Harrah's announced that their earnings have taken a major hit Friday, just as the casino giant is set to build a $500 million destination casino and resort in Sumner County near Mulvane.

The casino and resort site sits empty near the Kansas Turnpike. Plans to develop the land are still going on as planned, but the news of tough times for Harrah's could mean that the land will remain empty longer than expected.

"If they have to take a little bit longer to make it a successful project, then so be it," said Mulvane City Administrator Kent Hixson.

Harrah's losses are putting the pinch on the casino giant. The CEO reports that the company will have to trim expenses and scrutinize every dollar it spends.

State Representative Vincent Wetta worked hard to get a casino in Sumner County. He's not surprised by the news and remains confident.

"We've got a lot invested in this and the State of Kansas needs the revenue. Those guys in Topeka will make the right decisions," Wetta said.

At this point, Harrah's is not commenting on its plans for the Sumner County casino, except to say it cannot comment on marketplace rumors and speculation.

Kansas Lottery Attorney Ed VanPatton talked to Harrah's Friday morning.

"The problem is a short term cash flow issue but the overall viability of the company is fairly sound," VanPatton said. "December 5th is the deadline for Harrah's to sign the deal with the State of Kansas. If Harrah's is going to pull out of the project, it has to be done before that deadline or they will lose their $25 million deposit.