Microsoft Word document of news release

DATE: June 26, 2008
CONTACT: Sally Lunsford (785) 296-5708, sally.lunsford@kslottery.net

Casino Applicants Pay Millions of Dollars in Privilege Fees

TOPEKA, KAN. – Developers seeking to become lottery gaming facility managers have now paid millions of dollars in “privilege fees” to the state to keep their applications in the running. Developers for all eleven of the contracts approved by the Lottery Commission paid their privilege fees by the deadlines.

Pursuant to Senate Bill 66, 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 was June 5 in the Southeast Zone, and June 26 in the other three zones. Developers in the Southeast, South Central and Northeast gaming zones were each required to pay $25 million. The Southwest Zone privilege fee was $5.5 million. Here are the applicants that have paid privilege fees and the amount of fees paid:

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

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

“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. 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 which will decide who receives contracts to manage state-owned casinos, has scheduled hearings in each gaming zone this summer. A complete list of scheduled meetings can be found at www.ksracing.org. The Review Board is currently scheduled to make its final decisions for the Southeast Zone by September 5, and by September 26 for the Southwest, South Central and Northeast zones.