Kansas Casino Matters not so troubled

Kansas Casino Matters not so troubled

Kansas has become the first state in the United States to actually own casinos and for that reason there are many people in Kansas that have been putting forward ideas for how the state could go about maximizing revenues from the casinos when they are constructed. At the same time however, the people that were critical of the decision before it was made are now people that continue to be critical of the decision, arguing that casinos can do no good in Kansas while at the same time doing plenty bad.

Kansas Casinos

These same critics of the Kansas casinos seemed to gain some momentum recently, although it came from a completely unrelated issue. The contract that Kansas had signed with Penn National Gaming Incorporated for the casino to be built in Cherokee County ended up falling through as Penn argued that the nearby tribal casino in Oklahoma would just make things too difficult. This has made people look more seriously at the arguments presented by casino critics regarding financial viability, but at the same time those arguments continue to be rejected even in light of the situation with Penn as the Kansas Lottery Commission will continue to try and find someone to replace them for a Cherokee County casino.

While it was bad news on that front, the news on another front was actually very good. A company of Olathe has finally been picked by the KLC to construct a casino in another one of the four regions that had been earmarked as being the target regions for the construction of the casino. The Olathe company that is in charge of the new casino is going to be receiving a lot of their cash from Merrill Lynch, but at the same time they will also be financing a massive loan from the bank that will be paid back with the revenues they gain from the operation of the casino. This is for the casino that will be owned by the state in Dodge City.

Butler National

In the end, the company that was chosen from this project was Butler National. The choice was a good one from the point of view of reliability, but at the same time it surprised many of the analysts that had been following this story. The other company that was in the running was Dodge City Resort and Gaming and they ended up losing out on the bid in a vote that was reported as 5-2 by the KLC. What made this vote surprising was the fact that DCRG was a firm of completely Kansas-based investors and as a firm it would pretty much be keeping everything inside the state and therefore would have a higher focus when all was said and done.

The KLC did acknowledge this particular point, but at the same time said that the point was secondary to issues of financing. In financing terms, they reported a much better feeling with Butler National’s source of capital than they did with the DCRG sources, many of which were not revealed in the press conference.

December 26, 2010 by : posted in Gambling Abroad No Comments