Gambling lawsuit sent to district court

? Construction of new casinos in Kansas could be delayed because of a decision Thursday by the state’s highest court.

The Supreme Court decided Thursday that it won’t be the first court to consider a lawsuit filed against the gambling law. It took effect in April and permits four state-owned casinos and slot machines at dog and horse racing tracks.

The Supreme Court transferred the case to Shawnee County District Court. That means a final ruling on the law’s constitutionality will be delayed.

Gambling lobbyist Doug Lawrence said potential developers still are likely to apply for contracts to manage the new casinos. But he said they would hesitate to spend millions of dollars on construction until the law’s validity is settled.

“There’s a difference between an investment of maybe a million or million and a half on an applications and options on ground and physically investing 300 million in building something if it’s possible that it couldn’t be used,” said Lawrence, who represents a Las Vegas gambling company, Golden Heartland Inc.

Attorney General Paul Morrison filed the “friendly” lawsuit last month, raising the issues that critics of the law have raised.

Morrison and supporters of the law had hoped the Supreme Court would rule quickly so potential casino developers would be encouraged to submit applications.

The law directed Morrison to file the case in district court, but he argued it was more proper to file it with the Supreme Court. He said doing so would save time.

But in its one-page order, the court said the “clear and unambiguous legislative intent” about where the lawsuit was to be filed required the Supreme Court to dismiss the lawsuit or transfer it.

“In recognition of the importance of the issue, ranter than dismissing the action, we conclude transfer of the case is preferable,” the court said in its order, which was signed by Chief Justice Kay McFarland.

The Kansas Constitution gives the Supreme Court jurisdiction over lawsuits challenging a state official’s authority to act. Morrison’s lawsuit named the Kansas Lottery and its director, Ed Van Petten, as defendants and sought to keep them from entering into casino contracts.

Under the law, the lottery owns and operates the new gambling, while day-to-day management is left to private developers who will have contracts with the state.

“The issues here must be resolved by the Kansas Supreme Court,” Morrison spokeswoman Ashley Anstaett said in a statement.

Van Petten said Morrison demonstrated in his lawsuit that there were strong legal precedents for the Supreme Court to take the case.

“I guess I’m somewhat surprised,” he said during an interview.

Gov. Kathleen Sebelius, who had directed Morrison to file the lawsuit, said in a statement, “I am disappointed this could seriously delay the final decision.”

Rep. Lance Kinzer, an attorney who opposed the new law, said a district court trial is probably better than a Supreme Court review for delving into details about individual contracts and how they work. Typically, appellate courts don’t build such a detailed record.

“Certainly, there are factual issues here that are kind of in flux,” said Kinzer, an Olathe lawyer.