The venture plans to break ground for construction of the facility overlooking Turn 2 at Kansas Speedway on April 30, with a planned opening in the first half of 2012. The initial phase includes a 100,000-square-foot casino floor with capacity for 2,300 slot machines, 61 table games and 25 poker tables, a high-energy lounge and a variety of dining and entertainment options. The long-term development plans include additional phases, which, based on market demand, could bring a hotel, expanded gaming space, a spa, convention center and an entertainment retail district to Kansas Speedway, said the venture in a statement Friday.
Pursuant to the terms of the joint venture, Kansas Speedway contributed 101 acres for the development of the new facility. Penn and Kansas Speedway will equally share the full project development costs.
Kansas Entertainment has agreed to commit 1% (or approximately $2.2 million) of gaming revenue annually to the Unified Government of Wyandotte County for unrestricted civic use, plus annual contributions of $500,000 per year to non-host school districts, $500,000 per year to community services and charitable causes, $100,000 to Unified Government Parks & Recreation, $25,000 to Conventions & Visitors Bureau and $10,000 per year to local chambers of commerce.
In addition, ISC will seek a second NASCAR Sprint Cup Series race for Kansas Speedway and plans to build a new road course for a Grand-Am race at the track. These commitments, contributions and plans for expanded activities at the track are in addition to the 24% State and 3% local tax on gaming revenues generated by Hollywood Casino at Kansas Speedway, which will add to state and local revenues, with further annual contributions commencing following the facility's opening.
"We believe the Hollywood Casino at Kansas Speedway represents a major economic growth engine for the region," and Timothy Wilmott, president and COO of Penn National. He said the project will include 1,700 construction jobs in the next two years and, once the facility is completed and open, more than 1,000 full time jobs .
Penn presently operates nineteen facilities in 15 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In the second half of 2010, Penn plans to add table games to its facilities in West Virginia and Pennsylvania and expects to open the first video lottery terminal facility in the state of Maryland in Cecil County. Penn is also developing casinos in Toledo, OH and Columbus, OH with openings targeted for the second half of 2012. The company recently announced its planned acquisition of Beulah Park in Ohio in a transaction expected to close in the second quarter of 2010.
The project was formerly created for different companies. International Speedway had planned a $705 million project with Hard Rock Hotel and the Cordish Co. However, that partnership collapsed and Penn bought out Cordish.
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