Kansas Crossing Receives Second Extension

The $70 million Kansas Crossing Casino in Crawford County, Kansas, received a second 90-day extension to open its facility in Pittsburg, due to a lawsuit by Cherokee County and the $145 million Castle Rock Casino Resort alleging state regulators did not follow proper guidelines when granting Kansas Crossing a contract.

The Kansas Lottery recently granted the million Kansas Crossing Casino and Hotel a second 90-day extension to open its facility in Pittsburg, Crawford County. The casino resort originally was scheduled to open in July 2016. The extension is the result of a lawsuit filed by Cherokee County and the 5 million Castle Rock Casino Resort, which lost its bid to build the fourth and final state-owned casino in Kansas. The lawsuit claims state regulators did not follow proper guidelines in awarding the casino contract to Kansas Crossing in Crawford County, among other allegations.

Kansas Lottery Executive Director Terry Presta told Cherokee County and Castle Rock officials, “The Kansas Lottery retains the right to rescind this extension at any time if a material change in circumstances warrants such action. We will expect continued updates as to the status of your project through the course of this additional extension.” Kansas Lottery Director of Program Assurance and Integrity Keith Kocher noted, “There is no set number of extensions that can be granted. All three of the other casinos came in either right on or ahead of schedule.”

Kansas Crossing’s lead developer, Houston-based Bruce Christenson,

the lead investor in the project, said, “I am extremely disappointed in what I would summarize as a frivolous legal action. Kansas Crossing stands ready to proceed with fulfilling its obligations under the contract once the pending litigation is successfully resolved.” He noted the first delay cost Crawford and Cherokee counties and the city of Pittsburg $88,270 each in expected tax revenue, and they’ll each lose another $88,270 due to the second delay. The state has lost $2,041,767 in anticipated tax revenue.

Crawford County Commissioner Carl Wood said it’s impractical for Kansas Crossing to proceed with casino construction if a judge potentially could award the gaming license to another company. “If you were knowing that there’s a slight chance they could rule against you and you’re left with a $70 million project and no license, what would you do? It’s kind of risky,” Wood said. Pittsburg City Manager Daron Hall added, “I think it makes sense to do everything they can to be free and clear in the lawsuit.”

Site preparation began for Kansas Crossing at U.S. highways 69 and 160 in Crawford County soon after the contract was awarded in July. Expected to attract 500,000 visitors annually, the property would offer 625 slot machines and 16 gaming tables, plus a four-story, 123-room Hampton Inn & Suites. Cherokee County and Castle Rock filed a lawsuit in September claiming state regulators’ decision to award the contract to Kansas Crossing was “arbitrary, capricious, and unreasonable.”