2015 LGFRB Camptown Casino Proposal

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Transcript of 2015 LGFRB Camptown Casino Proposal

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Phil Ruffin

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750 Slot Machines

20 Table Games

13 Black Jack / Card Games

2 Craps

1 Roulette

4 Live Poker Tables

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World-famous Gilley’s Saloon, Dance Hall, BBQ & Entertainment Venue

62-unit Select Service Property Hotel

Buffet

Snack Bar/Deli

Casino Center Bar

3rd Casino Bar

Dedicated paved parking forat least 1,000 vehicles

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(000’s Omitted)

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(000’s Omitted)

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Camptown Casino will prepay the State of Kansas $5M in prospective

revenue immediately upon the contract being awarded to Manager.

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648,000Missouri Visitors

209,000Kansas

92,000Other

92,000 Other209,000 Kansas648,000 Missouri

949,000 TOTAL

2,600 Visitors per Day*

*KlasRobinson Q.E.D. Economic Impact Study, October, 2014, Page 2813

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Visitation total estimated at 949K/year, or 2,600 visitor / day

2/3 are projected from Missouri

Market Population: 50 mile radius = 270K 100 mile radius = 1.6M Springfield, MO Metro = Approx. 450K within 90 mi. drive

Projection of aggregate spend within the facility $50 / Visitor / Electronic Gaming Devices & Table Games $ 8 / Visitor / Food & Beverage Cover $53 / Visitor / Hotel Guest

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PHIL RUFFIN has lived in Wichita for most of the last 60 years. His Kansas lodging, manufacturing, energy, real estate and retail businesses have, for decades, provided jobs and economic stimulus to Kansas. His companies already employee 300 Kansans.

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Mr. Ruffin has been involved in the gaming industry since 1994 when he bought the Crystal Palace in the Bahamas. He subsequently owned and sold the New Frontier Casino in Las Vegas, and currently owns Treasure Island in Las Vegas. Phil Ruffin is an accomplished casino operator who knows how to build a strong organization.

The extremely experienced Treasure Island management team stands available to serve in a consulting capacity as needed by Camptown Casino.

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PHIL RUFFIN, JR. entered the Kansas Gaming industry in 1997 at the Wichita Greyhound Park. His tenure there included work in several departments and ultimately resulted in his promotion to Director of Operations. He is currently involved at the executive level in many other Ruffin Companies businesses, including the hotel and manufacturing divisions.

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With over 30 years of experience, SCOTT COOPER has considerable expertise in the Gaming Industry. Most of his experience has been in regional/local gaming facilities similar to Camptown Casino.

He was the 1st employee of the Kansas Star Casino, leading the project from day one, including the licensing process and all 3 building phases. He operated the facility as General Manager for 3 years.

Scott has opened 9 other Casino projects, which included 4 properties larger than Camptown. He is very familiar with the development/operating process related to coordination with the KRGC & Lottery.

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SCOTT COOPER has spent 20 years developing start-up casino projects. He subscribes to a development and operating philosophy that focuses on building outstanding management teams. His projects, including the Kansas Star Casino, have consistently exceeded performance and market share projections.

The Kansas Star Casino was the 10th Casino project Scott has developed across the U.S. He has developed 4 properties larger than Camptown Casino, with up to 2,000 employees. Six of the facilities have employed between 250 – 500 employees.

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Property and Building Contribution $ 25MCompletion costs, including:

Property Build OutGaming Equipment FF&EPre-Opening Expenses

Subtotal $ 78.5MLicense Fee $ 5.5M

TOTAL INVESTMENT $ 84M

$ 53.5M

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The total number of employees to be hired is approximately 300. This includes 250 full-time, plus 50 part-time and flex-team members.

Dealers School

Unemployment rate in Crawford County will improve by approximately 20%

Goal is 90% of team members will be from Kansas

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Mr. Ruffin will personally provide all financing to fund the

Camptown Casino project and any necessary financing to maintain

the Lottery Gaming Facility.

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Scope of project is sized to support a sustainable business model

After opening and as business needs dictate, Camptownmay consider the following additions:

Up to an additional 250 slots

Up to an additional 10 table games

Multi-stakes Bingo

6,000 SF Multipurpose Convention & Entertainment Complex

50 pad full-service RV Park23

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CAMPTOWN’S POINTS OF DIFFERENCE FROM OTHER PROJECTS

Camptown’s immediate point of difference is an already existing opted-in regional database of Treasure Island Casino guests exceeding 60,000 names and growing

Gilley’s Saloon, Dance Hall,BBQ & Entertainment Venue

Camptown Casino has the ability to open soonerthan the other proposed projects

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MARKETING STRATEGIES (GILLEY’S)Gilley’s has long been an entertainment destination on the Las Vegas Strip and will place Camptown in an entertainment league of its own. The name has immediate recognition for generations of people from the popular movie “Urban Cowboy.”

A food, drink, dance and entertainment venue that has won awards both for the quality of food and the quality of the entertainment experience.30

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MARKETING STRATEGIES (GILLEY’S) - continued

Gilley’s entertainment programs include mechanical bull riding, live music, line dancing, karaoke, rodeo and other sporting event viewing.

Its community inclusion regularly opens up alliances and sponsorships with local vendors such as western wear, beverage distributors, and media outlets.

In Kansas, the rights are exclusive to Phil Ruffin, who has access to major performing acts through the entertainment team at his Las Vegas property, Treasure Island.

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CUSTOMER ACQUISITION – LOCAL VS. TOURIST

Because of geographical logistics, local and tourist marketing efforts will overlap.

Camptown and Las Vegas slot points will be available for use in either property, offering greater value to each customer’s experience.

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CUSTOMER ACQUISITION – LOCAL VS. TOURIST - continued

Multiple trips can earn customer established program opportunities including:

Cash back program

Free room, food and beverage

Both locals and tourists will be reached via: Already identified billboard locations Already identified radio opportunitiesDirect response advertising Social media platforms

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EXCLUSIVE MARKETING EFFORTS TO TOURISTS

Tourists will be reached by the following vehicles:

Bus programs with experienced, out of state, casino bus operators

Website (www.camptownks.com) will immediately have a sign-up page when license is awarded

Social media sites are already established

Targeted text messaging programs

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EXCLUSIVE MARKETING EFFORTS TO TOURISTS - continued

Develop strategic alliances with local hotels. Existing capacity of 400+ hotel rooms near Camptown will:

Provide lodging for the regional traveler during peak, overflow scenarios

Assist the local hotels in maximizing their occupancy

Leverage existing partnerships with national beverage companies to help provide regional exposure

Unique, location-based email offers35

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Architectural Plans

Mobilization and Erosion Control 1 month Mobilization and Erosion ControlNew Addition Building Pad Complete 1 month New Addition Building Pad Complete

CompleteSite Concrete, Sidewalks & Parking Lots Site Concrete, Sidewalks & Parking Lots

Landscaping & Irrigation 1 month Landscaping & Irrigation

CompleteStructural Steel Procurement Structural Steel Procurement

Complete1 month

Foundations at Facade 1 month Foundations at FacadeComplete

Prep and Pour Slab-on-Grade 1 month Prep and Pour Slab-on-GradeSteel Delivery and Erection 1 month Steel Delivery and Erection

Construction of New Facade 1 month Construction of New FaçadeExterior Finishes at New Addition Exterior Finishes at New Addition

Interior Wall Framing & Overhead Rough-In 1 month Interior Wall Framing and Overhead Rough-InHang Drywall/Insulate/Finish Hang Drywall/Insulate/Finish

Finishes for New Addition Finishes for New AdditionFlooring-Ceramic Tile/Hard Flooring 1 month Flooring-Ceramic Tile/Hard Flooring

1 monthCeiling Grid/Border Tile 1 month Ceiling Grid/Border Tile

Install Millwork & Wood Trim Install Millwork & Wood TrimMEP Ceiling Finishes

1 month Install Acoustical Tile

Plumbing, Mech, Electrical Fixtures Plumbing, Mech, Electrical FixturesInstall Kitchen Equipment Install Kitchen Equipment

Flooring-Carpet & Vinyl Base Flooring-Carpet & Vinyl BaseInstall Division 10 Items/Speciality Fin. 1 month Install Division 10 Items/Speciality Fin.

1 month Punch List1 month Final Cleaning

SUBSTANTIAL COMPLETION

Hotel ConstructionSUBSTANTIAL COMPLETION

3 months3 months

2 monthsPainting/VWC

Prime Walls

Install Acoustical Tile

3 months

2 months

3 months

Rebar Delivery

12 months

2 months2 months

3 months

3 months

MEP Underslab

HOTEL

Punch ListFinal Cleaning

Demolition

Rebar Delivery

Prime Walls

Painting/VWC

Building Dry-In

MEP Ceiling Finishes

2 months

MONTHACTIVITY DESCRIPTION

SITE ACTIVITES

BUILDING SHELL

Site Utilities

2 months

Complete

DESIGN ACTIVITIESArchitectural Plans

Trad

ona

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The Ruffin Companies

Spangenberg Phillips Tice Architecture

Dondlinger Construction

Professional Engineering Consultants (PEC)

Kansas Sub-Contractors for 90% of Jobs

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Create a culture that ensures all employees understand that adhering to the internal controls are part of their job description

Training

Self-Reporting

Communication between Operations and Regulators

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HOW DOES THE PROGRAM WORK?

Voluntary Exclusion Program – Customer has the option to exclude themselves for 2 years or lifetime.

Once a customer elects to self-exclude, no marketing efforts are continued. Customer is added to “do not mail” database. Customers often try to re-enter the casino.

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IMPORTANT COMPONENTS OF PROGRAM:

All employees receive ongoing training on recognizing problem patrons and how to assist them

Particular emphasis on intoxicated patrons

Designated places in casino to obtain brochures and post signage

Prevent persons under age 21 from entering casino

Frequent and consistent communication to front-of-house staff

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Camptown Casino will donate $50K per year for 10 years to the Frontenac School District (USD 249) for educational purposes. Camptown Casino has agreed to a descending compensation

schedule in which the Manager receives less compensation and the State retains more on higher tiers of the Lottery Gaming Facility revenues, as follows:

Manager StateUp to $55M = 73% 27%

> $55M and < $65M = 72.75% 27.25%

> $65M and < $75M = 72.50% 27.50%

> $75M = 71.50% 28.50%43

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Camptown is an existing facility that can be readied to generate revenue to Kansas sooner than our proposed competitors

Most experienced Kansas gaming management team, and has the most Kansas regulatory experience

100% owner financed – resources to sustain facility

Gilley’s – a regional entertainment attraction

Existing regional 60K known gamers database

A traffic study concluded that Camptown can accommodate traffic without a negative impact to area residents

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