Why Kansas Star?

Kansas Star contract is the one contract that achieves all of the legislative goals in SB 66

1. Maximize revenue for the State of Kansas

The Kansas Star begins generating revenue in 2011

Stabilized revenue of $226 million

First five years of operation produces gaming tax revenue

totaling $223 million to the State of Kansas

Significant investment in other revenue generators

Tax rates escalate during contract to 26%

1. Maximize revenue for the State of Kansas

Cummings: Better Location and More Revenue “The Kansas Star Casino . . . would be substantially more convenient to Wichita [than a] casino

at Exit 19.” An Exit 19 casino’s “share of Sedgwick County’s spending would be 80% versus 90% for the Kansas Star.”

Wells: Peninsula’s Project Schedule Provides More Revenue and Faster WinSpirit is expected to generate $45 million in gaming revenue in 2012 versus $133 million for

the Kansas Star (six months of operations for WinSpirit versus 12 months for the Kansas Star). On an annualized, basis, $90 million versus Kansas Star’s $133 million.

The Kansas Star will complete full build out of its project by 2016, while full build out for the WinSpirit is not scheduled until 2024.

“[In 2016] WGR has forecasted a gaming revenue difference of $89 million between the two applicants, in favor of the Kansas Star.”

Projections 2012 2014 2016Kansas Star – Avg. Wells & Cummings $145,857,000 $185,391,866 $211,291,880

WinSpirit – Avg. Wells & Cummings $53,601,250 $124,942,580 $138,149,779

Variance (Benefit from Kansas Star) $92,255,750 $60,449,286 $73,142,101

Variance % (Benefit from Kansas Star) 172% 48% 53%

1. Maximize revenue for the State of Kansas

53% more gaming revenue from Kansas Star

Projections 2016Kansas Star – Avg. Wells & Cummings $211,291,880

WinSpirit – Avg. Wells & Cummings $138,149,779

Difference (Benefit from Kansas Star) $73,142,101

Variance % (Benefit from Kansas Star) 53%

1. Maximize Revenue for the stakeholders of KansasEKay Economic Consultants: 49% more tax revenue to all stakeholders of Kansas

Projections Seven Year TotalTotal

Kansas Star $371,631,514WinSpirit $248,797,966

Variance (Benefit from Kansas Star) $122,833,548% Variance 49%

Macomber Int.: Superior Investment in Amenities and Marketing Plan “PGP appears to have made a stronger commitment to food, entertainment, and

retail/merchandise as a marketing tool, typically a critical element of a successful Local’s/regional casino.”

“PGP proposes a larger hotel and commits to building it to the full 300 rooms during the four year development period versus the open ended nature of GGS’s proposal.”

“MI believes the triple use of the larger Event/Equine/Convention Center provides not only some unique opportunities to market the property to locals and regional target market segments but creates more numerical opportunities to keep this facility utilized.”

1. Maximize revenue for the stakeholders of KansasEKay Economic Consultants: Significantly more gaming tax and

total tax in the first seven years

Projections State Sumner Co. Sedgwick Co.

Mulvane/Wellington

School District

Kansas Star $289,293,635 $20,945,908 $11,013,577 $30,091,690* $20,286,704

WinSpirit $200,128,664 $15,634,227 $7,037,458 $16,834,528* $9,163,089

Variance (Benefit from Kansas Star $89,164,971 $5,311,681 $3,976,119 $13,257,162 $11,123,615

% Variance 45% 34% 57% 79% 121%*Reflects an add-back for Public Works expense to be reimbursed to cities of Mulvane or Wellington by the applicants as applicable.

1. Maximize revenue for the State of Kansas

Top Tax Rate: 22% 22% 24% 24% 24%

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2012 2013 2014 2015 2016

Kansas Star Gaming RevenueAverage of Wells and Cummings

1. Maximize revenue for the State of Kansas

One Contract – Two Sites

Gaming Revenue2016

Site A Site B

Kansas Star - Avg. Wells & Cummings $211,291,880 $196,500,797

WinSpirit – Avg. Wells & Cummings $138,149,779 $138,149,779

Difference (Benefit from Kansas Star) $73,142,101 $58,351,018

Variance % (Benefit from Kansas Star) 53% 42%

2. Promote Tourism

Investment in tourist generator lifts total visitation over three million annually

300 hotel rooms

Concert/live entertainment center seating 4,200

Due to its amenities, projected to attract 291,000 visits per year from outside 100 miles

True destination development

2. Promote Tourism

Cummings

Tourist visits generating $15 million in gaming revenue

Macomber Int.

“Moving quickly to a 300 room hotel will be proven right”

“The approach to a multi-use event, equine, and meeting/convention center is the right one to position the property to serve the Local, Regional, and Outer Market regions”

“PGP capital spent on a larger hotel and Event / Equine / Convention Center will be more productive to marketing to the Outer Market/tourists than the compilation of enhancing a public golf course, a travel/fuel plaza, and a speedway.”

“MI believes PGP could easily add a travel/fuel plaza . . . thus removing this competitive advantage.”

3. Serves in the best interest of the Citizens of Kansas

Commitment to the local community with $1.5 million “Ad Astra” scholarship fund

Every school district in Sumner County and Mulvane

The total amenities will appeal to the widest range of customers

Committed to full build out in four years

Kansas Star has significant infrastructure developmentwith large employee payroll dollars to yield substantial local economic impact

3. Serves in the Best Interest of the Citizens of Kansas

What Civic Economics says on Construction

Economic Output Peninsula 246,207,174$ Global 158,787,335$ Increased Benefit from Peninsula 55%

Construction Impacts

Employment Peninsula 1,640 Global 1,081Increased Benefit from Peninsula 52%

Wages Peninsula 80,518,085$ Global 51,300,273$ Increased Benefit from Peninsula 57%

Source: Applicant Submission, IMPLAN, Civic Economics

3. Serves in the Best Interest of the Citizens of Kansas

What Civic Economics says on Operations

Economic Output Peninsula 188,994,697$ Global 136,237,230$ Increased Benefit from Peninsula 39%

Operating Impacts

Employment Peninsula 1,440 Global 939Increased Benefit from Peninsula 53%

Wages Peninsula 48,182,792$ Global 34,088,737$ Increased Benefit from Peninsula 41%

Source: Applicant Submission, IMPLAN, Civic Economics

The Most Capital Invested - $260 million

The Soonest - Within 4 Years

Not Contingent - Park City

The Highest Revenue

The Most Tourism - A True Destination Resort

Supports Education - “Ad Astra”

The Best Choice For Kansas

Kansas Star