Kansas Lottery May Have To Rethink Casino Application Process

It has been a couple of years now since the Kansas Lottery Commission began their process to license developers to build casinos in the state. to date, not only are there still no casinos open, but in three of the four zones there are not even contracts signed.

The Commission now is in the position that they may have to once again extend the deadline for applications in the Southeast Gaming Zone. The reason? there are no applications that have been filed and there may be none by the current deadline of January 21st.

Penn National Gaming already had a contract to bring a casino to Cherokee County, but they reneged on the deal. They did not feel their company put out a strong enough product to compete with a neighboring casino in Missouri.

It turns out that Penn National might not be alone in that train of thought. Other companies have been reluctant to submit an application that involves a minimum investment of $225 million with the current economy going as it is.

"If the state really wants to have these casinos built, then they must lower the investment these development companies are forced to make. The sooner they realize the casino gambling landscape has changed, the sooner they will achieve their goal of having four state owned casinos up and running," said financial analyst Bob Hyberman.

If no applications are received by the January 21st deadline, it would automatically be backed up until April 21st. Knowing this is the case, developers may hold off in submitting their applications to see if the economy begins to turn around before April.

January 14, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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