Owners of Hollywood Casino at Kansas Speedway announced that the construction of the $200-million, 248-room hotel, which was to be located in a near proximity to the gambling venue, was postponed.
The casino is currently owned and managed by Kansas Entertainment and Penn National Gaming. Spokespersons for the two companies explained that the decision for putting the project on hold was based on the fact that the Kansas hotel market is not particularly stable at present.
Owners also pointed out they are concerned about the recent proposals submitted to the state Legislature that would change casino taxes. This, in turn, would help the former Woodlands racino resume operations and install as many as 2,800 slot machines at its premises.
Mike Taylor, spokesman for Kansas City, pointed out he did not believe the changes that would benefit the Woodlands would be approved, yet the proposals in question were certainly among the reasons why Hollywood Casino owners decided to delay the construction of the hotel, which was scheduled to start this week.
Under their agreement with the Unified Government of Wyandotte County and Kansas City, Penn National and Kansas Entertainment will have to pay 1% of their annual revenue until building commences.
Owners announced that the penalty would annually amount to approximately $1.25 million. The Unified Government, however, stated that the fee would total about $1.4 million. The regulator based its estimations on the revenue generated by the casino between February 2014 and February 2015, which reached more than $148 million.
Mark Holland, Mayor of Kansas City, pointed out that since its launch, Hollywood Casino has been providing local community with substantial finances. Yet, he said he was pleased with the fact that the Unified Government will receive additional revenues from the venue for as long as the construction of the hotel is on hold.
The Mayor also explained that the delay is not due to any serious economic problems in the area where Hollywood Casino and the so-called Legends Outlets are located. He said that various businesses have expressed interest in moving and expanding their operations there.
Kansas Entertainment promised that it will continue to monitor market conditions in the state. The operator also expressed hopes that it will proceed with the construction as soon as possible.
Currently, Hollywood Casino features as many as 2,000 slot machines, 52 table games, and a live poker room, which is open for players seven days a week.
