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Harrah's withdraws casino plan for Sumner County

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November 18, 2008

MULVANE, KS - The Kansas Lottery said it has been notified by the Sumner Gaming Joint Venture, a partnership of Harrah's and a group of Kansas investors, that the group will not pursue their plans to operate a $535 million casino in Mulvane.

In a statement, Harrah's said, "Current economic conditions and the unprecedented disruption in world financial markets have made it impossible to proceed with the project as planned." However, it adds "both parties will continue to consider available options for the proposed Mulvane casino" leaving open to reapply if the financial climate improves.

"We are, of course, disappointed that Harrah's has withdrawn its plans for a casino in Sumner County for financial reasons," said Ed Van Petten, Lottery executive director. "They tell us it is not feasible for them to move forward with a project at this time and we have to respect their decision."

Harrah's Entertainment Inc. is the second company to withdraw from the final four selected to build and manage regional casinos. Penn National had earlier withdrawn its plan for a casino in the southeast region citing competition from the nearby Downstream Casino in Oklahoma.

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