Delays in review of applications to run Kansas' state casinos may cost the state dearly as the big contender withdraws from its offer.

The joint venture formed by the Cordish Co and Kansas Speedway Development Corp has announced that they will not be going through with their plan to build a Hard Rock Hotel and Casino next to the Speedway. The company Kansas Entertainment LLC, filed the paperwork to get a refund of their $25 million privilege fee.

Kansas Entertainment is already the third company that has pulled out of the casino business in Kansas. Previously Sumner Entertainment withdrew because of the downturn in the economy and Penn National withdrew because they were not certain that they could compete with the neighbouring casino.

Joseph Weinberg, Kansas Entertainment executive said that the company remains committed to bringing a first-class casino In the current economic climate the company would like to have the flexibility in the construction process, phasing in the non-gaming retail and hotel as and when the economy allows.

Ed Van Petten, executive director of the Kansas Lottery said that the company's withdrawal is just a sign of the worsening economy which has hit the gaming industry particularly hard. He remains confident though that they will find a suitable developer to build a destination casino in Wyandotte County.

The online casino phase of the development was supposed to open in course of 2009 with 3,000 slot machines and 100 gaming tables. The hotel would consist of 300 luxury rooms, 50 suites, 275,000 sq feet of retail shopping, dining and entertainment. A live music venue with a spa and fitness centre would form part of the development. The total development will cost an estimated $705.6 million at completion.