Fourth contract awarded in Kansas
Butler as operator of final casino resort The fourth and final contract to manage a state owned and operated gaming facility in Kansas was awarded to Butler National Service Corp.
The Kansas Lottery Gaming Facility Review Board named Butler National as developer and manager of the southwest gaming zone located in Dodge City. Kansas Entertainment LLC in the northeast, Harrah’s in the south-central (Sumner County) and Penn National Gaming in the southeast (Cherokee County) were the other companies awarded 15-year contracts. Penn National Gaming has since pulled out of the deal.
The new Boot Hill Casino and Resort will be designed to enhance and recreate the world famous 1870-1880s experience at the historic Boot Hill destination in Dodge City.
State estimates of casino revenue in the Dodge City destination market range from $40 million to $60 million per year. Phase I of the development will require an investment of approximately $45 million and will open in September 2009.
Phase II of the development is planned to be complete in 38 months from the final approval of the contract and will cost an additional $42.5 million for a total of approximately $87.5 million. Projected cost of the development ranges from $9.4 million in the first full year of operation to $21.7 million in year five.
“We are extremely pleased with the decision of the Kansas Lottery Gaming Facility Review Board,” said Clark Stewart, president and CEO of Butler National. “We have felt from Day One, we had the best concept, best design and best business plan for tourism, gaming and economic development for a destination casino in Western Kansas. We believed our management proposal offered the strongest tourist drawing destination facility in the best interest of all Kansans. The Review Board agreed.”
The last step in this process is the background checks by the Kansas Racing and Gaming Commission. Background checks and finalizing the contract should be completed by Dec. 5 of this year.