Genting: Another Racino Bid Write-up

In a stunning move, the State Lottery has disqualified two of the three bidders for the ill-fated Aqueduct “racino” project.

SL Green and Penn National Gaming were rejected only seven days after submitting their applications in the latest round of bidding for the long-delayed project.

That leaves just Genting New York in the running.

Genting “appears to conform with all requirements of the bid submission process and will continue to be evaluated,” the Lottery said in a statement.

If Genting ultimately is not approved for the Aqueduct project, the bidding process will have to start again. A recommendation from Lottery is due to Gov. Paterson and legislative leaders by Aug. 3.

Lottery officials said Penn National and SL Green, which was partnering with Hard Rock International and Clairvest Group, did not conform with the set criteria. Both failed to submit signed copies of the mandatory bid requirements.

Instead, the two bidders offered “altered versions” containing numerous changes they wanted.

Once believed to be a front-runner, SL Green, for example, wanted their minimum $300 million upfront fee to be held in escrow until their conditions were met by the state.

The group also wanted the right to make ownership changes without the state’s consent, a cap

on any increase in local property taxes at 3%, and a complete exemption of state and local

sales taxes for the construction of the racino.

Penn National, meanwhile, wanted to be able to terminate its Aqueduct video lottery license

any time it decides the casino has not been profitable for four straight quarters.
The group also wanted a guarantee that no other gaming facility would open within 50 miles

of Aqeuduct, despite those who are eying Belmont in the future.

Most of the changes sought by both groups were raised with Lottery before the bids were due.

“It was made clear that non-conforming bids would be disqualified,” Lottery said.

It would do us good to look at the issues raised by the other two bidders. Caveat emptor!

From what transpired recently where GenM was made into the 'monkey and donkey' to take over red ink of Genting UK from Genting S, be very careful of this rogue parent company, minority shareholders!

They are capable of cannibalism!

The New York Racino: Surviving the Competition

I am really neutral on this.

The latest Bloomberg  report tells us that Genting Malaysia Bhd, is the only surviving bidder for an electronic slot-machine parlor at New York City’s Aqueduct Racetrack after two US-based firms were disqualified, the New York Lottery announced.

One excluded proposal was submitted by a group led by SL Green Realty Corp, Manhattan’s biggest office landlord, in a bid with partners Hard Rock International and Toronto-based Clairvest Group. The other was from Wyomissing, Pennsylvania-based Penn National Gaming Inc, which operates 19 casinos and racetracks.

“The proposals did not conform with the requirements of the competition and, instead, attempted to negotiate for terms more favorable to the bidders,” Lottery Director Gordon Medenica said in a statement. Neither New York-based SL Green nor Penn National will be eligible for reconsideration even if Genting isn’t approved, he said.

The project, called a racino, would include more than 4,000 video slot machines plus a hotel and other facilities located at the racetrack for thoroughbred horses in the New York City borough of Queens. The developer of the project, which has been planned for nine years, would pay a minimum US$300 million up- front fee to the state, which would issue US$250 million of bonds to help finance the facility, according to budget documents.

Lottery Evaluation

The Lottery’s evaluation of Genting’s bid will continue, and it is not guaranteed the award, even though it is the only remaining bidder, said Jennifer Given, a state spokeswoman. The Lottery expects to announce its recommendation by Aug. 3, she said. The winner must also be approved by the governor, the president of the state Senate and the speaker of the Assembly.

The Lottery’s announcement listed 19 aspects of the SL Green proposal that were called “non-responsive” by the Lottery. The Penn National proposal was disqualified on eight counts.

Genting Malaysia, based in Kuala Lumpur, said July 1 it will buy the UK casino businesses of Genting Singapore Plc for £340 million to expand overseas. Both companies are controlled by Genting Bhd., which has holdings in hotels, palm oil plantations and cruise lines.

Spokesmen for SL Green and Penn National couldn’t be reached for comment.

New Low for Lohan

It was a new low for Linsay Lohan when she was sentenced to 90 days imprisonment today for violating her parole of not attending alcoholics rehabilitation classes.

From a meteoric rise, she is now in the dumps. Yet another fallen princess of the silver screen.

Electrical Wonder!

So, it is mid-July now? Hmmmmm.....

And so it would seem.

The Electric Train Service (ETS) which will reduce travel time between Ipoh and Kuala Lumpur to just two hours from three hours previously, is expected to be fully operational by mid July 2010.

Keretapi Tanah Melayu Berhad (KTMB) president Dr Aminuddin Adnan however, did not reveal the exact date of the launch of ETS.

“We are targeting professional groups and businessmen, besides the regular users of public transport, to use the service.

“With a speed of 140km/h, ETS will definitely reduce travel time, and the service of stewards and stewardesses will also provide comfort to passengers.

“In future, we will also provide wi-fi facilities in the train and we are in the midst of getting the right service provider,” he told Bernama in an interview here yesterday.

Eventually, he said, the ETS would also be expanded to Seremban.

Aminuddin said there were five ETS trains which would provide eight return trips for the Kuala Lumpur-Ipoh route daily, with the first train leaving at 5am and the last, 11pm.

On the fare, he said, KTMB was still waiting for approval from the transport ministry, adding that it was expected to be between RM30 and RM35 per trip.

Dr Aminuddin said KTMB had prepared an organised maintenance system for the ETS to ensure that it would not face similar problems as its existing train services.

“It is easier to maintain the electrical system with an organised maintenance plan. We hope to be able to provide an efficient and hassle-free train service, as compared to the commuter and inter-city train services,” he said.

He said each ETS train was also equipped with close-circuit television cameras to monitor the safety of the passengers, besides having the capacity of 350 passengers per trip.