As the 10-year anniversary of Boot Hill Casino and Resort approaches, Boot Hill Casino and Resort, Kansas Lottery Commission and Butler National Corporation, renewed their operational agreement.
According to a news release, the contract renewal comes five years before the original 15-year agreement was made, "in order to gain more favorable financing terms than the casino was able to secure before its opening in December of 2009."
With the five years being part of the original agreement, the extension puts the agreement in place over the next 20 years.
As part of the additional contract, the state will receive an additional 2% revenue above the current revenue percentage, which would equal about $12 million additional dollars to the state over the 15-year period using current financial projections, with an increased state tax rate of 24% up from 22%.
According to Boot Hill Casino and Resort, the refinancing lessens an unfavorable financing package that has been challenging since 2008, along with casinos in Oklahoma being in competition.
“After 10 years of a successful relationship between the state and the Dodge City Boot Hill Casino managers, from a financial standpoint, it is a sensible move for the state for a number of reasons,” said Kansas Lottery executive director Stephen Durrell in a news release. “To start with, making sure Boot Hill Casino continues as a good employer, a tourism destination and source of revenue for the state is of utmost importance.
"Plus, this commits Boot Hill Casino to significant capital investment that will keep it competitive in its market.”
With the refinancing in place, it will allow for major capital reinvestment and marketing efforts through the new contract term of nearly $25 million.
It will also preserve the jobs of over 250 Boot Hill Casino and Resort employees and maintain the casino and economic benefits in the southwest Kansas region as well as Dodge City.
“It’s a good day for Boot Hill Casino, Dodge City and the State of Kansas,” said Boot Hill Casino and Resort general manager Diane Giardine. “We are thrilled to extend our contract with the State of Kansas and we are eager to continue offering a fun and exciting gaming environment to the public making southwest Kansas and Dodge City a must-see tourist destination for years to come.”
Butler National Corporation, a recognized provider of professional management services in the gaming industry, entered into the initial Lottery Gaming Facility Management Contract for Boot Hill Casino and Resort.
“We have worked diligently in our 10 years of successful management of the state owned and operated games, creation of over 300 new jobs and development of a tourist destination location in southwest Kansas,” said Butler National president and CEO Clark Stewart. “We appreciate the successful partnership between the state and Butler National/BHCMC.
“We have similar goals and objectives that mutually benefit the interests of both parties.
“As we reach the 10th anniversary of the opening of the Boot Hill Casino on Dec. 15, we thank our fellow Kansans, and in particularly our employees, working with Butler National, a Kansas company.
“We will continue to offer a quality tourist and entertainment destination, positive and fun place of employment for hundreds of people and a strong driver of economic activity in Dodge City and southwest Kansas.”
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