LJWorld.com / Sebelius expects to settle casino compact

Archive for Saturday, April 24, 2004

April 24, 2004

Topeka — Two American Indian tribes and the governor's office are close to agreement on a compact allowing the tribes to build a $210 million casino and hotel complex in Kansas City, Kan., officials said Friday.

The Kickapoo and the Sac and Fox tribes, which already operate casinos in northeast Kansas, have notified the owners of 80 acres near Kansas Speedway that they intend to buy the land. Officials from both tribes and Gov. Kathleen Sebelius' staff said they were optimistic about settling on a compact.

Matt All, Sebelius' chief counsel, said he expected to complete the compact soon.

The tribes and Sebelius' office have been holding discussions since February on a compact, which would require legislative approval.

Under the Kansas Constitution, only the state or American Indian tribes can operate casino gambling.

Tribal casinos are a separate issue from legislation promoted by Sebelius to allow up to five large state-owned casinos in Kansas as well as slot machines at dog and horse tracks and in halls operated by fraternal and veterans' groups.

The bill -- since modified to also permit slot machines in bowling alleys and at some recreation-themed businesses -- is before the Senate, which expects to debate it after legislators return Wednesday from their annual spring recess.

Over the past decade, legislators have repeatedly rejected expansion of state-run gambling, even as they approved compacts allowing casinos on the four American Indian reservations in northeast Kansas.

Under those compacts, the state does not share in casino profits. The Kickapoo and the Sac and Fox are willing to give the state a percentage of their revenues -- between $40 million and $60 million a year -- from the Kansas City, Kan., venture.

The Kickapoo and the Sac and Fox plan to use 40 acres for the casino complex, reserving the rest for other development. The complex would include a 250-room hotel and an 80,000-square-foot-casino, and the tribes have said they will have 3,000 employees.

The tribes notified the owners Friday of their intent to purchase the properties.