Lottery reopens SEK for gaming

It’s game on for companies wishing to push a casino proposal for southeast Kansas.
The Kansas Lottery Commission approved reopening bids for the Southeast Gaming Zone which includes Crawford and Cherokee counties at a special meeting Thursday morning.
The unanimous vote will publish the changes on Oct. 23 in the Kansas Register, and applicants will have 90 days, or until Jan. 21, 2009, to get their applications in. Keith Kocher, Kansas Lottery director of gaming facilities, said with everything that had happened, he hoped the date would be a “pretty firm” one.
“Remember, if the local endorsement is still not obtained by that time, they still have time to get that,” Kocher said.
Commissioners reopened the bids after Penn National Gaming elected to opt out of its contract in Cherokee County before the contract became binding.
“Obviously, we think it’s the thing to do,” Ed Van Petten, Kansas Lottery executive director, said. “We do believe there are qualified managers out there who may have some interest in Crawford County, and we think Cherokee County is still as attractive before. There will be competition from the Downstream Casino, but a gaming facility there is still a viable possibility, in our opinion.”
Penn National cited the Downstream Casino among the reasons for withdrawing its proposal. The company currently faces a lawsuit from Cherokee County over the withdrawal.
“I think we’re about 20 years behind,” said Rep. Bob Grant, D-Cherokee, who said the decision was a good one. “I can remember that we were fighting the Indian casinos in 1993 and 1994. But then, they didn’t have the area saturated with casinos, and they weren’t pushed right up against the Kansas border.
“I’m confident, but I’m not as confident as I have been,” Grant said. “The landscape of putting one in down here isn’t probably as good as it was a few years ago.”
Sen. Jim Barone, D-Frontenac, called the decision a no-brainer and said he hoped the commission would make it clear that phasing in their investment was legal and acceptable, unlike the last go-round.
“I intend to be running traps to see if we can generate some interest to create jobs and entertainment opportunities and a tax base for southeast Kansas,” Barone said.
He said the commission had nothing to lose by re-opening the bids. If no one elects to bid on the gaming zone, Kocher said the Kansas Legislature would have plenty of time to try and find a solution. Grant said he hoped it wouldn’t come to that.
“I don’t like the idea of trying to go back in and open it up,” Grant said. “A lot of it depends on how elections go and how many pro-gaming people you can get (in the Legislature). I don’t think we want to see that.”
Grant and Rep. Julie Menghini, D-Pittsburg, said any of the revenue would be well-received, especially with recent tax revenue falling short of projections.
“I would love to see someone come in and make a bid,” Menghini said. “But I’m just not sure that’s going to happen. I would love nothing more. There are probably 100 rumors swirling around, but as of right now, I’m as much in the dark as anybody else.”
Van Petten said it would be an interesting situation to follow in the next few months.
“We’ve been contacted by lobbyists as well as some attorneys who have been involved in the process, and based on their contacts, we’re pretty confident,” Van Petten said. “We don’t have any names, but we know there are people out there at least looking at it seriously. I guess we’ll see from here.”

Kevin Flaherty can be reached at kevin.flaherty@morningsun.net or by calling 231-2600 Ext. 134