Archive for Thursday, May 29, 2008

Lottery Commission approves 10 contracts for casinos in state

May 29, 2008

The five casino proposals for Wyandotte County moved forward another step Tuesday when the Kansas Lottery Commission approved contracts with the casinos' developers.

Sally Lunsford, communications director for the Kansas Lottery, said the approvals meant the commission "determined that these developers met minimum requirements as provided in Senate Bill 66, the Kansas Expanded Lottery Act. Those requirements include local endorsement, having sufficient access to financial resources to support the activities required of a lottery gaming facility manager, no less than three consecutive years of experience in Class III gaming, and being current in all taxes."

The commission also approved contracts two developers in Ford County, and three developers in Sumner County, in two of the four regions that SB 66 authorized a state-owned, privately run casino to be built.

For Cherokee County, in the southeast gaming zone, the commission on May 5 approved a contract with Kansas Penn Gaming, LLC to manage a casino there.

A lawsuit is pending before the Kansas Supreme Court on the legality of SB 66.

Developers still in the running to be the destination casino for Wyandotte County are:

¢ Golden Gaming, for a casino and resort project on 200 acres immediately south and adjacent to Interstate 70 at 110th Street, straddling the Bonner Springs and Edwardsville boundary. The contract stipulates the developer share 22 percent of gambling revenues up to $250 million, with percentage shares increasing a percentage point for each $50 million more than that, capped at 28 percent for gambling revenues more than $500 million.

¢ Sands Kansas LLC, for a $752 million casino development southeast of I-70 and 110th Street. The proposal would share 22 percent of all gambling revenues.

Under their contracts approved Tuesday, either Edwardsville casino would share 1.5 percent of the gambling revenues with the Unified Government, .75 percent with Edwardsville, and .375 each for Bonner Springs and Kansas City Kan.

¢ Kansas Entertainment LLC, for a $680 million project at 821 Speedway Blvd. The contract stipulates the developer share percent of all annual Lottery Gaming Facility revenues up to $350 million, 25 percent for $350-400 million, and 28 percent of gambling revenues more than $400 million.

¢ PNK-Kansas LLC (Pinnacle), for a $623 million casino project at the corner of Interstate 435 and Parallel Parkway. The contract stipulates the developer share 22 percent of all gambling revenues up to $400 million, and 24 percent of all gambling revenue more than that $400 million.

¢ Legends Sun LLC, for a $723 million casino near the I-70 and I-435 interchange. The gambling revenue-sharing agreement gives the state 22 percent of all gambling revenue up to $475 million, 25 percent for $475-600 million, and 28 percent for gambling revenue more than $600 million.

The three Kansas City, Kan., casinos each have revenue-sharing terms in their contracts giving the Unified Government 2.25 percent and Bonner Springs and Edwardsville each .375 percent of all gambling revenues.

The contracts for all five Wyandotte County proposals pledge 2 percent of all gambling revenues to a "problem gambling and addictions fund."

The next step in the Wyandotte County casino selection process is presentations to Kansas Lottery's Gaming Facility Review Board.

On Sept. 2 and 3 in Topeka, the board will hear presentations by developers for casino proposals in Wyandotte County as well as from developers for the two proposals in Ford County. On Sept. 9 the board will conduct a telephone meeting with the developers of the southwest and northeast zone proposals. On Sept. 18 and 19 the board will meet in Topeka for a final discussion and a vote on the Wyandotte County and the Ford County proposals.

¢ See related story, page 8A.

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