Wednesday, September 17, 2008

Casino Developer Withdraws Bid For Kansas Casino

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Pinnacle Entertainment, one of the four companies left vying for a Kansas casino in the same region as the group that includes the Mohegan Tribe, has withdrawn from the competition.

Pinnacle said their decision to withdraw was due to the "current turmoil in the financial markets." Pinnacle has also delayed its building of a casino on the former property of the Atlantic City Sands Casino Hotel on the boardwalk, which was demolished last year.

Pinnacle withdrew in time to have its $25 million state gambling “privilege fee” refunded.

Including Las Vegas Sands, two groups have now pulled out of the process to build and manage a casino in Wyandotte County. The Mashantucket Pequots withdrew their proposal to build a casino in another region of Kansas earlier this year. Casinos that are selected for the four regions in the state are expected to pay 27 percent of their revenues to the state while racetracks will be taxed at 60 percent, which prompted the owners of all three Kansas pari-mutuel racetracks to back out of deals, saying the state’s 60 percent levy on future gaming revenues was too high to make a profit.

Three groups are now left in the bidding for a casino in the Wyandotte County-Kansas City region of Kansas. A selection by the Kansas Lottery Gaming Facilities Review Board could be made by Friday.