Penn National Faces 2nd Kansas Legal Challenge

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TOPEKA, Kan. (AP) _ Penn National Gaming Inc. is embroiled in a second legal fight after walking away from its contract to manage a state-owned casino in southeast Kansas.

The legal battle is being played out in U.S. District Court over whether Penn owes about $37.5 million to HV Properties of Kansas. That company wanted to sell about 200 acres for the casino site in the southeast corner of the state.

In another legal battle, the Cherokee County Commission last month filed a breach of contract lawsuit in Shawnee County District Court against Penn.

The Wyomissing, Pa.-based company said it couldn't compete against an Oklahoma tribal casino that is so close to the state line that its parking lot is in Kansas.

(Copyright 2008 by The Associated Press. All Rights Reserved.)