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Kansas Governor Proposes State-Owned Casino

KANSAS – As reported by the Lawrence Journal World: "Gov. Kathleen Sebelius will propose a state-owned casino near the Kansas Speedway, but administration spokesmen said the door wasn't closing on negotiations with American Indians or others seeking to develop gambling venues.

"'If this is done right, it would be a very big boost' to the economy, Sebelius' chief counsel Matthew All told the Senate Federal and State Affairs Committee on Tuesday.

"…There are four tribal casinos that operate under compacts with the state, but they share no gambling revenue with the state. In addition, the Wyandotte Nation recently opened a small gambling facility in downtown Kansas City, Kan., but the state wants federal authorities to shut it down because they say it is on grounds that do not qualify for American Indian gaming.

"No state-owned casinos exist in the United States, according to a recent gaming task force report.

"All said Sebelius wanted to expand gambling in Kansas with a destination, resort-class casino in the Village West area of Kansas City, Kan., near the Kansas Speedway. And she will propose a bill within two weeks to go the state-owned route, although negotiations will continue with other interests to build a casino in Kansas City, Kan.

"…Under a proposal for a state-owned casino, a private company would be hired to run the operation, but the state would own the facility and be in charge of setting odds and payments, All said.

"…A proposal to build a casino at The Woodlands horse and dog track in Kansas City, Kan., would generate about $24 million per year to the state, according to the estimate of earlier legislation that has failed.

"A tribal group, composed of the Kickapoo and Sac and Fox, has proposed building a resort-type hotel and casino near the Speedway and sharing 10.8 percent of gaming revenues with the state, an estimated $18 million in the first year and $21 million annually in later years…"

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