

• Public Stakeholder Goals

• Private Enterprise Stakeholder Goals

• Jobs construction / operating.
• Tax / other revenue to local, regional, and State
  government.
• Secondary benefits
• Affinity business support.
• Incubation of new businesses.

• Ability to conceptualize, develop, and execute a
  Product that meets or exceeds the needs, wants,
  and expectations of the consumer ...
• at a price and cost that achieves equity and
  debtor target financial goals, and
• niches / beats the competition.

Tradeoffs higher taxes/fees,
development/operating constraints lead to
Lower investment Less capacity and/or quality
of facilities Less consumer attraction
Less ability to compete Fewer jobs
(construction and operating) Lower taxes,
revenue to government BUT, the reverse is
also true.
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Development Options continued

• Development Potential
• Scenarios Implications
• Opportunistic 1. Under build and under-pace the
  market.
• Tax Rate Based 2. Investment and benefits are
  sized to the
  tax rate. The higher the tax rate the
  lower the initial and phased investment and
  vice versa.
• Maximize the 3. Initial and phased expansion
  maximizes
  
  Opportunity the market opportunity with the
  ability to raise and service
  capital.
• External force Whereas pre-financial crises
  there was capital for any project, today capital
  is not guaranteed. Thus, it is incumbent upon
  both government and private developers to
  strategize development in a manner that attracts
  the necessary capital under acceptable terms and
  conditions.

Pg. 7, 10/20/09 v.1.2.
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Seabrook Proposal

• Current

• Proposal - up to 100M permanent racino addition

• 70,000 square foot facility.
• Year-round simulcast of thoroughbred, harness,
  and greyhound racing of over 50 tracks
  nationwide.
• Telephone wagering.
• Charitable games of chance blackjack, craps,
  roulette, and poker.
• NH lottery and scratch tickets.
• The Kennel Club dining room and buffet,
  concessions, and lounges.

• 2000 video lottery terminals (VLTs).
• Large charitable gaming section including poker
  and table games.
• Renovate existing grandstands, simulcast
  facility, restaurants, and Poker Room.
• Gourmet buffet restaurant
• 200 seat casual dining restaurant and bar.
• 100 seat fine dining restaurant
  and lounge.
• Entertainment center.
• Meeting and event space.
• Valet parking.

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Proposed Rendering
Pg. 9 10/20/09 v.1.2.
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Proposal Benefits
Based upon the Innovation Group report
presented to NH Senate Ways Means Committee,
3/09.

• 20M to NH upon approval of VLT license plus
• 50,000 to Attorney Generals Office for
  investigation fee.
• 100,0000 to Lottery Commission for initial
  license investigation.
• Estimated 50M in new NH tax revenue upon full
  operation
• 41M State general fund.
• 3M town of Seabrook.
• 1M Rockingham County.
• 2M to programs to help and prevent
  gambling abuse.
• 1M NH Dept. of Resource Economic
  Development.
• 1M NH Dept. of Safety.
• 1M NH Racing Charitable Gaming Commission.

• Immediate benefits from temporary facility (if
  allowed) 400 jobs and in excess of 8M
  payroll.
• Significant games of chance revenue
  increase, much of it from Massachusetts
  residents and northbound tourists.
• Additional food and beverage
  tax revenue.
• Jobs
• 150 estimated temporary construction jobs.
• More than 400 direct full and part time jobs.
• Annual payroll in excess of 10M.
• Additional 500 indirect jobs developed in the
  region (multiplier effect).

Pg. 10, 10/20/09 v.1.2.
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Proposal Execution

• SGP has the current ownership vision, New
  Hampshire experience, and core base of management
  and employees to conceptualize, seek funding and
  secure a joint venture partner to finalize plans,
  construct, pre-open, and operate/market the
  property once open.
• The Joint Venture Partner will
• Contribute needed project development and
  construction capital.
• Raise additional debt financing with SGP, if
  necessary.
• Operate and market the property once open.
• SGP is confident that it will be able to attract
  an experienced, capable, and right JV Partner
  because
• The capital required is right-sized and do-able
  in todays economy.
• An oligopolistic license serving the Greater
  Manchester-Boston market area will be attractive.
• Experientially, there are a number of gaming
  executives seeking good, stable employment.

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SGP Flexibility
SGP understands that the initiative to introduce
casino-style machine gaming to New Hampshire
remains in the discussion stages. SGP looks
forward to actively participating in these
discussions. And, when the final enabling
legislation has been enacted, SGP stands ready to
conform to the will of the citizens and
stewardship by the government of New Hampshire.
Pg. 12, 10/20/09 v.1.2.
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Summary

• Seabrook Greyhound Park (SGP) is the logical
  business choice for a slot
  machine gaming license because
• SGP is one of two southern New Hampshire
  locations poised to maximize out-of-state revenue
  from Boston/Massachusetts and northbound
  tourists.
• SGP has been contributing jobs, tax revenue,
  charitable contributions, and support to local
  businesses for 36 years.
• SGP is experienced, capable, and ready to invest
  at least 100 million in a renovation of the
  existing 70,000 facility as well as the addition
  of a permanent gaming facility that will include
• 2000 video lottery terminals (VLTs).
• Gourmet buffet, 200-seat casual dining
  restaurant, 100-seat fine dining restaurant,
  lounges, and entertainment center.
• SGP will joint venture with an experienced casino
  company to
• complement SGPs local, regional, and state
  pari-mutuel, poker, and charitable gaming
  experience and to
• bring casino machine-style gaming development,
  operating, and marketing expertise as well as
  capital to the expanded operation.

Pg. 13, 10/20/09 v.1.2.
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Thank you.

• Seabrook Greyhound Park