Month: December 2019

Gaming revenues at Hollywood Casino at Kansas Speedway in Kansas City, Kansas, increased during November, according to a report at the Kansas Lottery Commission meeting on Wednesday.

Hollywood Casino reported gaming revenues of almost $13.5 million, according to Keith Kocher, director of program assurance and integrity for the Kansas Lottery. It was an increase of $1.68 million over November 2018, when the gaming revenues there were $11.794.

The other three Kansas state-owned casinos also reported their best Novembers ever, he said. Together, they were up about 3.11 percent.

There were five Fridays and Saturdays in November, which probably accounts for some of the increase, Kocher said.

The Unified Government receives 3 percent of the gaming proceeds from Hollywood Casino, while the state of Kansas receives 22 percent.

In other action, the Kansas Lottery Commission approved a contract renewal for the Boot Hill Casino operators in Dodge City, Kansas. The unanimous vote followed a 30-minute closed executive session by the board.

According to Kocher, Butler National Service Corp. and an associate manage the casino for the state.

Under the new contract, Butler will spend at least $9.6 million for capital and other expenses for the casino. Renewal would take effect Dec. 15, 2024, and continue to 2039, another 15 years, Kocher said. Each year, Butler is to spend at least $1 million on the casino.

Also, under the new contract, Butler’s 73 percent gaming fee will be reduced to 71 percent, while the state’s share of the gaming proceeds will increase from the current 22 percent to 24 percent, Kocher said.

Contributions to civic, charitable and educational organizations in the community would be one-half of 1 percent of the revenues, after lottery and Kansas Racing and Gaming Commission expenses are paid, according to Kocher.

When the casino manager and the state first made an agreement in 2008, the nation was going through a recession, and an agreement was made with a third party for constructing and leasing back the property to Butler National, according to Kocher. The contract for the operation of Boot Hill Casino was dated in December of 2009.

Butler National asked the state for an early renegotiation and extension of the contract in 2016, according to Kocher. One of the goals was to finance it and reduce the debt load, reducing a higher interest rate. However, the former administration did not move forward with the contract extension in 2016. The usual time to renegotiate is about 13 years, according to Kocher.

With the new state administration, discussions began on the renewal. Kocher said lottery officials decided to consider early renewal if the agreement had been in effect at least 10 years, and if there was a good cause for the renewal. A lower interest rate could help the casino compete with a casino that recently opened in Diamond, Oklahoma, according to officials.

Also, the state took into consideration that there was 10 years of successful management by Butler and there was a desire by the state to continue the relationship and maintain an uninterrupted flow of revenue, he said.

Kocher said that the Boot Hill Casino contract renewal was not necessarily a template for renewal or consideration for the other state casinos. Each of the contracts is negotiated separately, he said, and may or may not contain the same provisions.