Penn National faces 2nd Kansas legal challenge

7 October 2008

TOPEKA, Kansas -- As reported by KansasCity.com: "Penn National Gaming Inc. is embroiled in its second legal battle after deciding last month to walk away from a contract to manage a state-owned casino in Cherokee County.

"At issue in U.S. District Court in Topeka is whether Kansas Penn Gaming LLC, whose sole member is Penn National, owes $37.5 million to HV Properties of Kansas, which wanted to sell about 200 acres for the casino site in the southeast corner of the state.

"...The day after Penn's Sept. 11 announcement, attorneys for HV Properties sent the casino company a letter maintaining it was in default of its sales contract and demanding promised payments of $17.5 million and $20 million. Penn already had paid $2.5 million.

"...On Monday, (HV Properties attorney) Bill Modrcin filed a motion maintaining that Penn violated its agreement and asking the court to award HV the full $37.5 million..."

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