Web posted
Wednesday, March 5, 2008
Lottery gets extension of deadlines on casino contracts
By CARL MANNING
Associated Press Writer
TOPEKA, Kan. (AP) -- Gov. Kathleen Sebelius has given the Kansas Lottery Commission an additional 60 days to negotiate contracts with prospective operators of four state-owned casinos.
The commission unanimously agreed Tuesday to ask for the extension. The governor granted it shortly after Executive Director Ed Van Petten hand-delivered the request to her at the Statehouse.
''I believe the Lottery Commission has acted in good faith to meet the statutory deadlines, but the complexity of the issues they face makes it necessary to give them more time to finalize their contract negotiations,'' Sebelius said in a statement. ''We must move expeditiously and accurately to ensure the contracts are done right.''
Van Petten said he expected the governor to grant the extension, adding, ''She understands we are doing the best we can and we have a lot going on.''
A state law enacted last year allows a single casino each in Cherokee, Ford, Sumner and Wyandotte counties. Private developers will build and operate them, but the Kansas Lottery will own the new gambling. The commission is negotiating with 13 potential developers.
The extension was granted the day before the original deadline to reach agreement with Penn National Gaming Inc., the sole applicant in Cherokee County. The extension moves Penn National's deadline to May 5 and the deadline for applicants in the other counties to May 27.
During its meeting, Van Petten said the commission is moving as quickly as it can to reach agreement with Penn National because of potential competition in Oklahoma.
''I'd like to think we will have a draft of the contract to the Southeast applicant this week, and then it's just a matter of negotiation,'' he said.
Asked when he expects the Penn National contract negotiations to be completed, Van Petten said, ''I sure don't want to go another month.''
The commission can approve as many contracts as it wants and forward them to the Lottery Gaming Facility Review Board, which makes the final selection, subject to a background check by the Kansas Racing and Gaming Commission.
Penn National lobbyist Tim Shallenburger noted that its $295 million complex faces competition from the Quapaw Tribe, which plans to open its casino in July. The Quapaw site is adjacent to the Penn National site, which is off the only Kansas exit on Interstate 44.
''Penn National is ready and willing to get on with negotiating a contract,'' he said. ''The longer we have to wait, the more revenue we are losing for the county and the state.''
The Cherokee County Commission is suing the U.S. Interior Department to block construction of the tribe's casino, alleging the department didn't follow its own rules or federal law when it put land into trust for the tribe. The decision allows the tribe to build its casino on that land.
''We appreciate the need for more time. We simply urge the commission and review board to proceed with all deliberate speed,'' said David Cooper, attorney representing Cherokee County.
The law creating the casinos is before the Kansas Supreme Court, which will hear arguments May 14. It was upheld by Shawnee County District Judge Charles Andrews last month.
The law says the Lottery is the owner and operator of the new gambling, even though it will pick developers who must pay for the buildings and equipment. Eleven states have nontribal resort casinos, but Kansas is the first to have state-owned and operated ones.
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