State appeals dismissal of its KCK casino case / LJWorld.com

Archive for Sunday, October 5, 2008

Associated Press

October 5, 2008

Kansas City, Kan. — Kansas has formally appealed a federal judge's order dismissing the state's challenge of a casino in Kansas City, Kan.

The move on Friday sets the stage for another review by the 10th U.S. Circuit Court of Appeals in Denver. Last fall, the appellate court panel, citing technical grounds, dismissed the state's lawsuit that challenges the legality of the 7th Street Casino. However, two of the three judges urged the case to be restarted because of judicial mistakes made over the years.

That led U.S. District Judge Richard D. Rogers to reopen the case in April. But last month, Rogers dismissed the state's case, calling it moot based on the federal government's sovereign immunity from lawsuits brought against it.

Kansas contends that the Oklahoma-based Wyandotte Nation tribe improperly bought the old Masonic temple and land in downtown Kansas City, Kan., for the 7th Street Casino. The state claims the purchase was made with federal funds that were not allowed for such purposes.

"Federal law provides that only very specific lands may be used for Indian gaming," said Ashley Anstaett, spokeswoman for Kansas Attorney General Steve Six. "We are appealing because we believe this land does not qualify, and no court has yet decided that question. We would like an answer to that question."

The Wyandotte Nation would be disqualified for federally approved gambling on the site if a court were to determine that the state is correct.

The tribe spent $20 million to remodel the old temple and open it in January as a casino. It is estimated that the operation will gross between $15 million and $20 million a year.

If the matter is resolved in the tribe's favor, it is expected to seek a formal compact with Kansas under federal law to upgrade its gambling at the casino. That would allow the operation to upgrade its estimated 500 bingo-based slot machines to table games and full-scale, Las-Vegas-style slots.