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KS Board picks Harrah's for Sumner County casino

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August 22, 2008

TOPEKA - The Lottery Gaming Facility Review Board selected Harrah's Entertainment Inc. to build and manage a state-owned casino in Sumner County.

Harrah's won a 15-year contract with a 4-3 vote. Harrah's competitors for the contract were Marvel Gaming, who lost with two favorable votes, and Penn National Gaming, who got only one vote.

Harrah's proposed a $535 million resort in Mulvane, a small town 15 miles south of Wichita and 150 miles north of Oklahoma City. Board Chairman Matt All said there were two key considerations in selecting Harrah's. They forecasted higher revenues and proposed a better casino with a 175-room hotel and five restaurants. Its location at Mulvane will be closer to the Wichita area.

Harrah's estimated its first-year revenue at $206 million, however, consultants estimate $186.5 million. Harrah's will pay the state 22% of its first $300 million of revenue. After that the rate will climb to a maximum of 30% at $500 million and above.

Harrah's estimates it will take two years to complete construction of the casino and hotel.

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