2015 LGFRB Presentation Castle Rock Casino Resort

WHO’S WHODEVELOPERS Castle Rock Casino Resort LLC, principal partners Rodney and Brandon Steven with a large group of Kansas business owners

ARCHITECT Friedmutter Group of Las Vegas, premier designer of Las Vegas-style casinos

CASINO MANAGEMENT American Casino and Entertainment Company, which owns and manages four casinos

CONSULTING WhiteSand Gaming, one of the country’s largest gaming consulting firms

CONSTRUCTION Crossland Construction of Cherokee County Kansas, the 94th largest U.S. construction company

LEGAL Polsinelli Law Firm, which helped secure the Northeast Kansas gaming license for Hollywood Casino

CASTLE ROCKCASINO RESORT

WHAT MAKES CASTLE ROCK BIGGER & BETTER

GAMINGPROGRAMMING

TOTAL PROJECT SIZE

Casino

Food Service

Meeting Rooms

Hotel

Support Area

Total

77,000 SQ FT

29,730 SQ FT

27,000 SQ FT

124,960 SQ FT

164,017 SQ FT

422,707 SQ FT

LOTTERY FACILITY GAMES

1,400 MACHINESGAMINGELECTRONIC

ALL CLASS 3, ALL THE LATEST RELEASES


35 TABLE GAMESCRAPS • ROULETTE • BLACKJACK • & OTHERS


16 POKER TABLESA SEPARATE POKER ROOM WITH

NON-GAMINGPROGRAMMING

FOUR-DIAMOND-QUALITY200-ROOM HOTEL

SPORTS BAR BUFFET

24-HOUR RESTAURANT

FINE DININGSTEAKHOUSE

27,000 SQUARE FEET OF MEETING SPACEANOTHER TOURISM DRIVER

GAMINGREVENUES

1ST-YEAR GAMING REVENUESCONSERVATIVE ANALYSIS

$129.61Electronic

gaming machines win/unit/day

$82,689,527Gaming revenues

$884Table gameswin/unit/day

YEAR-ONE GAMING REVENUESTARGETED SCENARIO ANALYSIS

$151.66Electronic

gaming machineswin/unit/day

$101,389,518Gaming revenues

$1,283Table gameswin/unit/day

GAMING REVENUES

Conservative Projections

Year 1

$140,000,000

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$0

Year 2 Year 3 Year 4 Year 5

Targeted Projections

NON-GAMINGREVENUES

1ST-YEAR NON-GAMING REVENUES

$7.8 millionFood and Beverage

Revenues$6.7 millionAnnual Room

Revenues

$1.7 millionRetail, Convention

and Other 16.2MILLION$

NON-GAMING REVENUES$20,000,000

$18,000,000

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

Room Food Other

Year 1 Year 2 Year 3 Year 4 Year 5

$16.2 MILLION$17 MILLION

$17.7 MILLION$18.2 MILLION $18.8 MILLION

TAXREVENUES

1ST-YEAR GAMING TAX DISTRIBUTION

State of Kansas

$18,181,696

Crawford County $826,985

Cherokee County $1,653,791

Problem Gaming Fund $1,653,791

22.3MILLION$

GAMING TAX REVENUES

Year 1 Year 2 Year 3 Year 4

$22,326,172 $23,219,219$24,752,579 $25,495,434

$27,375,170 $28,470,177 $29,466,633 $30,350,632

Year 5

$26,260,297

$31,261,151

Conservative Projections Targeted

NON-GAMING TAXESTotal Other TaxesIncome Tax Sales Tax Property Tax

$1,050,000$1,225,044$1,304,288

Year 4

$1,050,000$1,435,669$1,304,288

Year 5

$3,579,332

$3,789,957

$1,050,000$1,208,781$1,304,288

Year 3$3,563,069

$1,050,000$1,162,289$1,304,288

Year 2$3,516,577

$1,050,000$1,106,912$1,304,288

Year 1$3,461,200

TOTAL TAXES GENERATED DURING 15-YEAR CONTRACT

$501,927,368BASED ON CONSERVATIVE PROJECTIONS

BY WHITESAND GAMING

TOTALVISITATION

DEMOGRAPHICS: POPULATION

259,738WITHIN

30MILES



259,738WITHIN

30MILES

688,543WITHIN

60MILES



259,738WITHIN

30MILES

688,543WITHIN

60MILES

1,879,324WITHIN

90MILES



259,738WITHIN

30MILES

688,543WITHIN

60MILES

1,879,324WITHIN

90MILES

3,260,623WITHIN

120MILES


PROJECTED 1ST-YEAR REVENUE AND LOCAL/TOURIST SPENDING

Total Revenue Tourist* Local** Total Revenue Tourist* Local**

Gaming Revenue $ 82,689,527 $ 15,526,239 $ 67,163,288 $ 101,389,518 $ 19,037,451 $ 82,352,067

Non-Gaming Revenue $ 18,793,449 $ 3,528,761 $ 15,264,688 $ 18,711,790 $ 3,513,429 $ 15,198,361

Total $ 101,482,976 $ 19,055,000 $ 82,427,976 $ 120,101,308 $ 22,550,880 $ 97,550,428

Conservative Projections Targeted Projections

* Defined as visitors that live 100 miles or more away from the facility ** Defined as visitors that live within 100 miles of the facility

TOURISM AND VISITORS

25%In State

75% Out of State

1.25MILLIONVISITORS PER YEARVisits generated by gaming, restaurants, meeting space and entertainment

1.25A TRUE TOURIST DESTINATION

IN PROJECTED TAX PAYMENTSIN THE FIRST YEAR

$16.7 MILLIONOUT-OF-STATE VISITORS GENERATE

CASINOMANAGEMENT

Stratosphere CasinoHotel and Tower(Las Vegas Strip)

Aquarius Casino Resort(Laughlin, NV)

Arizona Charlie’s Decatur(Las Vegas Locals)

Arizona Charlie’s Boulder(Las Vegas Locals)

SINCE 2008GOLDMAN SACHS GROUPOWNED BY THE

STRATOSPHERE CASINO, HOTEL & TOWERELEVATE YOUR EXPECTATIONS

• 940 EGMs

• 42 table games

• 80,000 sq ft of gaming

• Hotel rooms, retail center, • resort pool and • • • • recreation area

ARIZONA CHARLIE’SLAS VEGAS LOCAL MARKET, NV

• 1,138 EGMs• 12 table games• 55,200 sq ft of gaming• Hotel rooms, bars, steakhouse

• 903 EGMs• 10 table games• 47,500 sq ft of gaming• Hotel rooms, bars, • restaurants, RV parks

DECA

TUR

BOUL

DER

AQUARIUS CASINO RESORT

• 1,218 EGMs

• 38 table games

• 57,000 sq ft of gaming

• Hotel rooms, restaurants, • pool and tennis courts

EXPERIENCED MANAGEMENT TEAM

FRANK RIOLO - CEO & DIRECTOR14 years of gaming industry experience

NED MARTIN - CFO & DIRECTOR19 years of industry experience

PHYLLIS GILLAND - SVP & GENERAL COUNSEL8 years of industry experience

TOM MOORE - PROJECT MANAGEMENT22 years of industry experience

SIMPLE MANAGEMENT PHILOSOPHY

• Create clean, safe, friendly, fun environments

• Provide great value for entertainment dollar

• Reinvest in property improvements

• Maximize yield on gaming customers by • consistently providing a quality experience

THE AQUARIUS EXAMPLE OF SUCCESS• Positioned in a highly competitive gaming • environment

• Operates as a high-end gaming venue

• Continues to capture market share from • existing casinos

• Accomplishing growth by implementing • management philosophy

CASINODEVELOPMENT

SIGNIFICANT DEVELOPMENT EXPERIENCE

NED MARTIN - AMERICAN CASINO CFOWorked as VP of gaming development for Station Casinos during a period of significant growth for 6 years

TOM MOORE - AMERICAN CASINO PROJECT MANAGERProject Manager worked as VP of Project Admin, Developmentand Construction for Station Casinos and Harrah’s Entertainment

RICHARD FITZHUGH - AMERICAN CASINO VPOpened multiple casinos for Station Casinos

AMERICAN CASINO MORE DEVELOPMENT EXPERIENCE

JOHN MORAN - AMERICAN CASINO VPWith 30 years gaming industry experience was directly involvedwith the opening of Horseshoe Tunica

PHYLLIS GILLAND - AMERICAN CASINO SVPWorked as CFO for Taylor Construction Group with directexperience in major construction projects

PROJECTBUDGET

TOTAL INVESTMENT

$144,513,741

EMPLOYMENT

TEMPORARY CONSTRUCTION JOBS

96Outside Kansas

204Kansas

300JOBS

1ST-YEAR FULL-TIME JOBS

55 Administrative

390 Casino

119 Security

141 Hotel

188 Food &

Beverage 893JOBS

PERMANENT JOBS

893JOBS

229Outside Kansas

664Kansas

COMMITMENT TO KANSAS JOBS• Castle Rock will open several employment centers in different

locations throughout Southeast Kansas to encourage people to apply for available jobs.

• Castle Rock will work with unemployment agencies, local schools and colleges, and veterans associations to recruit employees.

• Job Training Centers will be open in early Spring 2016 to prepare these recruited employees for Castle Rock employment.

1ST-YEAR PAYROLL

$30,735,848

SOURCESOF CAPITAL

FINANCING THE PROJECT

$95 millionBank financing

$50 millionEquity provided

by owners

$144,513,741TOTAL INCLUDING ALL COSTS

COMMITTED BANK AGREEMENTS

• Credit Suisse: $95 million committed financing

• Dougherty Funding LLC: $95 million total commitment

• BC Ziegler and Company: $110 million commitment

FUTURE GAMINGINCREASES

FUTURE GAMING INCREASES

• Meeting space designed for easy conversion • to casino floor space

• Project layout allows easy replacement of • meeting space

• Castle Rock has contract on additional 280 • acres of land for easy expansion

KANSAS

MISSOURI

OKLAHOMA

KANSAS

MISSOURI


OKLAHOMA

80 ACRES

KANSAS

MISSOURI


OKLAHOMA

80 ACRES280 ACRESCONTRACTED

PROPERTY

CONCEPT ANDARCHITECTURAL FEATURES

Friedmutter design for the Cosmopolitan

FRIEDMUTTER GROUP

• Leading Las Vegas casino design firm

• Experience in Las Vegas and 43 states

• Exclusive designer for Stations Casino projects throughout the U.S.

• Designed Las Vegas Signature Cosmopolitan Resort & Hotel

FRIEDMUTTER GROUP

Friedmutter design for the Cosmopolitan

Friedmutter design for Red Rock Casino & Resort

Friedmutter design for Horseshoe Casino

TAKE A CLOSER LOOKWITH OUR 3-D FLY-THROUGH

FRIEDMUTTER GROUPCHUCK JONES

MARKETINGSTRATEGIES

WHITESAND GAMING

WHITESAND GAMING

• Full-service global gaming consulting firm

• Supports operations, strategy and technology during development, expansion, acquisition, and casino pre-opening

• Valley Forge, Wynn Las Vegas, Borgata, Mohegan Sun, Bellagio, Prairie Meadows Casino, Showboat and many others

THE CASTLE ROCK DIFFERENCE: EXPERIENCE

Castle Rock is not just another casino – it is a new destination resort that will provide guests with an extraordinary and exhilarating experience. From the moment guests arrive and throughout their entire stay, Castle Rock will transport them to a new level of excitement.

THE CASTLE ROCK DIFFERENCE: PRE-OPENING MARKETING• WhiteSand and American Casino aggressive

pre-opening marketing plan includes a robust database of prequalified customers

• Will engage customers with live events, social media and traditional marketing channels from the day Castle Rock receives its license right through opening day

THE CASTLE ROCK DIFFERENCE:OUTREACH PROGRAMS• Daily bus programs and tour packages from

Northwest Arkansas, Springfield, Tulsa and other major population areas

• Aggressive marketing utilizing multiple media channels to identified markets

• Over $750,000 annual salaried positions dedicated to outreach marketing

THE CASTLE ROCK DIFFERENCE:GAMING

Castle Rock will feature true Las Vegas-style gaming not offered by existing area casinos:

• Live craps - Live roulette - No-ante blackjack

• Brand-new all Class III electronic gaming machines

THE CASTLE ROCK DIFFERENCE:ENTERTAINMENT

• Exciting bars throughout the casino will present live entertainment regularly.

• The large open meeting space can host business meetings, conventions, weddings and entertainment options not currently available in the market.

THE CASTLE ROCK DIFFERENCE:AMENITIES

• First-class hotel with modern design and high-tech connectivity

• Open and inviting design throughout the property

• Convenient self-parking and valet parking

• Stay & Play golf packages with nearby private country club

THE CASTLE ROCK DIFFERENCE:RESTAURANTS• Sports bar

• Buffet

• 24-hour restaurant

• Shula’s Steak House: Don Shula and son Dave will bring their legendary steakhouse to Castle Rock – treating diners to the finest steak and seafood in an upscale environment.

THE CASTLE ROCK DIFFERENCE:CUSTOMER SERVICE

• An acute attention to detail to provide the ultimate customer service experience for all guests

• A combination of training, technology and best practices to create a unique guest experience for every aspect of the resort

PROJECTTIMELINE

OPEN

APPLICATION REVIEW

EMPLOYEE TRAINING

CONSTRUCTION

SUB-CONTRACT BIDS

SITE WORK

FINAL DESIGN

CASTLE ROCK RESORT TIMELINE

MAR ’15- JUN ’15 JUL ’15 AUG ’15 AUG ’16SEP ’15 OCT ’15 - APR ’16 APR ’16 - JUL ’16

PROBLEM GAMINGTRAINING AND PROGRAMS

TRAINING PROGRAMS

• All employees trained upon hire on Problem Gambling awareness and the importance of recognizing the signs

• Refreshers held during Problem GamblingAwareness Month in March every year

SELF-EXCLUSION PROGRAMS

• Guests requesting assistance helped to complete a self-limit form

• Self limit includes a mandatory 6-month period

• Restricts access to check cashing, promotions and marketing events, points and comps, marketing offers

MONITORING ACTIVITIES

• American Casino provides information in all gaming areas, the casino cage, at ATMs and on marketing materials.

• Surveillance, cage and gaming department managers work together to monitor problem gambler activity.

REGULATORYCOMPLIANCE

INTERNAL COMPLIANCE OPERATIONS

• Compliance Operations headed by American Casino SVP and General Counsel Phyllis Gilland

• Title 31, OFAC

• Internal audit review of operation

BOARD-LEVEL COMPLIANCE COMMITTEE MEMBERS

• American Casino Compliance Officer – Phyllis Gilland

• CEO, CFO, Goldman Sachs Representatives

• Outside Member – Steve DuCharme: Former Chairman of the Nevada Gambling Control Board

REGULATORY SUBMISSIONS & COMMUNICATION• Defined application processing for companies

and key employees

• Specific programs for notices, response and dissemination of information

• Open, direct, cooperative communication with regulators

• Understand we have common objective with regulators

SCHOLARSHIPS

PITTSBURG STATE UNIVERSITYSTUDENT SCHOLARSHIPS • Up to eight given each year,

four each from Cherokee and Crawford counties

• Given to graduating seniors from a high school in each county

• Covers tuition and books for four years

LABETTE COMMUNITY COLLEGESTUDENT SCHOLARSHIPS • Six given each year, three

each from Cherokee and Crawford counties

• Given to graduating seniors from a high school in each county

• Covers tuition and books for two years

$10,000TEACHER OF THE YEAR AWARDSONE EACH IN CHEROKEE & CRAWFORD COUNTIES

TOTAL SCHOLARSHIPS AND AWARDSGIVEN DURING CONTRACT

$5.6 MILLION

TEMPORARYFACILITY

NOTCASTLE ROCK WILL

HAVE ANY TEMPORARY FACILITY

CASTLE ROCK: FOR ALLOF SOUTHEAST KANSAS

“OUR VIEW – CASTLE ROCK THEBEST PICK FOR CASINO”

Pittsburg Editorial BoardPublished April 19, 2015

“WHEN IT CAME DOWN TO CASTLE ROCK ORKANSAS CROSSING, BOARD MEMBERS SAID

THEY WERE LOOKING AT THE BIGGER PICTUREIN UNANIMOUSLY CHOOSING CASTLE ROCK.”


OUR VIEW – CASTLE ROCK THE BEST PICK FOR CASINO

“I’M BIASED FOR PITTSBURG,BUT THE WHOLE STATE’S BETTER

OFF WITH CASTLE ROCK.”



“IT’S BETTER FOR THE ENTIREAREA BECAUSE OF THE DRAW

FROM THE INTERSTATE.”



SOUTHEAST KANSAS

SUPPORTSCASTLE ROCK CASINO

THE CASTLE ROCKDIFFERENCE: LOCATION

STRATEGICALLYLOCATED

KANSAS

MISSOURI


OKLAHOMA

80 ACRES

JOPLIN, MOBENTONVILLE, ARSPRINGFIELD, MO

44

GALENA, KSPITTSBURG, KS

BAXTER SPRINGS, KSPARSONS, KSCOFFEYVILLE, KS

400

NEAR MAJOR INTERSTATE HIGHWAYS


400



400

49



40044

49



KS MO

AROK

NEAR CONVERGENCE OF FOUR STATES


KS MO

AROK

POPULATION637,241

POPULATION745,447

CASTLE ROCK CASINO RESORT

Proposed Camptown Casino

Proposed Kansas Crossing Casino

Downstream Casino

CASTLE ROCK WILL DRAW OUT-OF-STATE VISITORS

POPULATION1,065,653Jenks

Tulsa

Muskogee

Fort Smith

Fayetteville

Springdale

Bentonville

Rogers

Joplin

SpringfieldCarthage

Bartlesville

Rogersville

Ozark

Bradleyville

Forsyth

Eagle Rock

Goodman

Eureka Springs

Batavia

DogpatchDelmar

Mountain Grove

PrairieGrove

Cedarville

Mount Vernon

Gore

Marble CityBoynton

Warner

Haskell

Sapulpa

Owasso Manford

MiamiWebb City

Delaware

Locust Grove

Jay

Stilwell

Neosho

Cedar Creek

Diamond City

SiloamSprings

Tamaha

Vinita

Ramona

Collinsville

Fairfax

Adair

South West City

Hominy

Pawhuska

Osage

Fairland

Jenks

Tulsa

Muskogee

Fort Smith

Fayetteville

Springdale

Bentonville

Rogers

Joplin

SpringfieldCarthage

Bartlesville

Rogersville

Ozark

Bradleyville

Forsyth

Eagle Rock

Goodman

Eureka Springs

Batavia

DogpatchDelmar

Mountain Grove

PrairieGrove

Cedarville

Mount Vernon

Gore

Marble CityBoynton

Warner

Haskell

Sapulpa

Owasso Manford

MiamiWebb City

Delaware

Locust Grove

Jay

Stilwell

Neosho

Cedar Creek

Diamond City

SiloamSprings

Tamaha

Vinita

Ramona

Collinsville

Fairfax

Adair

South West City

Hominy

Pawhuska

Osage

Fairland

KS MO

AROK

CASTLE ROCK CASINO RESORT

Proposed Camptown Casino

Proposed Kansas Crossing Casino

CASTLE ROCK WILL DRAW OUT-OF-STATE VISITORS

Bordertown Outpost CasinoIndigo Sky CasinoThe Stables CasinoQuapaw CasinoPrairie Moon Casino

Buffalo Run CasinoHigh Winds CasinoPrairie Sun CasinoLucky Turtle CasinoWyandotte Nation Casino

Downstream Casino

$310,000,000CURRENTLY IN GAMING REVENUE

THE CASTLE ROCK DIFFERENCE: LOCATIONThe location is the only one that guarantees

Dollars from other states True tourism Success

COMPARE THEPROJECTS

GAMING INVESTMENT

$68,500,000

Camptown

$65,000,000

Kansas Crossing

GAMING INVESTMENT

$144,513,741

Castle Rock

$68,500,000

Camptown

$65,000,000

Kansas Crossing

750

GAMING MACHINES

Camptown

650

Kansas Crossing

750

GAMING MACHINES

1,400

Castle RockCamptown

650

Kansas Crossing

$48,000,000

GAMING REVENUE

Camptown

$40,000,000

Kansas Crossing

$48,000,000

GAMING REVENUE

$82,000,000

Castle RockCamptown

$40,000,000

Kansas Crossing

$48,000,000

GAMING REVENUE

$82,000,000

Castle RockCamptown

$40,000,000$149.00 WPU

$149.50 WPU

$129.61 WPU

Kansas Crossing

$101,389,518$151.00 WPU

$12,960,000

GAMING TAXES

Camptown

$10,800,000

Kansas Crossing

$12,960,000

GAMING TAXES

$22,596,172

Castle RockCamptown

$10,800,000

Kansas Crossing

$27,375,170

850,000

TOURISM

Camptown

500,000

Kansas Crossing

850,000

TOURISM

1,250,000

Castle RockCamptown

500,000

Kansas Crossing

250

JOB CREATION

Camptown

275Kansas Crossing

250

JOB CREATION

893

Castle RockCamptown

275Kansas Crossing

THERE IS NOCOMPARISON

INVESTING INKANSASA KANSAS TEAMCASTLE ROCK CASINO RESORT

CASTLE ROCK PARTNERS AREKANSAS BUSINESS LEADERS

RODNEY STEVEN II STEVEN ENTERPRISESBRANDON STEVEN STEVEN ENTERPRISESMARTY CORNEJO CORNEJO COMPANIESRON CORNEJO CORNEJO COMPANIESBENNIE CROSSLAND CROSSLAND CONSTRUCTIONIVAN CROSSLAND CROSSLAND CONSTRUCTIONMIKE CROSSLAND CROSSLAND CONSTRUCTIONPATRICK CROSSLAND CROSSLAND CONSTRUCTIONDAVID MURFIN MURFIN, INC.DAVID WELLS KEY CONSTRUCTIONKEN WELLS KEY CONSTRUCTIONRICHARD MCAFFERTY KEY CONSTRUCTIONDAVE BURK MARKETPLACE PROPERTIES

DAVE BECKER MIDWEST EXTERIORSGREG SCHMIDT MIDWEST EXTERIORSDR. PAT DO MID-AMERICA ORTHOPEDICSWG FARHA II FARHA AND SON ENTERPRISESMICHAEL OLANDER O2 FITNESSRICHARD & TERESA RUCKER & FAMILY RUCKER PROPERTIES

ROBERT “STEVE” RUUD R.A. RUUD & SON, INC.MIKE STEVEN MIKE STEVEN MOTORSJOHNNY STEVEN EDDY’S INSURANCE GROUPROB SNYDER CENTRAL PLAINS DEVELOPMENTMIKE VESS VESS OIL CORPORATION

A KANSAS CASINO RESORT BY A KANSAS TEAM

THEIR BUSINESSES EMPLOY

8,400 PEOPLE

Castle Rock partners will keep profits in Kansas.

GIVING BACK TO THEIR COMMUNITY

Castle Rock partners not only create jobs but give back.

LAST YEAR, CASTLE ROCK PARTNERS DONATED$3.7 MILLION TO CHARITIES

OUR PARTNERS ARECOMMITTED TOSOUTHEAST KANSAS

BIGGERBIGGERBETTERBETTER

BIGGER CASINOMORE GAMING MACHINESMORE TABLE GAMES

MORE RESTAURANTSMORE MEETING SPACE

BIGGER HOTEL

MORE REVENUESMORE TAXES

MORE OUT-OF-STATE VISITORSMORE JOBS

BETTER LOCATIONBETTER SCHOLARSHIP PROGRAMBETTER COMMUNITY SUPPORT

BETTER TEAMBETTER PROMOTIONS

BEST CHOICE

CASTLE ROCK CASINO RESORT BIGGER & BETTER

AND THE

FOR SOUTHEAST KANSAS

Government & Nonprofit

2015 LGFRB Presentation Castle Rock Casino Resort