Topeka ? Developers of a proposed state-owned casino in northeast Kansas have cleared another hurdle toward building the $521 million project near Kansas Speedway.

The Kansas Racing and Gaming Commission said Friday that Kansas Entertainment LLC has cleared background checks.

Kansas Entertainment is a partnership between Kansas Speedway and Penn National Gaming Inc. Its plans for the Kansas City, Kan., project include a casino near the track’s second turn, with a hotel to be built later.

The company hopes to open the casino by early 2012, with 2,300 slot machines and about 90 tables for games.