HARRAH’S FOLLOWS PENN NATIONAL OUT OF KANSAS Posted: November 24, 2008
How quickly things can change in just a few months. Harrah’s Entertainment became the second developer to say “thanks, but no thanks” to Kansas, dropping its plans to develop and operate a state-owned casino in Sumner County. Citing the "current economic conditions and the unprecedented disruption in the financial markets," the company will not build the proposed $535 million resort the south-central part of the state, according to a statement. The statement said it "was impossible" to finance the project now. Back in August, the Kansas Lottery Gaming Facility Review Board awarded a Harrah’s Entertainment-led partnership, Sumner Resorts-Harrah’s, one of fourth licenses to develop the new casinos in the state. Penn National was also awarded one of the contracts, but pulled out of the deal, claiming a tribal casino that opened this summer posed too much competition in a small marketplace. Cherokee County, where Penn National won its contract, has since sued the Pennsylvania-based operator for more than $52 million in damages and has won a temporary order from a local judge attaching a lien to a $25 million state gambling “privilege fee” that was due to be refunded to the company.
Tuesday, November 25, 2008
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