Casino hopefuls put up millions in ‘privilege fees’
All five developers seeking to become lottery gaming facility managers in Wyandotte County have paid their $25 million "privilege fees" to the state to keep their applications in the running.
Under state law, applicants had 30 days after approval of their contracts by the Lottery Commission to pay a designated privilege fee. The deadline for payment of privilege fees for the Northeast Gaming Zone (Wyandotte County) was May 26.
Developers in the Northeast zone, along with those in the Southeast and South Central zones, were each required to pay $25 million. The Southwest Zone privilege fee was $5.5 million.
Applicants that have paid privilege fees and the amount of fees paid:
Northeast Gaming Zone (Wyandotte County)
¢ Golden Heartland - $25 million
¢ Kansas Entertainment, LLC (Hard Rock & Kansas Speedway) - $25 million
¢ PNK-Kansas, LLC (Pinnacle) - $25 million
¢ Legends Sun, LLC - $25 million
¢ Sands Kansas, LLC - $25 million
Southeast Gaming Zone (Cherokee County)
¢ Kansas Penn Gaming, LLC - $25 million
South Central Gaming Zone (Sumner County)
¢ Sumner Gaming Joint Venture, LLC (Harrah's) - $25 million
¢ Penn Sumner, LLC - $25 million
¢ Marvel Gaming - $25 million
Southwest Gaming Zone (Ford County)
¢ Butler National Service Corporation - $5.5 million
¢ Dodge City Resort and Gaming, LLC - $5.5 million
"We're pleased that all applicants are continuing with the process," said Lottery Executive Director Ed Van Petten. "Now we can move forward with the next phase of implementation of expanded gaming in Kansas."
Privilege fees paid by developers total $236 million and have been deposited into the state treasury, the Lottery Commission said. After one developer is approved in each of the four gaming zones, privilege fees from the successful applicants will be deposited into the Expanded Lottery Act Revenues Fund. Fees from unsuccessful applicants will be refunded without interest. Interest earned on all privilege fees will be retained by the state.
The Lottery Gaming Facility Review Board, an independent seven-member board that will decide who receives contracts to manage state-owned casinos, has scheduled hearings in each gaming zone this summer. The public meeting for the Northeast Gaming Zone will be at 9 a.m. Aug. 15 at KCK Community College Theater, 7250 State Avenue, Kansas City.