The First Guess: Lotto Nation by Keith Olbermann - FOK News Channel

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Keith Olbermann's latest at The FOK News Channel -- The First Guess: Lotto Nation:

Three-time Murrow-Award Winner Keith Olbermann is the "K" in "Friends Of Keith" and "Friends Of Keith" is the FOK in the not-for-profit FOKNewsChannel.

Genting Wants More Than 4,500 VLTs by James M. Odato - Capitol Confidential

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It has yet to open its Aqueduct race track racino, but Genting officials this morning already started talking about currently illegal expansion to allow for Las Vegas-like casino games.

Michael Speller, president of Genting’s proposed racino in Queens — named Resorts World New York — told a Senate racing and wagering hearing that he foresees no obstacles to opening the new facility by midsummer. But he told the Senate panel that it would be swell for Aqueduct, the state and the other racinos statewide to offer table games.

He said the competition in New Jersey, Pennsylvania and Connecticut can all offer such casino games, and it would be wise for New York to do the same to keep revenues in the Empire State, Speller said. Genting entered into a contract with the state to become a Division of the Lottery franchise offering up to 4,500 video lottery terminals at Aqueduct.

“I agree with you,” said Senate Committee on Racing, Wagering and Gaming Chairman John Bonacic, R-Mount Hope. He said he would like a constitutional amendment to allow for such additional gambling. He also mourned the fact that past attempts to change the Constitution to accommodate for casinos all failed.

“I have visited those places you refer to, and they’re all eating our lunch,” Bonacic said.

Other participants in the hearing on the future of gambling in New York included the New York Racing Association, which suggested that Off-Track Betting corporations should be working with NYRA for operational efficiencies and that the racing and wagering model in New York must be restructured to avoid disaster. NYRA President Charles Hayward said that there should be no concern that the Saratoga meet won’t occur this year. Last year his calls for financial help from the state set off speculation that the summer racing schedule would be in jeopardy. Others spoke about their interest in having the OTBs consolidate. Bonacic said he suspects a bill calling for that will emerge.

Assembly Member Mike Miller Says No to Casino In Sullivan County

Not all casinos are created equal. As a member of the New York State Assembly Racing and Wagering Committee, it has come to my attention that the Stockbridge-Munsee Native American tribe has submitted a proposal to build a casino in Sullivan County. If this casino is built it will cost the state over $400 million. I will fight this tooth and nail for the good of New York City and New York State.

The race track casino industry raises $1 billion for the State of New York every year. Due to federal entitlements, Native American tribes can open casinos that are exempt from many taxes. These casinos do not pay taxes on table games. They only contribute 25% on slot machines as opposed to the 60-70% collected from Video Lottery Terminals (VLTs). Native American casinos are given advantages that other wagering businesses, including the Aqueduct Racino, do not receive. As it stands, 62 cents of every dollar received from our racinos goes back to the State. 42 cents goes to funding education, 10 cents goes to lottery administration, 9 cents goes to horse racing purses, and 1 cent goes to horse breeding. While our current race track casinos pay 62 cents on the dollar, the Native American casinos pay just 20 cents on the dollar.

If the Stockbridge-Munsee casino is built, the State is projected to lose $407 million dollars. This amounts to a $188 million loss in State education funding, a $127 million loss in horse racing industry support, and the loss of over 900 jobs. This casino would kick the New York State economy while it is already $10 billion down. Our existing race track casinos could not overcome the huge advantage given to the Stockbridge-Munsee Native American Tribe. The construction of this casino would cost jobs, funding to education, and the economic well-being of the State. This plan is bad for New York City, it is bad for New York State and this is why my vote is “no.”

Aqueduct Flea Market Vendors Seek New Home by Elizabeth A. Harris - NYTimes.com

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The weekend flea market that has filled a parking lot of Aqueduct racetrack for more than 30 years is shutting down this month.

Every Saturday and Sunday at 6 a.m., Aftabudeen Edun pulls his truck into an expansive parking lot in Ozone Park, Queens, and unloads tiny bottles of perfume and moisturizer, lip balm and deodorant, laying them out in neat rows on folding tables. For 16 years, Mr. Edun, a 46-year-old immigrant from Guyana who owns two cosmetic stores on Liberty Avenue, could be found, usually in the same spot, on scorching summer days and in the chill of early December mornings, selling his wares at the Aqueduct Flea Market.

But last month, after more than 30 years, the flea market, which fills the racetrack’s north parking lot, lost its lease as the racetrack prepared to make room for thousands of slot machines, along with upscale restaurants. At the end of the year, the market’s 500 or so vendors must pack up their tables and tents for good.

“I make more money here than sitting in the store all day,” Mr. Edun said. “But the market is closing forever. I have to find someplace else.”

The flea market offers a hodgepodge of goods, like bedding, incense and pots and pans. A crochet hat can be had for $3, a pair of jeans for $12. The bargains attract loyal customers, some from as far away as Boston and Baltimore who roll in on tour buses.

Eve Breau, 59, a medical technician who lives in East Flatbush, has driven to the flea market from Brooklyn nearly every weekend for the last 10 years.

“Walking around here is like therapy,” Ms. Breau said, strolling by a stall filled with pink and red paper flowers, their petals crinkling in a cold morning breeze. “They have everything.”

The casino, which broke ground last month, will be a very different beast. The developer, Genting New York, a subsidiary of the largest gambling company in Malaysia and Britain, hopes eventually to turn the project into a destination resort, complete with upscale hotels. It says the casino may generate more than $1.5 million per day in tax revenue.

Genting said that keeping a flea market open during construction raised safety issues, and the State Division of Lottery, which regulates casinos, does not have a mechanism in place to administer a flea market. But there were other issues at play, as well.

“The casino operation is an attempt to go upscale, and a flea market is by nature sort of downscale,” said Betty Braton, the chairwoman of Community Board 10, which represents the neighborhood, adding that there had been reports of counterfeit goods being sold at the market over the years. “We’re looking forward to the economic development that is going to come from the casino operation.”

While the project would create jobs, some fear they will not be available to the vendors who are being forced to make way, many of whom are immigrants.

“A lot of these people aren’t formally educated, so it’s difficult for them to transition to another job,” said Richard S. David, the executive director of the Indo-Caribbean Alliance, a community organization based in Ozone Park.

The market closes down every January and February, since it is usually too cold for selling and browsing, but the vendors do not know what lies ahead for them in March. Carol DeSanto, the general manager of Plain and Fancy Shows, which operates the flea market, said last week that a search for a new location had so far been unsuccessful, and many of the vendors who have tried on their own to find a home at other flea markets have been rebuffed.

“There isn’t space in other markets,” said Savitri Harry, 47, who works as a baby-sitter for a family in Manhattan during the week and sells jewelry at Aqueduct on the weekends. “I can’t pay my bills without the market. I can’t.”

The Indo-Caribbean Alliance is trying to find a new site where the vendors can contract directly with their new landlord, rather than going through an intermediary like Plain and Fancy. Mr. David said that they were looking at sites in Brooklyn and Queens, including a parking lot close to the Aqueduct site, but that they needed to move quickly so the vendors don’t start to scatter.

“The success of the market relies on all the vendors’ staying together,” Mr. David said. “It depends on that variety.”

But some of them have already made contingency plans, and the market has begun to break apart.

“I’ll be O.K.; I’ll go to another market,” said Arturo Alonzo, 45, standing between rows of blue jeans and plastic mannequins. “But this is a nice community. I’ll be sad to see it go.”

New York State Assembly Member Michael G. Miller’s Aqueduct Flea Market Statement...

New York State Assembly Member Michael G. Miller today issued the following statement on the decision to discontinue the Aqueduct flea market:

“I am disappointed in the Genting, NYRA, and Lottery Division decision to longer house the Flea Market at Aqueduct. Because the Flea Market has been around for over twenty-five years and provides over a thousand jobs, I am committed to working with my colleagues in government, the management of the flea market, and our community to find a suitable location for this community institution.”  

Public Statement from Resorts World New York (Genting NY) Regarding Aqueduct Flea Market...

"Having heard from the vendors that they wanted an answer quickly in order to make their future plans, Resorts World New York expedited its review process. Since the Aqueduct facility will be a construction site for several months, the Division of the Lottery determined that the continued presence of the flea market would raise safety concerns in addition to being incompatible with the future use of the property. As a result, we have informed the Aqueduct flea market operator, Plain & Fancy Shows, Inc., that the contract permitting the operation of a flea market at Aqueduct will not be renewed after the contract's December 21, 2010 expiration date, although the market will be allowed to operate through the holidays, until December 31, 2010. Any future retail activity on the site would have to be approved and regulated by the Division of the Lottery, and must be fully compliant with all local, state and federal laws regarding working conditions (including hours, safety, minimum wages and documentation), insurance, the collection of sales taxes, appropriate licensing and other regulatory requirements."

Genting Ponies Up the Dough for Aqueduct Racino by Stephen Geffon - Leader-Observer

After almost ten years, the deal at Aqueduct Racetrack is finally completed...

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Aqueduct’s designated casino developer delivered the promised $380 million to the State Lottery Division last Friday. Governor David Paterson announced that on September 24 the State of New York received the $380 million upfront payment from Genting New York LLC to develop and operate a casino at Aqueduct Racetrack in Ozone Park.

"All along, I've said that securing this deal and moving ahead with the project at Aqueduct is critical for the future of New York," Paterson said. "The state, in partnership with Genting, has the opportunity to create jobs for the community and to revitalize this area. After almost a decade of delay, this project is finally becoming a reality and all New Yorkers will benefit."

According to Lottery Director Gordon Medenica, the project will primarily benefit the schoolchildren of New York since all of the Lottery's profits go to education funding.

Mike Speller, president of Genting New York, said, "Genting is excited to have crossed the finish line and will now quickly get to work building a first-class casino that will not only showcase the best in gaming and entertainment, but will result in more than 2,000 jobs and significant recurring revenue for New York State."

Genting was recommended by the New York Lottery to Governor Paterson on August 3. Over the past six weeks, the recommendation has been affirmed by both the State Senate and Assembly and the contract with Genting has been approved by the Office of the Attorney General and Office of the State Comptroller.

Genting’s plans for the $1.3 billion Aqueduct project include 4,525 slot machines, several restaurants, a 34,000-square-foot meeting site for corporate and community events, a 2,100-space parking garage, a new pedestrian walkway from the adjacent subway stop. The firm is also proposing to build three hotels.

“And, of course, we will still have horse racing at Aqueduct,” said Speller.

Speller said that construction of the first phase of the project will begin once regulators complete a review to determine whether it is in compliance with the state Environmental Quality Review Act, a process that typically takes one to two months. Six months after construction begins Genting expects to have 1,600, out of the 4,525 video lottery terminals approved for the facility in operation, with the full casino opening one year after the project is started.

There are estimated to be 1,300 construction jobs and 800 permanent jobs.The racino is projected to generate more than $650 million in gross gaming revenues per year. The New York Racing Association (NYRA) is slated to get 7 percent of that revenue. Once operational, the VLT’s are expected to generate more than $1.5 million a day in tax revenue for the state.

A Brief Note Regarding Hallowed Ground (Updated with Startling Photo Evidence): - The Rude Pundit

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Yesterday, the Rude Pundit was walking down near Ground Zero, New York City, as one must sometimes do in the course of day-to-day activities, when heard someone over a megaphone say, "Never forget. Never forget," repeatedly, flatly, almost mournfully. This was on the corner of Broadway and Fulton, across the street from St. Paul's Chapel, one block from the former World Trade Center twin towers. He turned to see what this was, thinking perhaps another protest.

Instead, he saw four figures. Two men, one with a voice that sounded like a megaphone and a sign that read, "Support Our Heroes," the other with an American flag. And two people wearing what seemed to be brightly smiling ping-pong ball outfits. And, oh, dear, kind readers, the Rude Pundit is not lying to you when he says that one of the ping-pong balls had a "9" emblazoned on it and the other had an "11." They also wore caps.

Ah, the people on the street were delighted at the sight. And when they took out their cameras or phones to snap a picture, the entire group stopped and waved at the grinning photographers. Then, the photo op done, the foursome would move on, with the first man continuing his sad wail of "Never forget."

The Rude Pundit noticed the t-shirt worn by the first and last men. It cleared up the entire story. The shirts said, in a bright, dense design, that they were from the New York State Lottery. And the outfits were the white balls you see when the hot chick on TV picks four or the Mega-Millions.

They turned, heading east on Fulton, a pair of disembodied balls scampering away from Ground Zero.

Genting Strategy To Herald New York City Casino by Scott Van Voorhis - GamblingCompliance

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Genting’s ambitious push for a full-scale casino in the heart of New York City could reshape the market for gambling across the Northeast, industry observers say.

Fresh from landing one of the most elusive deals in the US gaming industry, the Malaysian casino giant has signaled it wants to go far beyond simply installing video lottery terminals at the aging Aqueduct racetrack to build a full-scale, top shelf casino.


Genting’s strategy could reap the Asian casino behemoth some handsome rewards, putting it in position to build the first casino in the Big Apple, the largest and wealthiest city in the US.


But it’s not without risks as well. The casino giant has swiftly committed itself to a major build out in a market where a number of potential competitors are also seeking to set up shop.


Still, Genting’s planned New York gambling venue, just by virtue of its almost unmatched location, is likely to shake up the gaming market on the East Coast, biting into the profits of rival casinos from Atlantic City to Connecticut, industry observers say.


“It is definitely going to have an impact on all of the Northeast,’’ said Frank Catania, a former director of the New Jersey Division of Gaming Enforcement and now president of Catania Gaming Consultants. “It’s getting to the point where the proliferation of gaming is cannibalizing everyplace else.’’


For Genting, the timing of the Aqueduct deal could not be better, coming not long after it unveiled an aggressive US expansion plan that featured big bets on seemingly long-shot deals.


Along with the notoriously tricky Aqueduct deal, the casino giant is also backing the Mashpee Wampanoag tribe in Massachusetts and exploring plans for a tribal casino in the Catskills, a short drive from New York.


But the lightning speed with which it has nailed down a deal to redevelop the aging Queens racetrack has taken gaming industry observers by surprise, with Genting succeeding in matter of weeks where others had spent years fumbling around.


A latecomer to the Aqueduct contest, Genting threw its hat in the ring this spring after the New York Lottery took over the bidding process in the wake of the latest in a long line of development deals gone bad.


The short-lived winner, Aqueduct Entertainment Group, was stripped of the Aqueduct deal in March amid a series of state and federal corruption probes into a selection process dominated by Governor David Paterson and the state’s two top legislative leaders. The winner of a previous round of bidding, Delaware North, failed to come up with a promised, $370m up-front payment.


In fact, the hunt for an Aqueduct developer began nearly a decade ago, with New York lawmakers first authorizing video lottery terminals at the aging and financially struggling racetrack back in 2001.


For its part, Genting faced rival interest from major players who had been circling the Aqueduct deal for months or even years, including MGM, Penn National and Delaware North.


But Genting benefited when it heeded warnings by the New York Lottery not to attempt to renegotiate the terms of the Aqueduct deal set forth by the state authority.


Both Penn National and New York developer SL Green, which had teamed up with the Seminoles’ Hard Rock casino and hotel empire, were disqualified after seeking extensive revisions to the Aqueduct contract put forth by lottery executives.


Genting also submitted an extremely rich upfront payment - $380m, or more than 20 percent higher than the minimum set by the lottery.


“I think they found it very hard to believe that any group could simply live up to the conditions the state had wanted for this,’’ said Bennett Liebman, coordinator of the Racing and Gaming Law Program at Albany Law School and a board member of the New York Racing Association, of Genting’s erstwhile rivals. “They put up a lot of money.’’


Following up on its Aqueduct victory, Genting is now talking up the idea of building a full-fledged casino at Aqueduct.


While Genting, after a few final sign-offs, will have a green light to roll out more than 4,500 video slots, executives with the casino giant have told lawmakers they now want to go all the way and add table games as well.


That, however, is not likely to happen overnight, with such a move needing a series of complicated approvals by the New York Legislature.


Yet it’s a further sign that Genting plans to take full advantage of Aqueduct’s prime, New York City location, observers say. (Roughly 5.6 million people live within ten miles of the track.)


Genting plans have as many as 1,600 video lottery terminals up and running in six months at Aqueduct, with the full complement of 4,500 ready to go within a year.


Initial plans call for transforming the grandstand the old track into a ‘showcase’ that will feature a three-story atrium, restaurants and two floors of video slots. There will also be an enclosed sky-bridge linking up with a nearby subway station and shuttles to pick up gamblers arriving at the nearby John F. Kennedy Airport.


Even without table games, Genting’s giant new New York City gambling hall will cut into profits both to the south in Atlantic City and to the north in Connecticut, home to two of the world’s largest casinos, Foxwoods and Mohegan Sun, observers say.


“If you establish a class facility at Aqueduct, the real losers might be Atlantic City,” said Joe Kelly, a professor of business law at SUNY College Buffalo and a gaming industry expert.


But it is a strategy that is not without some dangers as well, with a number of competitors also eager to break into the market.


Long Island’s Shinnecock tribe is pushing ahead with plans to open a casino in the area and has looked at sites that would encroach on Aqueduct’s territory, including the nearby Belmont racetrack.


There’s also the possibility neighboring New Jersey might opt to put video slots at the Meadowlands, or that New York City’s ailing OTB parlors might be given a green light to install some machines as well, Liebman noted.


Genting’s bidding rivals Penn National and SL Green were concerned enough about potential competitors that both tried to include protective provisions in a potential Aqueduct deal. Both efforts, though, backfired, prompting lottery officials to eject the two companies from the Aqueduct competition.


Still, Genting likely has a big lead on any competitor, with a Shinnecock tribal casino likely years away.


“That is a long way off,” Catania noted.

Silver Signs Off On Genting by Ken Lovett - NY Daily News

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And they're off again.

Assembly Speaker Sheldon Silver has signed off on the Genting New York bid to run the long-delayed racino at Aqueduct race track in Queens, meaning all three state leaders have now backed the deal.

Silver spokeswoman Sisa Moyo said the speaker informed the governor that he's ready to sign the necessary contracts after having consulted with
Assembly Racing and Wagering Committee Chairman Gary Pretlow and Assemblywoman Audrey Pheffer, whose district includes Aqueduct.

“We did a thorough examination,” Moyo said. “It met provisions that the Assembly had wanted and it was a good offer.”

Gov. Paterson and Senate Democratic Conference Leader John Sampson had previously signed off on the Genting bid.

Once the memorandum of understanding is officially signed, it must be approved by the offices of attorney general and controller.

Genting, which has promised the cash-strapped state $380 million upfront, says it will begin construction quickly with the first phase of 1,600 video slot machines opening within six months. The remaining 2,925 machines will open within a year, under Genting’s schedule.

Of course, the governor and legislative leaders awarded the bid earlier this year to politically-connected Aqueduct Entertainment group only to see the deal fall apart when the Lottery Division found AEG “unlicensable.”

In late 2008, Delaware North was awarded the project, but abrubtly pulled the plug in early 2009 after the credit crunch made it impossible for the company to raise the promised $370 million upfront payment to the state.

No such problems are expected in this case. Genting is a global company worth $5.25 billion, with $1.6 billion in cash on hand.

NYS Senate Hearing on Aqueduct VLT Selection Process with NYS Lottery Chairman and Genting New York - NYS Senate Senate

Video length 1 hr 55 mins

Aqueduct VLT Selection Process with Senator Eric Adams, Senator Joseph Addabbo, and Senator Craig Johnson, appearing before the committee was Gordon Mendicia  the Chairman of New York State Lottery and Genting New York.

The above video is of the proceedings yesterday in Albany regarding Genting New York (GNY).  

GNY appeared before Sen. Eric Adams, the Chairman of the Racing; Wagering Committee.

The part of the presentation at the beginning of the video from Gordon Mendicia the Chairman of Lottery gives a good explanation of the process and how the evaluation took place - it's approximately 30 minutes - it begins at the 8:00 minute mark.

GNY's presentation was quite similar to their presentation to Community Board 10 and the public in July at Aqueduct - Genting's Jay Walker presentation begins at the 40:00 minute mark.

Lottery Approves of Genting Casino Bid by Bryan Yurcan - Queens Chronicle

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This artist’s rendering shows what the clubhouse at Aqueduct Race Track might look like if Genting NY receives state approval to build a gaming and entertainment facility there. RENDERING COURTESY GENTING NY

As was expected, the state Division of the Lottery formally approved Genting New York’s bid to operate a gaming and entertainment facility at Aqueduct Race Track Tuesday.

The company, a subsidiary of Asian gaming giant Genting Malaysia Berhad, now has the inside track to begin constructing the facility, which would feature 4,500 video lottery terminals, though it still faces some hurdles. The deal still must be approved by Gov. Dave Paterson and legislative leaders from the Senate and Assembly.

Also, a former bidder for the gaming operation, Aqueduct Entertainment Company, is still trying to legally block the process from going forward, claiming the state’s selection process was flawed. However, a state judge last week dismissed a lawsuit from the group that sought to halt the process, though AEC said it plans to appeal the ruling.

In recommending the Genting bid, Lottery Director Gordon Medenica wrote in a letter to Gov. Paterson’s office that the company had proved itself to be experienced and professional in running gaming operations throughout the world.

“Genting’s proposal was impressive on many levels,” he wrote. “Their proposal reflects a deep and insightful understanding of the opportunity and challenges of Aqueduct. Genting took nothing for granted. They understood the business risks that a winning bidder is required to accept, and they have a clear and rational plan for navigating the complex construction and operating environment of New York City. In addition, they are highly sensitive to the community issues, labor requirements and social concerns that a project of such scope encompasses.”

After so many false starts in prior attempts to revive Aqueduct, those in the surrounding community believe the project will now finally come to fruition.

Betty Braton, chairwoman of Community Board 10, said the board is pleased with the Lottery’s recommendation.

“We are hoping state leaders ratify Genting’s bid quickly,” she said. “For eight long years, this project has been delayed many times.”

Braton said members of the community still have some concerns, such as traffic and safety issues, but overall most are in favor of the project.

“We look forward to a partnership with them that is beneficial not only to the state and the racing industry, but to the many thousands of people who live in the community,” said Braton.

In a statement released by Genting shortly after the Lottery’s recommendation of its bid, company spokesman Stefan Friedman reiterated the company’s claim that the project would create 2,000 jobs and generate $500 million per year in state revenue.

“We hope the Lottery’s recommendation will be endorsed by the Legislature so we can immediately get to work creating jobs,” he said.

Genting’s proposal calls for a 93,000-square-foot gaming area on the first floor and a 42,500-square-foot gaming area on the second floor, an entrance with a three-story atrium and water feature, and a 2,200-car-parking facility, with valet service also available.

The company has said dining will be a major part of the complex, including a 200-seat high-end restaurant, 200-seat Chinese restaurant, a sports bar and grill with a 280-person capacity, and a two-story casual dining promenade with 450 seats.

Genting said it can have 1,600 of the video slots operating within six months, and have the remaining 2,900 ready to go by next summer. The company has said the entire project could be completed within 18 months.

Local elected officials also praised Genting’s plans for the decrepit racetrack.

“For the sake of my people, I look forward to working with Genting and the community as we move forward with building Queens’ newest tourist attraction that will provide 1,300 construction and post-construction jobs, financial benefits to the state, and long-term benefits to my constituents,” said state Sen. Joe Addabbo Jr. (D-Howard Beach), a member of the Senate Racing, Gaming and Wagering Committee. “I will also continue to stress those issues that need to be addressed by Genting, particularly traffic patterns and public safety.”

Assemblywoman Audrey Pheffer (D-Ozone Park), said she has urged Paterson and Assembly Speaker Sheldon Silver to quickly approved the bid.

“Be assured, I will demand that community concerns and input continue to be included in all future planning,” said Pheffer. “We must work diligently to bring the jobs, employment opportunities and economic stimulus that Aqueduct will provide to our local community and economy. ”

Added Councilman Eric Ulrich (R-Ozone Park), “I am very pleased that the Lottery has unanimously selected a winning vendor for Aqueduct.”

New York Lottery Recommends Genting New York to Run Casino at Aqueduct

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Earlier today, the NY Lottery delivered its recommendation of Genting New York as the developer and operator of the video gaming facility at Aqueduct Racetrack in Queens. The Lottery's recommendation to the Governor is included in its entirety below, and the full report is attached.

Click here to read full report...

August 3, 2010

The Honorable Governor David A. Paterson
State Capitol
Albany, NY 12224

Dear Governor Paterson:

Attached is the report from the Lottery's Evaluation Committee on the selection of a developer and operator for the Video Lottery Facility at Aqueduct Racetrack. It is with genuine enthusiasm that the Committee unanimously recommends Genting New York as the winning vendor. Our strong recommendation, based on the merits of the proposal, was vastly reinforced by Genting's financial offer of $380 million as an upfront licensing fee.

Genting's proposal was impressive on many levels. They are a vastly experienced and professional gaming company and their proposal reflects a deep and insightful understanding of the opportunity and challenges of Aqueduct. Genting took nothing for granted – they respected the very rigorous selection process that we developed after the missteps of the past. They understood the business risks that a winning bidder is required to accept, and they have a clear and rational plan for navigating the complex construction and operating environment of New York City. In addition, they are highly sensitive to the community issues, labor requirements and social concerns that a project of such scope encompasses.

Genting's proposal was far superior, in concept, scope, detail and execution, to any we have seen in previous rounds of evaluation. It is well known that other bidders, and potential bidders, found the State's requirements too demanding to accept. They made the fatal assumption that the process was still open to maneuvering and negotiation. We acknowledge that the process was tough and the expectations were rigorous, but our requirements were crystal clear. For Genting to emerge from such a grueling process as a strong winner is a testament to the effort, skill and intelligence of their team. Every aspect of their proposal demonstrated the highest standards of professionalism and respect.

The attached report details our process, findings, analysis and scoring of the proposal. Even after we disqualified non-conforming bidders, we still followed the process, as originally outlined, for the remaining bidder. This included an exhaustive vetting of the company, its investors, and key personnel for licensing qualifications, and we found the company and its personnel fully qualified for video gaming licenses. We also retained KPMG to advise the Committee on the financial capability of Genting, and we concluded that Genting was uniquely qualified and highly capable of delivering the substantial financial results we expect from this project.

While you, Governor, have already committed to supporting this recommendation, we urge our legislative leaders to quickly add their support in order for the State to receive, finally, the massive influx of monies that this project will generate. Genting New York was not the only bidder for this project; it was the best bidder for this project. And Genting New York is not the only winner of this process; the people of New York, through jobs, economic activity and aid to education, are the bigger winners.

Sincerely,
/s/ Gordon Medenica

Judge Delays Verdict on Aqueduct Lawsuit by Stephen Geffon - Queens Chronicle

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A state judge has delayed a ruling affecting bids for a proposed racino at Aqueduct Racetrack in Ozone Park.

State Supreme Court Judge Barry Kramer on July 23 continued the hearing regarding the lawsuit filed against the state by Aqueduct Entertainment Company for rescinding its decision to award the firm the 30-year franchise to develop and operate the video lottery terminals at the Ozone Park racetrack.

Kramer said he needed more time to review the documents that were submitted by the parties to the lawsuit.

State officials are allowed to continue to evaluate Genting New York’s bid while the court case continues, Kramer said.

The judge set the next court date for Thursday July 29, when he is expected to make a decision on the case.

On July 6, AEC sued the Lottery and several elected officials seeking a permanent halt to the bidding process and asking the court to declare the group the winner. Kramer ordered a halt to the bidding process on July 12 only to amend his temporary restraining order two days later.

Last January, AEC was declared the winner of the Aqueduct franchise, however, in March the state Lottery called the group “unlicensable,” and Gov. David Paterson cancelled the deal.

A Lottery spokeswoman said the vetting process of Genting is ongoing and the agency still intends to announce a recommendation on Aug. 3, unless it is ordered otherwise.

Earlier this month, two bidders for the Aqueduct franchise, a consortium of SL Green, Hard Rock International and Clairvest Group and Penn National Gaming were disqualified by the Lottery.

Lottery officials said the two bidders did not agree to all of the state’s terms set for the operator of the franchise.

SL Green wanted its $300 million licensing fee, required to be paid upfront, to be held in escrow until certain conditions were met by the state. The bidder also wanted a complete exemption from state and local sales taxes for construction, and wanted a cap on increases in local property taxes at 3 percent.

SL Green fired off a formal letter to the Lottery, which may be a prelude to a lawsuit, protesting the decision of the Lottery to disqualify the firm’s proposal from consideration. “This decision was itself unfounded and, more importantly, reflects a flawed Request for Proposals that was designed to inhibit competition rather than promote it,” an attorney for SL Green said in the letter.

The Lottery has not responded to SL Green’s letter.

The video lottery terminals at Aqueduct are expected to generate more than $800 million for the state.

I Want to Keep Aqueduct Racetrack Op/Ed by State Senator Joe Addabbo...

When will the long-awaited redevelopment of the Big A become the "big ahhhhh"?

It could be just 18 months away, if the last bidder is finally approved by the NYS Lottery.

The VLT bidding process is now eight years along, under three different governors. Last Thursday, the general public heard from the remaining bidder, Genting New York. Could this be one of the last steps toward finally realizing the saving of Aqueduct? It better be.

I intend to continue working with whoever operates at Aqueduct on the issues that concern my constituents such as traffic patterns, jobs and public safety. Genting said they are committed to addressing the issues raised by the community and plan on being credible, long-term neighbors.

The local jobs potential and impact on local small businesses is a major issue when discussing the Aqueduct proposal.

According to Genting, upwards of 800 permanent jobs and 1,300 construction jobs are planned. They will offer employees a highly competitive wage and work with the city's unions. Genting expects to buy goods and services in excess of $30 million annually, like laundry and taxi services, office supplies, flowers and other supplies from local businesses.

These businesses like restaurants, car washes, pizzerias, gas stations, card and gift shops, florists and many more could experience an opportunity for increased business not seen in decades. Construction alone will represent more than $200 million in capital spending, a good portion targeted to local workers. Genting also pledged to donate 1 percent of net profits to worthy area projects, which could result in $350,000 the first year and up to $500,000 for each following year.

Tax revenues will generate education funding in excess of $300 million annually and home values should rise. In Queens, the spike in home foreclosures and loss of jobs during this extended recession could be relieved.

For those who don’t want the casino at Aqueduct, the alternative use of its property could be far worse for the residents of the state, city and surrounding communities.

Forget for the moment the estimated 2,000 jobs. Put aside the tremendous financial gain to the city and state. Let’s not talk about the restaurants, shops and long-term benefit to local small businesses.

In order to keep Aqueduct as a beloved racetrack and icon in Queens and keep eager developers from building practically anything as-of-right, without any community input that would have a long-term detrimental effect, the Genting proposal seems to be a necessity.

With the Aqueduct property dangerously zoned C-8, the Genting proposal is better than the negative alternative, and we need to move forward with the Lottery selection process.

No matter which operator eventually wins out, my constituents need to let out a long-held sigh of relief, because they've endured this long bidding process waiting for jobs, waiting for a small business booster, waiting for help with foreclosures, waiting for increased property values, waiting for help with school funding and for community groups.

“And they’re off!” at the racetrack means the horses have left the gate; now we need to cross the finish line with the selection process for an operator at Aqueduct.

Joseph Addabbo is the State Senator for District 15 in Queens.

Review Can Proceed but Aqueduct Decision on Hold by Stephen Geffon - Leader-Observer

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Queens Tribune

The State Division of the Lottery can proceed with the evaluation process for the Aqueduct casino project, but can’t award the VLT contract until a legal challenge is resolved.

State Supreme Court Justice Barry Kramer amended the temporary restraining order he issued on July 12 that the State Lottery stop its ongoing review of Genting New York, the lone remaining bidder in the project. The Lottery was in the middle of the review, looking to make a recommendation by August 3.

Kramer's amended order allows the review to continue, but the agency agreed not to issue a recommendation on the project to the governor and legislative leaders before the July 23rd court hearing date. The governor and legislative leaders also agreed not to make a final decision before that hearing.

Aqueduct Entertainment Company (AEC), formerly called Aqueduct Entertainment Group, which this year won the racino bid but was later deemed unlicensable by the Lottery Division, has sued to stop the new bidding process for the Aqueduct VLTs and get reinstated as the operator of the Aqueduct casino.

In the lawsuit, AEC said they are “requesting declaratory and injunctive relief to end the mounting and irreparable injury they presently suffer as a result of arbitrary, capricious, unauthorized and discriminatory actions taken against them by the New York State Division of the Lottery, Governor David Paterson, Senate President Malcolm Smith, and Assembly Speaker Sheldon Silver.”

AEC also stated that, “nearly a year after the bidding process had commenced and AEC had been selected, the Assembly speaker changed the licensing rules.”

All parties to the lawsuit are scheduled to appear before Justice Kramer in Schenectady on Friday.

Earlier this month, two bidders for the Aqueduct franchise, a consortium of SL Green, Hard Rock International, and Clairvest Group and Penn National Gaming were disqualified.

Lottery officials said the two bidders did not agree to all of the state’s terms set for the operator of the franchise, including a $300 million nonrefundable licensing fee due before the final contract was signed, as well as paying off a portion of the New York Racing Association’s debt.

SL Green appears is not standing idly by, and in a formal letter to the Lottery, which may be a prelude to a lawsuit, said the firm, “Protests the decision of the New York State Division of the Lottery to disqualify SL Green's proposal...this decision was itself unfounded and, more importantly, reflects a flawed RFP that was designed to inhibit competition rather than promote it.”

“We received the letter and are reviewing it and we’ll have a response to them in a timely manner,” said Lottery spokesperson Jennifer Givner.

Additional related articles:

Introducing Genting: Lone VLT Bidder Makes Its Pitch To Boro Community, Local Leaders by Domenick Rafter - Queens Tribune

Aqueduct Plan Touts Dining, Entertainment - by Bryan Yurcan - Queens Chronicle

Community Board 10 Public Meeting with Genting New York at Aqueduct - July 15th

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On July 15th I attended Genting New York's presentation to Community Board 10 at Aqueduct Racetrack...There was a full house of community board members and anxious area resident eager to hear what Genting New York was proposing for the long awaited casino site...During the presentation the room was filled to capacity with standing room only...Local politicians including Senator Joe Addabbo, Assemblymembers Audrey Pheffer, Michelle Titus and Michael Miller and City Councilmember Eric Ulrich were in attendance...I personally felt that Genting gave an excellent presentation and were very well received by this present at the meeting...

Genting’s ‘Racino’ Proposal Faces Uncertainty by Yvonnne Tan - The Star.com

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The delay in the proposed development and operation of a video lottery facility at New York City’s Aqueduct Racetrack does not bode well for Genting Malaysia Bhd which is now the sole surviving contender for the project, according to analysts.

“For now we are assuming that it’s a no-go,” an analyst who tracks developments in the company said.

He said the legal processes which were causing the delay could take a long time to get sorted out.

In an update on Genting Malaysia yesterday, Hwang DBS said the halt in the bidding for the rights to develop and operate the facility “could negatively affect” its bid, the outcome of which was initially scheduled for Aug 3.

“No one really knows what to expect now. To be fair, no one ever said that it was going to be easy from day one,” he added.

The successful firm which gets the approval for the project will, among other things, develop a designated and dedicated area to house and operate a slot machine-style “racino” (a combination of racetrack and casino) with 4,500 video-lottery terminals, and food and retail outlets.

It is believed that Genting Malaysia’s key management people are currently in the US to address any outstanding issues pertaining to the proposed development.

Genting Malaysia parent Genting Bhd’s head of strategic investments and corporate affairs, Datuk Justin Leong, did not respond to StarBizWeek’s queries yesterday.

To recap, on June 30 Genting Malaysia’s subsidiary, Genting New York LLC, together with two other US-based parties confirmed that they had submitted a bid for the project.

This narrowed the bidders’ list to three groups from six as earlier reported.
The other two US groups have since been disqualified for not fulfilling certain requirements.

A US State Supreme Court earlier this week halted any further developments to the proposed racino so that it could consider whether a previous winner of the same project – Aqueduct Entertainment Corp (formerly Aqueduct Entertainment Group) – had been wrongly rejected. A hearing is expected to take place next Friday.

Kenanga Research head Yeonzon Yeow said in view of the legal complications, Genting Malaysia “may be able to look at other more lucrative opportunities.”

Some earlier analyst reports on Genting Malaysia’s possible venture noted that net profit margins for such projects could be as low as 5%.

This was because racinos had to use large chunks of their net wins to make stipulated legislative welfare contributions as part of the requirements attached to the licence, they said.

At the close yesterday, shares of Genting Malaysia were up 0.75% at RM2.70.

Sole Bidder Presents Aqueduct Racino Plans To Queens Locals by Ruschell Boone - NY1.com

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After making a bid to the state, the last company standing in the competition to operate electronic slot machines at the Aqueduct Race Track in Queens took its pitch to the community on Friday. Borough reporter Ruschell Boone filed the following report.
 
Armed with a lot of questions about the plans to redevelop Aqueduct Race Track into a racino, residents and local leaders packed a Community Board 10 meeting at the racetrack. There, Genting New York, one of the world's biggest gaming companies, made its first public pitch to operate 4,500 electronic slot machines at the track.

"When you walk in, it's going to look like you walked into any other beautiful casino in the world, said Genting New York spokesman Jay Walker. "You'll see restaurants, you'll see a water feature. There's a big sports bar that's two stories tall planned here. It's going to be one nice place."

The company is also pledging to set aside 1 percent of its yearly profits for community projects.

"I personally feel that they have the mindset to do the right thing here, which we have been waiting so long for," said one local.

About ten years ago, Aqueduct started to look for a bidder. Last year, the governor finally picked the politically-connected Aqueduct Entertainment Group, which included former Congressman Floyd Flake and rapper-businessman Jay-Z, to run the racino, but that deal collapsed amid charges of favoritism.

Last week, the State Lottery Division disqualified two other bidders for trying to change a number of conditions, including a $300 million non-refundable licensing fee. That left Genting New York as the only current bidder.

While most residents seemed pleased with Friday's presentation, some had a number of concerns they wanted the company to address.

"I'm just concerned about the traffic needs of the location. Other than that, I like the idea," said one attendee.

"Jobs we have to see, because everybody says there's jobs out there and your neighborhood doesn't get the jobs," said another.

Genting representatives said traffic should not be a problem because patrons do not show up all at once, the way they do at sporting events. As for jobs, company officials said the project would generate about 800 permanent positions and 1,300 others during construction.

The project could be completed within 18 months, but it is uncertain if Genting will be selected.

"It's high time that all of the problems end and that we finally get an operator," said Community Board 10 Chairperson Betty Braton.

The State Lottery Division is expected to make a recommendation to the governor by August 3. If Genting is not approved, the search for an operator starts all over again.

Coming Down the Home Stretch by Bryan Yurcan - Queens Chronicle

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These renderings provided by Genting New York show a glimpse of what the company proposes to do if it is awarded the bid by the state. PHOTO COURTESY GENTING NEW YORK

We may be approaching the finish line in the state’s decade-long quest to award a bid to build a gaming and entertainment franchise at the Aqueduct Racetrack.

Tonight, July 15, Community Board 10 will host a meeting at which the remaining bidder left in the field, Genting New York, will reveal what plans it has for the Aqueduct gaming franchise.

The meeting was initially scheduled to feature proposals from three bidders, but two of them, a consortium consisting of SL Green, Hard Rock International and Clairvest Group; and Penn National Gaming, were disqualified by the New York state Division of Lottery earlier this month for not meeting the requirements put forth by Albany. Those included a $300 million, nonrefundable licensing fee due before the final contract was signed and paying off a portion of the New York Racing Association’s debt. The state said those bidders also proposed their own conditions that the lottery found unacceptable.

The disqualifications came after a previous round of bidding had awarded the project to Aqueduct Entertainment Group, which was ruled out shortly after its preliminary selection amidst suspicions of political favoritism. AEG this month filed a lawsuit against the state over its disqualification. A judge Wednesday ordered a halt to the bidding process pending a hearing July 23 on AEG’s suit [see separate story].

The lottery said that Genting New York, a subsidiary of Asia’s largest gaming company, won’t simply be declared the winner by default. It will still review Genting’s bid, and could decide not to recommend it and open up the bidding process again. The agency expects to make a decision by August.

Jay Walker, a spokesman for Genting, told the Queens Chronicle that the company sees this as a rare opportunity to gain a foothold in one of the premier markets in the world.

“This is an amazing location,” he said. “It would be the only casino within the New York City limits.”

Though much of the project involves the installation of some 4,500 video lottery terminals, which are electronic slot machines, Walker said Genting has plans to do more than just build another “racino” at Aqueduct.

“They are looking at this as creating a great entertainment destination,” he said. “They are a global tourist company.”

Genting has built large-scale projects, such as the massive Highlands resort in Kuala Lumpur, and small casinos on Norwegian Cruise Line ships, which Genting owns.

Walker said the size and scope of the Aqueduct plan would conform to how “the city and state want this to develop.”

Walker said the project is expected to provide 1,300 construction jobs, and 800 permanent jobs after it opens. He further said there are no plans to construct hotel rooms in phase one of the project.

When asked if Genting might press the state to eventually allow table games, such as poker or blackjack, at Aqueduct, Walker said the company isn’t commenting on plans that far ahead, as the bid has yet to be approved.

He did say Genting has a very forward-looking philosophy that plans, “20, 30 years down the road. They really believe in this project.”

He said if the state approves the bid one shouldn’t expect delays in construction.

“These guys know how to hustle,” he said. “They do it fast and right.”

Though Genting is a major name in the gaming industry around the world, it is a relative unknown in the U.S. The company’s only domestic involvement in the industry was providing seed money for the Foxwoods resort and casino in Connecticut, and helping fund projects headed by the Seneca Indian tribe in upstate New York.