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Kansas Liberty: 06 October 2008
High-rolling company finds pulling out of Cherokee County deal is risky
Proposed operator of casino in southeast Kansas faces second lawsuit
Penn National Gaming Inc. had high hopes when it sought authorization to operate a state-owned casino in southeast Kansas.
Company officials pledged to invest $225 million for a gaming facility whose 900 slot machines and 30 table games would have generated an estimated $36 million in gaming revenue in its first year of operation.
Now, since announcing it was pulling out of the deal, the New York-based gaming company is on the business side of a federal lawsuit filed by a property owner who had agreed to sell Penn National a 200 acre parcel of land in Cherokee County for $37.5 million.
In addition, Cherokee County Commissioners also have filed a lawsuit in federal court against Penn National, claiming it breached a contract when it decided to pull out, contending it could not compete against a tribal casino in Oklahoma that is just over the state line.
Other casino proposals appear to be on track.
In southwest Kansas, the Kansas Lottery Gaming Facility Review Board initially chose Butler National Service Corporation to operate the Boot Hill Resort and Casino. The $88 million project will have 875 slot machines and 20 table games, and is expected to generate almost $70 million in gaming revenue in its first year.
In northeast Kansas, the gaming facility review board selected Kansas Entertainment, LLC, to manage gambling facility in Wyandotte County, adjacent to the Kansas Raceway. That $705 million project will include a Hard Rock Casino and will feature 3000 slot machines and 140 table games expected to generate revenue of $350 million in its first full year.
In south central Kansas, Harrah’s was chosen to operate a $535 million project that will have 2000 slots and 50 table games, and generate $206 million in gaming revenue in its first full year.
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