By Roger McKinney
rmckinney@joplinglobe.com
GALENA, Kan. — Another deadline has passed without an applicant for a state-owned casino in Cherokee or Crawford counties.
The Kansas Lottery in November rejected an application from Ozark Trail Gaming because its application didn’t meet minimum requirements. Specifically, the Lottery said in a letter that Ozark Trail provided no information in its application that it had access to the financial resources to support the casino. The state requires a minimum $225 million investment and a $25 million privilege fee. The state’s letter also said Ozark Trail provided no evidence of experience with gambling operations.
Bob Knight, former Wichita mayor and a principal with Ozark Trail Gaming, said in November that the group might try again.
“We haven’t given up, yet,” Knight said. “We still have things we want to try.”
Knight on Thursday said finding financing remained an issue that the group couldn’t overcome.
“I will be very surprised if someone comes up with the necessary $225 million,” he said. “Two hundred twenty-five million dollars doesn’t make economic sense right now.”
Ozark Trail Gaming had planned its Ozark Trail Casino for an area off Interstate 44, along Highway 166 in Cherokee County, just north of Downstream Casino Resort.
Knight said he is skeptical that the Kansas Legislature will revisit the issue of reducing the minimum investment in the Southeast gaming zone during the session.
“I’ll be surprised if they do,” he said. “They should, but there are other issues that will probably take priority.”
Told that State Rep. Doug Gatewood, D-Columbus, was introducing a bill to reduce the minimum investment for a state-owned casino in the Southeast zone to $100 million, Knight said he hopes that is given consideration.
“That would make sense,” he said. “That’s not a small amount, but that would change our disposition to it.”
As for the matter of casino experience, Knight said previously that Ozark Trail was considering partnering with an existing casino operator. He said the group had communication with Penn National Gaming about the issue.
Penn National withdrew from a plan to build a casino in roughly the same area where Ozark Trail planned its casino. Penn National backed out after the state awarded its contract to the company. The withdrawal prompted Cherokee County to sue the company.
Knight said Thursday that he still wanted to make the project work.
“It’s something I’m very interested in,” he said. “I’d love to do something in Southeast Kansas. I’m very impressed with the political leadership, with the people. I’m impressed with Downstream Casino. I’m still very interested.”
