All approvals are now in the bag.
The process started with New York State Division of Lottery (“New York Lottery”) giving its thumbs-up for the Genting bid to the Governor of New York to be selected as the developer and operator of a video lottery facility at the Aqueduct Racetrack in New York. The buck went up further to obtain approvals from New York State leaders and offices of the New York State Attorney General and Comptroller.
On 13 September 2010, the Office of the New York State Comptroller formally announced its approval for Genting New York to develop and operate the video lottery facility. The final approval required is now in the bag.
So, what's next?
Upon delivery of the approved Memorandum of Understanding by the State of New York to Genting New York, Genting New York will make a payment of US$380 million as the upfront licencing fee to the State of New York within ten (10) business days. The licence is for a duration of 30 years and the construction of the Project (to be known as Resorts World New York) will commence as soon as practicable, with the opening of the preliminary phase expected by Spring 2011.
Let us read a write up of the Genting achievement titled,"At long last, a winner at Aqueduct".
" After nearly a decade of botched races, NY state comptroller makes it official, gives nod to Genting for racino expected to generate $1.5M a day; $380M check in the mail.
It's official— Genting New York has crossed the finish line and will bring video slot machines to the rundown Aqueduct Racetrack.
As expected, New York state Comptroller Thomas DiNapoli announced Monday that he has signed off on the lucrative contract with Genting New York, part of giant Kuala Lumpur-based casino operator Genting Malaysia Berhad, for a video lottery facility at Aqueduct. Mr. DiNapoli was the last state official needed to approve the contact, which is effective immediately.
“After nearly a decade of false starts and broken promises, the VLT contract is done,” Mr. DiNapoli said in a press statement. “This is one of the most important vendor contracts New York has ever signed. The contract involves hundreds of millions of dollars. It's a 30-year license that carries the future of New York's racing industry on its back.”
Genting now needs to deliver its check for $380 million, the promised upfront licensing fee, to the state. Assuming all goes as planned, 1,600 video slot machines will be open by this spring. Genting expects to generate $1.5 million per day in revenue for the state once it has all 4,500 video slot machines in place in about a year.
“Genting Malaysia Berhad is honored to have earned final approval to begin building a new facility at Aqueduct," said K.T. Lim, chairman of Genting Malaysia Berhad, in a press statement. "We are eager to immediately begin investing, creating jobs, sparking economic activity and bringing New York a one-of-a-kind iconic, entertainment destination.”
The final sign-off comes a week after reports came out that Mr. DiNapoli was concerned over the selection of Genting. Mr. DiNapoli's office confirmed that it had more questions for New York Lottery regarding Genting but declined to elaborate.
“My office did this right and we did it expeditiously without sacrificing thoroughness. We took every step to ensure the taxpayers are safeguarded in this contract,” said Mr. DiNapoli. “It's New Yorkers' money; it's my job to protect it.”
This latest, and now officially the final round of bidding to build and operate a racino in Ozone Park, Queens, has been deemed more transparent and faster than the four previous rounds.
In addition to slots, Genting intends to open a 200-seat high-end Chinese restaurant, a sports bar with a 280-seat lounge, other buffet-style restaurants, and even a water show. The company said it expects to complete the restaurants, food court and 2,200-space parking garage within one year of its contract start."
So, what can one say except to wish all the best to Genting Berhad and Genting M.
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