global response to board 1201 questions

Response to Review Board’s follow-on questions Attachments and Supporting Information
07 December 2010 p. 1

December 7, 2010

Mr. Patrick Martin

Interim Director of Kansas Racing and Gaming Commission

700 S.W. Harrison, Suite 500

Topeka, KS 66603-3754

Dear Patrick:

This response addresses answers to questions (a) to (j) outlined in your email dated December 2, 2010.

We will provide by separate correspondence other comments on matters we advised the Lottery Facility
Review Board that we would provide in writing, as we did not have time to address these during our
Presentation on December 1, 2010 in Topeka, KS.

a. Question: WinStar data regarding hold percentage on EGMs

Winstar Hold Percentage Comparison to other markets
Louisiana Hold % 7.5%**
Vendor 1 4.50% Missouri (statewide) Hold % 9.1%*
Vendor 2 5.30% Missouri (KS City) Hold % 9.4%*
Vendor 3 6.00%
Vendor 4 5.00%
Vendor 5 3.50%
4.86%

* source: Missouri Gaming Commission website
**http://www.insidervlv.com/slotspayouts.html

As you can see from the above table of WinStar World Casino’s major gaming vendors hold
percentages at WinStar World Casino are 3% to 5% lower (i.e.: in favor of the gaming customer)
than competitive states. We highlighted this during our Presentation on December 1 to the Review
Board.

In contrast to the Consultants’ view that Oklahoma is a monopolistic pricing market, this
underscores the highly competitive nature of the market, which has some 47,000 slots in it.


b. Question: Winstar data regarding 95% loyalty

The Consultants presented TripAdvisor.com data with some 30 comments from over 3 million
customer visits. We dispute the integrity and the validity of this data.

Summarized below are our customer satisfaction results for WinStar World Casino and also for
Riverwind Casino. These are from 2010 results based on feedback provided by 1,000 customers at
each facility.

Customer satisfaction survey results 2010

Survey Results WinStar Riverwind
Customer Satisfaction 91.4% 94%
Customer Loyalty 94.6% 96%
Percent of customers somewhat to very satisfied 91.4% 92%
Percent of customers likely to very likely to recommend to friends and family 93.6% 93%
Percent of customers satisfied with the staff friendliness 93.4% 97%

In addition, both WinStar World Casino and Riverwind Casino have been the recipients of various
recognition awards.

WinStar World Casino 2010 Awards (non-populated area with fewer media outlet awards):

 Nominated by the 45th Academy of Country Music – Top Country Music Casino Venue in the
United States in 2010.
 WinStar RV Park named Gold Award winner of The Oklahoma and Arkansas Chapter of The
American Concrete Paving Association in 2010.

Riverwind Readership Awards:

 2007 Oklahoma Readers’ Choice Award
 2008 the Oklahoma Gazette Best of Oklahoma City, category for Friendliest Casino.
 2008 the Oklahoma Gazette Best of Oklahoma City, category for Best Casino.
 2009 the Oklahoma Gazette Best of Oklahoma City, category for Best Casino.
 2009 and 2010 the Oklahoma Gazette of Oklahoma City, preferred venue, placed in the top five.
 2010 the Oklahoma Gazette Best of Oklahoma City, category for Best Concert Venue, placed in
top five.

We have also included an attachment with October – November (approximately 30 days) Facebook
comments from WinStar and Riverwind customers.


c. Question: Travel data to Norman, Oklahoma facility (Riverwind Casino)

Oklahoma City Central Business District is located at the intersection of I-35 and I-40.

Within 100 miles of this central location there are 42 casinos in Oklahoma. As discussed we own
Remington Park, Newcastle Gaming, Goldsby Gaming and Riverwind Casino.

The following are distances to the closest casino properties to Oklahoma City (OKC) and direction from
the above intersection.

1. OKC to Remington Park- North on I-35, 10.3 miles (clean drive on I-35)
2. OKC to Lucky Star- North, 32miles (clean drive north)
3. OKC to Firelake Grand Casino- East on I-40, 26.6 miles (clean drive on I-40)
4. OKC to Riverwind- South on I-35, 22.25 miles (congested drive on I-35 through Norman)
5. OKC to Newcastle Gaming- South- 22.4miles (clean drive via freeway to west)
6. OKC to Goldsby Gaming- South on I-35, 23miles (congested drive on-I-35 through Norman)

Seventy percent of customers in our player tracking data base come to Riverwind Casino from North of
I-40 or farther away than 25 miles or a typical drive time of 30 minutes. If I-35 is congested through
Norman, this drive time will be longer. This means they appear to choose to go to Riverwind Casino even
though getting to Remington Park would be the closest or Firelake (with some similar amenities to
Riverwind Casino) would take less time and the minimum distance is 22.25 miles.

d. Question: Support other instances of building out ancillary facilities according to
market forces

The Review Board requested additional information to assist in their evaluation of the proposed
racetrack amenity. Three pieces of information are provided with this response.

(i) The racetrack plan
(ii) Illustrative information on propensity of auto sports customers to game
(iii) Estimates of potential incremental gaming revenue, not included in our conservative
projections


(i) Racetrack Plan (shown below)

(ii) Illustrative information on propensity of auto sports customers to game

As noted previously customer preference surveys and market research clearly support that racetrack
customers are also gaming customers.

Some examples follow:

• The demographics of attendees that attend NASCAR races closely mirror the general population
in terms of income.
• According to Harrah’s Survey 2003: Profile of an American Gambler, 14% of casino-goers are
auto racing spectators.
o 13% of the U.S. population are auto-racing spectators according to the same Harrah’s
survey meaning auto racing visitors will be slightly more likely to visit a casino than the
average person. Interestingly, the survey did not even ask about equestrian events.
• Synergy between auto racing and casino is evidenced by numerous auto races that have been or
are currently title-sponsored by casinos:
o Harrah’s 500 (NASCAR event held at Texas Motor Speedway)
o Belterra Resort Indy 300 (IRL event held at Kentucky Speedway)
o Sam’s Town 300 (NASCAR Nationwide event held at Las Vegas Motor Speedway)
o Casino Arizona 150 (NASCAR Nationwide event held at Phoenix International Raceway)
o Ameristar Casino has sponsored Indy Racing Northern Light Series at Kansas Motor
Speedway


o WinStar World 350 (NASCAR Nationwide event held at Texas Motor Speedway)
o Tioga Downs Casino 125 (NASCAR Camping World Series East event at Watkins Glen).
Tioga Downs and Vernon Downs also became joint sponsors of Watkins Glen
International for three years.
o Thunder Valley Casino Resort 200 (NASCAR K&N Pro Series West event at Infineon
Speedway)
• Harrah’s Entertainment sponsored a car in NASCAR for several years:
o From Sports Business Daily - Las Vegas-based Harrah's Entertainment "is gambling" that
its title sponsorship of this Sunday's Winston Cup Harrah's 500 at Texas Motor
Speedway "will rev up business at its casinos in" LA and NV, according to Richard Alm of
the DALLAS MORNING NEWS. Courtesy of Harrah's, 300 top customers will spend
Saturday night at Harrah's new luxury hotel in Shreveport, LA, then board a DC-9 on
Sunday morning for a flight to the race. Harrah's VP/Strategic Alliances John Dluzak said,
"The demographics for NASCAR are moving upward in terms of income. It's a very
attractive customer base because of the brand loyalty of NASCAR fans."
• Synergy between auto racing and casino supported by Kansas Entertainment building a casino
adjacent to the Kansas Speedway in the Northeast Gaming Zone:
o 2009 Kansas Entertainment bid cited survey data that said 57.5% of Kansas Speedway
visitors had visited a casino in the past 12 months. This meant that Kansas Speedway
visitors were 27% more likely to have visited a casino than the average person in Kansas
City.
o Kansas Entertainment said that fans of the Indy Racing League are 85% more likely to
visit a casino than the average person. WinSpirit currently has an expression of
interests from the Indy Racing League.
• Sahara Hotel & Casino in Las Vegas has a NASCAR Café.
• Over 13 million attended NASCAR events in 2005 (per NASCAR) and over 306 million viewers
watched a NASCAR race in 2005 (Source: Nielsen Media).
• According to the Goodyear Tire & Rubber Company, the top 12 American auto racing series
where the company competes had 16.9 million attendees in 1997.
• Bobby Rahal helped begin the Legends of Motorsports Racing Series in 2010 (owned by Historic
Motor Sports):
o Four events in Alabama, Watkins Glen NY, Montreal and Florida
o So far, Legends of Motorsports has attracted Rolex, Lotus and Road & Track magazine as
chief sponsors. Rahal said he's also had talks with the Discovery Channel about
broadcasting races. "It's a major overlooked area. Ad agencies don't really get it," Rahal
said. "The demographics of these guys are higher than if you sponsored a golf
tournament.
• Historic Motor Sports demographics (vintage car racing)
o Participant demographics
 90% of participants over 45
 88% with income above $100,000
 95% are homeowners
 49% own two or more homes
o Spectator demographics
 67% of spectators between 35-64 (implies very few children compared to what
would be expected based on population as a whole)
 88% are homeowners


 74% are business owners
• Sports Vintage Racing Association has 11 events on its 2010 calendar
• American Le Mans Demographics (* Source: Nielsen Media Research - July 2006):
o 51% are between the ages of 25 to 49
o 48% earn more than $90,000 per year
o 13% have a net worth of over $1 million
o 22% have a net worth of over $500K

• Monaco hosts a vintage race every other year before its Formula One race
• Goodwood Festival of Speed in Great Britain hosted 130,000 people in 2009.
• Biggest vintage race in the U.S. is The Monterey Historic Automobile Races. The 2009 event in
California hosted 400 historic cars and 40,000 people.

(iii) Estimates of potential incremental gaming revenue, not included in our conservative
projections

Included in the Appendix is an analysis by CBRE which concludes that if our proposed auto racing facility
and Peninsula Gaming’s proposed equestrian facility had the same number of visitors (nominally
100,000 visits p.a.), a 34.3% premium in visitation gaming spending by auto racing visitors would result
over equestrian visitors. This 34.3% premium does not quantify other economic activities such as hotel
stays, retail, and food & beverage. Part of this premium reflects greater adult participation in auto racing
v. equestrian events.

Casino customer spending and demographic research is also included from Lang Research, Canada, in
support of the CBRE analysis.

Peninsula Gaming estimated 95,000 visitors (attendee days) for their equestrian center.

Global Gaming has indicated 300 to 500 attendees per week and several major events per year from IRL
(Letter of Intent in existence) or GrandAm. These major events typically have up to 50,000 attendees.
Accordingly, the analysis shown above was performed assuming a similar number of attendees of
approximately 100,000 a year.

Wells Gaming Research concluded that incremental gaming revenue attributable to Peninsula Gaming’s
equestrian center was $2.45m p.a. (in 2014) and 33,000 gaming visitors. At the same time, Wells Gaming
Research concluded the WinSpirit Casino travel plaza alone would drive $5m (in 2014) incremental
gaming revenue or 100,000 gaming visitors.

The Review Board has expressed some concern over how to evaluate the auto racing facility given our
Management Contract does not require its opening before Year-5. In contrast, the Peninsula equestrian
center is proposed to be open in probably Year-2. We would point out the following two key points:

1) Our travel plaza would open in a timeframe closely following that of the equestrian center; it
drives more incremental gaming revenue, and


2) We can accelerate the development of the auto racing facility: our ability and history to
accelerate development is answered in Question (e) immediately below.

Again, we wish to point out that we did not include any incremental gaming revenue or other amenity
revenues for the auto racing facility in our conservative projections, because of our belief and focus on
the quality of the core destination facility (260,000 square feet permanent, entertainment, full
restaurants, etc.) and the 80/ 20 rule of where revenue is derived from.

We also note that our initial investment is placed firmly in the quality of the destination as our
infrastructure and land investment is approximately $5m v. Peninsula Gaming’s infrastructure and
land costs estimated at $45m.

e. Question: Support other instances of building out ancillary facilities according to
market forces

In support of our statement to the Review Board that we have a proven track record in accelerating
development plans, we summarize below the history of expansion of WinStar World Casino, Riverwind
Casino, and Remington Park. As you can see, the timeline for expansion have been aggressive and
continuous in responding to the market.

WinStar World Casino

WinStar opened in late 2002 with 243 electronic games and a 400-seat capacity Bingo Hall.

In October 2003, two distinct gaming areas, themed Circus and Carnival, were opened with an additional
1,000 electronic gaming machines bringing the total to 1,250, a buffet restaurant, a steak house and a
casual dining snack bar.

In 2004, an additional 250 games were added bringing the total to 1,500 machines.

In early 2004, ground was broken to expand WinStar Casino with the addition of "The Palace" gaming
plaza. The Palace expansion opened to the public in May 2005, adding an Italian restaurant and 740
more gaming units (making capacity 2,240 machines).

In late 2004, in response to the expanding infrastructure and community needs, a dedicated waste
water treatment plant was built and opened by the Nation.

While that that expansion was underway, the Nation built and opened an adjacent 100-room hotel and
a 1,500-seat entertainment center.

An 18-hole, championship golf course featuring a world class clubhouse facility was officially opened in
March 2007. Construction of nine additional holes was completed this Fall and will open to the public in
March 2011.


In late 2007, construction commenced on the current WinStar World Casino complex themed on great
cities of the world, to increase the gaming capacity to 280,000 square feet, including 6,026 total slots, 70
table games (Blackjack, Pai-Gow, Ultimate Texas Hold ‘em), 46 Poker tables, and an off-track betting
center.

The expansion featured a new, 3,000-seat, state of the art entertainment and event center. This
aggressive development, which resulted in WinStar World Casino becoming the third largest casino in
the world in gaming units and square footage, was phased in, opening sections to the public between
October 2008 and December 2009, including six additional restaurants and a four-star, 11-story, 395-
room and suites hotel.

• A one million gallon water tower to provide for the ever expanding complex went online in
October 2009.
• A dedicated Emergency Services building opened in 2009.
• A 150-space RV Park, with capacity for an additional 150 spaces, opened in March 2010.
• Ground was broken in November 2010 for a 1,400 car parking garage that is expected to open in
September 2011.
• Future plans call for two additional restaurants, a night club, and a 6,000 sq. ft. VIP, high-limit
gaming center, and a dedicated child care facilities for employees.
• The Nation has completed negotiations with the federal government for an additional exit (at
mile marker three on I-35) north of the WinStar complex that is expected to open in 2013.

Riverwind Casino

The award-winning Riverwind Casino opened at Exit 108 on I-35 in Norman, Oklahoma, in July 2006.
Riverwind Casino is consistently voted the best casino and entertainment venue in the competitive
Oklahoma City market.

Riverwind opened featuring 2,025 electronic games, blackjack, a poker room, a 1,500-seat "Showplace
Theater" and event center, an off track betting parlor, a buffet restaurant, a steakhouse, and a food
court. That facility was constructed from a bare piece of land, with no infrastructure, in just 11 months.

In 2007, games were expanded 2,130, an increase of 105 games.

In 2008, games were expanded to 2,250, an increase of 120 games.


In April 2009, a new 100-room three-plus stars Riverwind Hotel opened.


In June 2010, a Sky Bridge between the Casino and Hotel was completed.


Remington Park

As the Review Board knows, we acquired Remington Park located just north of Oklahoma City center on
January 1, 2010. This facility is regulated by the state and has 750 slots as well as race track, convention
and food and beverage amenities. When we acquired Remington Park, we had set a plan to improve
games and amenities of 36 months. These improvements were achieved in the first six months of
operations.

The performance of this facility under our management has been highly publicized and it is one of the
only tracks in the country showing growth and adding races.

This facility has an effective tax rate of 50% after state tax, payments to the breeds and other payments
to the State.

We acquired this facility for $80.25m through the bankruptcy process. The Review Board is also aware
that we have within 25 -30 minutes of this facility, Riverwind Casino, Goldsby Gaming and New Castle
Gaming tribal facilities that are subject to a 6% tax rate, with some 4700 games collectively.

Remington had 700 slots when we acquired it and under the law was entitled to 750 games on January
1, 2010. We added the additional 50 games and worked with the Oklahoma Horse Racing Commission
to have these up and running by 1 minute after we took ownership, or one minute past midnight on
December 31, 2009/ January 1, 2010.

In the first four months of ownership we replaced or upgraded 300 of the original 700 slot machines.
The effect of this along with marketing and improvements to physical facilities has been to drive up win
per unit or per machine by 15% and coin in volume in excess of 30%. Attendance has increased and
export of our signal has increased more than 40%.

We have added a Henry Hudson’s Pub and Grill, restored the executive suites, completely restored the
exterior of the 20-year old building, created a new outside plaza area with paving, landscaping, etc. in
the first 6 months of ownership. These investments total some $15m.

We highlight this as it clearly demonstrates that if our intention was to focus on the lower taxed tribal
facilities then clearly we would not have made these investments at all and we would certainly have not
made and completed them in a time frame of 4 months for all games and 6 months for all physical
improvements.

Below is a table showing a summary of machine increases at four properties, continually being
expanded in response to market forces:


Riverwind
Yea r No. of Sl ots Sl ot i ncrea s e
2006 2,025
2007 2,130 105
2008 2,250 120
2009 2,325 75
2010 2,488 163
Total 5 year slot increase 463
Goldsby
2006 160
2007 200 40
2008 225 25
2010 299 74
Total 5 year slot increase 139
Newcastle
2006 700
2007 1,200 500
2009 1,275 75
2010 1,892 617
Total 5 year slot increase 1,192
WinStar
2002 243
2003 1,250 1,007
2004 1,500 250
2006 2,240 740
2010 6,026 3,786
Total 5 year slot increase 5,783

As you can see, our approach to business is to maximize the performance of each business
operation.

f. Question: KDOT/ ODOT traffic numbers for I-35

We have provided as an attachment the Traffic Volume Map for the major roadways in the vicinity of
Exit 19, including I-35, Highway 160, and Highway 81.

We would note that we propose using a traffic volume count near the state line to give us an estimate
that would include traffic leaving and entering the state rather than immediately adjacent to Exit 19 to
eliminate local traffic (including commuters) that would inflate the total traffic but not add to the
capture rate of traffic passing through the area.


We also note that Exit 19 has the benefit of traffic from two other US-highways which intersect in the
city of Wellington. We believe placement of the travel plaza at a location that includes three major
highways is a significant benefit to the State in regards to traffic capture versus Exit 33. If Peninsula
Gaming were forced to use Site B this will eliminate any potential for a travel plaza at Site B.

Cummings notes in footnote 7, on page 16 of 90 in his report, that a portion of his calculated gaming
revenue differential between Peninsula Gaming’s Site A and Site B is the loss of traffic capture.

It is helpful to understand that truck drivers are required to take federally mandated breaks. This
mandate is one of the reason you see trucks parked at the KTA rest areas every night. To get a sense of
the number of trucks that are currently stopping in the area for these breaks, we did a head count of
trucks in rest areas within 50 miles of Exit 19 in the early morning hours (approximately 3:00 am). That
net count exceeded 300 trucks, which stopped overnight in the area, roughly 7.5% of the total daily
truck traffic on I-35 at the Kansas border. Trucks can only stop where they have the capacity and the
amenities to do so.

It is important that there are many more trucks parked in the vicinity of Exit 19 that we have not
counted such as those parked in non-KTA rest areas, e.g. Exit 4 on I-35. It is also important to note that
current capacity is limited and the travel plaza is a value-added strategy to the State of Kansas.

To put that in perspective, using our projected daily win per patron, the 300 trucks that are already
stopping in the immediate area would be the equivalent of $7 million in gaming revenues.


g. Question: Schematics for Travel Plaza

The schematic below shows the Travel Plaza site relative to the casino site. The plan actually
includes truck parking for up to 180 trucks. We indicated in our Review Board presentation that the
Travel Plaza would include at least 100-truck parking capacity.

I-35 is an important economic engine for development in Kansas and Oklahoma. Literally, millions of
dollars of economic opportunity drives up and down the corridor.

Using traffic data from the southern border of Kansas, approximately 14,000 vehicles a day enter or
leave Kansas via I-35. That means approximately 8 million people in cars and trucks drive by Exit 19
every year. That population base is larger than Dallas-Fort Worth. It is also a population base that the
gravity model will never successfully predict.

Development of full service travel facilities that offer a wide range of food, competitive fuel prices, and
other comfort amenities is a tool that has generated millions of dollars in gaming revenues for the
Chickasaw Nation.

The strategy does involve robust services for travelers. It also involves deployment of gaming machines
the match the market place, including truckers – who we like to call the “high rollers” of the highway.


Our Travel Plaza development is planned for Year-3 to allow time for the main facility to be fully up and
operational and traffic patterns established. We have an agreement with the Kansas Turnpike Authority
that we would not open the travel plaza until after our direct turnpike access is fully implemented and
operational.

The key criteria for success of the associated gaming amenity are that it provides a sense of exclusivity
and a sense of easy access.

In collaboration with CBRE, and use of data specific to our travel plaza operations, we project the total
traffic capture gaming revenues at the facility will exceed $10 million.

We advised the Review Board that we counted over 300 trucks parked nightly near our proposed
location, stopping under federally mandated rest requirements. The truck drivers will stop where they
have the capacity and the best amenities. This count represents roughly 7.5% of the total daily truck
traffic on I-35 alone (total count is 4,060 trucks daily, per our response to question (f)) and even
excludes truck traffic on Highways 160 and 81. Again, we provided the traffic data from K-DOT and KTA
in our response to question (f).

To put that in perspective, using our projected daily win per patron, the 300 trucks that are already
stopping in the immediate area would be the equivalent of $7 million in gaming revenues. In addition,
for each 100 cars representing 150 patrons (1.5 passengers per car) would account for an additional
$3.5m in gaming revenue in its own right.

As casual travelers stop at our facility, we also expect to add them to our players club data base and will
used that data to build a customer base that extends beyond traffic intercept.

Cummings appeared to assign a travel plaza adjustment for incremental gaming revenue of $2.9m and
20,000 visitors. In contrast, Wells Gaming Research assigned $5m in incremental gaming revenue and
100,000 visitors. In 2008, Cummings assigned $5.9m in a traffic intercept estimate called “Frontage
Traffic” to Marvel Gaming, Penn Gaming, and the generic casino at Exit 19. Neither of these
developments had direct access proposed to I-35 at the time these projections were made.

This appears to be a change in Cummings’ methodology since 2008 which undervalues gaming
revenues for our travel plaza.


h. Ownership Organization Chart and Structure

Global Gaming KS, LLC (GG-KS or the Company) included in its original application a disclosure that the
company was contemplating the involvement of an investor which could be incorporated in the project
as a preferred lender with the right of converting the debt to an equity position (subject to the approval
of the Lottery and appropriate background approvals) or a direct equity position in the Company.

In the past several weeks, the Company, and the equity investor, came to the conclusion that the best
approach was to take the common equity route rather than through a preferred loan arrangement.
After research by legal counsel, it was determined that under the Kansas Expanded Lottery Act (KELA),
the Company had an obligation to notify the Lottery and Kansas Racing and Gaming Commission (KRGC)
of this intent.

As such, GG-KS provided the KRCG with background materials on that investor and discussed procedures
for amending the application to make those changes. We have submitted an amended operating
agreement for GG-KS for review of the Lottery’s Counsel. We are told Lottery’s Counsel does not object
to the contract provisions as provided. Mr. Fulton is a passive investor in the development and does
not have any day to day management role in the Casino.

As shown in the Revised Ownership Structure, Mr. Fulton will own a 50% equity interest in GG-KS.


As one can see from Mr. Fulton’s background, included below and as published by the International
Gaming Institute in Las Vegas, NV, Mr. Fulton has considerable experience and expertise in the gaming
industry.

Stan Fulton was a pioneer in the video slot machine industry. Products that he was responsible for
include: the construction of the first multi-line video slot machine, the first video full color poker
machines, and the use of the first credit meters in the State of Nevada

While at Anchor Gaming, Fulton helped build the first slot machines using a wheel as a bonus feature,
which led to a joint venture with IGT on the Wheel of Fortune machine. Wheel of Fortune was the most
successful slot machine to hit the floor.

When he left Anchor Gaming, Mr. Fulton acquired Sunland Park Racetrack and Casino from Anchor
Gaming and over the years has tripled that racino's (race track with slot machines) business. His
philanthropy includes major gifts to the University of Nevada at Las Vegas, New Mexico State University,
Hope International University in Fullerton, California, Randolph-Macon Academy in Front Royal, Virginia;
and the City of Sunland Park, New Mexico.
"If you want to be successful, and I think you probably
want to be successful, there are many things that are
necessary to achieve success. One is dedication - you
have to put forth the extra effort. Number two is
common sense; there is a difference between brilliance
and common sense.

A good example of this took place in 1976 when we had
a heat problem in the first multi-line video slot machine.
I was dedicated to solving the problem and worked
through a Labor Day weekend. I used common sense -
hot air rises - so I put a fan at the top of the slot machine
and created an air flow channel so that the air being
expelled flowed across the top of the PC boards.

I'm not brilliant, but I did use common sense. Then again, when the general manager, who was an
engineer, saw that I had solved the problem, he said that I was a master of hot air."

– By Stan Fulton (as quoted from by the International Gaming Institute).


Attachments and Other Supporting Information:

1) Facebook comments, October – November 2010 (approximately 30 days), from WinStar and
Riverwind customers

2) CBRE Analysis of Auto Racing v. Equestrian Visits with Lang Research Supporting Information.

3) Traffic Volume Map of major roadways in the vicinity of Exit 19 off I-35, as provided by Traffic
Engineers Wilson & Company.

4) “DISPROVING THE EXIT 33 MYTH: Exit 19 the Best Bet for Kansas”, 33-page report prepared with
the assistance of CBRE.


Attachments and Other Supporting Information:

(b) Facebook comments, October – November 2010 (approximately 30 days), from WinStar and
Riverwind customers

Gaming Spend Per Visitor - Auto Racing v. Equestrian visits (please see Lang Research: Interest in
Casino Gambling Profile Report, attached)
.
If Both Had the Same # of Visitors, we'd conclude a 34.3% premium in visitation spending by Auto
Racing visitor v. an Equestrian visitor
Gaming Spend Per Visitor - Auto Racing v. Equestrian visits (please see Lang Research: Interest in Casino Gambling Profile Report, attached)

If Both Had the Same # of Visitors, we'd conclude a 34.3% premium in visitation spending by Auto Racing visitor v. an Equestrian visitor

Approach #1 - TAMS Survey for Gaming Participation Rates, Adult Ratio per Historic Motor Sports Series

Auto Racing Equestrian Comment
Number of Visitors 100,000 100,000 we do not have the projections used by both groups
Auto racing attendance breakdown estimate based on Historic Motor Sports
Series having 67% of spectators between 35-64; equestrian assumes children
% Children 15.6% 28.5% attendees are representative of the population as a whole.
% Adults 84.4% 71.5%
# of Adults 84,420 71,454

Casino Participation While Vacationing
Tourism Ministry of Canada, Interest in Casino Gambling Profile Report, 2000
represents the US adults surveyed. May be overstated for equestrian
Enthusiasts 15.7% 15.7% attendees since many will be grooms, shoesmiths and care-givers
represents the US adults surveyed. May be overstated for equestrian
Moderate Interest 31.6% 31.6% attendees since many will be grooms, shoesmiths and care-givers

Relative Participation Factor (1.0 would equal the same the same ratio as the US/Canadian survey population)

found people that sought out auto racing were 23% more likely to be Casino
Enthusiasts. Harrah's Survey 2003 also points to casino gamblers more likely
Enthusiasts 1.23 1 to being auto racing spectators than non-spectators (14% to 13%).

found people that sought out auto racing were 23% more likely to be Casino
Enthusiasts. Harrah's Survey 2003 also points to casino gamblers more likely
Moderate Interest 1.02 1 to being auto racing spectators than non-spectators (14% to 13%).

Assumed Participation Rates of Groups
Enthusiasts 90.0% 90.0% GGS assumption
Moderate Interest 50.0% 50.0% GGS assumption

Number of Gaming Visits
Enthusiasts 14,672 10,096
Moderate Interest 13,605 11,290
Total 28,277 21,386

Win / Visit

GGS assumption that enthusiasts will game more; conservative spend/visit
Enthusiasts $70 $70 estimates as the length of the casino trip will be reduced by the main activity.
Moderate Interest $50 $50

Total Win
Enthusiasts $1,027,053 $706,750
Moderate Interest $680,260 $564,485
Total Win $1,707,313 $1,271,235

Win / Visitor (all event visitors) $17.07 $12.71

Premium: Auto Racing
Visitor vs. Equestrian
Visitor 34.3%

Background
An association of Canadian tourism ministries and organizations have collaborated to conduct two large scale
surveys to assess the travel activities and motivators of pleasure travel among Canadians and Americans.
This survey, known as the Travel Activities and Motivation Survey (TAMS), represents the comprehensive
assessment of travel behavior and motivators, and provides a rich and authoritative database by which to
develop marketing strategies and travel products to attract visitors to Canada and Ontario.
A series of analyses are being conducted using the TAMS database to explore the travel patterns of the
marketplace as well as the factors which motivate travel behavior. TAMS consisted of both a telephone survey
and a self-completed mailback survey. The survey was conducted in Canada and the United States between
September 27, 1999 and April 16, 2000. The telephone survey was completed by 28,397 individuals in the
United States and by 18,385 individuals in Canada. Respondents were selected randomly within the household.
People participating in the telephone survey who had travelled in the past two years or expressed interest in
travel in the next two years were asked to complete a mailback questionnaire. Overall, 40,271 qualified for the
mailback questionnaire. Of these 11,892 (29.4 %) returned usable questionnaires. The response rate was higher
in Canada with 5,490 (35.2 %) returning the questionnaire while 6,405 (26.0 %) of the U.S. respondents
returned the questionnaire.
This current study examines interest in casino gambling while respondents are not travelling and while they are
travelling. The database was used to identify sectors of the market that exhibit a moderate or high interest in
casino gambling. This report provides the demographic profile, Canadian travel activities, Canadian travel
intentions, vacation experiences sought during the past two years, vacation activities participated in during the
past two years, media consumption habits, information sources consulted to plan brief and longer vacations, and
impressions of Canada and Ontario relative to the interest shown in casino gambling. This report also provides
an Overall Market Potential, identifying those segments that offer the best potential for marketing, advertising
and promotional activities related to casino gambling.

TAMS
Travel Activities & TAMS: Interest in Casino Gambling Profile Report
Motivation Survey

Casino Gambling Interest Index
Construction of the Index
The TAMS Mailback Survey contained three items specifically associated with casino gambling that
were used to construct an overall Casino Gambling Interest Index. These were:
How often the respondent had visited casinos during the past two years while not travelling:
“frequently”, “occasionally”, “rarely” or “not at all”
Whether a casino gambling vacation experience had been sought during the past two years
Whether the respondent had visited a casino and gambled while travelling in the past two years
The responses to the first of these items (i.e,. the extent to which casinos had been visited during the past
two years while not travelling) was converted into a four point scale where “Not at all” was set to “0”,
“Rarely” was set to “1”, “Occasionally” was set to “2” and “Frequently” was set to “3”. The two
variables, which asked whether or not the individual visited a casino to gamble during the past two years
while travelling, were converted into binary variables where “0” was “Did not visit a casino to gamble”
and “1” was “Did visit a casino to gamble”. The three items were summed up to produce an overall score
ranging from “0” to “5”. This score was reduced to three levels as follows: A score of “0” was set to
“Low Interest”, a score between “1” and “3” was set to “Moderate Interest” and a score between “4” and
“5” was set to “Enthusiast”.
This scoring scheme meant that in order to qualify as a Casino Gambling Enthusiast, it was necessary
for those who “frequently visited a casino while not travelling” to have sought out a casino vacation
experience or to have visited a casino and gambled while on a trip during the past two years, and those
who “occasionally visit a casino while not travelling” to have both sought out a casino gambling
vacation experience as well as visited a casino to gamble at least once while on a trip during the past two
years. Those who never visited a casino were considered to have a Low Interest while all others were
classified as having a Moderate Interest in casino gambling.

TAMS
Motivation Survey

Interest in Casino Gambling
Canada versus United States
Based on Visiting a Gambling Casino While Travelling and Not Travelling
Base: Percent of Population(18 Plus) Who Either Travelled in Last Two Years or Intends to Travel in Next Two Years
100%
6.3%
90% 15.7% Americans were much more likely to have
Population: 1,238,000 visited a gambling casino while travelling,
Unweighted Sample Size = 399 and not travelling. Thus, Americans were
Population: 26,880,000
80%
Unweighted Sample Size = 1,080 31.9% 149 % more likely to be classified as
Casino Gambling Enthusiasts than
70% Population: 6,263,000 Canadians. Clearly, casino gambling is a
31.6%
Unweighted Sample Size = 1,807 more prevalent activity in the United
60% Population: 54,127,000 States than in Canada.
Unweighted Sample Size = 2,139
50%

40%

30% 61.8%
52.7%
20%
Unweighted Sample Size = 3,251 Enthusiast
Unweighted Sample Size = 3,159 Moderate Interest
10%
Low Interest
0%

United States Canada

TAMS
Motivation Survey

Interest in Casino Gambling Page 4

Canada: By Province
Base: Percent of Population (18 Plus) Who Either Travelled in Last Two Years or Intends to Travel in Next Two Years
Province of Residence

Newfoundland 17% Among Canadians, visiting a gambling casino
(while travelling and not travelling) was more
Prince Edward Island 11% Small Sample Warning for P.E.I. n=11 prevalent in Ontario and Saskatchewan
compared to other provinces. There was also
above average interest in casino gambling in
Nova Scotia 5% 32%
Quebec and Nova Scotia. Casino Gambling
Enthusiasts were most frequently found in
New Brunswick 21% Ontario. Interest in casino gambling tended to
be lower in New Brunswick, Newfoundland
Quebec 4% 35% and P.E.I. ( based on a small sample).

Ontario 9% 36%

Manitoba 6% 27%

Saskatchewan 6% 37%
Enthusiast
Alberta 7% 26% Moderate Interest
British Columbia 6% 24%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

TAMS
Motivation Survey

Interest in Casino Gambling Page 5

United States: By Region
Region of Residence
12% 28%
Interest in casino gambling was somewhat
South Atlantic
Florida, Georgia, North higher the West North Central region of
Carolina, South Carolina the United Sates. On the other hand, the
East South Central 18% 23% level of interest in casino gambling was
Alabama, Mississippi,
Tennessee, Kentucky
somewhat lower in East South Central and
West South Central 16% 33% South Atlantic regions of the country
Texas, Oklahoma, relative to other regions of the U.S.
Arkansas, Louisiana
Mountain 19% 33%
New Mexico, Arizona, Utah, Colorado,
Nevada, Idaho, Wyoming, Montana
Pacific /Hawaii 19% 33%
California, Hawaii, Oregon,
Washington, Alaska
West North Central 14% 42%
Kansas, Nebraska, South Dakota,
Missouri, Iowa, Minnesota
East North Central 17% 30%
Wisconsin, Illinois,
Michigan, Ohio, Indiana
Middle Atlantic 13% 33% Enthusiast
Pennsylvania,
New York, New Jersey
Moderate Interest
New England 11% 34%
Maine, Connecticut, Massachusetts,
Rhode Island, Vermont
0% 10% 20% 30% 40% 50% 60%

TAMS
Motivation Survey

Canada: By Demographics
Male 6% 32%
In Canada, young couples and mature
Female 7% 32% couples were the most likely to exhibit an
Young Singles 6% 35% interest in casino gambling. This interest
wanes among families, and especially
Young Couples 6% 37%
young families. The incidence of Casino
Young Families 4% 30% Gambling Enthusiasts declined as the level
Technical Note
See Appendix One for Mature Families 7% 27% of education increased, but increased as
a description of each of the household income increased. This
the life cycle stages. Mature Couples 9% 34% indicates that vacation packages with a
Mature Singles 7% 30% casino gambling theme should be targeted
Senior Couples 7% 27% at couples with higher household incomes
but less formal education.
Senior Singles 7% 33%
High School/Trade School 8% 32%
University/College 5% 33%
Advanced University Degree 3% 25%
Enthusiast
Undefined 6% 33%
Moderate Interest
Less than $40K 5% 29%
$40K to $80K 7% 32%
$80K Plus 7% 38%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

TAMS
Motivation Survey


United States: By Demographics
Male 17% 33%
The demographic profile of those
Female 14% 30% interested in casino gambling in the United
Young Singles 15% 34% States was somewhat different than that
observed in Canada. For example,
Young Couples 17% 39%
American males were more likely than
Young Families 12% 32% females to exhibit an interest in casino
Technical Note
See Appendix One for Mature Families 14% 31% gambling. As well, those with advanced
a description of each of degrees exhibited a greater interest in
the life cycle stages. Mature Couples 21% 31%
casino gambling in the United States than
Mature Singles 17% 32% in Canada. However, similar to Canada,
Senior Couples 15% 27% the level of interest in casino gambling
tended to increase as a function of
Senior Singles 14% 22% household income and was highest among
High School/Trade School 16% 28% young couples and mature couples.
Overall, the primary U.S. target markets
University/College 16% 34%
for casino gambling are affluent young
Advanced University Degree 12% 34% couples, mature singles & mature couples.
Undefined 14% 30%
Less than $40K 14% 26% Enthusiast
$40K to $80K 16% 35% Moderate Interest
$80K Plus 19% 38%

0% 10% 20% 30% 40% 50% 60%

TAMS
Motivation Survey


Canada: By Market Segment
Base: Percent of Population(18 Plus) Who Either Travelled in Last Two Years or Intends to Travel in Next Two Years
Affluent Young Singles 12% 35% In terms of the market segments (see technical
notes) in Canada, interest in casino gambling
Affluent Young Couples 5% 43% was highest among Affluent Young Singles,
Affluent Young Couples, Affluent Mature
Young Mainstream Market 4% 31%
Singles, Mainstream Mature Couples, Affluent
Mature and Senior Couples and Senior Singles.
Affluent Families 3% 32%
Affluent Young Singles and Mainstream
Mainstream Young Families 4% 29% Mature Couples were especially likely to be
Casino Gambling Enthusiasts. In general, the
Mainstream Mature Families 6% 29% level of interest shown in casino gambling was
lower within the family segments.
Affluent Mature Singles 6% 37%

Mainstream Mature Couples 11% 35%
Enthusiast
Mainstream Mature Singles 8% 28% Moderate Interest
Affluent Mature & Senior Couples 5% 36%
Technical Note
Mainstream Senior Couples 7% 27% The market segments used in this analysis
have been derived using the Ontario
Tourism Marketing Partnership (OTMP)
Affluent & Mainstream Senior Singles 7% 33% tracking database. See Appendix Two for a
description of each of these segments.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

TAMS
Motivation Survey


United States: By Market Segment
Affluent Young Singles 17% 35% A different pattern was observed in the United
States with all segments having a higher
Affluent Young Couples 19% 42% incidence of Casino Gambling Enthusiasts. In
general, the five affluent segments exhibit a
Young Mainstream Market 16% 35%
greater interest in casino gambling than the
16%
mainstream segments. There is also a high
Affluent Families 41%
interest in casino gambling among Mainstream
Mainstream Young Families 11% 29% Mature Couples. These represent prime markets
for casino gambling promotional activity
Mainstream Mature Families 15% 32% directed at the United States.

Affluent Mature Singles 17% 40%
Enthusiast
Mainstream Mature Couples 22% 31%
Moderate Interest
Mainstream Mature Singles 17% 26%

Affluent Mature & Senior Couples 18% 37% Technical Note
The market segments used in this analysis
15% have been derived using the OTMP
Mainstream Senior Couples 26% tracking database. See Appendix Two for a
description of each of these segments.
Affluent & Mainstream Senior Singles 15% 22%

0% 10% 20% 30% 40% 50% 60% 70%

TAMS
Motivation Survey

Interest in Casino Gambling Based on Visits to Casinos While Travelling & Not Travelling
Canada vs. U.S.: By Trips In Canada Last Two Years

In Canada, those who travelled domestically
No Domestic were slightly more likely to exhibit an interest in
5% 25%
Trips casino gambling than those who did not travel
domestically. However, Americans who took a
Canada trip to Canada within the last two years were
69 % more likely to be Casino Gambling
Enthusiasts than those who did not take a trip to
Took Domestic
7% 35% Canada. This difference may partially be
Trip attributable to the higher level of affluence of
Casino Gambling Enthusiasts, as affluent
households were more likely to have taken a trip
to Canada within the last two years.
No Trips from
14% 31%
U.S. to Canada
United
States Enthusiast
Took Trip from
U.S. to Canada
24% 35% Moderate Interest

0% 10% 20% 30% 40% 50% 60% 70%

TAMS
Motivation Survey


Canada: Interest By Province Travelled To
Base: Percent of Population (18 Plus) Who Took a Trip to Each Province During the Last Two Years
Destination Province
Newfoundland/ Labrador 7% 30% In Canada, there was a weak
association between interest in
Prince Edward Island 6% 37% casino gambling and the provinces
visited during the past two years.
Nova Scotia 5% 34% However, those who exhibited
interest in casino gambling were
New Brunswick 5% 35% somewhat more likely to have visited
Ontario or Quebec than other
Quebec 6% 37% provinces during the past two years.

Ontario 8% 38%

Manitoba 7% 34%

Saskatchewan 7% 36%

Alberta 7% 32%
Enthusiast
British Columbia 7% 32%
Moderate Interest
Yukon 36%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

TAMS
Motivation Survey

United States: Interest By Province Travelled To
Base: Percent of Population (18 Plus) Who Took a Trip to Each Province During the Last Two Years
Destination Province
Newfoundland/ Labrador 28% 41% There was only a weak association
between the level of interest exhibited
Prince Edward Island 24% 36% in casino gambling by Americans, and
the Canadian province visited during
Nova Scotia 19% 42% the past two years. However, those
with an interest in casino gambling
New Brunswick 13% 44% were slightly more likely to have
visited Newfoundland/Labrador during
Quebec 25% 39% the past two years. This result reflects
the increased affluence of visitors from
Ontario 27% 35% the U.S. to Newfoundland/Labrador
rather than indicating that this
Manitoba 20% 38% destination is of particular interest to
casino gamblers.
Saskatchewan 21% 42%

Alberta 21% 41%
Enthusiast
British Columbia 21% 38% Moderate Interest
Yukon 15% 40%

0% 10% 20% 30% 40% 50% 60% 70% 80%

TAMS
Motivation Survey

Interest in Casino Gambling Based on Visits to a Casino While Travelling & Not Travelling
Intentions to Travel to Canada in Next Two Years
Interest in Casino Gambling By Intentions to Travel in Canada During Next Two Years

Enthusiast 69% 11% Among Canadians, the likelihood of
taking a trip within Canada during the
next two years is unrelated to the level
Canada of interest in casino gambling. There
Moderate
71% 10% is, however, a modest association
Interest between interest in casino gambling
and travelling to Canada among
Americans. This likely reflects the
Low Interest 67% 11% fact that travellers to Canada from the
United States are more affluent (and
hence more likely to be interested in
casino gambling) rather than the fact
Enthusiast 21% 23%
United that Canada is an especially attractive
destination for people interested in
States Very likely casino gambling.
Moderate
17% 24%
Interest Fairly likely

Low Interest 16% 20%

0% 20% 40% 60% 80% 100%

TAMS
Motivation Survey

General Vacation Experiences Sought
During Pleasure Travel in the Past Two Years
By Interest in Casino Gambling Based on Visits to Casinos While Travelling & Not Travelling
Base: Total Population (18 Plus) Who Took a Trip in the Last Two Years: Canada & U.S. (Mailback Survey)

Casino Gambling Enthusiasts were more likely to
Exploration have sought out vacation experiences associated with
personal indulgence (e.g., to experience the good
life, visiting a casino, experiencing city life such as
nightlife). They were somewhat more likely to have
Personal
pursued sports and learning vacation experiences
Indulgence (e.g., to participate in a hobby or sport). Advertising
and promotional materials designed to promote
casino gambling-related tourism should emphasize
Romance & the opportunities for entertainment and personal
Relaxation indulgence offered by the destination.

Technical Note
This analysis is based on a factor analysis of the vacation experiences sought
Sports & during the past two years. See Appendix Three for a description of the
Learning individual items associated with each of these factor scores. The factor scores
Enthusiast for each dimension are determined by the weighted sum of all items. The
weight for each item is determined by how much the item is correlated with
Moderate Interest the overall factor score. Factor scores are standardized with an average of “0”
and a standard deviation of “1”. A value of “0” means that the travellers in
the group exhibited an average tendency to pursue a given vacation
Socializing Low Interest experience. Progressively more positive values indicate that the travellers in
the group were progressively more likely to have pursued the vacation
experience. Progressively more negative values indicate that the travellers
within the group were progressively less likely to have pursued the vacation
experience.
-0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 0.80 1.00

TAMS
Motivation Survey

Outdoor Activities Sought
Team Sports
Those with an interest in casino gambling tended
Natural Sightseeing
to be more active in most outdoor activities than
Swimming & Sunbathing those who were not interested. This was
Golfing
especially apparent among Casino Gambling
Enthusiasts, who tended to be more affluent and
Hunting
hence more likely to pursue outdoor activities
Canoeing, Kayaking, Hiking while travelling. Casino Gambling Enthusiasts
Fishing
were especially likely to be interested in fishing
and golfing. Combining these activities in casino
Motorcycling
gambling tourism packages may be especially
Extreme Sports effective, particularly for affluent travellers.
Fitness

Skiing
Technical Note
Snowmobiling This analysis is based on a factor analysis of the outdoor vacation activities
sought during the past two years. See Appendix Four for a description of the
Biking individual items associated with each of these factor scores. The factor scores
for each dimension is determined by the weighted sum of all items
Skating determined by how much any given item is correlated with the overall factor
Enthusiast score. Factor scores are standardized with an average of “0” and a standard
Extreme Winter Sports deviation of “1”. A value of “0” means that the travellers in the group
Moderate Interest exhibited an average tendency to pursue a given vacation experience.
Sailing, Windsurfing & Scuba Progressively more positive values indicate that the travellers in the group
Low Interest were progressively more likely to have pursued the vacation experience.
Natural Phenomena Progressively more negative values indicate that the travellers within the
group were progressively less likely to have pursued the vacation experience.
-0.40 -0.30 -0.20 -0.10 0.00 0.10 0.20 0.30 0.40

TAMS
Motivation Survey

Cultural and Entertainment Activities Sought
Shopping and dining
As would be expected, Casino Gambling
Museums, art, historical sites
Enthusiast Enthusiasts were much more likely to have visited a
Moderate Interest casino or a racetrack than those with a moderate or
High arts
Low Interest low interest in casino gambling (Note: Some of
Theme parks these items were used in the construction of the
scale). Enthusiasts were also more likely to have
Professional sports
attended an auto racing event or rodeo, a
Zoos, aquariums, planetariums professional sports event, participated in
shopping/dining or visited a theme park. Combining
Agricultural and local fairs
opportunities to gamble together with sports events
Concerts, carnivals and festivals or a shopping/dining experience may be particularly
appealing to Casino Gambling Enthusiasts.
Aboriginal cultural experiences
Technical Note
Gardens and natural attractions This analysis is based on a factor analysis of the culture and entertainment
vacation activities sought during the past two years. See Appendix Five for a
Cultural festivals description of the individual items associated with each of these factor scores.
The factor scores for each dimension is determined by the weighted sum of
International sporting events all items determined by how much any given item is correlated with the
overall factor score. Factor scores are standardized with an average of “0”
Casino gambling and horse racing and a standard deviation of “1”. A value of “0” means that the travellers in
the group exhibited an average tendency to pursue a given vacation
experience. Progressively more positive values indicate that the travellers in
Rodeos and auto racing the group were progressively more likely to have pursued the vacation
experience. Progressively more negative values indicate that the travellers
French Canadian cultural experiences within the group were progressively less likely to have pursued the vacation
experience.
-0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 0.80 1.00

TAMS
Motivation Survey

global response to board 1201 questions

global response to board 1201 questions

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a global response to board 1201 questions

Semelhante a global response to board 1201 questions (20)

Mais de krgc

Mais de krgc (20)

global response to board 1201 questions