Missouri Gaming Association 2005 Annual Report Bill Keena 2006 MGA President Regional President Missouri & Iowa Harrah’s Entertainment

Missouri Gaming Association

2005 Annual Report

Bill Keena2006 MGA President

Regional President

Missouri & Iowa

Harrah’s Entertainment


New Association name, logo Reflects current Missouri

casino industry


Troy Stremming

MGA President 2003-2005 MGA board leadership and

spokesperson

Responsible gaming

Legislative affairs

Minority vendors and suppliers


Minority Supplier Forums Led three casino minority

supplier forums in Kansas City

Initiated first casino minority supplier forum in St. Louis in 2005

Chair of Minority Supplier Council Western Kansas and Missouri

Appointed to board of Urban League of Kansas City


Troy Stremming

MGA President 2003-2005


Missouri Gaming Industry 2005 Review

Major capital investments statewide

Statewide gaming revenues up 4%

Gaming revenues up dramatically Terrible’s St. Jo Terrible’s Mark Twain Casino Aztar


Missouri Gaming Industry 2005 Review

$414 million in taxes - education, communities & veterans programs

New responsible gaming programs

Minority employment 35%, up from 31%

80% casino job satisfaction


Casino Capital Investments

60% of Operating Cash Flow is reinvested in Missouri

$1.8 billion capital investment as of 2005

Will soon exceed $3 billion with nearly $1.3 billion in projects currently underway & planned


Current Capital Projects

Harrah’s North Kansas City $126 million

Penn National - Argosy Casino Riverside$75 million

Isle of Capri Kansas City$85 million

Isle of Capri Boonville$17.5 million

Ameristar St. Charles$240 million

Pinnacle Entertainment $400 million St. Louis City$375 million St. Louis County


Non-Gaming RevenuesNational Trend

Non-gaming amenities create destination resorts Las Vegas Strip

Non-gaming casino revenues 57%+

Nevada Statewide non-gaming revenues topped gaming revenues

(50.1%) for first time in 2005


Non-Gaming InvestmentsNational Trend

Atlantic City - Expanded entertainmentAztar’s Tropicana Casino & Resort $250 million non-gaming expansion 24% non-gaming revenues

vs. 15% Atlantic City average 25% increase in gaming revenues

November 2005 2005 New Jersey Governor's Award for

Tourism Excellence


Non-Gaming InvestmentsMissouri Trend

Harrah’s North Kansas City Hotel tower, entertainment venues & restaurants

Penn National - Argosy Casino RiversideHotel & spa

Isle of Capri Kansas CityCasino expansion, improvements and new arena

Isle of Capri BoonevilleHotel & event center

Ameristar St. CharlesHotel, conference center & spa

Pinnacle Entertainment - St. Louis City &St. Louis CountyHotels, downtown pedestrian connection & entertainment venues


Gaming revenues up statewide

199519961997 1998 1999 2000 2001 2002 2003 2004 2005

$-

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

Adjusted gross receipts in billions

Missouri gaming industry 10 Years


Kansas City area Gaming tax revenues 2005

$195 million total gaming taxes $127 million to School Foundation Formula $40 million to host communities $15 million to early childhood programs $3 million to Veterans Commission $0 tax incentives and abatements


Missouri Gaming tax revenues 2005

$414 million total gaming taxes $271 million to School Foundation Formula $84 million to host communities $31 million to early childhood programs $6 million to Veterans Commission $0 tax incentives and abatements


Promises Made, Promises Kept

Kansas City Area - 2005 highlights Ameristar KC and Isle of Capri - $21.9 million

$9 million streetlight expansion Argosy Riverside - $7.2 million

Levee match to support 900-acre business park

Harrah’s North Kansas City - $16.8 million $8 million city-owned fiber optic network


Workplace Diversity

Proactive & voluntary, point of pride for industry 35% of employees are minority

increase from 31% in 2004 Missouri population is 15% minority

51% women employees


Responsible Gaming New AGA Posters

Gambling-related question on Missouri Department of Health Behavioral Risk Survey

9,000 use Disadvantaged Persons (DAP) program

Life Crisis Services - 24 hr statewide toll-free crisis line & referral service


2005 Survey - Job Satisfaction

4,000 casino employees surveyed

Career, wages/tips & benefits rated higher than comparable industries

59% in gaming workforce more than three years


2005 News Headlines Missouri Casino Workers Express High Job

Satisfaction St. Louis Commerce Magazine

Gulf Coast Casino Workers Find Jobs in Missouri AP Wire Service

Students Win ‘Project 21’ ScholarshipsSuburban Journals

Casino Limiting Legislation Stalled in SenateBranson Daily News

Loss Limit Repeal May Be Tied to Tax BoostKansas City Star

Isle of Capri Will Move HQ HereSt. Louis Post-Dispatch


Future of Missouri Gaming Industry

Continued capital reinvestments Expanded entertainment options New & exciting casino games

Gaming revenue & gaming tax growth Ongoing support to education and local

communities Responsible gaming education Workplace diversity Satisfied workforce


Mike Moeller

Mayor of Maryland Heights


Gene Bruns

Mayor of North Kansas City

Documents

Missouri Gaming Association 2005 Annual Report Bill Keena 2006 MGA President Regional President Missouri & Iowa Harrah’s Entertainment