Although groundbreaking took place May 5 for the .2 million Kansas Crossing Casino and Hotel in Pittsburg, Crawford County, Kansas, commissioners in Cherokee County recently voted 2-1 to spend up to ,000 in legal bills to appeal a Shawnee County judge’s decision that the license for the state-owned Kansas Crossing was properly awarded. The proposal for Castle Rock Casino, which would have been built in Cherokee County, was not chosen.
Dissenting was Cherokee County Commissioner Charles Napier who said, “To me it was a waste of money for the county. I’m not much for gambling either.”
Kansas Crossing’s lead investor Bruce Christenson said Cherokee County’s appeal is “a frivolous lawsuit. It’s really time for Southeast Kansas to come together and get behind this project.”
In a 44-page decision released in March, Judge Larry Hendricks denied a petition for a judicial review that would have restarted the casino selection process. Hendricks said there was substantial evidence to support the Lottery Gaming Facility Review Board’s 5-2 decision last June recommending Kansas Crossing. Last July, another state commission also voted for Kansas Crossing.
According to Cherokee County’s lawsuit, the $147 million Castle Rock Casino Resort project, led by Wichita businessmen Brandon and Rodney Steven, would create more jobs and revenue than Kansas Crossing and a third competitor proposal. Also, the lawsuit said gaming commissioners broke the law by awarding the contract to the smaller Kansas Crossing and that the county will lose at least $8.5 million in taxes and other economic benefits unless the court steps in.
Kansas Crossing developers said the property, expected to open next March, will create 380 construction jobs and 325 permanent jobs. It will offer 16 gaming tables and 625 slot machines, plus a 123-room Hampton Inn and Suites and a 600-seat entertainment complex. About 500,000 visitors are expected annually. In contract, Castle Rock developers said their casino would have offered 35 table games, 1,400 slot machines and a 16-table poker room, attracting 1 million or more visitors annually.
Pittsburg Economic Development Director Blake Benson said construction of Kansas Crossing “has been delayed for far too long and it’s exciting to see it finally moving forward. I think the judge has made it quite clear this should move forward.”
It’s the second time construction has begun on Kansas Crossing. The first effort, begun in late July 2015, was stopped in early September following legal action by Crawford County and Castle Rock Casino.
Also in Kansas, on April 28 the Woodlands racetrack received a special use permit from the county Unified Government to reopen its horse racetrack facility with slots. But in the House, Bill 2537 did not advance before the end of the session. It would have allowed Wichita citizens to vote again on approving slots. In 2007, Wichita residents rejected slots but Wyandotte County voters approved them. The bill also would have increased gaming revenue to the Woodlands racetrack manager from 25 percent to 64.5 percent in the first and second year of operation, and then to 60 percent in third year and beyond. The state’s share would have been decreased from 40 to 22 percent and the Unified Government’s share of the slots revenue would have been reduced from 3 percent to 2 percent.
On April 22 the Kansas attorney general issued an opinion that a re-vote in Wichita could result in a breach of contract with the three state-operated casinos resulting in the state having to repay millions of dollars in privilege fees to the Kansas casinos. The attorney general also said the state might have to repay the privilege fees even if no breach of contract was found. House Republican leaders decided not to risk a breach of contract.
State Senator Steve Fitzgerald, whose bill to increase the amount of slots revenue racetracks may keep passed the Senate last year, said he does not expect any movement on the issue until next session. “Reading the tea leaves, I would think they’re going to come back with the last thing they tried to get before they ran out of time,” he said, noting his racetrack bill has a lot of bipartisan support; it does not include a re-vote in Wichita, so it would clear the attorney general’s ruling.
