Kansas Liberty: 20 May 2009
Prospective track operators emerge in Sumner, Wyandotte counties. What happened to all that gaming money that would fund education?
While racetracks slow, action on casinos is heating up
The Kansas Legislature was unable to agree on legislation to reform its expanded gaming law to encourage owners to re-open race tracks and equip them with slot machines, but the state’s still betting on its roll of the dice on casino gaming.
Prospective operators of state-owned casinos have restarted efforts to build and manage casinos in Sumner and Wyandotte counties.
In Wyandotte County, two applications are pending to build casino resorts. Bidders are Penn National Gaming Inc., which proposes a $500-million project, and Kansas Speedway Partnership, which proposes a $700-million project.
Projects they proposed were given preliminary approval Monday by the local planning commission, and the Unified Government of Wyandotte County and the Kansas City Council are expected to consider the plans on June 4.
If approved by both entities, the applicants then would begin discussions with the Kansas Lottery, which will negotiate prospective contracts and forward them the Lottery Gaming Facility Review Board.
The board will have two months to pick proposals from each county.
Those recommendations will in turn be sent to the Kansas Racing and Gaming Commission for final approval.
A third applicant, Golden Gaming, has announced it was withdrawing its plans for a Wyandotte County casino, citing the sluggish economy.
In Sumner County, plans for a $225-million casino project submitted by one applicant, Foxwoods Development of St. Louis, have been endorsed by the Sumner County Commission.
A second applicant, South Central Gaming Partners, meantime, filed a revised application that includes plans for a hotel. That application has not yet been reviewed by the Sumner County Commission.
A third, much smaller casino, is now under construction in Dodge City.
Alan Conroy, director of Kansas Legislative Research, said the budget awaiting the signature of Gov. Mark Parkinson anticipated casino-related revenue in the current fiscal year of $5.5 million, all from a privilege fee that is anticipated from developers of the Dodge City facility.
The fiscal year 2010 budget anticipates revenue of $54.7 million from casinos. That would primarily be derived from $25 million privilege fees that would presumably be paid by the developers of Sumner and Wyandotte County casinos.
In addition, it assumes that the Dodge City facility will be operating by Dec. 1 of this year and that $4.7 million in revenue will be forthcoming to the state.

