Three-way Big-A VLT race

Thanks to the resignation of former Governor Eliot Spitzer and the resulting delay in approving a budget, the deadline to bid on the right to operate 4,500 Video Lottery Terminals (VLTs) at Aqueduct race track in Ozone Park was extended - and only three bidders have entered the race.
On Friday, April 25 - the extended deadline day - Manhattan-based real estate giant SL Green Realty teamed up with hotel and restaurant chain Hard Rock Entertainment and submitted their bid to Governor David Paterson’s office.
The other bidders are Aqueduct Gaming, a partnership of Delaware North, which already operates several VLT “racinos” including one at Finger Lakes racetrack in upstate New York and Saratoga Harness Racing, an international consortium that includes Australian firm International Racing Management, operating entity Capital Play and Connecticut casino operator Mohegan Sun.
Last fall, when the possibility existed that even more VLTs would be located at nearby Belmont Park, as many as six bids were entered. With the decision to only allow the machines at Aqueduct, the number of suitors dwindled to three.
None of the three made their bids public, and Paterson has declined comment about the number or identity of bidders, drawing fire from some quarters.
Just before the earlier deadline in March, Bennett Liebman, head of Albany Law School’s Racing and Wagering Law Program said, “Contents of the bid have never been disclosed,” adding “Nobody even knows who’s bidding any more. We don’t know because transparency has been absent.”
In February, when legislation allowing the New York Racing Association (NYRA) a new 25-year franchise to operate Aqueduct, Belmont and Saratoga thoroughbred racetracks was approved, state leaders said Aqueduct’s gaming operator would be named within 30 days after the submission deadline.
The law requires the approval of the governor and majorities of both houses of the Legislature. After consultations between Paterson, Speaker of the Assembly Sheldon Silver and Senate Majority Leader Joseph Bruno, the announcement will be made.
Bruno has been quoted as favoring either Capital Play or SL Green.
Capital Play’s plan calls for targeting an “upscale audience” and drawing tourists to the track and new entertainment attractions. “We (want) to create a world-class entertainment venue at Aqueduct,” said Karl O’Farrell, president and chief executive officer of Capital Play.
Last year, their bid to operate the tracks and VLTs totaled roughly $1.8 billion.
SL Green Realty Corp. is a publicly owned Real Estate Investment Trust that has participated in over $1 billion of development projects in Manhattan, according to the company.
“Aqueduct has always been one of the world’s best-known tracks but it has fallen on hard times,” said Marc Holliday, the company’s CEO.
“By joining … with one of the world’s most recognized names in gaming, hospitality and entertainment venues, we have created a bold and exciting vision for Aqueduct that will preserve a historic Queens landmark and transform it into a global destination,” Holliday said.
Jim Allen, Chairman of Hard Rock Entertainment said, “Our global presence and operational capabilities, along with SL Green’s proven track record in New York, create an opportunity to turn Aqueduct into an unforgettable destination worldwide.”
Hard Rock Entertainment operates 13 hotels/casinos including nine under their own name, as well as 127 Hard Rock Cafes worldwide.
The company also claims to own “the world’s greatest collection of music memorabilia,” which is displayed at its locations around the globe.
For its part, NYRA doesn’t care who wins. “We’ve been pretty much at arms-length from the process, but were looking forward to cooperating with whoever gets the nod to operate the VLTs,” said John Lee, NYRA’ Director of Communications.
With the resignation of Spitzer, NYRA’s situation is still up in the air.
The disgraced former governor had declared his intention to grant them a 25-year franchise, but that has never been approved by the Legislature.
Instead, NYRA has been operating on temporary extensions, with the current one due to expire before the start of racing at Saratoga this summer.