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Lottery approves contracts for two Sumner casino applicants

  • The Wichita Eagle
  • Published Wednesday, Sep. 8, 2010, at 3:35 p.m.
  • Updated Wednesday, Sep. 8, 2010, at 4:56 p.m.

TOPEKA — The Kansas Lottery Commission has voted to approve contracts with Global Gaming Partners of Ada, Okla., and Peninsula Gaming Partners of Dubuque, Ia., and send them to a state panel that will select the winner.

It took the action after receiving presentations by both applicants this afternoon.

A third applicant, Harrah’s Entertainment, pulled its plans for a casino near Mulvane this morning.

The approval of Peninsula’s contract, which calls for a casino at Mulvane’s turnpike exit , is subject to the lottery receiving evidence that Peninsula has met zoning and planning requirements. It is meeting with the Sumner County planning commission tonight.

Global Gaming cited its experience operating gambling facilities along the I-35 corridor in Oklahoma during its presentation to the commission. It seeks to build a casino at Wellington’s turnpike exit.

John Elliott, Global Gaming’s chief executive, also said his market research shows no difference in the amount of gaming revenue between a casino in Wellington and one near Mulvane.

Global Gaming’s presentation followed one by Peninsula, for its Kansas Star casino at the Mulvane turnpike exit.

Global Gaming operates seven facilities along I-35, including the Riverwind Casino in Norman and the Winstar casino near the Texas border.

It plans a total investment at Wellington’s exit of more than $280 million over 12 years of phased development.

Elliott said 80 percent of the investment would be built within five years and the rest within 12.

The casino would open within 14 months after construction begins.

The first phase would build a casino with 1,300 slots, 40 gaming tables and 20 poker tables. By year five, there would be 500 more slots.

The first phase also would include a buffet, sports bar, food court, performance lounge, 80-room hotel, and improvements to Wellington’s existing golf course.

A 1,400-seat entertainment center, parking garage, and vintage auto racetrack — which could be used for other purposes, such as police training — would be built in seven to 12 years. Peninsula plans a $260 million total investment, which includes a third-party hotel with 150 rooms. It would open an interim facility in November 2011, complete Phase I by November 2012, and complete a Phase II by 2014.

The interim facility would have 1,310 slot machines in what will later become an events center, as well as 32 gaming tables, and several food and beverage kiosks.

Phase I would increase the slots to 1,500 and tables to 42. It also would include a VIP lounge, poker room, buffet, steakhouse, food court and indoor equine facility.

Phase II would increase the number of slots to 2,000 and number of tables to 50, double the size of its hotel to 300 rooms, expand the equine facility, and add RV spaces.

Phase III would depend on market demand, said Scott Cooper, a Peninsula executive, but plans call for adding another hotel and retail development, expanding the equestrian center, and increasing the RV park to 100 full-service spaces.

After receiving the contracts, a seven-member casino review board will have 60 days to consider them and select a winner.

The Kansas Racing and Gaming Commission will conduct background checks on the winning bidder and give the final approval.

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