NEWS
Delaware North: Aqueduct casino could be operational in seven months
Posted: Friday, October 23, 2009 3:23 PM
by Paul Post
A group bidding on Aqueduct's gaming contract says the earliest anyone could open the facility would be late next summer or early autumn.
Delaware North Cos., which the state selected for the project last October, says it could have up to 2,000 video lottery terminals operational seven months after breaking ground.
But that would not occur until environmental approvals and details with New York Racing Association are worked out, which would take at least two or three months after a gaming operator is selected.
"That's the part the other bidders skip," spokesman Glen White said.
The company says all 4,500 VLTs would be operational seven months after the first phase comes on line. The company believes it could open a racino quicker than other bidders because it already has cleared many hurdles involved with last year’s selection process.
“We’ve included with our bid all the contracts, leases, and sub-leases to the state they’re going to need to finalize this,” said Ron Sultemeier, vice president of strategic development. “With already met with the Lottery Division [which oversees VLTs], their consulting engineers, along with the Queens and New York City building departments. Some bidders are out-of-state firms who have no familiarity with New York rules and regulations.”
Last year, Delaware North offered the state a $370-million upfront payment for the 30-year Aqueduct contract. Plans called for an initial $10-million payment, when the memorandum of understanding was signed, followed by four quarterly payments of $90-million each. Negotiations, however, dragged into early 2009 and the state wanted all $370-million by the end of March, Sultemeier said.
Meanwhile, the economy collapsed and the deal fell apart when Delaware North could not secure financing needed to meet the state’s demands.
“What happened in March was a timing issue,” he said.
Soon after, the state started the bidding process over and six groups submitted proposals. This time, Delaware North has offered the state $100-million, which it has on hand and can deliver immediately, Sultemeier said.
State leaders have pledged to name a gaming operator soon.
Paul Post is a New York-based Thoroughbred Times correspondent
