Creation of casinos slowed by recession

Topeka Capital-Journal, The, May 19, 2009 by Bill Blankenship

By Bill Blankenship

THE CAPITAL-JOURNAL

Although the Legislature in 2007 authorized four state-licensed casinos for Kansas, only one is under construction.

The $88 million, Wild West-themed Boot Hill Casino and Resort is being built on the western outskirts of Dodge City, just off US-50 highway.

Phase 1 of the casino, consisting of the gaming floor, two unfinished restaurants and a snack bar, is expected to open by mid- November. The second phase, expected to begin in July 2010 and finished by December 2011, will expand the complex to four restaurants, a 124-room hotel and other attractions.

Dodge City and Ford County are developing a special events center adjacent to the casino, which is being developed by Butler National Service Corp.

The 2007 gaming law passed by the Legislature also authorized three other state-owned casinos, one each in Sumner and Wyandotte counties and the third in either Cherokee or Crawford county.

Here is the status of those efforts:

Northeast

On Dec. 5, citing the economic collapse, a partnership of Kansas Speedway and Baltimore-based Cordish Co. withdrew its proposal to build a destination casino in Wyandotte County.

The application process was reopened, and the speedway and Cordish Co.'s Kansas Entertainment resubmitted a scaled-down proposal for a Hard Rock Hotel & Casino to sit overlooking Kansas Speedway.

Two other proposals were received, but one developer informed state officials Thursday it was withdrawing its proposal.

Citing economic conditions, Golden Gaming Inc. officials said it will withdraw its proposal for Golden Heartland, a casino to be be built in Edwardsville, at the 110th Street Exit off Interstate 70.

Stil under consideration is Penn National Gaming Inc.'s proposal for a Hollywood Casino Kansas near the site of the Schlitterbahn water park under construction off Interstate 435 in western Kansas City.

A decision is expected by Sept. 1.

South-central

Last November, the recession caused Harrah's Entertainment Inc., with support of some Topeka investors, to pull its proposal to build a Sumner County casino.

Three new proposals are being reviewed, with the same Sept. 1 date for decisions.

Foxwoods Development has proposed its Chisholm Creek Casino Resort be built at the Mulvane exit of the Kansas Turnpike. Lakes Entertainment has proposed a Lakes Casino Resort for either at the Mulvane or Wellington exits.

On May 12, the Sumner County commissioners endorsed both of those proposals for further consideration by the Kansas Lottery.

The commission didn't endorse the proposal by South Central Gaming Partners to build its Prairie Sky Casino at the Mulvane exit or further east of it after the other. On Monday, the developers added a hotel to the first phase of its proposal, as had the other two groups, and asked the commissioners to reconsider their endorsements before a June 30 deadline.

That group's proposal for a third site could be endorsed by the Mulvane City Council because that property is within the city. That partnership includes two former executives with Mandalay Resort Group and the Topeka-based Equity Ventures, which had been in a partnership with Harrah's.

Southeast

Last September, Penn National Gaming Inc. dropped its effort to build a casino in Cherokee County because it didn't think the facility could compete with a nearby $300 million Oklahoma tribal casino.

The bidding process was reopened, but with no takers. The deadline for proposals has been extended to July 20.

Bill Blankenship can be reached

at (785) 295-1284

or bill.blankenship@cjonline.com.