Tribe's casino to cross border into Kansas, say Quapaws

Downstream Casino Resort is expanding after receiving a favorable ruling from the federal government allowing it to push its gambling operations into Kansas.

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Arkansas Democrat-Gazette

A map showing the location of Downstream Casino.

Quapaw Tribe Chairman John Berrey said Friday it's a chance on which he's been waiting for more than a decade and it's part of the reason the casino hotel was built on the border of Oklahoma and Kansas.

The $15 million expansion will be built on what's now the casino's main parking lot. It will connect to the existing Downstream building, crossing the state line. Plans are for the expanded area to be ready next year, and it should bring 25 new, full-time jobs. The casino has about 1,100 employees.

Arkansas has no tribal-owned gambling, but betting is allowed on greyhound races at Southland Park in West Memphis and thoroughbred races at Oaklawn Park in Hot Springs. State law allows gambling on electronic devices at the racetracks that are similar to devices offered at out-of-state casinos.

In the United States, revenue at American Indian-owned casinos rose 2 percent in 2012 to $28.1 billion, an all-time high, according to Casino City's Indian Gaming Industry Report. Oklahoma came in seventh nationally in revenue growth among Indian casinos, up 6.6 percent to $3.7 billion in 2012. The state ranked second by total revenue behind California, which took in $6.96 billion in 2012.

Downstream Casino Resort opened in 2008 and is operated by the Quapaw Tribe. It has 374 hotel rooms in two tower buildings. The casino includes 2,000 electronic gaming machines, table games, a poker room, dining options and an entertainment venue. It's located in the northeast corner of Oklahoma where it borders Missouri and Kansas.

The National Gaming Commission has issued an opinion that Kansas land owned by the Quapaw Tribe qualifies for gambling under the federal Indian Gaming Regulatory Act of 1988, Berrey said. The tribe's land is part of an area known as the Quapaw Strip and was part of its original reservation as far back as 1833.

Berrey said the decision by the commission is the first of its kind. The tribe will seek a compact with Kansas to offer some gambling options not allowed in Oklahoma, including craps and roulette. The 40,000-square-foot addition will include 162 electronic gaming machines along with a cigar lounge and a night club.

Berrey said the additions will allow the casino to offer an experience comparable to Las Vegas and to open up some space in the existing building for dancing and other entertainment.

In August, the casino said it is working with the owner of the Las Vegas Treasure Island Hotel and Casino to open a former dog track in southeast Kansas as a casino. A recent amendment to Kansas law reduced the minimum investment in a casino from $225 million to $50 million and chopped the casino license fee from $25 million to $5.5 million.

The Camptown dog track in Frontenac, Kan., has been closed since the mid-1990s. If permits are granted, it will reopen as a state-owned, privately managed casino. Dog racing will not be part of the new project.

Business on 12/06/2014

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