Plans to build a Harrah's casino in Mulvane may be in trouble due to the economy, KAKE News has learned. Harrah's won a heated battle for a casino proposal in Sumner County last summer.

Sources tell KAKE News Harrah's is having difficulty getting loans and financial backing to build a nearly $500 million casino complex along the Kansas Turnpike near Mulvane.

The nation's economic crisis is hitting the casino industry hard. Gaming revenues are down in Nevada. Harrah's has taken several cost-cutting measures, including job cuts and lowering hotel room rates. The company will release third quarter financial figures Friday.

Mulvane City Manager Kent Hixson said he met with Harrah's partner, Sumner Gaming and Resorts, and has no official indication Harrah's is pulling out of the project. However, he is aware of tough financial times in the casino industry. Hickson said last year there were six firms that loaned money to casinos. This year there is only one.

A Harrah's spokesperson said the company has no official announcement or statement in regard to the Sumner County casino.