By Roger McKinney

rmckinney@joplinglobe.com

COLUMBUS, Kan. — The decision for a contract for a state-owned casino in Sumner County has taken on additional importance for residents of Cherokee County who are hoping a casino in that county will result in economic benefits.

The Kansas Lottery Gaming Facility Review Board will make its decision on contracts in both counties when it meets Aug. 21 and 22. Penn National Gaming had the only proposal in Cherokee County. When the review board met July 9 in Cherokee County, Steve Snyder, Penn National’s senior vice president for corporate development, said the company wouldn’t commit to building a casino in Cherokee County unless it also gets the Sumner County contract.

“We are committed in a southern Kansas strategy” involving both counties, Snyder said.

But Penn National has competition for its contract in Sumner County, from casino giant Harrah’s Entertainment and start-up Marvel Gaming.

Unexpected competition

The casino for the Quapaw Tribe’s $301 million Downstream Casino Resort opened July 5 and had 109,000 visitors in its first week. It’s located off Interstate 44 where Oklahoma, Kansas and Missouri meet. A 222-room hotel is scheduled to open in the fall.

Penn National has proposed building its Hollywood Casino in Cherokee County just north of the tribal casino. Competition from the casino project of the Quapaw Tribe is the reason Penn National officials give for scaling back and phasing in its Cherokee County project, and the reason for switching to a “southern strategy.”

Penn National initially applied with the state to build a $295 million casino and hotel, but later decided to invest $125 million in a casino initially and phase in investments totaling $100 million over the next 12 years.

The Quapaw Tribe of Oklahoma announced its plan for a casino and hotel on May 14, 2007, a few weeks before Cherokee County conducted a required referendum election June 5 on a state-owned casino. At that time, the tribal project’s price tag was $200 million.

Eric Schippers, public affairs vice president with Penn National, said that even after the tribe made the announcement, his company didn’t think the tribe could obtain financing for its project. He said that in today’s economic environment, the deal would not have been possible.

Schippers said legal questions about the tribe’s project remain.

Cherokee County has filed an amended complaint in U.S. District Court in the District of Columbia against the U.S. Interior Department. It alleges that the federal agency failed to act to comply with the Indian Gaming Regulatory Act by requiring that Indian gambling take place only on Indian lands. It seeks an injunction requiring the National Indian Gaming Commission to notify the Quapaw Tribe that the land on which its casino was built is ineligible for gambling under federal law.

The fees for David Cooper, Cherokee County’s attorney for casino issues, are being paid by Penn National.