The Kansas Lottery Gaming Facility Review Board recently heard reports from two consultants the board hired to help it determine which of three competing developers should build a state-owned casino in the southeast Kansas gaming zone including Crawford and Cherokee counties. The board will announce its decision on June 23.
The consultants–Michael Greene of Union Gaming Analytics and Will Cummings of Cummings & Associates–detailed how much revenue local and state governments could potentially gain from each of the three proposed casinos: Castle Rock Casino Resort, Kansas Crossing and Camptown Casino.
“You may see some variance in projections. Let me assure you, this is typical of the business. I see them all as very attractive applicants,” Cummings said. The consultants noted the developers of the proposed casinos will have to work hard to attract local gamblers, considering northeast Oklahoma offers 29 casinos. “We don’t see a lot of people making a destination trip to southeast Kansas to gamble,” Greene said.
Castle Rock, the largest of the three proposals, would be located less than a mile from where the Kansas, Missouri and Oklahoma borders meet on U.S. Route 400. Greene noted 10 casinos are located within a 30-minute drive of the proposed Castle Rock site and 29 within a two-hour drive. “There are a lot of options for people who want to gamble,” Greene said.
Both consultants said they estimated considerably less gross revenue for the proposed $140 million Castle Rock Casino than its backers indicated. Castle Rock investor Brandon Steven said his studies showed in its first full year of operation in 2019, the casino–with 1,400 slot machines and 51 table games–would generate $76 million in gross gaming revenue gaming alone and more than $90 million when related activities are included. However, Greene said the casino would generate $47.8 million and Cummings estimated $59.8 million.
Greene projected Castle Rock would pay $12.9 million in taxes in 2019, including $11.5 million to the state and $1.4 million to local governments. He said the casino would attract roughly 313,000 people from Kansas, 315,000 from Missouri, 78,000 from Oklahoma and 80,000 from Oklahoma in 2019. Investors said the property would create 900 permanent jobs.
The second proposed casino, the $64.7 million Kansas Crossing, would be backed by a Topeka-based investment group and built near the Missouri border at the junction of U.S. Route 400 and U.S. Route 69, south of Pittsburg. It would offer 625 slot machines, 16 table games and 120 hotel rooms. Investors said the casino would create 275 jobs, and generate $47.2 million in gross gaming revenue in 2019; Greene said the casino could generate $39 million, resulting in $9.4 million in state taxes and $1.2 million in local taxes. Cummings projected $34.6 million in gross gaming revenue in 2019.
Greene said Kansas Crossing would attract 220,000 Kansans, 272,000 Missourians, 21,000 Oklahomans and 26,000 Arkansas residents.
The third proposal, the $78.5 million Camptown Casino, developed by Wichita billionaire Phil Ruffin, owner of Treasure Island Casino in Las Vegas, would be developed at the former Camptown Greyhound Park, which Ruffin owns. Ruffin estimated the casino would create 250 jobs and its 750 slot machines, 20 table games and 62 hotel rooms would generate $48.8 million in gross gaming revenue in 2019; Greene forecast $43.9 million, resulting in $11.8 million in tax revenue for state and local governments. Cummings estimated $36.6 million.
Greene said Camptown Casino would attract 261,000 Kansans, 307,000 Missourians, 14,000 Oklahomans and 25,000 Arkansas residents.
Regardless which proposal is chosen, the winner will compete with the Quapaw Tribe of Oklahoma’s Downstream Casino Resort, located just over the Oklahoma border. Last May, tribal Chairman John Berrey told the Lottery Gaming Facility Review Board, “I have $20 million to fight in court anyone who does business in my backyard,” Berrey said. Castle Rock, less than a mile away, would be the closest competitor.
