Casinos to bet half a billion on Interstate-44 gaming
By Roger McKinney
rmckinney@joplinglobe.com
Plans are being made for a half-billion dollars worth of casino construction in the next two years off Interstate 44 and in Grove and some are predicting the economic benefits won’t recognize state borders.
A summer 2008 opening is planned for Downstream Casino Resort, a $200 million casino and hotel project by the Quapaw Tribe of Oklahoma off Interstate 44 where Oklahoma, Missouri and Kansas meet. Tribal officials say it would bring 1,200 full-time jobs with annual payroll and benefits of $44 million.
Nearby, Penn National Gaming plans a summer 2009 opening of its Hollywood Casino-Cherokee County. It is a $250 million casino and hotel. The company estimates an eventual 680 full-time jobs with annual payroll and benefits of $32 million.
The Seneca-Cayuga Tribe is planning a summer 2008 opening of its $60 million casino and hotel. It plans to hire 450 workers. Payroll estimates were not immediately available.
Jasen Jones, executive director of the Workforce Investment Board of Southwest Missouri, said the board has been following the developments related to the casinos, particularly the two planned just outside of Joplin along Interstate 44. He said his agency currently sends workers to the existing casinos in Oklahoma.
“It’s a very fluid labor market,” Jones said. “The state borders are invisible.”
Jones said he expects the economic benefit to reach the entire region.
“A rising tide raises all ships,” he said.
Rob O’Brian, president of the Joplin Area Chamber of Commerce, did not return a call Friday seeking comment on the possible impact on Joplin.
William Thompson, a gambling researcher and professor of public administration at the University of Nevada at Las Vegas, has said the key to economic benefit is the number of visitors the casinos attract from outside the region.
Baxter Springs Mayor Huey York said he expects the casinos to result in substantial development along the few miles between the interstate exit and the Highway 166 and Highway 26 junction.
“That’s going to bring residual effects,” York said. He said some casino employees will build houses, increasing the property tax base further.
“It just helps everybody economically,” York said. “It’s kind of a domino or ripple effect. It’s going to be a shot in the arm for Southeast Kansas within three or four or five years.”
Jim Dahmen, secretary of the Columbus Economic Development Committee, said the Penn National casino, if approved by the state, would benefit the county through revenue sharing. He said the Quapaw Tribe’s planned casino will produce jobs and economic cash flow.
Penn National is projecting its casino and hotel would produce gaming revenue of $180 million and other revenues of $22 million within a few years of opening.
It projects annual payments of $39.6 million to the state, $3.6 million to Cherokee County and $1.8 million to Crawford County within a few years of opening. The company also would pay annual property taxes of $1.5 million and annual sales taxes of $2.7 million after it is established.
During building, Penn National estimates 350 construction jobs would be needed, with a construction payroll of $40 million.
The city of Joplin has taken initial steps to pursue voluntary annexation of 50 pieces of property between the city limits and the Highway 166 exit.
Joplin public works director David Hertzberg said discussion of annexing the land began before there was any talk of casino development. He said the casino projects make it inevitable that development will take place, but the city would like to benefit from the development.
Earning millions
Penn National Gaming this week reported net income of $38.3 million in its second quarter, down from $42.7 million a year ago. The company cited costs related to the planned purchase by private equity firms and currency fluctuations for the downturn. |
