Document Actions
Kansas Liberty: 17 November 2008
Harrah's folds in Mulvane, seeks return of its $25 million ante.
Another casino operator tells Kansas that gambling's bad business
The fledgling state-owned gambling industry suffered yet another blow today when the company picked to manage a casino in Mulvane announced it was backing out.
Harrah’s, who, along with partner Sumner Gaming and Resorts, was chosen by the Kansas Racing and Gaming Commission to operate the Mulvane facility, also asked for a return of a $25 million “privilege fee” it paid for the right to manage the casino.
Harrah’s attributed its decision to current economic conditions, which have had an impact on casino financing.
Under the Expanded Lottery Act, which allowed casino gaming in Kansas, four state-owned casinos could have been commissioned in the state, if voters in the communities in which they were proposed approved them.
With Harrah’s decision, only two casino projects are still on the books.
Another casino company, Penn National Gaming, withdrew its application to operate a casino in Cherokee County in September.
The Expanded Lottery Act also would have allowed three dog tracks in Kansas to install state-owned slot machines at tracks. But, owners of the three tracks have balked because they believe the state’s rake would be so high they wouldn’t realize any profit.
Track owners are now in the process of pleading with the Kansas Racing and Gaming Commission to retain their licenses while they attempt to persuade the Kansas Legislature to change the law.
Gambling was the ace up Gov. Kathleen Sebelius' sleeve. When the law was debated in the Legislature, some estimated that the state could earn about $200 million a year from casinos and slots at tracks, which might have helped to soften the state’s current budget crunch.
Supreme Court Justice Eric Rosen wrote the decision declaring the law that permitted state-owned lotteries also permitted state-owned casinos, despite a state constitution provision outlawing gambling.
_______________________
Correction: The original version of this story misstated Rosen's seniority among the justices. It has been corrected.
Kline takes stand in criminal proceeding against late-term abortionist
Forgot your password?
New user?
