SE KS Casino Wins Lottery Approval

[Made in the USA]

This sounds kinda shaky to me?? I thought the builders had to come up with all the money, up front??


Kansas Lottery OKs casino contract
BY FRED MANN
The Wichita Eagle

The Kansas Lottery Monday approved its first contract for a state-owned and operated casino as provided under the new expanded gambling law.

The contract will be sent to the lottery review board for final approval.

The lottery and Penn National Gaming agreed to a contract to build a casino in Cherokee County that allows the company to phase in its required $225 million initial investment over 12 years.

Keith Kocher, the lottery's gaming facilities director, said he didn't like the provision, but it was the best the lottery could do. Penn National, which also is bidding for a casino in Sumner County, was the only bidder for a casino in the South-east gaming zone.

The new gambling law doesn't say that the required initial $225 million investment has to be paid before the doors open, Kocher said.

Penn National, which plans to open the casino May 5, 2010, said it asked to phase in the investment because it faces competition from Oklahoma casinos and it needs to let business determine whether and when to add amenities. It will open with 900 slot machines on a 34,500 square-foot gaming floor and a few amenities, but wait to add a hotel.

The Quapaw Tribe of Oklahoma is building a $301 million casino near Penn National's site on I-44 near the border with Oklahoma and Missouri.

Kocher said the company won't be asking for the same provision for Sumner County because it faces competition from three other casino bidders. Sumner County also doesn't face the same kind of business competition from a casino like the Quapaw Tribe is building near Cherokee County.

[Clueless]

Penn Natl is far from being shaky. They were the only bidder for building a casino in Cherokee County, mostly because it's a question mark as to whether there is sufficient market to support two casino's. The Quapaw Indian tribe started building quickly and expect to open their $300 Million casino this July. It's very close to Penn Natl's site and all of a sudden, the market for two big casino's is questionable.

So, Penn Natl told Lottery - 'we want to start smaller and see what the market is, and if you won't work with us, we're going to walk away'.

Anyone with an ounce of sense would understand that it might be stupid to invest $250 Million in a second casino in that area, where no-one lives and you are pulling gaming patrons from Springfield and Tulsa. Lottery understood and agreed to let Penn Nat'l phase in their investment. That won't be the case in the other three gaming zones.

[Made in the USA]

That makes sense. Thanks Clueless!