KWCH - Kansas News and Weather - Harrah's Withdraws Casino Bid from Sumner County

Harrah's Withdraws Casino Bid from Sumner County

by Kim Hynes (MULVANE, Kan.)

Harrah's pulls out of the Sumner County Casino. Monday the casino company issued a statement saying during these tough economic times, its impossible to move forward with its planned $485 million casino.

"Although the parties remain enthusiastic about the opportunity in Sumner County and the prospects for the proposed resort to generate tremendous economic and tourism benefits, current economic conditions and the unprecedented disruption in world financial markets have made it impossible to proceed with the project as planned. Both parties will continue to consider available options for the proposed Mulvane casino," Harrah's released in a statement.

"I'm disappointed but not surprised, given the financial markets and the difficulty of getting money," Mulvane City Manager Kent Hixson said. Other Mulvane residents reacted the same way. "18 months ago when we started this, no one would have predicted the stock market would be down where it is right now," John Brewer said.

The Kansas Lottery says it's also disappointed Harrah's withdrew its application. Sumner Gaming Joint Venture requested a refund of the $25,000,000 privilege fee it paid June 25, 2008. The Kansas Lottery is processing the refund through the State Treasurer's Office.

Sumner Gaming Joint Ventures are the local investment partners Harrah's teamed up with. Sumner Gaming was supposed to fund 60% of the project, Harrah's 40%. When the project was chosen by the lottery review board this summer, the contract was left open for Harrah's to take on a larger percentage if it wanted.

Now that the project is over, the Racing and Gaming Commission will disapprove the Harrah's casino as a formality. Spokesman Mike Deines says that will allow the process to start over. The state will once again issue an RFP (request for proposals) to see the level of interest.

Originally the state considered three proposals for Sumner County. Penn National and Marvel Gaming submitted plans to build in Wellington. If either company is still interested in the process, they will have to resubmit an RFP. Proposals will then need local endorsements and then approval by the lottery review board.

The city of Mulvane says it will continue to market exit 33 to casino developers. Monday night it hired a legislative lobbyist who will keep track of the new process in Topeka. "There's value to that location. I do think over time the financial markets will straighten out and there's a real good possibility a casino will happen out there. We just have to keep working at it," Hixson said.

You can read the entire statement from Harrah's below and the statement from the Kansas Lottery using the link on the left.

Look for more information and reaction on this developing story as it becomes available here at kwch.com and on Eyewitness News.

Statement from Harrah's:

November 17, 2008--Sumner Gaming Joint Venture L.C., a joint venture between Sumner Gaming and Resorts L.C. and a subsidiary of Harrah's Entertainment, Inc., announced today that it will withdraw its pending application for a proposed destination casino resort project in Mulvane, Sumner County, Kansas.

Although the parties remain enthusiastic about the opportunity in Sumner County and the prospects for the proposed resort to generate tremendous economic and tourism benefits, current economic conditions and the unprecedented disruption in world financial markets have made it impossible to proceed with the project as planned.  Both parties will continue to consider available options for the proposed Mulvane casino.

Harrah's and Sumner Gaming thanks the Lottery Commission, the Racing & Gaming Commission, the Facility Review Board, Governor Sebelius and supporters of the Mulvane casino for all of their work and commitment to this process.