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Exit 19 bids top Exit 33


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By Dusti Fansler
Wellington Daily News

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Wellington, Kan. -

Sumner County casino proposals for a centrally-located casino out-bid their northern competitor in negotiations with the Kansas Lottery Commission.
    According to the contracts approved by the Kansas Lottery Commission, casino developers who have proposed destination-based casino resorts at Exit 19 of the Kansas Turnpike — Penn National Gaming and Marvel Gaming — have pledged more financial support to the state based on their casino operations than the contract approved for Exit 33 — Harrah's Entertainment.
    Each contract includes a graduated scale of increased percentages to the state, up to $500 million.  State revenues would be $122.5 million if that revenue target were met for Penn National Gaming; $122.5 million for Marvel Gaming, and $105 million for Harrah's Entertainment. 
     After the $500 million mark, Penn National and Marvel Gaming each agreed to give the state 32 percent of its revenues.  Harrah's Entertainment agreed to give the state 30 percent of its revenues.
 Each casino developer agreed to a different graduated scale leading up to the $500 million mark.
    Attorney David Cooper, who has been hired by the Sumner County Commissioners to advise on all legal matters, said it is the only way to "compare apples to apples" when it comes to the casino proposals and which would best benefit the state of Kansas.
Penn National Gaming
     Of the first $250 million, Penn National Gaming agreed to give the state 25 percent — equaling $62.5 million in state revenue.
     Between $250 million and $300 million, Penn National agreed to give the state 27 percent — equaling an additional $13.5 million in state revenue, or a total of $76 million.
     Revenue over $300 million would earn the state 32 percent.

 Marvel Gaming
     Of the first $250 million, Marvel Gaming agreed to give 22 percent to the state — equaling $55 million in state revenue.
    Between $250 million and $300 million, Marvel Gaming agreed to give 27 percent — equaling an additional $13.5 million in state revenue, or a total of $58.5 million.
     Revenue over $300 million would go back to the state at 32 percent.
 
Harrah's Entertainment
     Of the first $300 million, Harrah's agreed to give the state 22 percent — equaling $66 million in state revenue.
     Between $300 million and $350 million, Harrah's agreed to give 24 percent to the state — equaling an additional $12 million in state revenue, or a total of $78 million.
     Between $350 million and $400 million, Harrah's agreed to give the state 26 percent — equaling an additional 13 million in state revenue, or a total of $91 million.
     Between $400 million and $500 million, Harrah's agreed to give the state 28 percent — equaling an additional $14 million in state revenue, or a total of $105 million.
    Revenue projections by the casino developers don't reach $500 million per year, but comparing each of their projections at that point, the two developers proposing centrally located casinos would produce an additional $17.5 million in revenue to the state at that point.

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