Penn’s Speedway Casino In Jeopardy If Law Changes
Kansas Entertainment LLC, a partnership between Penn National Gaming, Inc. (PENN: 25.62 +2.85%), and Kansas Speedway object to a proposal to change the rules governing gambling in the state.
The partnership has expressed their concerns saying the contract they negotiated with the Kansas Lottery to build a $386 million casino project could be in jeopardy if the law is changed.
Legislatures are looking for additional revenue, and propose reducing the state’s take of slot revenue from 27% to 22% to revitalize closed dog and horse racing tracks that have not installed slot machines because high taxes make them unprofitable.
Karen Bailey, spokeswomen for Penn National denied speculation that financing for the project was in trouble, and reiterated that their particular concern is that the Woodlands racetrack is only a few miles from the proposed casino site.
“Anyone requesting to change the rules at this juncture should have done so when the law was written in the first place,” Thomas Auriemma, president of Penn Hollywood Kansas, the managing member of the venture wrote in a letter to Governor Mark Parkinson and legislative leaders.
Background checks on the partnership and approval of the contract is expected in February which would allow ground breaking in the spring.
While it is not clear if Kansas Entertainment would back out if the law changed, Senator Pete Brungardt says that it should not deter legislators from debating the proposal.
A hearing will be held on February 9 to discuss the Senate proposal.
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