NEWS
Aqueduct racino among topics at N.Y. summit
Posted: Wednesday, June 24, 2009 9:30 AM
by Paul Post
An investment banker that has financed several Canadian casinos believes Penn National Gaming will receive the contract to run Aqueduct’s proposed racino with 4,500 video lottery terminals.
Six groups have submitted bids, including financial offers, to the state of New York and a seventh, Mohegan Sun, says it would operate the facility if the state builds it.
Governor David Paterson has said he would like to name an operator by August 1.
"They’ve [Penn National] got the experience. They have four racinos already. They also have the balance sheet," said Joel Simkins, Macquarie Capital senior vice president for gaming and leisure.
"They have $700-million in cash and $2-billion worth of credit, so they have the ability, if they get the lease, to build it."
Simkins was one of the many panelists and speakers during the New York Gaming Summit on Tuesday in Saratoga Springs. More than 200 industry representatives turned out for the event.
In October, the state named Buffalo-based Delaware North Companies to build Aqueduct’s racino. But the company, which offered the state $370-million, could not come up with needed financing following the nation’s economic downturn. That proved to be a recurring theme at the summit as gaming officials referenced numerous casino projects that have been slowed or suspended by lack of funding.
Penn National currently has casinos at three Thoroughbred tracks—Penn National Race Course near Harrisburg, Pennsylvania; Charles Town, West Virginia, a short distance from Washington, D.C.; and Zia Park in New Mexico. Its Bangor, Maine, harness track also has slots.
Other groups seeking the Aqueduct contract are The Peebles Corp./MGM, Las Vegas casino mogul Steve Wynn, SL Green Realty Corp./Hard Rock Entertainment, and a multi-party entity called Aqueduct Entertainment Group.
New York State Racing and Wagering Board Chairman John Sabini said the high number of bidders—four more than last year—indicates strong interest in New York’s gaming potential, despite the state’s political gridlock. The Aqueduct decision requires three-party approval by Paterson, Assembly Speaker Sheldon Silver (D-Manhattan), and the Senate’s temporary president.
The Senate, however, has been paralyzed for more than two weeks following a June 8 coup that saw Republicans try to wrest control of the upper house. Paterson has ordered the Senate to hold a special session on Wednesday with hopes of ironing out party differences.
Paul Post is a New York-based THOROUGHBRED TIMES correspondent
