Study: S.E. town best bet for casino
Topeka ? A destination casino in southeast Kansas has the potential to bring in more revenue than one in the Kansas City area, according to a feasibility study conducted for the state lottery.
Kansas Lottery director Ed Van Petten, who presented the study’s findings Thursday to a Senate committee, said the research also shows 55 percent of Kansans favor expanded gambling, while 38 percent oppose it.
Among the more surprising findings of the survey, Van Petten said, is that the tiny southeast Kansas town of Galena would be one of the most attractive casino sites in the state.
The study, prepared by a Maine firm called Christiansen Capital Advisors, evaluated various combinations of expanded gambling in Kansas.
Gov. Kathleen Sebelius has proposed creating up to five state-owned “world-class, destination casinos” in Kansas, allowing 2,500 slot machines spread among the state’s five pari-mutuel tracks, and up to five slot machines at each of the 240 fraternal clubs across the state.
Under a variation of the governor’s proposal — three large casinos plus slots at tracks and fraternal clubs — a Galena casino could bring in as much as $240 million in revenue, much of that from patrons in Missouri, Arkansas and Oklahoma, the researchers said.
A casino in Wyandotte County near Kansas Speedway could be expected to bring in about $235 million under the same scenario, while revenue at a Wichita casino could reach $193 million, according to the study.
Meanwhile, the study concluded that a destination casino in Dodge City in southwestern Kansas doesn’t make much sense.
“With only 63,055 adults within 50 miles, and 732,419 within 150 miles, the Dodge City market will simply not support a large destination casino,” the researchers said.
The study estimated that a Dodge City casino could bring in about $62 million a year, well above the $54 million projected by proponents in that town.
Among other findings, researchers said public support is lukewarm for slot machines at the fraternal clubs and race tracks. The study also said there’s not much interest in allowing a tribal casino on non-reservation land, nor do a majority of Kansans want slot machines at lottery retail outlets.
Van Petten said municipal support for a casino was strongest in Wyandotte County and Dodge City, while Wichita’s government is less supportive and opposition is more firm.
Matt All, Sebelius’ chief counsel, estimated the governor’s plan would bring in as much as $900 million in revenues, of which the state would receive about $250 million annually.
He said he was surprised by the numbers projected for southeast Kansas, but acknowledged a casino there might make sense because most of the revenues would come from out of state.
The researchers’ conclusion that the Dodge City market is too small to support a large casino does not rule the city out as a candidate for one of the five casino licenses proposed in under Sebelius’ bill, All said.
“I don’t think it’s bad news for Dodge City or will keep them from being in the mix,” All said.
Expanded gambling bill is SB 499.
On the Net:
Kansas Legislature: http://www.kslegislature.org
Gambling feasibility study: http://www.kslottery.com/News/NewsReleases.htm




