TOPEKA, Kan. (AP) _ The Kansas Lottery says Harrah's Entertainment Inc. is withdrawing its application to manage a state-owned casino in south-central Kansas.

In a letter to the Lottery, Harrah's says it's decision is based on ``circumstances beyond our control that do not permit us to meet the proposed schedule on the project.''

The company said that if the financial climate improves, it may be interested in reapplying.

This leaves Kansas with applicants for just two of the four state-owned casinos allowed under a law enacted last year.

Penn National Gaming Inc. withdrew its application for Cherokee County in September.

The two remaining applicants are a partnership of Kansas Speedway and the Baltimore-based Cordish Co. for Wyandotte County, and Butler National Service Corp. for Ford County.

Final approval for those two is expected next month.

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