Winners and losers

Topeka Capital-Journal, The, Aug 23, 2008 by James Carlson

By James Carlson

THE CAPITAL-JOURNAL

A group of Topeka investors was selected Friday to build one of the nation's first state-owned casinos.

The Kansas Lottery Gaming Facility Review Board voted 4-3 to choose Harrah's Entertainment Inc. for the proposed facility in Mulvane, 15 miles south of Wichita. The other two applicants for the south-central gaming zone were Marvel Gaming and Penn National Gaming, both of which planned casinos in Wellington further south.

The Harrah's proposal was backed by members of the Topeka-based development group MRV Inc., which has real estate dealings across the capital city and in other states. This will be the group's first casino.

Hundreds of people packed the ballroom at the Ramada Hotel and Convention Center to hear the panel's seven members voice their opinions of each developer. Coming to the final vote, that of Topeka board member Dean Ferrell, Harrah's had three votes, Marvel had two supporters and Penn National had one. When Ferrell indicated his preference for Harrah's, one of the dozens of Harrah's supporters wearing green shirts offered a hushed exclamation, "Yes!"

The green shirts then flowed out of the room and into the lobby where they hugged, many of them with tears in their eyes.

Mark Hardison, a Mulvane resident, found himself becoming emotional.

"This will just do so much for the Mulvane community," the 55- year-old said.

Their joy had a counterweight.

Rep. Vince Wetta, a Wellington Democrat, walked out of the ballroom shaking his head about the two proposals for his town being rejected.

"I'm devastated," he said.

The four-member majority said Harrah's revenue estimates and ability to attract tourists with its brand-name restaurants set it apart.

"They have the most heavily branded products," said board chairman Matt All.

That proposal included Toby Keith and Paula Deen signature restaurants and a Butch Harmon-designed golf course.

Prior to the Sumner County decision Friday morning, the board picked Penn to manage the Cherokee County facility. Penn was the only applicant for the southeast gaming zone. Both winning applicants now must clear a background check by the Kansas Racing and Gaming Commission, which could take a couple of months.

A law enacted last year paved the way for the nation's first state-owned casinos in four designated gaming zones. The other two are in Wyandotte and Ford counties, and the review board will vote next month on those applicants.

Consultants estimate Harrah's would generate first-year revenues of $186.5 million, 22 percent of which would go to the state.

Earlier this week, the Prairie Band Potawatomi Nation filed a lawsuit against Harrah's in Shawnee County District Court alleging the company violated a noncompete agreement by seeking the proposed casino near Mulvane. Charles Atwood, vice president of Harrah's board, told the review board on Thursday that the company had complied with the agreement, and board members said Friday the lawsuit didn't factor into their decision.

A hearing is set for Aug. 29 in Shawnee County on the tribe's request for a court order to keep Harrah's from moving forward.

Meanwhile, the Topeka group will begin work on the casino starting Monday, said Nancy Seitz, one of its five members.

"We'll start drawing plans, start moving dirt," she said. "It's so exciting."

James Carlson can be reached

at (785) 233-7470

or james.carlson@cjonline.com.