NEWS
Genting contract for Aqueduct
VLTs still under review
Posted: Monday, August 30, 2010 3:45 PM
by Paul Post
New York State Attorney General Andrew Cuomo is still reviewing Genting New York’s contract to run expanded gaming at Aqueduct, which must then go to the state comptroller’s office for the final approval needed before construction can begin.
Gov. David Paterson, legislative leaders, and the New York State Division of Lottery, which conducted the selection process, all signed the contract three weeks ago.
Genting, an arm of a huge Malaysia-based casino company, says the first 1,600 video lottery terminals (VLTs) will be operational within six months of final approval, with all 4,500 machines generating revenue after one year.
“We’re not under any time constraint, but it would be nice if Genting could start doing what they want to do,” Assembly Racing Committee Chairman Gary Pretlow (D-Yonkers) said. “I honestly don’t think there’s going to be any problem.”
Cuomo’s office was not immediately available for comment. However, his review is focused on legalities of the 30-year contract. Genting would have an option for ten more years by reaching fairly easy performance thresholds.
Last month, state Comptroller Thomas DiNapoli said NYRA would become insolvent in 2011 if a gaming operator was not named soon. The comptroller’s review will be more focused on making sure the state gets a good deal, that the bid for the contract was handled properly, and that New York State Division of Lottery followed all of the appropriate steps.
“Our office has reached out to Lottery with some preliminary concerns,” said Dennis Tompkins, a spokesman for DiNapoli. “This process has to be somewhat close to the vest right now because we’re dealing with a private company. We’re going to move quickly on this, but we’re not going to sacrifice thoroughness.”
Genting has offered the state an upfront $380-million licensing payment. New York Racing Association is slated to get 7% of VLT revenues, with another 6.5% going to purses, increasing to 7.5% in year three and beyond. Breeders will get 1% to start with, increasing to 1.5% in year three.
“You would hope they would be in an expeditious mood,” said Rick Violette Jr., a trainer and president of the New York Thoroughbred Horsemen’s Association. “It would be frustrating if they were just taking their time, coming on the heels of nine years of inaction.”
Paul Post is a New York-based Thoroughbred Times correspondent
READER COMMENTS
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Posted by: Courtney, New Hyde Park, NY on September 02, 2010 at 08:22 PM
I would ask why Joseph is asking for a formal inquiry into Genting? Maybe you should disclose your interest in this matter. Unless you are just a concerned citizen and not a blood sucking leach. It is still open for debate. The process is closed and now we need to move forward. Sorry if you are not getting your pockets lined with any money but for gods sake let it go.
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Posted by: Bellwether, Chesapeake, VA on September 01, 2010 at 12:49 AM
A BROKE JOKE...PERIOD...ty...
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Posted by: rishy, albany, NY on August 31, 2010 at 02:14 PM
the only complaint i have is that the Aqueduct Racino is still not up and running after 10 long years
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Posted by: Joe, NY, NY on August 30, 2010 at 05:49 PM
Thank you for reviewing this complaint.
Very truly yours,
Joseph Bernstein, Esq.
www.counsel-NY.com
Tel +1.917.365.3651
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Posted by: Joe, NY, NY on August 30, 2010 at 05:49 PM
Genting may have problems with mob links and undisclosed ownership:
Andrew Cuomo
Attorney General
Dear Mr. Cuomo,
I am hereby filing a formal complaint to request that you investigate the conduct of the NY Lottery relating to the bidding process and procedures under which the NY Lottery awarded the Aqueduct project to Genting New York LLC, beneficially owned and controlled by the Kien Huat group of companies (collectively, "Genting")
My concerns relate to the following matters:
According to Barbara Ross in a news report in the Daily News last Friday, the NY Lottery failed to disclose to the Governor and legislative leaders Silver and Sampson its apparent knowledge of a business relationship between the Genting group and Pansy Ho in Macau, in a casino operation in which Pansy Ho is a 50 percent partner.
A relationship with Pansy Ho with respect to the same Macau project resulted in MGM not being allowed to continue in the casino business in New Jersey, forcing the company to arrange for the sale of the Borgata project.
The Daily News reported that the NY Lottery did not find Genting group's relationship to Pansy Ho relevant. This is shocking given that the NY Lottery had no time to properly investigate the relationship or to review a sealed decision of the New Jersey Division of Gaming Enforcement in relation to the unsuitability of Pansy Ho as a partner of MGM.
Lastly, I have called for transparency by the NY Lottery-- to disclose to the citizens of New York the identity of all persons who may have a beneficial interest in the Aqueduct project through Genting. I raise this concern in view of emails from Genting's NY counsel in the past year, relating to requests for ownership documents by the Racing and Wagering Board in connection wih an investment by Genting in Empire Resorts, Inc., owner of the Monticello Raceway, asserting that the identity of the beneficial owners was 'very sensitive,' not previously requested by other jurisdictions, and that the 'confidential documents' should not be disclosed to the Racing and Wagering Board. In addition, in separate emails, counsel for Genting noted that there were 26 layers between his client and people who make the decisions, and ordered the destruction, and deletion from electronic files, of all documents relating to ownership of a Kien Huat affiliate that had previously been circulated at Empire Resorts and to its regulatory counsel in Albany, Crane Parente and Cherubin.
Thank you for reviewing this complaint.
Very truly yours,
Joseph Bernstein, Esq.
www.counsel-NY.com
Tel +1.917.365.3651
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