|
|
|
Just a week after testimony was given in favor of a bill in the Kansas Senate to augment provisions for expanded gaming, a developer of a casino in Wyandotte County is raising opposition.
Kansas Entertainment LLC, the group of Penn National Gaming and the Kansas Motor Speedway, is now asking legislators not to change the rules governing gaming in Kansas.
Under Senate Bill 66, passed in 2006, slot machines are allowed at the state’s three dog and horse racing tracks — including Camptown Greyhound Park in Frontenac — but track owners say that the revenue allotment to the state is too high and makes operation of those tracks unfeasible.
A bill in the Senate State and Federal Affairs Committee proposes changing some of those rules, including the state’s allotment to 22 percent from 40 percent from slot machines at the three parks — Wichita Greyhound Park, Camptown Greyhound Park and The Woodlands.
Karen Bailey, director of public affairs with Penn National Gaming in Pennsylvania, said that the new proposal is not fair to developers that have already entered into an agreement with the state to build destination casinos.
“The location of that racetrack [The Woodlands] is just a stone's throw from our location,” Bailey said. “To have that race track come in and try to change the rules in the middle of the game is what we are opposed to.”
The new proposed provisions also take away any investment requirements by dog and track owners. Bailey said that the investment Kansas Entertainment LLC is putting into a destination casino at the Kansas Motor Speedway is nearly $386 million, well over the required $225 million.
Howard Grace, owner of The Woodlands, which did operate a horse and dog racing track, said that things have changed since the passage of SB 66, making augmentations necessary for track owners to operate successfully.
“The problem is that the original market studies that were done were bad,” Grace said. “If they were accurate, we would have all of the casinos built right now.”
The change in rules, according to Kansas Entertainment LLC, means that their investment in Kansas City, Kan. will be jeopardized by allowing The Woodlands to reopen and compete with the casinos for slot revenue.
“If those provisions were to pass in the legislation that is pending, they are putting a second NASCAR race in jeopardy and the road race as well as the 1,050 full-time jobs and construction jobs,” Bailey said.
The new provisions would also allow for a destination casino in the Southeast Gaming Zone, which includes Crawford and Cherokee counties, at a reduced investment rate of $100 million from $225 million and a reduced privilege fee of $10 million from the original $25 million.
But, Bailey said that Penn National Gaming and Kansas Entertainment’s issue is not related to the changes to the Southeast Gaming Zone provisions. Penn National Gaming did submit a proposal to build a destination casino in Cherokee County, but later withdrew that application.
Grace said that without the new changes, horse and dog tracks in Kansas cannot operate because of the amount of revenue allotted to the state from slot revenues.
“We have been there for 20 years and we have tens of millions of dollars invested that I have written off,” Grace said. “We all thought SB 66 was a good bill and that destination casinos would be good and be competition, but things have changed since then.”
Bailey said that Kansas Entertainment LLC will provide opposing testimony to the Senate State and Federal Affairs Committee when it meets on Feb. 9 in Topeka.
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
Just a week after testimony was given in favor of a bill in the Kansas Senate to augment provisions for expanded gaming, a developer of a casino in Wyandotte County is raising opposition.
Kansas Entertainment LLC, the group of Penn National Gaming and the Kansas Motor Speedway, is now asking legislators not to change the rules governing gaming in Kansas.
Under Senate Bill 66, passed in 2006, slot machines are allowed at the state’s three dog and horse racing tracks — including Camptown Greyhound Park in Frontenac — but track owners say that the revenue allotment to the state is too high and makes operation of those tracks unfeasible.
A bill in the Senate State and Federal Affairs Committee proposes changing some of those rules, including the state’s allotment to 22 percent from 40 percent from slot machines at the three parks — Wichita Greyhound Park, Camptown Greyhound Park and The Woodlands.
Karen Bailey, director of public affairs with Penn National Gaming in Pennsylvania, said that the new proposal is not fair to developers that have already entered into an agreement with the state to build destination casinos.
“The location of that racetrack [The Woodlands] is just a stone's throw from our location,” Bailey said. “To have that race track come in and try to change the rules in the middle of the game is what we are opposed to.”
The new proposed provisions also take away any investment requirements by dog and track owners. Bailey said that the investment Kansas Entertainment LLC is putting into a destination casino at the Kansas Motor Speedway is nearly $386 million, well over the required $225 million.
Howard Grace, owner of The Woodlands, which did operate a horse and dog racing track, said that things have changed since the passage of SB 66, making augmentations necessary for track owners to operate successfully.
“The problem is that the original market studies that were done were bad,” Grace said. “If they were accurate, we would have all of the casinos built right now.”
The change in rules, according to Kansas Entertainment LLC, means that their investment in Kansas City, Kan. will be jeopardized by allowing The Woodlands to reopen and compete with the casinos for slot revenue.
“If those provisions were to pass in the legislation that is pending, they are putting a second NASCAR race in jeopardy and the road race as well as the 1,050 full-time jobs and construction jobs,” Bailey said.
The new provisions would also allow for a destination casino in the Southeast Gaming Zone, which includes Crawford and Cherokee counties, at a reduced investment rate of $100 million from $225 million and a reduced privilege fee of $10 million from the original $25 million.
But, Bailey said that Penn National Gaming and Kansas Entertainment’s issue is not related to the changes to the Southeast Gaming Zone provisions. Penn National Gaming did submit a proposal to build a destination casino in Cherokee County, but later withdrew that application.
Grace said that without the new changes, horse and dog tracks in Kansas cannot operate because of the amount of revenue allotted to the state from slot revenues.
“We have been there for 20 years and we have tens of millions of dollars invested that I have written off,” Grace said. “We all thought SB 66 was a good bill and that destination casinos would be good and be competition, but things have changed since then.”
Bailey said that Kansas Entertainment LLC will provide opposing testimony to the Senate State and Federal Affairs Committee when it meets on Feb. 9 in Topeka.
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
