Plans have recently been unveiled for a new state-owned casino in South East Kansas. The Kansas Racing and Gaming Commission has voted to reject the state’s management contract with Penn National Gaming Inc. Now the Kansas Lottery Commission will be taking new applications from companies wishing to manage the casino.
The state owned casino will be in competition with a tribal casino in nearby Oklahoma. The casino will be owned by the Lottery Commission, but the developers will build the casino and handle its day to day management.
The company that will run the casino will be selected from a list of applicants, following background checks and approval by the Racing and Gaming Commission. Prospects include Harrah’s Entertainment, and a partnership between Kansas Speedway and the Cordish Co. of Baltimore. The final decision is expected to be made this Friday.
Some companies pulled out of the running for rights to build the casino, citing the nearby Quapaw Tribal casino in Oklahoma as the reason. The location of the planned casino is on the border between the two states, and builders did not want competition from nearby casinos. When Penn pulled out, they also cited the $225 million required investment, and the requirement to pay 22 percent to the state, and 5 percent to local governments – a much higher contribution than the 6 percent state contribution required for tribal casinos.
"I don't think anybody in their right mind would go there. You have a tremendous disadvantage with a very good property over there," Phil Ruffin Sr of Camptown Greyhound Park said. "Besides, there is no financing. It would have to be all cash. This is a tough time for gaming all over the country."
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