NEWS
Reviews of Aqueduct racino bidders now complete
Posted: Thursday, July 24, 2008 9:43 AM
by Paul Post
Governor David Paterson and New York’s top legislative leaders have received integrity reports on the groups seeking Aqueduct’s gaming contract, indicating that a decision might be coming soon.
Background checks were conducted by the state Division of Lottery, which oversees video lottery terminal operations. Aqueduct is slated to get 4,500 machines that are expected to generate more than $450-million per year.
Lottery’s report, following review by the state Inspector General’s office, was sent to Paterson, Senate Majority Leader Dean Skelos (R-Long Island), and Assembly Speaker Sheldon Silver (D-Manhattan), within the past few days.
“At this point they can begin to have discussions about which one will be best for the state,” said Morgan Hook, a Paterson spokesman. “The three of them did discuss it briefly on Sunday.”
The trio met in person at the governor’s mansion in Albany. Talks focused on the state’s fiscal condition, the economy, and property taxes. Aqueduct is a closely related subject because New York is facing a nearly $5-billion budget deficit and loses $1-million each day that VLTs are not operational.
“If that [racino] had been up five years ago we’d be $2.5-billion better off in this state,” former Senate Majority Leader Joseph L. Bruno said recently.
Lottery’s report concluded that each bidder is qualified to run Aqueduct’s gaming facility. The selection requires approval from all three state leaders.
Entities seeking the contract are Delaware North Companies, which is partnered with Saratoga Harness Racing Inc.; Manhattan’s SL Green Realty Trust and Hard Rock Entertainment, which is owned by Florida’s Seminole Indians; and Capital Play Inc. and its partners: Mohegan Sun casino of Connecticut, Extell Development, and Plainfield Asset Management.
Delaware North owns Finger Lakes Racetrack, the state’s only Thoroughbred venue that currently has gaming, located southeast of Rochester in upstate New York. Delaware North also runs VLTs at Saratoga Gaming and Raceway, a Saratoga Springs harness track directly across the street from Saratoga Race Course.
The company is counting on these ties to help it win the Aqueduct contract. However, Capital Play/Mohegan Sun touts its experience in the New York City marketplace, saying it already has a large, well-established customer data base to draw upon.
Likewise, SL Green is one of New York’s largest owners of commercial real estate and has 67 properties in the greater metropolitan New York area. Hard Rock’s highly successful and well-recognized name is a cornerstone of the group’s bid.
There are no indications, however, about which entity might have an inside track with state leaders and while Lottery’s report is complete, there’s no guarantee that a decision will be made soon.
“I wouldn’t put a timetable on it,” Hook said. “The three of them can sit down and meet any time. It’s not that hard to arrange.”
Racino construction is expected to take at least a year, meaning a facility could be operational by late 2009.
Paul Post is a New York-based Thoroughbred Times correspondent
