Genting New York LLC’s bid to redevelop Aqueduct Racetrack won approval from the state’s comptroller, clearing the final hurdle to operate New York City’s first slot-machine-style “racino.”
State lawmakers granted the unit of Asian casino group Genting Malaysia Bhd a 30-year license to install 4,500 slot- machine-style video-lottery terminals at the Aqueduct site in the borough of Queens. “The approved contract is in effect immediately,” Comptroller Thomas DiNapoli said today in an e- mailed statement.
Genting’s bid, which included a US$380 million upfront payment, was the only offer that met all requirements, Gordon Medenica, the lottery’s director, said August 3 in a letter sent to New York state lawmakers. The company became the only contender after Penn National Gaming Inc and a group led by SL Green Realty Corp were disqualified for requesting modified terms.
Genting, which parlayed a casino near Kuala Lumpur into gambling resorts in Singapore, the Philippines and the UK, is “aggressively” seeking US gaming investments, Justin Leong, head of strategic investments and corporate affairs at parent Genting Bhd, said in a June interview in New York.
New York lawmakers have been peddling the Aqueduct racino deal since 2001. Under Governor David Paterson, two groups were awarded and then lost the license. In March, Aqueduct Entertainment Group was dropped as unqualified after being selected in January. Delaware North, chosen in October 2008, had to give up the license when it failed to obtain required credit.
New York state plans to sell US$250 million of bonds backed by income-tax collections to help finance the redevelopment and renovation of Aqueduct, budget documents show. -- Bloomberg
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