Sep. 24--The Kansas Racing and Gaming Commission Tuesday formally disapproved the casino application of Penn National Gaming.

The unanimous move cleared the way for a new round of applications in the state's southeast gambling zone, just west of Joplin, Mo.

First in line could be Wichita businessman Phil Ruffin Sr., who earlier this year declined a state deal for slots at his long-closed Camptown dog track in southeast Crawford County. Ruffin had poured $10 million into redeveloping Camptown before concluding that the state's 40 percent tax bite and other assessments on "racinos" didn't leave enough cash flow to turn a profit.

Ruffin said at the time and reiterated Tuesday that he planned to lobby state lawmakers next year for a gambling tax break in a bid to reopen the track with slots.

If that doesn't work, Ruffin said, he'd also consider seeking a change in the law to reduce the state's minimum mandatory capital investment in a southeast casino to $50 million from the current $250 million that is in place for three of the state's four gambling zones.

"That would be a doable deal," said Ruffin. "You could make a decent return on your money."

But he said he wouldn't touch the $250 million commitment.

Ruffin noted $50 million was the minimum investment threshold set for casino developers in Ford County, in the state's mostly rural southwest zone, which includes the historic Wild West town of Dodge City.

The minimum state gambling tax on nontrack casinos is 22 percent.

"We would probably go either way," said Ruffin. "Our preference is to see the track reopened ... but only if the legislation gets passed that give us a deal that makes economic sense."

Penn was the lone applicant to seek a 15-year contract to build and manage a state-owned casino in the zone that included Cherokee and Crawford counties.

The Kansas Lottery Gaming Facilities Review Board state last month awarded its southeast management contract to Penn, but the Pennsylvania-based gaming firm walked away from the deal, claiming a newly opened tribal casino nearby posed too much competition in that semirural marketplace to invest $250 million.

Cherokee County officials have since sued Penn seeking more than $52 million in damages it claims it will lose over the life of the contract in lost gaming, sales and property tax revenues. That case is pending.

To reach Rick Alm, call 816-2344785 or send e-mail to ralm@kcstar.com.

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