State contracts for two casino developers are moving forward even as one developer drops out of the race in the South Central Gaming Zone.
The Kansas Lottery Commission approved contracts for Peninsula Gaming and Global Gaming at a special meeting, Tuesday, in Topeka after an announcement that Harrah’s would be dropping out as a potential pick for the state.
Director of Gaming Facilities Keith Kocher confirmed the withdrawal at the regularly scheduled Lottery Commission meeting earlier this afternoon.
“This morning Harrah’s notified the lottery that they have withdrawn their application from consideration. They made the internal discussion and considered the totality of the circumstances for Harrah’s and decided that they would not be pursuing this opportunity,” said Kocher.
“Certainly on behalf of the lottery we appreciate Harrah’s involvement in this, their application. We are sorry to see them leave but certainly we understand and respect their decision and move forward from here,” said Kocher.
Harrah’s won the original contract for the South Central Gaming Zone during the first round of casino proposals, but withdrew their application citing financial issues.
“After careful consideration and discussion with the Kansas Lottery Commission, Harrah's has decided to withdraw its application for the south central zone gaming license in Kansas.” said Trevor Busche, vice president of development for Harrah’s.
“We would like to thank the Kansas Lottery Commission, the Kansas Racing and Gaming Commission, the Kansas Lottery Gaming Facility Review Board and City of Mulvane for their efforts to bring gaming to Sumner County.” he said.
With Harrah’s out of the picture, the two remaining developers presented their plans to the commission.
First to present was Peninsula Gaming with their Kansas Star Casino at Exit 33 in Mulvane. Executive Scott Cooper highlighted features of the proposed facility including the equestrian center. Cooper said the casino would be open by November 2011 with continual construction taking place to build a $260 million facility in 48 months.
Peninsula estimates 5,000 customers a day and about 3 million customers a year to the casino and its adjoining facilities.
CEO John Elliott of Global Gaming presented his company’s proposed casino for Exit 19 in Wellington to the commission. He said should the state pick Global Gaming, construction would start in Spring 2011 and be completed by June or July 2012.
Elliott said the casino could see 350,000 visitors annually, with additional visitors coming from truck traffic off of I-35 and the local railroad employees.
The CEO said with infrastructure readily available at the site, the casino was “ready to go.”
Both developers were asked about possible competition in the area and how they felt about another casino less than 50 miles from their proposed facilities.
“We compete very favorable,” said Cooper, of other Peninsula facilities in more competitive areas.
“Clearly it’s a complex issue,” said Elliott. “...Obviously we are making a substantial investment and anyone making a substantial investment should be cause for concern, or at least cause for thought, so with that in mind, you can see from our negotiated management contract, we took action...for reasonable protections in that agreement,”
Elliott continued saying if the facility was bigger than the one to be built, it could cause trouble.
“A facility that may have 1,000 to 2,000 games should not be that much of a cause for concern. I think the cause for concern is more that playing field not being level,” said Elliott.
Having heard from both developers, the commission voted to approve both contracts pending signed approval by Executive Director of the Kansas Lottery, Ed Van Petten. The Commission voted to approve contracts with the two developers, provided each developer receives local planning and zoning approvals.
Peninsula does have local endorsement from Mulvane, but needs planning and zoning approval. Global Gaming has both local endorsement and planning and zoning in place.
Contracts approved by the commission will be forwarded to the seven-member independent Lottery Gaming Facility Review Board for its consideration. After the Lottery Commission delivers contracts to the Review Board, the Review Board will then have 60 days to forward its choice to the Kansas Racing & Gaming Commission for backgrounds and final approval.
Commissioners has until Oct. 20 to approve the contracts.
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