The Kansas Lottery Commission heard from all four developers interested in locating destination-based resort casinos in Sumner County Monday afternoon in Topeka, but the two developers proposing central Sumner County sites delivered the biggest surprises.
Penn National Gaming upped their initial investment into their proposed Hollywood Casino-Wellington to $509 million — the largest proposal of any developer in the South Central Gaming Zone.
At the meetings Monday, Harrah’s Entertainment proposed a $425 million investment in the casino and an additional $65 million on additional development.
The MGM Mirage and Foxwoods Development team also proposed a $425 million initial investment.
Marvel Gaming has proposed a $368 million investment.
The presentations were heard in the order their proposals were submitted to the Kansas Lottery Commission, with the developers interested in developing at Exit 33 of the Kansas Turnpike speaking first.
A crowd of over 200 attended the meetings, with nearly a hundred Harrah’s supporters from the Mulvane area in the front rows of the audience, who were referred to as the “green team” for their green “like money” matching t-shirts, hats and pins.
Sen. Greta Goodwin, D-Winfield, also sat in the front row of the audience with the supporters for Harrah’s Entertainment.
In the rear of the room were about 30 opponents of gaming, who had made a picket line at the entrance of the venue prior to the meetings, and who left after the presentations by the Mulvane developers.
Also attending the meeting were city, county, and business leaders from Wellington, including Wellington Mayor Roger Stallbaumer and Sumner County Commissioner Eldon Gracy.
The increase in the initial investment of the proposed Hollywood Casino-Wellington was made by Penn National Gaming President Steve Snyder, who attributed the increase largly to a new emphasis in the expansion of their hotel to a 500 room and 11 story tower — which would become the largest hotel across the state of Kansas.
Snyder said the hotel would be used to develop visitation to the facility and be competitive with gaming facilities in Oklahoma.
Snyder said the hotel is key in the site’s use for conventions and other entertainment venues by having the beds to accomodate large groups, in addition to providing “the opportunity for people to spend time and have a getaway for a long weekend.”
Snyder also introduced a new site plan which includes direct access to the proposed sitefor southbound traffic at Exit 19 of the Kansas Turnpike.
In December, Penn National Gaming had proposed an initial investment of $365 million and a 350-room hotel, which even then was the largest hotel proposed by any developer.
Marvel Gaming was also thinking big when it announced their plans to go “all-in” with a contractual agreement with the state to make an initial investment of $368 million in Sumner County.
Roger Wagner, president of Marvel Gaming, said the state would receive any balance remaning from their projected investment if it were not needed to build the Trailhead Casino.
Wagner also introduced a plan to work with the Kansas Lottery Commission to develop a Player Loyalty Card for all casinos across the state’s four gaming zones.
Wagner said the card and loyalty system would be designed and developed by Marvel Gaming, which would then provide a $250,000 operational subsidy to the state for the card, in addition to offering on-going technical services.
Marvel Gaming was the only one of the casino developers to lay their cards on the table when it came to their proposed benefit for the state — which is part of contract negotiations with each individual developer.
Wagner introduced a graduated payout to the state, and said their company would be able to afford this projection by substantially reducing their management fee as compared to other casino companies.
The state’s share of the casino profits would increase from a minimum of 27 percent to 32 percent, once the Trailhead Casino Resort reaches a stable operating revenue of $250 million annually.
Once the casino reaches $300 million in stable operating revenues, they have offered to increase their share with the state to 37 percent.
Wagner was later questioned about this method by a member of the Kansas Lottery Commission, and he said this was the first proposal they had made with a graduated plan in place at the opening of contracts. In the past, he said they have opened casinos at a flat-rate agreement, then had increases imposed on them by the government.
Ed Van Petten, executive director of the Kansas Lottery Commission, said there is a minimum of 22 percent of the revenues for the state and another five percent for organizations to support problem gamblers. Each casino developer could offer to pay the state more, he said, with May 22 through May 27 set as the dates for final negotiations with the casino developers for their gaming management contracts.
State Rep. Vince Wetta, D-Wellington, supported Marvel Gaming for introducing the graduated increase to the state, and said he was also impressed with Penn National for growing their proposal in Sumner County.
“Generating more money for the county and the state is what it’s all about,” Wetta says. “As everyone knows, I don’t really care about gaming — I care about the money for the people.”
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The Kansas Lottery Commission heard from all four developers interested in locating destination-based resort casinos in Sumner County Monday afternoon in Topeka, but the two developers proposing central Sumner County sites delivered the biggest surprises.
Penn National Gaming upped their initial investment into their proposed Hollywood Casino-Wellington to $509 million — the largest proposal of any developer in the South Central Gaming Zone.
At the meetings Monday, Harrah’s Entertainment proposed a $425 million investment in the casino and an additional $65 million on additional development.
The MGM Mirage and Foxwoods Development team also proposed a $425 million initial investment.
Marvel Gaming has proposed a $368 million investment.
The presentations were heard in the order their proposals were submitted to the Kansas Lottery Commission, with the developers interested in developing at Exit 33 of the Kansas Turnpike speaking first.
A crowd of over 200 attended the meetings, with nearly a hundred Harrah’s supporters from the Mulvane area in the front rows of the audience, who were referred to as the “green team” for their green “like money” matching t-shirts, hats and pins.
Sen. Greta Goodwin, D-Winfield, also sat in the front row of the audience with the supporters for Harrah’s Entertainment.
In the rear of the room were about 30 opponents of gaming, who had made a picket line at the entrance of the venue prior to the meetings, and who left after the presentations by the Mulvane developers.
Also attending the meeting were city, county, and business leaders from Wellington, including Wellington Mayor Roger Stallbaumer and Sumner County Commissioner Eldon Gracy.
The increase in the initial investment of the proposed Hollywood Casino-Wellington was made by Penn National Gaming President Steve Snyder, who attributed the increase largly to a new emphasis in the expansion of their hotel to a 500 room and 11 story tower — which would become the largest hotel across the state of Kansas.
Snyder said the hotel would be used to develop visitation to the facility and be competitive with gaming facilities in Oklahoma.
Snyder said the hotel is key in the site’s use for conventions and other entertainment venues by having the beds to accomodate large groups, in addition to providing “the opportunity for people to spend time and have a getaway for a long weekend.”
Snyder also introduced a new site plan which includes direct access to the proposed sitefor southbound traffic at Exit 19 of the Kansas Turnpike.
In December, Penn National Gaming had proposed an initial investment of $365 million and a 350-room hotel, which even then was the largest hotel proposed by any developer.
Marvel Gaming was also thinking big when it announced their plans to go “all-in” with a contractual agreement with the state to make an initial investment of $368 million in Sumner County.
Roger Wagner, president of Marvel Gaming, said the state would receive any balance remaning from their projected investment if it were not needed to build the Trailhead Casino.
Wagner also introduced a plan to work with the Kansas Lottery Commission to develop a Player Loyalty Card for all casinos across the state’s four gaming zones.
Wagner said the card and loyalty system would be designed and developed by Marvel Gaming, which would then provide a $250,000 operational subsidy to the state for the card, in addition to offering on-going technical services.
Marvel Gaming was the only one of the casino developers to lay their cards on the table when it came to their proposed benefit for the state — which is part of contract negotiations with each individual developer.
Wagner introduced a graduated payout to the state, and said their company would be able to afford this projection by substantially reducing their management fee as compared to other casino companies.
The state’s share of the casino profits would increase from a minimum of 27 percent to 32 percent, once the Trailhead Casino Resort reaches a stable operating revenue of $250 million annually.
Once the casino reaches $300 million in stable operating revenues, they have offered to increase their share with the state to 37 percent.
Wagner was later questioned about this method by a member of the Kansas Lottery Commission, and he said this was the first proposal they had made with a graduated plan in place at the opening of contracts. In the past, he said they have opened casinos at a flat-rate agreement, then had increases imposed on them by the government.
Ed Van Petten, executive director of the Kansas Lottery Commission, said there is a minimum of 22 percent of the revenues for the state and another five percent for organizations to support problem gamblers. Each casino developer could offer to pay the state more, he said, with May 22 through May 27 set as the dates for final negotiations with the casino developers for their gaming management contracts.
State Rep. Vince Wetta, D-Wellington, supported Marvel Gaming for introducing the graduated increase to the state, and said he was also impressed with Penn National for growing their proposal in Sumner County.
“Generating more money for the county and the state is what it’s all about,” Wetta says. “As everyone knows, I don’t really care about gaming — I care about the money for the people.”
