NEWS
Aqueduct gaming operator to be named after Labor Day
Posted: Wednesday, September 02, 2009 10:11 AM
by Paul Post
New York Gov. David Paterson promised Tuesday that an Aqueduct gaming operator would be named shortly after Labor Day.
Six organizations have bid on the 30-year contract to operate Aqueduct’s 4,500 video lottery terminals that would produce needed revenue for the state’s Thoroughbred racing and breeding industries.
Paterson said private consultants have advised him which group would make the best choice. However, the decision also requires approval from the state’s legislative leaders, Assembly Speaker Sheldon Silver (D-Manhattan), and Senate president Malcolm Smith (D-Queens).
“What is troubling about this process is that three people have to agree,” Paterson said. “Right after Labor Day I’m going to meet with the two other leaders and see how they reached their decisions and who they prefer.”
“This time we’re going to get this done quickly,” he pledged.
Paterson made his comments at a state capitol press conference where he announced that New York City Off-Track Betting plans to reorganize under Chapter 9 federal bankruptcy proceedings.
Groups seeking the contract are Penn National Gaming, The Peebles Corp./MGM, SL Green Realty Trust/Hard Rock Entertainment, Wynn Resorts, and Aqueduct Entertainment Group, whose leaders include Larry Woolf, former chief executive of MGM Grand Hotel in Las Vegas. Delaware North, whose partners include Harrah’s and Saratoga Gaming & Raceway, also has submitted a bid.
Organizations are believed to be offering the state upfront payments ranging from $100-million to $300-million. However, officials also will be looking closely at the amount they believe each firm can generate for the state over the life of the contract.
"I don’t think either NYRA or the breeders have a strong preference," said New York Racing Association board member Barry Ostrager about the gaming operator’s selection. "The main thing is to get it up quickly and have a firm with experience and integrity. That’s what we’re looking for."
Paul Post is a New York-based correspondent for Thoroughbred Times
