No Bids for New Casinos

The Kansas Lottery Commission did not receive an application to build a state-owned but privately operated casino in Cherokee or Crawford counties by its deadline last week. With no filing, the deadline for seeking the 15-year license was automatically extended to April 21.

The contract requires a minimum $225 million investment in the facility by the developer, along with a $25 million filing fee.

Penn National Gaming Inc. received a contract for a casino in Cherokee County from the lottery, but withdrew in September from a contract to build a $225 million facility there. The company said it couldn’t compete with a nearby tribal casino in Oklahoma.

The 2007 Kansas Legislature approved an expanded gambling bill that authorized four casinos in the state, but only one is currently under construction.

Construction is under way in Dodge City on an $88 million casino and resort. The casino is to be completed by late 2009, with a 124-room hotel and convention center scheduled to open by late 2011.

The state will own and regulate the four casinos, and receive at least 22% of the net revenue, with 3% of net revenue going to local governments. The state expects to realize more than $200 million a year in gambling revenue when all four casinos are operational.

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