By Roger McKinney
rmckinney@joplinglobe.com
COLUMBUS, Kan. — Penn National Gaming is alleging in a federal lawsuit that Cherokee County singled the company out for a citation from the county health department.
The company used the name Kansas Penn Gaming in the lawsuit. That is the name under which the company operates in the state. The lawsuit names the Cherokee County Commission, the individual commissioners and Carl Hayes, employed by the county health department, as defendants.
“Defendants have singled out KPG for prosecution to retaliate against KPG for its decision to withdraw its application to be designated the Lottery Gaming Facility Manager in Kansas’ Southeast Gaming Zone and for positions KPG and Penn have taken in the lawsuit filed by Cherokee County against KPG and Penn,” the lawsuit reads.
The lawsuit states that the actions taken by the county “were undertaken with malice, or with reckless disregard for or callous indifference to, KPG’s federally protected rights.”
Cherokee County is seeking $52 million in damages from Penn National in a federal lawsuit filed Sept. 11, 2008, the day the casino company announced it was withdrawing from a plan to build a casino in Cherokee County. The company cited competition from the Quapaw Tribe’s nearby Downstream Casino Resort as the reason for its withdrawal. The county is alleging breach of contract in that lawsuit.
On Wednesday, Penn National filed with the state an application to build and operate a state-owned casino in Kansas City, Kan.
At issue in the new lawsuit is a citation issued Jan. 22 by Hayes against Kansas Penn Gaming. The letter noted that the property had been abandoned. It alleged that a large amount of debris was scattered around the property, and that some debris was burned, in violation of state law.
The letter cited the company for alleged violations of state laws regarding public nuisances and open dumping, and violation of a county resolution prohibiting debris accumulation.
The letter gave Kansas Penn Gaming 45 days to dispose of the debris and noted that failure to comply could result in prosecution.
The lawsuit seeks unspecified damages, including attorney fees and costs for investigating the accusations. It also alleges that the county violated the state open-records law when it failed to provide the company with documentation its lawyers requested regarding the citation.
“I don’t know about going to federal court about trash,” said County Commissioner Pat Collins when asked to comment about the lawsuit. “I don’t know what they’re trying to do. We’ll just have to have our attorneys get to the bottom of it.”
David Cooper, the county’s attorney on casino issues, wasn’t immediately available for comment. Eric Schippers, public affairs vice president for Penn National, said it’s the company’s policy not to comment on litigation.
The lawsuit was filed March 27 in U.S. District Court in Wichita.
A judge has ruled that the state should maintain the $25 million privilege fee Penn National submitted when it applied to build the casino, pending resolution of the county’s lawsuit against the company.
Another lawsuit
Developers Gary Hall and Steve Vogel, doing business as HV Properties, have sued Penn National Gaming, seeking at least $37.5 million in damages. They allege that they casino company backed out of a land deal. Penn National also has sued the developers.
