Online Exclusive: Casino Ruling

The District Court of Shawnee County has upheld the constitutionality of Senate Bill 66, but new Attorney General Stephen N. Six announced after just being sworn in this morning "the case is not over."

Six announced his plans to appeal the decision by Shawnee County District Court Judge Charles E. Andrews.

The case will be appealed to the Kansas Supreme Court, which will have the final word on the constitutionally of the expanded gaming law.
"Due to the business interests and economic development at stake here, we will also request the Court expedite the appeal," Six stated.

The 41-page decision by Judge Andrews was released on the Shawnee County district court web page at 10 a.m. Friday, Feb. 1.

Attorney David Cooper, who has been retained by the Sumner County Commissioners to handle issues related to the casino, said he was pleased the court had issued a decision in the case finding the bill constitutional.

Cooper was involved in the Shawnee County District Court proceedings, filing a brief in response to Stand Up For Kansas, which made an attempt to get Sumner County taken out of Senate Bill 66.

Their argument against the Sumner County election was the reading of the ballot question, which did not identify the destination resort casino to be state-owned.

Judge Andrews said in the in today's decision there was no evidence to suggest Sumner County voters would have supported a private-owned casino but not a state-owned facility.

With a vote of 4,842 in favor and 2,838 against, Andrews said Sumner County "made clear the central question, which was whether the residents want a casino in the county."

Stand Up For Kansas also argued the Kansas Lottery Commission used "an unconstitutional delegation of authority" in determining the 2005 Sumner County election valid, but Andrews denied this argument stating the Lottery had the administratiove power to handle the decision.

"In the future, in the case of an appeal, having this decision makes a stronger case for our own part all the way around," said Sumner County Economic Development Director Janis Hellard.

In the court's decision on the constitutionality of Senate Bill 66, Andrews presented lengthy discussion on the issues of state ownership and operation.

Despite the state not owning the real estate surrounding the gaming operations, Judge Andrews declared, "all of those arguments are moot."

Under the law, the state must own and operate the games used for gambling, and Andrews found evidence in Senate Bill 66 of state-ownership and operation.

Andrews supported his favorable decision with findings that the manager selection process is controlled and conducted entirely by the State, and once selected, the Kansas Lottery controls the manager.

The State also controls the possession and distribution of the daily revenue from the gaming facilities. It also owns the software as the licensee of the programs used in gaming.

However, Andrews decision also states the contract between the state and the gaming facility manager must express how the State owns the software, or those portions of the law will become empty declarations and the contract will violate the Kansas constitution.

Cooper expressed his appreciation of the Judge calling to attention some guidelines for the State when they enter into contract with gaming facility managers.

In addition to software lincensing, the state will determine what games will be played in the Kansas casinos.

The State will also have control over all games within the casinos with the ability to monitor all electronic gaming machines through a centralized on-line communications system that literally permits the Kansas Lottery to individually monitor and shut down any machine at any time for any reason.

The state can also set the payout of any machine, required to be an average of not less than 87% of the amount wagered over the life of the machine.

Andrews found these provisions to encompass both casino facilities and gaming at racetracks, and to support the necessity for the State to own and operate the casinos by Senate Bill 66.