Kan. gaming panel to review possible violations

TOPEKA, Kan.—Gaming regulators are considering whether three Wyandotte County officials possibly violated Kansas law when they endorsed a proposal from a company seeking a management contract for a state-owned casino.

The Racing and Gaming Commission plans to review a presentation from Pinnacle Entertainment Inc., spelling out why it should get the contract. The commission will determine whether an investigation of the local officials' conduct is warranted.

"We are going to review it and then be in discussions with the attorney general's office," executive director Stephen Martino said Friday. "If I think there is enough there to warrant investigation, I will send it to the attorney general."

Pinnacle presented its 70-minute computer slide show Wednesday to the Lottery Gaming Facility Review Board. It included endorsements from Donald DeSeure, Bill Miller and Ann Brandau-Murguia, all commissioners for the Unified Government of Wyandotte County and Kansas City, Kan.

The review board decides who get contracts to manage a single state-owned casino each in Cherokee, Ford, Sumner and Wyandotte counties. Pinnacle is among four companies vying for the Wyandotte contract.

An expanded gambling law enacted last year allowing the casinos also prohibits state or local officials from using their official positions to influence the selection process.

Attorney General Steve Six said in April that such officials can publicly support a casino -- but only as private citizens.

"They endorsed the Pinnacle proposal," Martino said. "It is really a question of whether they were speaking on the video in their capacity as elected officials or as private citizens."

Unified Government spokesman Mike Taylor didn't return three messages left at his office and cell phones.

Pinnacle spokeswoman Pauline Yoshihashi said the commissioners spoke as private citizens and were among eight people shown in the presentation. They were identified as commissioners by a graphic under their names.

The presentation also included a disclaimer shown only with DeSeure, the first commissioner shown, stating the all the commissioners were speaking as private citizens.

"As we told the review board and as it said in the presentation, the individuals were speaking as private citizens and expressing a personal opinion," Yoshihashi said. "We apologize for any confusion."

Yoshihashi said Pinnacle is supplying the commission with a copy of the presentation for its review.

"Whatever the regulators need, we will be happy to comply with," she said.

Matt All, review board chairman, said the commission is doing the right thing in evaluating the presentation, and the board will continue its evaluations of the applicants.

"The board is going to maintain its focus on the quality of the proposals and the questions the Legislature has asked us answer," All said.

He said the incident won't work against Pinnacle.

"It doesn't disqualify them at all. As one board member, I am going to look at the quality of the proposal from all the applicants," All said. "If the presentation violated the law, then law enforcement officials will take care of that."

Also competing for the 15-year management contract in Wyandotte County are Golden Gaming, Legends Sun and Kansas Entertainment, which includes Kansas Speedway. The proposed casinos would be built near the speedway.

Pinnacle estimates its third-year gambling revenues at $414 million. Golden Heartland estimates $285 in its third year; Kansas Entertainment, $367 million and Legends, $296 million.

The state gets a minimum of 22 percent of the gambling revenues and in some cases, up to 28 percent based on revenue levels.

On Sept. 2 and 3, the board will hear from its consultants, including their revenue estimates for Wyandotte and Ford counties. Previous consultant estimates have been lower than the applicants in other counties.

The board will decide Sept. 18 and 19 who gets the contracts for Wyandotte and Ford counties.

The board already has heard from its consultants about the Sumner and Cherokee county proposals. It plans to decide who gets those contracts Aug. 22.