1. COMPARING THE SUMNER
COUNTY SUBMISSIONS
William R. Eadington
December 1, 2010

2. SIMILARITIES BETWEEN THE
APPLICANT SUBMISSIONS
• Applicant companies have similar histories, similar
scope of casino operations
• Similar regional presence in their respective markets
– Oklahoma for Global Gaming Solutions
– Iowa and Louisiana for Peninsula
• Similar target audiences, with respect to existing
casino operations
– Roughly three star hotel operations, similar in food
offerings
• Both applicants have some experience with racinos
(Remington Park and Evangeline Downs)
• Both have developed greenfield casino sites into
successful casino operations
• Did they use the same architects?
– Similar visualization of what a Kansas Prairie-inspired
casino should look like

11. 11

12. BOTH APPLICANTS OPERATE
ATTRACTIVE FACILITIES
ELSEWHERE

15. ICE HARBOR DEVELOPMENT,
DUBUQUE (2009)

16. BOTH APPLICANTS OFFER
INTERESTING “SWEETENERS”
FOR SUMNER COUNTY

19. 19

21. GLOBAL GAMING SOLUTIONS
• All data taken from www.casinocity.com
• WinStar World Casino (Thackerville, OK)
– Proximity to Dallas market; about a one hour drive
– 5,800 slots, 114 table games, 395 hotel rooms, 380,000 sq. ft. of
gaming space; 395 hotel rooms & suites
• Includes all restaurant, lounge, back-of-house in sq. footage
computation
– Claim of being 3rd largest casino in the world (probably based on
slot count or casino square footage, not revenues or visitation or
CAPEX)
– Gaming revenues: perhaps $300 m to $400 m (consultant’s
estimate)
• Riverwind Casino (Norman, OK)
– 2,498 slots and 55 tables, 219,000 sq.ft. of gaming space; 100 hotel
rooms => gaming revenues of perhaps $125 m to $175 m
• Remington Park (Oklahoma City, OK)
– 750 slot machines, 55,000 sq.ft. of gaming space; no hotel rooms
=> gaming revenues of $74.5 m (12 months ending 8-10)
• Treasure Valley Casino (Davis, OK)
– 402 slot machines, 4 table games, 9,440 sq.ft. of gaming space; 59
hotel rooms => gaming revenues of perhaps $10 m to $15 m

22. PENINSULA GAMING
• All data taken from www.casinocity.com
• Diamond Jo Dubuque
– 975 slot machines, 17 table games; 35,000 sq. ft. of gaming
space; no hotel => gaming revenues $68.4 m (FY 2010)
• Diamond Jo Worth
– 965 slot machines, 33 table games; 38,500 sq. ft. of gaming
space; 102 hotel rooms => gaming revenues of $80.2 m (FY
2010)
• Amelia Belle
– 822 slot machines, 17 table games; 30,000 sq. ft. of gaming
space; no hotel => gaming revenues of $44.4 m for 12
months ending 9/30/10
• Evangeline Downs
– 1,627 gaming machines, no table games; 80,000 sq. ft. of
gaming space; no hotel => gaming revenues of $113.5 M for
12 months ending 9/30/10

23. OTHER OBSERVATIONS ON
GLOBAL GAMING SOLUTIONS
• Tribal casinos are self-regulated
– They have not been subject to state regulation
• No direct experience to date in running an Auto Racing
Facility
– They will have to hire the needed expertise
• Race Track is more than 60 months (5 years) out on
submitted plans; funded by outside partners
• Tax differentials between Kansas and Oklahoma create
incentives to redirect customers from Kansas to
Oklahoma casinos
– However, given regional nature of markets, customers are
going to stay within 100 mile radius of their residences => it
may be hard to persuade them to migrate to a lower tax
environment
• I-35 Corridor argument is a bit contrived
– The Interstate itself is not a tourist attraction
– The company does understand the local TX, OK market

24. • I-35 destination market experience.
• Proven development and
operational expertise in destination
properties.
• Substantial financial capability.
• Proven record in economic
development in local communities.
• Proven record in expanding
facilities to extract market
potential.
3. Key Advantages of Global Gaming as the State’s
Operator
Wellington, Sumner County,
Kansas.
October 28, 2010
INTERESTING COINCIDENCE, BUT
I-35 IS NOT A DESTINATION IN ITS
OWN RIGHT
IS THE I-35 CORRIDOR A STRATEGIC ADVANTAGE?

25. OTHER OBSERVATIONS ON
PENINSULA GAMING
• Experience with regulatory bodies in
Iowa and Louisiana
• No direct experience to date in running
an Equestrian Events Center
– They will have to hire the needed expertise
• Distance from their other casinos will
limit their ability to cross-market
• The indictment issue in Iowa should be
taken into consideration by the Review
Board

26. AN UNORTHODOX SOURCE OF
INFORMATION:
WWW.TRIPADVISOR.COM

27. TRIPADVISOR COMMENTS ON
WINSTAR WORLD CASINO
QUALIFIER: POSSIBLE LOADING OF RESULTS FROM THE MARKETING
DEPARTMENTS OF CASINOS REFERENCED. ALSO, CASINO
PATRONS CAN BE A CRITICAL BUNCH OF PEOPLE.
• Trip Advisor rating at about 2.5 (out of 5); 35 reviews
• Lots of complaints on tight slots, 50 cents to $1 ante per hand at
Blackjack
– Some note that this is the norm in Oklahoma
– Characteristics of a monopoly situation, i.e. used in Morongo Casino in
Palm Springs, CA (closest to LA market) before competition became more
heated in that area
• Very large casino but cheap construction (industrial style building,
poor AC)
– World Cities theming is not very effective
• Numerous complaints on the food; some compliments on free coffee
& soft drinks on casino floor
– Complaints about unfriendly employees
• Numerous customers compared Winstar against Shreveport (3 hours
drive from Dallas, compared to 1 hour)
– On balance, Shreveport comes out better in comparison

28. TRIPADVISOR COMMENTS ON
RIVERWIND CASINO
• TripAdvisor rating at about 2.0 (out of 5); 18
reviews
• Lots of complaints on tight slots, 50 cents
ante per hand at Blackjack, expensive mixed
drinks (though free soft drinks and coffee)
– Limited service from casino employees
• Some compliments on the facility and the
hotel rooms; none on the gambling
conditions (too expensive, cannot win, etc.)
• Cigarette smoke, poor ventilation mentioned
in some references

29. TRIPADVISOR COMMENTS ON
REMINGTON PARK
• TripAdvisor rating at 5 (out of 5); 1 review
• Patron liked the Silk’s Restaurant,
ambience; surprisingly pleased

30. TRIPADVISOR COMMENTS ON
PENINSULA CASINOS
• No reviews on the Dubuque or Worth
casinos
– 4 reviews on the Woodfire Grill Restaurant
at Diamond Jo Dubuque (average score 4.5
out of 5)
• No reviews on Evangeline Downs or on
Amelia Belle

31. TRIPADVISOR COMMENTS ON
OTHER REGIONAL CASINOS
• Ameristar Casino, Kansas City, MO
– Rating of about 4.0, 27 reviews
– Comments mainly on the hotel
• Argosy Casino, Kansas City, MO
– Rating of about 4.0, 31 ratings
– Comments mainly on the hotel
• Eldorado Casino, Shreveport, LA
– Rating of about 4.0, 84 ratings
– Comments mainly on the hotel
• Sam’s Town, Shreveport, LA
– Rating of about 3.5, 86 ratings
– Complaints over smoke in casino, unfriendly staff, charging for internet,
etc.
• Mohegan Sun, Uncasville, CT
– Rating of about 4.0, 624 ratings
– Some reviewers mixed up Foxwoods and Mohegan Sun
• Foxwoods, Ledyard, CT
– Rating of about 3.0, 37 ratings
– Complaints over tight machines, dirty bathrooms, poor service

32. MAJOR AREAS FOR COMPARISON
OF THE APPLICANTS
• Does an Auto Racing Facility have a stronger or weaker
attractiveness to a Sumner County casino resort than an
Equestrian Center?
– Is the difference in planned development and opening of these
facilities an important consideration?
• Is the revenue generating capability of the Mulvane location
over Wellington an important consideration?
– There is going to be some difference, ceteris paribus, but one can
dispute the magnitudes
• Are there marked differences between the two applicants in
terms of the physical facilities offered?
– Does either one have the capability to outdraw the other if all other
influences were the same
• Are there marked differences between the two applicants in
terms of management styles and philosophies?
– Can the marketing or HR strategy of one company lead to better
performance than the other?

33. THE TRAVEL TIME ISSUE
• 14 miles in difference between Exit 19 and Exit 33 translates into about an
additional 12 minutes of travel time in each direction (11 minutes at 76 miles
per hour; 10 minutes at 84 mph)
• Survey results (such as those provided to Global Gaming by Jayhawk
Consulting Services) are not good indicators of how people are actually going
to act
– Far better to observe behavior than to ask people how they would behave in a
hypothetical situation
• Assume increased travel time is 25 minutes per trip (round-trip) for Mulvane v.
Wellington casino
– If the alternative Site B in Mulvane is selected, then assume all the numbers below
should be cut by 40% to 50%
• For someone who would travel 4 times per month (48 times per year) to a
Mulvane casino from Wichita is going to have to travel a total of 20 hours more
per year, and will have to travel about 1,350 more miles per year to get to a
Wellington casino site
– At a cost of $0.50 per mile for transport, this would amount to an additional $675 per
year on gasoline, maintenance, wear-and-tear, etc.
– If travel time is valued at $18.81/hour (average wage rate in Wichita), then the
additional travel time cost to the individual would amount to an additional $375 per
year. (Note: the assumption is that the opportunity cost of driving time is the wage
rate, i.e. the person could be working instead, or values his free time at that rate.)
• Because it is more expensive to go to a casino in Wellington relative to
Mulvane (at the rate of about $22 per trip, based on the above assumptions), it
is reasonable that Wichita consumers would make fewer trips to Wellington, all
other considerations held constant

34. Wells Gaming Research

35. Wells Gaming Research