Penn Only Casino Application for Kansas

Penn National Gaming Inc. is the only applicant to manage a resort casino in southeast Kansas.

The company, based in Wyomissing, Pa., filed its application Aug. 31. No other applicants had come forward by Thursday's deadline.

Penn National's proposal includes a $270 million hotel-and-casino complex in Cherokee County in the southeast corner of Kansas, with 1,200 slot machines and 40 table games.

The only other group to publicly express interest in the southeast gambling zone was Heart of Balkans Gaming Co., which was looking at Crawford County.

"They aren't going to file anything. The main reason is the analysis of the market makes the minimum investment of $250 million financially questionable," said Balkans attorney Stephen Joseph.

Last month, Penn National filed an application in Sumner County, joining three other groups vying for a chance to manage the casino in the south-central zone.

Penn National spokesman Richard Klemp said filing a second application isn't any indication it plans to drop its bid in southeast Kansas.

"We could easily accommodate both and there are no plans to pull out. We are fully committed to Cherokee County and hope to be selected in Sumner County," Klemp said.

Just because Penn National is the only applicant in the southeast doesn't mean it will get a free ride to casino management, officials said.

It still must negotiate a contract with the Lottery Commission, be approved by the Lottery Gaming Facility Review Board, which makes the final selection of casino developers, and pass a background check by the Kansas Racing and Gaming Commission, said Keith Kocher, the Lottery's director of gaming.

He said if Penn National's application is rejected or withdrawn, the Lottery could reopen the application process for southeast Kansas.

A law enacted this year allows for state-owned and operated casinos in Wyandotte, Sumner and Ford counties and either Cherokee or Crawford County, plus slots at race tracks in Wyandotte County and Frontenac, north of Pittsburg. Sedgwick County also was included in the law, but voters there rejected a casino and slots at the track.

The law requires developers to make a minimum $225 million investment plus pay a $25 million privilege fee, except in Ford County where the minimum investment is $50 million plus a $5.5 million privilege fee.

The gambling law is being challenged in the courts, mainly over the issue of whether the state really will own and operate the casinos as required by the state constitution.

But legal challenges haven't cooled interest.

Aside from Penn National, Sumner County has applications from Sumner Casino and Resorts, made up of Harrah's Entertainment Inc. and a group of Topeka investors; a group that includes Foxwoods Development Co. and MGM Mirage; and the Binion Family Trust in Las Vegas. The county commission will make its endorsements Dec. 12 and send them to the Lottery.

Butler National Service Corp., of Olathe, filed an application with the state to operate a casino in Dodge City.

Four developers in Kansas City are trying to get approval from the Unified Government of Wyandotte County-Kansas City and another is bidding for a spot at Edwardsville. The commission plans to make its endorsements Dec. 13.

The deadline for submitting applications to the state is Dec. 26 for Ford County, Dec. 28 for Sumner County and Dec. 31 for Wyandotte County.