Kansas Supreme Court Makes State Millions, Rules Casino Plan OK
Ever since Kansas lawmakers decided last year to go forward with plans to license four state-owned casinos, vast numbers of man-hours and millions of dollars have been invested by both the state and gambling management companies to plan avenues of development. Fortunately for all concerned, the Kansas State Supreme Court ruled today that the law passed to set up the casinos is indeed constitutional.
The question was whether the provisions in the Kansas Expanded Lottery Act which called for state ownership and control were met by the circumstances surrounding the hiring of casino operators to run the venues. The Court judged unanimously it was so.
Even though the buildings planned would be erected and owned by the licensees, the state would retain ownership of the games. Justice Eric Rosen wrote in the written opinion, ""It is unnecessary that the state own the physical plant associated with the lottery. It suffices that the state own the game, or the scheme, or the enterprise."
Now the selection of which of eleven applicants will be made partners with the state in each of the four counties to host a casino may hopefully speed up. A review earlier this year of the casino and gaming companies vying to be involved failed to narrow the field whatsoever. Instead, the Lottery Commission advanced all eleven proposals to the Lottery Gaming Facility Review Board.
The board is scheduled to make decisions as to the Cherokee and Sumner County casinos in mid-August, and confirm management selection for Ford and Wyandotte County casinos by mid-September.
The casinos are planned to be operating by 2011, and are projected to draw over $200 million in annual revenue. The state has already taken in over $80 million in revenue for applications.
The state constitution was amended by a ballot initiative in 1986 to permit a lottery, and in 1994 the courts ruled that lottery might include casino games. The state Attorney General found it unlikely that voters meant, by passing a lottery law, that casinos might be established throughout the state. But $200 million helps clarify otherwise cloudy vision in a hurry.
