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The Millennium Vision for Rockingham Park. Presented to The Governor’s Commission on Gaming October 20, 2009. William Wortman, Principal Millennium Gaming. What Our Model is Based On. Oversight and regulation under NH Lottery Commission Central computer system
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The Millennium Vision for Rockingham Park Presented to The Governor’s Commission on Gaming October 20, 2009 William Wortman, Principal Millennium Gaming
What Our Model is Based On • Oversight and regulation under NH Lottery Commission • Central computer system • Video Lottery Terminals (VLT’s) at pari-mutuel facilities plus up to 2 North Country locations • 5,000 VLT’s for Rockingham Park • 2,000 VLT’s at The Lodge at Belmont and Seabrook • Operators and machine vendors must be licensed • Establishes standards for approval • AG’s office conducts background checks
What Our Model is Based On • VLT payout figure shall be an average of at least 87% • Distribution % of gross gaming revenue are: • 40% general fund • 3% host municipality • 1% host county • 2% problem gaming programs • 1% state tourism fund • 1% police, fire and EMS training • 1% live racing purse enhancements • All operating expenses of the facility are paid out of the remaining 51% of gross gaming revenue
What Our Model is Based On • Fees paid by operator licensees • $100,000 operator application fee • $50,000 investigation fee • $50,000,000 initial license fee for horse tracks • $20,000,000 initial license fee for dog tracks • $10,000,000 initial license fee for North Country • Fees paid by technology providers • $50,000 application fee • $25,000 investigation fee • $50,000 initial license fee
What Our Model is Based On • Host community must agree by a local referendum vote • Enforcement shall fall under the NH Department of Safety, Division of State Police
Who is Millennium Gaming? William Wortman William Paulos Oaktree Capital Management
Cannery Casino Resorts (CCR) • Owned by Millennium Gaming, Inc. and Oaktree Capital Management, LLC • CCR owns, leases and operates four casinos Eastside Cannery Las Vegas, Nevada Cannery Casino & Hotel North Las Vegas, Nevada Rampart Casino Las Vegas, Nevada Meadows Racetrack & Casino Washington County, PA
Cannery Casino & HotelNorth Las Vegas, Nevada • Facility Stats: • 80,000 sq. ft. (casino) • 1,997 Slot Machines • 39 Table Games (Including Poker) • 135 Seat Race /Sports Book • 300 Seat Bingo Parlor
Rampart CasinoLas Vegas, Nevada • Facility Stats: • 50,000 sq. ft. (casino) • 1,255 Slot Machines • 30 Table Games (Including Poker) • 115-Seat Race & Sports Book
Eastside CanneryLas Vegas, Nevada • Facility Stats: • 65,000 sq. ft. (casino) • 1,972 Slot Machines • 30 Table Games (Including Poker) • Race and Sports Book • Bingo Room • Live Keno Lounge
Meadows Racetrack & Casino Washington County, PA • Facility Stats: • 131,000 sq. ft. (casino) • 3,800 Slot Machines • 60 Electronic Table Games • 24-Lane Bowling Center
Bill Wortman and Bill Paulos Joint CEO’s
Management Expertise • Have developed, opened and managed over $3 billion in projects within national and international jurisdictions • Projects include: • Luxor-Las Vegas, Nevada • Excalibur-Las Vegas, Nevada • New York-New York-Las Vegas, Nevada • Circus Circus-Las Vegas, Nevada • Caesars Palace-Las Vegas, Nevada • Caesars Palace-Stateline, Nevada • Crown Casino-Melbourne, Australia • Greektown Casino-Detroit, Michigan • Cannery Hotel & Casino-Las Vegas, Nevada • Eastside Cannery-Las Vegas, Nevada • The Meadows Racetrack & Casino-Washington County, Pennsylvania • Experience in developing exciting and compelling themed properties • Secure depth in management expertise to lead any project to success • Dedication to integrity and quality
Oaktree Capital Management L.P. • Founded in 1995 • Over $60 billion of assets under management • Multitude of investment strategies in both domestic and international arenas including: • Principal opportunities (“Private Equity”) • High yield • Distressed debt • Convertibles • Real estate • Emerging markets • Mezzanine • High yield plus • Office locations in Los Angeles, New York, Stamford, London, Frankfurt, Luxemburg, Hong Kong, Tokyo, Beijing, and Singapore • Over 400 employees
Why Rockingham Park Makes Sense • Long History of Gaming at the Rock • First in the nation lottery • Existing racetrack • Charity gaming • Location, Location, Location • New Hampshire/Massachusetts border • Approximately 70% of customers will come from Massachusetts • Excellent existing infrastructure • The community wants it
Why Millennium Makes Sense • Solid owner/operator experience • Our ability to finance this $450 million investment • We can be up and running quickly • Operator/owner already vetted by NH AG’s office for pari-mutuel licensing purposes • Engineering and design work already in process • Facilities generating revenue in next Biennium
Our Model—What it is not… • It is not an unproven model • 38 states have some sort of legalized gaming (excluding pari-mutuel, charitable and lotteries) and 12 of those are “racino” models • It is not a panacea to all the State’s budget problems • The State must continue to make difficult decisions relative to resource allocation • Gaming is A revenue source, not THE revenue source • It is not another tax on the citizens of NH • Every gaming revenue dollar the State receives is a dollar received without the need for a new or increased tax or fee
Our Model—What it is…. • $450 million capital investment • Phase I facility of 3,000 video lottery terminals (VLT’s); Phase II facility of 5,000 video lottery terminals • Enhanced live horseracing and charity table games • Based on The Meadows racino
Our Model—What it is… Rendering of Rockingham Park Phase I
Our Model—What it is… Rendering of Rockingham Park Phase II
Our Model—What it is… • Rendering of Rockingham Park Phase II Facility Interior
Our Model—What it is… • An economic development and enhanced tourism engine • $450 million investment budget equals approximately 1,100 full time equivalent jobs during construction • Approximately 1,000 high quality permanent, family-sustaining jobs with good and meaningful career opportunities • Will inspire a variety of high quality, non-gaming amenity developments • Non-weather dependant form of tourism “We have seen many changes over the past 25 years in Washington County and southwestern Pennsylvania but our commitment to our residents and quality of life has not changed. Gaming at The Meadows is not only benefitting the race track and racing; it is strengthening our local businesses, complementing our destination retail efforts and creating new jobs for our residents.” Jeff Kotula, President, Washington County Chamber of Commerce
Our Model—What it is… • The people’s choice • And…a sustainable, dependable source of revenue to the state…
Potential Revenue Analysis HANDOUTS
Conclusion Why Millennium and The Rock? Questions and Answers