Kansas takes next step towards 7-casino plan

STATE-OWNED CASINO GAMBLING

The Constitution of the state of Kansas prohibits gambling unless it is owned and operated by the Kansas Lottery. There is, however, plenty of gambling opportunity in the state at the five tribal casinos and four pari-mutuel racetracks. Last week Governor Kathleen Sibelius signed a 7-casino plan that, if approved at local referendums, would grant racetrack gaming licences for electronic gaming devices at three current pari-mutuel racetracks and four lottery gaming facilities.

Kansas Attorney General will seek a Supreme Court ruling on whether the proposed casino law is constitutional. The law is also likely to be challenged as unconstitutional by the tribal gaming concerns. If the state-owned casino industry is finally declared constitutional and the new law is approved, then casinos will be opened in Wyandotte County, Ford County, Crawford County or Cherokee County in the southeast, and Sedgwick County or Sumner County in the Wichita area.

The legislation takes effect from today and the Kansas Lottery has 30 days to publish procedures and guidelines for bidders. A deadline for management applications will be set and the Lottery Commission will then have 90 days to approve proposals and negotiate management contracts. A new agency, the 7-member Lottery Gaming Facility Review Board, will then review all prospective management companies and within 120 days select the successful applicant for each of the four lottery gaming facilities.

The Kansas Racing and Gaming Commission, which regulates the pari-mutuel industry, must then review and approve the choices following background checks. The Lottery Commission will retain control over all casino operations and management decisions. The 78-page casino law is likely to be challenged on several fronts and even if it is finally passed may well be in an amended version. (E-04.19.07)

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