Kansas Lottery

HLT Advisory Case Study

Kansas Lottery (2015)

Kansas Lottery (2015)

The 2007 Kansas Expanded Lottery Act (“KELA”) created four gaming zones across the State, mandating that competitive processes would be put in place to select a winning proponent for each zone. Such processes have resulted in the development and operation of three full-service casinos, between 2009 and 2012, with one each in Dodge City, Kansas City and Mulvane.

Beginning in July 2014, a process was commenced to identify a “casino facility manager” (an developer/operator) in the Southeast zone, the only zone without a full-service casino. By January 30, 2015 four bids had been received with each bid consisting of multiple entities and individuals holding various ownership interests.

The KELA established a multi-step process designed to choose one facility manager from the applications received. The first level of the selection process, is for the Lottery to determine that prospective facility managers have sufficient access to financial resources to support the activities required of a lottery gaming facility manager and that each possess three consecutive years’ experience in the management of Class III.

HLT Advisory was engaged by the Lottery to opine on these requirements. The KELA did not specify how to establish financial wherewithal and management capability, leaving HLT to define and determine these metrics for each applicant. The assessment was conducted within a 5-week time frame.