Governor proposing state-owned casino

Wednesday, Jan. 21, 2004 | 9:18 a.m.

TOPEKA, Kan. -- Gov. Kathleen Sebelius' bill for expanding gambling would have developers compete to manage one or more state-owned casinos, a top aide says.

Sebelius' bill, which she plans to submit to legislators within two weeks, will set up a board to review proposals for state-owned casinos, said Matt All, her chief counsel.

The bill could set up a race between the tribes and non-tribal developers to be the first to manage a casino in Wyandotte County, which is considered a prime location, in part because it is home to the Kansas Speedway. All said Sebelius expects the county to be the first to have a new casino.

Sebelius' administration continues to negotiate with the Kickapoo and Sac and Fox tribes over their proposal for a $175 million casino in Wyandotte County.

All said a tribal proposal will not be handled through the bill, but through a compact between the state and the tribes.

Non-tribal developers have been pushing the Legislature to allow state-owned casinos, hoping for lucrative contracts to manage them. State involvement would be needed because the Kansas Constitution makes no provision for private casino ownership, leaving only the state or the four Indian tribes in northeast Kansas as possible owners.

"One of them is going to get there first, but there may be room for both," All said, describing the competition between the tribes and developers who want to manage a state-owned casino in Wyandotte County.

Sebelius still is working on details of her plan, such as the amount of money the state would get from the expanded gambling and the makeup of the new gambling board.

The governor said during a Friday news conference, "I'm making the policy decisions as we're formulating it."

However, she already has set the broad outlines, All said, that he presented Tuesday to the Senate Federal and State Affairs Committee.

Sebelius' proposal will call for "destination" casinos, which means gambling operations designed to draw tourists, many of them from outside the state, All said.

The bill will not specify individual casino locations, but All said, "I don't think there's any question that the first destination casino in Kansas will be in Wyandotte County."

Legislators, local officials and residents of Wyandotte County are strong supporters of expanded gambling, and developers already are offering competing proposals. All said the area near Kansas Speedway represents "ground zero" for gambling.

Developers and a task force appointed by Sebelius last year think the Kansas City metropolitan area could support at least one casino on the Kansas side.

Meanwhile, consideration of the Kickapoo and Sac and Fox plan will continue separately, All said.

All said if the state can reach agreement with the tribes and legislators approve Sebelius' bill, then the new gambling board might have to consider proposals for a state-owned casino in Wyandotte County in light of a soon-to-be constructed tribal one.

Conversely, the board could approve a state-owned casino in Wyandotte County before the tribes and the state reach agreement, All said.

"They have a very good proposal," All said of the tribes. "The question is whether we will be able to reach agreement with them."

Sebelius' plan also would permit state-owned casinos elsewhere, such as in Dodge City or near Junction City, where developers already have suggested them. However, the new state board would determine whether they would be built, All said.

In addition, All said the proposal would permit video lottery terminals at dog and horse tracks and in halls operated by fraternal and veterans' groups. He said the devices will seem like slot machines to players but would be owned by the lottery and hooked into its computer system.

All said allowing video lottery terminals at race tracks would not preclude them from operating state-owned casinos, particularly The Woodlands, which has separate dog and horse tracks in Kansas City, Kan. But a Woodlands plan would be compared to plans from other developers, All said.

"They would be competing against each other," All said, adding that in the Kansas City area, "It's conceivable there would be more than one."

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