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Kansas Court Approves Constitutionality of Law that Allows Casinos in Kansas
In a major win for casino supporters, the Kansas Supreme Court on June 27th, 2008, upheld the constitutionality of 2007 rule that gives permission for 4 large casino facilities to be constructed in the state. The decision gives permission to the competition among the 3 casino developers to continue in Sumner County, where a big casino facility is now likely to be constructed like in Mulvane and Wellington.
The main issue on the case was whether the proposed casino facilities would follow the Kansas Constitution requirement that gaming will be owned and managed the state. The casino developers will own the establishments and the equipment in each casino facility and they will also operate the daily activities of the casino. But the state will control how the profits from each casino are allocated.
The court admitted that the meaning of ownership and operation are flexible ideas. Justice Eric Rosen commented while the state is not the lone owner and manager of all different aspects of the lottery enterprise under the Kansas Expanded Lottery Act, the state will own and manages the casino itself and the vital elements of the lottery.
The court said that the state will receive gaming profits, own the casino's gaming software, monitor the operation of the electronic games and will have the power to finalize management contracts and handle the managers of the casino. The issue was filed before the Kansas Supreme Court by the office of the attorney to clear the ongoing confusion with the law. The developers of the casino are already spending millions of dollars for their casino plans in Kansas.
In Sumner County, Sumner Resorts-Harrah's Kansas is thinking of building a casino in Mulvane. Penn National Gaming and Marvel Gaming have both proposed to build a casino in Wellington. A special selection committee will be made by late September on which of the casino facilities can be completed.
All of the three developers have already paid the state a privilege fee worth $25 million to bid for the casino. The two losers will receive their money back without any interest.
Thursday, July 03 , 2008
Brian Letendre