Topeka ? What started as a plan for four state-owned casinos has dwindled to one, at least for now.

On Friday, Kansas Entertainment put its plans to build and manage a casino complex at Kansas Speedway in Wyandotte County on hold. It withdrew its application but said it would resubmit it with a phased-in plan. It’s the third time an application has been withdrawn since September.

But a proposed casino and resort in Dodge City will be going forward, after the Kansas Racing and Gaming Commission approved the Butler National Service Corp.’s background check and operating contract with the Kansas Lottery. That cleared the way for the Olathe-based company to receive its state license for Boot Hill Casino and Resort.

Butler President Clark Stewart said construction will start “in the next couple of weeks.”

“We have construction people on the ground now,” he said.

Stewart said despite the economy, Butler has the money to complete the $88 million facility with 875 slots and a 124-room hotel. He said plans call for the first phase with the casino and food service to be completed in October 2009, with the second phase with a 124-room hotel and amenities completed in 2012.

Doug Smith, project director, said the southwest Kansas casino’s smaller size works in its favor because “that makes it an easier sell to investors and financial partners.”

Part of the commission’s background check included Butler’s financials, which aren’t open to the public.

“There’s been significant changes in the economy since Boot Hill received the recommendation of the review board, and we did due diligence to ensure they can meet their financial commitments in light of the changes of the last two months,” said Stephen Martino, racing and gaming executive director.

Firm remains committed

Kansas Entertainment, a partnership of Kansas Speedway and The Cordish Co., of Baltimore, said its decision to withdraw its application was because of the sour economy. Company officials said they remain committed to building the casino overlooking the speedway’s No. 2 turn.

“There has been an unprecedented crisis and disruption in the global financial and economic markets,” Joseph Weinberg, a Cordish partner, said in a letter to the Lottery.

Weinberg said the partnership “remains in a strong financial position” to start work on the casino. But it wants the flexibility to phase in the hotel and nongambling amenities in case the financial markets don’t recover soon.

Its original proposal included a $680 million facility with 3,000 slots and a 300-room hotel with a temporary facility opening next summer.

The Lottery would own the gambling and the casinos would be managed under a 15-year contract it signs with the operator. Kansas joins a dozen other states with commercial casinos, but is the only one with state-owned facilities.

Lottery executive director Ed Van Petten said the new deadline for submitting applications for the Wyandotte County casino probably will be April 1.

Speedway President Jeff Boerger said it shelved plans for a second NASCAR Sprint Cup Series race and a road course but will include both proposals as part of its new application. Neither proposal was part of the original application. The Speedway had announced the plans contingent on getting the casino contract.

Effects on state budget

Last year, when legislators enacted the expanded gambling law, they’d hoped the state would eventually reap $200 million a year from the casinos and slot machines at three race tracks.

But with only the Dodge City casino, the state will get the privilege fee for the current budget year and maybe $6 million from gambling revenue in the upcoming fiscal year 2010.

This comes as the state faces a budget crisis that includes a $141 million revenue shortfall in the current fiscal year. That could go to $1 billion by the end of fiscal year 2010, based on current revenue projections.