By Roger McKinney

rmckinney@joplinglobe.com

TOPEKA, Kan. — Kansas lottery officials on Friday voted 4-3 to approve a contract with Harrah’s Entertainment for a state-owned casino and hotel in Sumner County. The vote was 5-2 in favor of approving Penn National Gaming’s contract for a state-owned casino in Cherokee County, but company officials have said they may pull out of that project if they did not also get the contract in Sumner County.

Eric Schippers, public affairs vice president for Penn National, said whether to go forward in Cherokee County would be decided by the company’s board of directors and that there was no time frame set for a decision.

Peter Carlino, Penn National’s chairman and chief executive officer, said during a July 24 conference call that it would be two casinos or none in Kansas and that a casino in Cherokee County didn’t make business sense on its own. Schippers said Friday that was management’s position, but the board makes the final decision.

Penn National’s project is challenged by Downstream Casino Resort, a $301 million project of the Quapaw Tribe of Oklahoma off Interstate 44, where Oklahoma, Kansas and Missouri meet. That casino opened last month, with a 12-story hotel set to open in the fall.

Penn National proposed building a $125 million casino north of Downstream, with a 225-seat buffet, a coffee and pastry shop, a gift shop and entertainment lounge and bar. It proposed hiring 510 workers. Another $100 million investment is to be phased in over 12 years.

The project is scaled back from an initial $295 million proposal. Company officials said the reason was competition from Downstream.

Kansas Lottery Gaming Facility Review Board members Jack Brier and Bob Boaldin voted against Penn National in Cherokee County, despite having the only contract.

Boaldin said he felt Penn National was trying to pressure the board to accept its contracts in both regions. Brier said he is an optimist.

“I frankly believe there is a better contract out there,” Brier said.

Stephen Martino, executive director of the Kansas Racing and Gaming Commission, said if Penn National withdrew from Cherokee County, the bidding procedure would start over for a casino in either Crawford or Cherokee counties.

Board member Jim Bergfalk said if Penn National followed through in Cherokee County, it could benefit from a “clustering effect.”

“The bad news is Downstream,” Bergfalk said. “Perhaps the good news is Downstream.”

“The project holds great promise in a number of ways to an economically deprived area of our state,” said board member Jackie Vietti about Penn National’s contract in Cherokee County.