Thursday, July 1, 2010

Three Groups Submit Aqueduct Bids

The Forum Newsgroup

Three bidders have emerged in the latest bidding war to operate video lottery terminals (VLTs) at Aqueduct Racetrack.

After the Aqueduct Entertainment Group’s bid was denied in March, the New York Lottery opened up bidding again in June when six bidders met: SL Green Realty Group, Delaware North, Penn National, Empire City Casino Yonkers Raceway, Genting New York, and Clairvest Group.

The three groups that submitted bids on Tuesday were Genting New York, Penn National, and SL Green Realty with Hard Rock. The Clairvest Group ended up partnering with SL Green and Hard Rock’s group.Genting is the operator of Asia’s largest casino in Malaysia.Penn National operates over a dozen casinos and racetracks across the United States. SL Green is one of New York’s largest Realtors and is joined by Hard Rock, which operates restaurants and casinos across the world. Clairvest, once a part of Aqueduct Entertainment Group, is one of Canada’s
largest investment firms.

The Aqueduct racetrack is expected to generate over $1 million a day in tax revenue for New York and over $800 million a year for the winning bidder. Bidders are concerned about making a $300 million payment upfront and the possibility of a Shinnecock Indian casino outside the city in Suffolk county.

New York Lottery plans to recommend a winning bidder to Governor Patterson and state legislators by August 3.

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