June 3, 2008Wells Gaming Research1 Kansas Casino Market Study Estimates of gaming revenues for one generic casino to be located in each gaming zone

June 3, 2008Wells Gaming Research2

June 3, 2008Wells Gaming Research3 Methodology Used WGR’s proprietary gravity model Defined trade areas as approximate 100-mile radius of each site (adjacent trade areas have mile overlaps) Used 2007 data as status quo for baseline projections Population data at census tract level 2000 through 2012 Identified existing casinos, expansions, and proposed new casinos within 150 miles of each site Developed size, scope, and location assumptions for proposed Kansas Lottery generic casinos and racetrack slots without reference to applicant proposals or other consultants’ work Developed and calibrated a custom gravity model for each gaming zone Defined and ran three to seven scenarios for each zone Low, mid, and high multi-year gaming revenue estimates

June 3, 2008Wells Gaming Research4 Combined Map of Casino Proposals

June 3, 2008Wells Gaming Research5 Exhibit 1-1 Total & Adult Population by State for the Gaming Zones

June 3, 2008Wells Gaming Research6 Exhibit 1-2 Capacity by State Includes Existing, Proposed Expansions & New Casinos

June 3, 2008Wells Gaming Research7 Exhibit 1-3 Status Quo Casino Gaming Revenues for 2007 & Projections for 2012 (Stated in Millions of Dollars)

June 3, 2008Wells Gaming Research8 Exhibit 1-4 Casino Revenue Projections w/ New Casinos & Expansions (Stated in Millions of Dollars)

June 3, 2008Wells Gaming Research9 Total Trade Area - All Four Zones Estimated Annual GGR Spending per Adult (w/ 13% inflation) Annual Spend$485$574

June 3, 2008Wells Gaming Research10 NE Kansas - Wyandotte trade area (100-mile radius) includes 32 counties in Kansas, the southeastern corner of Nebraska (3 counties), and northwestern Missouri (36 counties) this overlaps with the trade areas of proposed Kansas Lottery casinos in the southeastern and south central Kansas gaming zones

June 3, 2008Wells Gaming Research11 NE Kansas - Wyandotte the population in the trade area is 3,121,829; of which 2,174,051 are adults of the adult population, 1,190,250 (55%) live in the counties immediately surrounding Kansas City on both the Kansas and Missouri sides of the state line

June 3, 2008Wells Gaming Research12 Northeast Zone Map

June 3, 2008Wells Gaming Research13

June 3, 2008Wells Gaming Research14 Capacity Statistics for Current and Future Proposed Casinos Competing in the Northeast Kansas Trade Area Existing Casinos: 18 casinos containing 16,914 slots, 367 pit tables, and 73 poker tables One Expansion and Six Proposed New Casinos: With 6,750 slots, 100 pit tables, and 15 poker tables Represent a 40% increase in slots and a 27% increase in pit tables in this trade area

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June 3, 2008Wells Gaming Research17 Assumptions for Projected Generic Casino Wyandotte County, Northeast Zone WGR’s assumptions for a new casino: 3,000 slots, 100 table games, 100,000 sq. ft. of convention space, 500 hotel rooms, 6 restaurants, & 5 entertainment venues The casino location is assumed to be near the intersection of U.S. 435 & Hwy 24, adjacent to the Speedway

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June 3, 2008Wells Gaming Research20 Scenario 3A is the same as Scenario 3, but without the Wild Rose Entertainment Casino planned for Sugar Creek, Missouri. Northeast Zone

June 3, 2008Wells Gaming Research21 SE Kansas - Cherokee trade area (approximate 100-mile radius) includes 18 counties in Kansas, 24 counties in southwestern Missouri, 15 counties in northeastern Oklahoma, and 8 counties in northwestern Arkansas this trade area overlaps with the trade areas of proposed Kansas Lottery casinos in the northeastern and and south central Kansas gaming zones

June 3, 2008Wells Gaming Research22 SE Kansas -Cherokee the trade area population is 2,976,480; of which 2,072,654 are adults of the adult population, only 254,869 (12%) live in Cherokee County and the surrounding Counties

June 3, 2008Wells Gaming Research23 Southeast Zone Map

June 3, 2008Wells Gaming Research24

June 3, 2008Wells Gaming Research25 Capacity Statistics for Casinos Competing in the Southeast Kansas Trade Area Existing Casinos: 53 casinos with 30,846 slots, 409 pit tables, and 182 poker tables 4 Expansions & 16 Proposed New Casinos: 20 casinos with 20,614 slots, 411 pit tables, and 23 poker tables These expansions would represent a 67% increase in slots and a 110% increase in pit tables in this trade area

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June 3, 2008Wells Gaming Research28 Assumptions for the Projected Generic Casino in the Southeast Zone WGR’s assumptions for a new casino in Cherokee County: 1,200 slots, 40 table games, 10,000 ft. of convention space, 250 hotel rooms, 3 restaurants, and 2 entertainment venues The casino location is assumed to be near the intersection of U.S. 166 and S.E. Bagdad Road, approximately 2.4 miles NW of the Will Rogers Turnpike

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June 3, 2008Wells Gaming Research31 Scenario 3 includes the assumptions of Scenario 1, plus four Expansions and 16 proposed casinos in Kansas, Missouri, and Oklahoma. Southeast Zone

June 3, 2008Wells Gaming Research32 SC Kansas - Sumner trade area (approximate 100 mile radius) includes 34 counties in Kansas and 19 counties in Oklahoma this trade area overlaps with the trade areas of proposed Kansas Lottery casinos in the northeastern, southeastern, and southwestern Kansas gaming zones

June 3, 2008Wells Gaming Research33 SC Kansas - Sumner the trade area population is 2,242,031; of which 1,549,257 are adults of the adult population, 500,054 (32%) live in Sumner and surrounding counties

June 3, 2008Wells Gaming Research34 South Central Zone

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June 3, 2008Wells Gaming Research36 Current and Future Proposed Casinos Competing in the South Central Kansas Trade Area Existing Casinos: 54 casinos in Oklahoma containing 28,532 slots, 271 pit tables, and 196 poker tables 6 Expansions & 12 Proposed New Casinos: with 18,431 slots, 405 pit tables, and 23 poker tables These expansions would represent a 65% increase in slots and a 149% increase in pit tables in this trade area

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June 3, 2008Wells Gaming Research38 Assumptions for Projected Generic Casino in the South Central Zone Assumptions for a new casino in Sumner County: 2,000 slots, 50 table games, 30,000 ft. of convention space, 275 hotel rooms, 4 restaurants, and 3 entertainment venues The location assumed for the casino location is the intersection of I-35 and U.S. 160 near the Wellington exit

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June 3, 2008Wells Gaming Research41 Scenario 3 includes the assumptions of Scenario 1, plus six Expansions and 12 proposed casinos in Kansas, Missouri, and Oklahoma. South Central Zone

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June 3, 2008Wells Gaming Research43 SW Kansas - Ford trade area (approximate 100-mile radius) includes 51 counties in Kansas, 7 counties in Oklahoma, and 2 counties in the Texas panhandle this trade area overlaps with the trade area of proposed Kansas Lottery casino in the south central Kansas gaming zone

June 3, 2008Wells Gaming Research44 SW Kansas - Ford the trade area population is 504,936; of which 343,002 are adults of the adult population, 60,767 (18%) live in Ford and surrounding counties

June 3, 2008Wells Gaming Research45 Southwest Zone Map

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June 3, 2008Wells Gaming Research47 There are no existing casinos in this zone, and the only other proposed casino is the Kansas Lottery proposed casino in Sumner County. WGR has projected this Sumner County casino to have 2,000 slots and 50 table games. Other Oklahoma casinos more than 150 miles away compete for business within this trade area Casino Competition

June 3, 2008Wells Gaming Research48 Assumptions for the Projected Generic Casino in the Southwest Zone Assumptions for the new casino: 800 slots, 20 table games, 10,000 ft. of convention space, 100 hotel rooms, 3 restaurants, and 3 entertainment venues The casino location is assumed to be on the western outskirts of Dodge City to the north of Hwy. 50

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June 3, 2008Wells Gaming Research51 Scenario 3 includes the assumptions of Scenario 1, plus the addition of 11 proposed casinos in Kansas, and Oklahoma. Southwest Zone

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