Board considers casino applications / LJWorld.com

Archive for Friday, September 19, 2008

A Hard Rock Hotel and Casino will be built overlooking Turn 2 at Kansas Speedway. The casino proposal from a partnership involving the speedway and The Cordish Co., of Baltimore, was chosen Friday by the Lottery Gaming Facility Review Board.

By Carl Manning - Associated Press Writer

September 19, 2008

Topeka — The battered economy prompted members of the state board picking the companies that will manage state-owned casinos in Kansas to focus much of their time Thursday on how applicants expect to pay for their plans.

The Lottery Gaming Facility Review Board conducted its final round of questioning of three remaining Wyandotte County applicants and two vying for the Ford County casino. The panel plans to decide today who gets the two contracts.

"It's going to be a real hard decision and a complicated decision because we have good applicants and close competition in both zones," said Chairman Matt All.

If a majority of board members can't settle on a single applicant for a county, all contracts will be returned to the Kansas Lottery to renegotiate and then resubmit to the board.

The slumping economy's toll on the gambling industry has been evident in Kansas in recent weeks.

On Tuesday, Pinnacle Entertainment Inc. pulled out of the Wyandotte County bidding, citing the "current turmoil in the financial markets." Another Wyandotte County bidder, Las Vegas Sands Corp., dropped out in July, citing increased borrowing costs as a factor.

Last week, Penn National Gaming Inc., walked away from its Cherokee County contract, saying it couldn't compete against an Oklahoma tribal casino at the state line. Harrah's Entertainment Inc. got the Sumner County contract.

Still in the running in Wyandotte County were Legends Sun, Golden Gaming Inc. and Kansas Entertainment, a partnership of Kansas Speedway and Cordish Co. Each would be near the Speedway - and the substantial retail development that has grown up around the NASCAR track in recent years.

The board's consultants estimate gambling revenues for the Speedway's proposal at $222.7 million, with $48.9 million going to the state. Golden would have $194.8 million in revenues, with $42.8 million to the state, according to consultants' estimates. Estimates for Legends Sun's proposal are $167.7 million in revenue, yielding $36.8 million for the state.

In Ford County, it's between Dodge City Resort and Gaming and Butler National Service Corp.