The Kansas Lottery has rejected an application from a group seeking to build and manage a state-owned casino in the southeastern part of Kansas.
Lottery officials sent a letter Tuesday to Ozark Trail Gaming LLC saying the group lacks the required funds and experience in casino management.
Ozark Trail Gaming proposed to build a casino in Cherokee County, near the Oklahoma border. The state is requiring a minimum investment of $225 million.
Applications are being accepted until Jan. 19 for the casino contract in the southeastern zone, which also includes Crawford County.
Kansas' first state-owned casino is expected to open in December in Dodge City. Applications for casino contracts for Sumner and Wyandotte counties are still being reviewed.