By Roger McKinney
rmckinney@joplinglobe.com
The Kansas Lottery Commission on Thursday set Jan. 21, 2009, as the new deadline for casino applications in the Southeast Gaming Zone, which consists of Cherokee and Crawford counties.
The application deadline for building and managing a state-owned casino is 90 days after revised application and review procedures are to be published in the Kansas Register on Oct. 23.
“We would like that to be a pretty firm date,” said Keith Kocher, gaming facilities director for the Kansas Lottery. “We’ve been through this before.”
Penn National Gaming had been the only applicant in the Southeast zone and had been awarded the contract by the Kansas Lottery Gaming Facility Review Board. But the company withdrew after it did not also receive the contract for the South-Central zone. Company officials said the company could not successfully compete in Kansas with a casino in Cherokee County alone, citing competition from the $301 million Downstream Casino Resort, built by the Quapaw Tribe of Oklahoma just south of where Penn National had planned its casino and hotel.
The company’s withdrawal came after the Lottery Commission had allowed the company to make the minimum $225 million investment required by state law over a period of years.
During the initial application procedure, Crawford County officials requested and received a 30-day extension of the original deadline.
“We think the 90 days is adequate,” Kocher said.
Kocher also acknowledged the possibility that there could be no applicants.
“The deadline would fall during the legislative session if we don’t get any applicants,” he said. “We’ll know by that date if we get any bites.”
Eric Schippers, vice president of public affairs for Penn National, said in the company’s withdrawal announcement that the company has offered to work with the Legislature to reduce the required minimum investment.
The Cherokee County Commission filed a lawsuit against Penn National when it withdrew, so it’s not clear whether Penn National’s offer remains valid.
Phil Ruffin Sr., who owns the Camptown dog track in Frontenac, has told The Kansas City Star that he plans to lobby the Legislature to reduce the minimum investment in the Southeast zone to $50 million. He said that if the Legislature approved that, he would apply to reopen the dog track with a casino, but not otherwise.
Ruffin previously walked away from a deal with the state to add slot machines at the closed dog track, saying the 40 percent tax prevented him from making a profit there.
“I’m optimistic that someone will build a casino in Cherokee County,” said Cherokee County Commissioner Pat Collins when told of the new application deadline.
He added that it may require changes by the Legislature. He said the state should reconsider the amount of tax revenue it collects from the casino manager.
“I think they need to rethink that,” Collins said. “Perhaps they could do whatever it takes to make it more appealing.”
State Rep. Bob Grant, D-Cherokee, said studies previously had suggested that Southeast Kansas was the best area of the state for a casino, until Northeast Oklahoma was flooded with tribal casinos.
“I’m hoping that we get some applicants,” Grant said. He said if that does not happen, the Legislature may have to make adjustments. But, he said, tampering with the casino law too much could be a mistake.
Jobs
Cherokee County Commissioner Pat Collins said that until Southeast Kansas gets its own casino, Downstream Casino Resort is benefiting Cherokee County. “Downstream has brought us a multitude of jobs we didn’t have before,” he said.
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