Hollywood Casino in Kansas City is gearing up to turn its long-overdue dream into reality: constructing a new hotel after years of setbacks. This move would finally align the property with its grand vision of a resort experience right next to the ever-thrilling Kansas Speedway racetrack.
The Hotel Might Finally Become a Reality
Hollywood Casino threw open its doors back in 2012. From the get-go, the anticipation was that two years down the line, construction of a hotel would commence in a bid to honor its development deal with the Unified Government. Yet, the game never began; the dice never rolled because of a series of regulatory obstacles and unexpected changes in Kansas’s taxation landscape.
Adding a twist to the plot, developers leaned on studies suggesting that a new hotel could potentially infringe on the territories of other hospitality properties nearby, leading to a cannibalistic feeding frenzy in the market.
The initial blueprint? A whopping $200 million project featuring a 250-room hotel. Yet, alas, those grand plans were put on ice, leaving Hollywood Casino to pay millions in damages – a price for dreams deferred. As stipulated in the agreement, Hollywood Casino had to fork over 1% of its annual revenue to the state, absorbing the hit of unrealized tax growth. By the end of 2023, those unrealized dreams had cost the casino over a dozen million dollars in penalties.
Fast forward a decade, and it seems the stars might finally be aligning. The casino’s management is now revisiting the drawing board with fresh blueprints in hand. This potential renaissance comes as Penn seeks to extend its contract to continue operating the casino.
It Is “The Right Time,” According to Casino Officials
Monday witnessed a long-awaited revelation. Aaron Rosenthal, Penn’s senior vice president of regional operations, laid the cards on the table, expressing that the company believes it is now “the right time” to breathe life into the hotel at Hollywood Casino. Addressing the Unified Government’s Economic Development and Finance Committee, Rosenthal emphasized that the dream had not been forgotten – it had merely taken a back seat.
“It’s something we’ve contemplated since before the casino opened and something we’ve gone back to every year to determine the feasibility of. And for a variety of reasons, the feasibility for us had not made sense. But it does now.”
— Aaron Rosenthal, SVP of regional operations, Penn
The new proposal on the table envisions a scaled-down but promising hotel with at least 125 rooms, aiming for construction to break ground by the end of 2026. Although the size may be a mere shadow of the original ambitious plan, it leaves room for expansion, like a poker player reserving chips for a future play.
- Create hundreds of permanent and temporary jobs
- Spur economic growth and attract visitors
- Enhance the overall resort experience
However, it’s not all smooth sailing. Penn had initially tried to negotiate a two-year penalty reprieve until the hotel’s construction would commence, but the commissioners found this proposal a bit too risky, akin to betting on a weak hand.
As the dust settles, the gambling community watches with bated breath. The Hollywood Casino might just be ready to ante up and go all in – turning a decade-old ambition into brick-and-mortar reality.
