Kansas Officials Question Tribal Casino

The U.S. Interior Department recently approved the Wyandotte Nation's application for trust land in Park City, Kansas. Local officials are concerned a tribal casino there would cannibalize revenue from the state-owned Kansas Star Casino in Mulvane.

Kansas Officials Question Tribal Casino

In Kansas, a state contract stipulates that no casino may compete with state-owned casinos until 2032.

However, the Wyandotte Nation of Oklahoma recently received approval from the U.S. Department of the Interior to build a casino in Park City, Sedgwick County, which would compete with the Kansas Star Casino in Mulvane. Wyandotte Chief Bill Friendly said, “We’re ready to build a casino.”

The tribe’s 10.24 acres in Park City will be taken into federal trust to be used for gaming purposes. However, Sedgwick County Commissioner Jim Howell said, “Whatever changed to make this possible, I think is going to be questioned by people at the highest levels of our state.” And a spokesperson for the Kansas Attorney General’s office said, “The current announcement through the news media was surprising.”

The attorney general’s office issued a statement noting, “While litigation related to the matter was pending in federal court, the Wyandotte Nation’s application to take land in Sedgwick County into trust for gaming purposes was denied in a July 2014 decision letter from the Department of the Interior Assistant Secretary for Indian Affairs. The attorney general’s office has not been made aware of new or continued efforts to place this land into trust since that 2014 denial, so the current announcement through the news media was surprising. We are reviewing the situation.”

Howell also pointed out that voters in a 2007 public referendum in Sedgwick County rejected allowing slot machines and other casino gambling games to the county. He said he’s concerned the recent federal action could run counter to that. In addition, last year the county commission voted against holding another public referendum on expanded gambling out of concern that state casino operators may sue the state.

But Friend said the Wyandotte are a sovereign nation, not subject to state laws. “The land was taken into trust by the federal government, it was held in trust by the federal government for the benefit of the Wyandotte Nation. And so, as far as gaming, it is a federal issue,” he said.

Howell countered, “I’m sure they’re convinced this is a go. I don’t know that it is. I think we need to give this a little bit of time to settle and see whether or not there’s going to be challenges to that idea. There’s so many questions, right now, in terms of all those effects: legal effects, financial effects, social effects, entertainment opportunities. Those things are all kind of up in the air.”

Howell also questioned the impact a casino in Park City could have on profit sharing agreements between the Kansas Star and the state. They’re concerned a tribal casino–which would not have to pay state taxes—would cannibalize revenue from the Kansas Star, which has a profit-sharing agreement with the state; part of those funds go toward problem gambling services.

The state could enter into a gaming compact with the Wyandotte Nation, so the tribe would be able to offer slots, card and dice games, not just electronic bingo in return for directing a portion of profits to the state. The compact would be negotiated with Governor Laura Kelly and approved by the state legislature.