Genting Ponies Up $380M on Aqueduct Plan

ALBANY-Genting New York LLC on Monday made the $380-million upfront payment it had guaranteed to the state in its winning bid to develop a video lottery casino at Aqueduct Racetrack in Queens. The ceremonial presentation of an oversized check for $380 million at New York Lottery headquarters in Schenectady appeared to mark the end of the state’s decade-long effort to bring in a developer on the project.

“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,” Gov. David Paterson said at Monday’s ceremony. He added that the partnership between Malaysia-based Genting and the state provides “the opportunity to create jobs for the community” and to revitalize the Ozone Park neighborhood surrounding the racetrack.

Lottery director Gordon Medenica, who accepted the check from Genting New York president Mike Speller, said the gaming firm’s delivery of the payment five days ahead of schedule provides more evidence that “they are the best company to bring a premiere gaming experience to New York.” Speller says in a statement that Genting “will continue to work closely with State Lottery officials and the South Queens community to ensure that we can quickly open the first phase of Resorts World New York.”

The 328,000-square-foot facility will contain about 4,500 video lottery terminals. Genting plans a phased development process, with the first phase opening with 1,600 VLTs in six months and the remaining 2,925 VLTs coming on line siux months later. It’s also building a 2,100-space parking garage and a new pedestrian bridge to the Aqueduct subway station, followed by a final phase with completion of abatement activities and construction of a front canopy.

For Genting, which begin with a 30-table hilltop casino in Malaysia 40 years ago, the Aqueduct racino will be its first US development project. In a June interview with Bloomberg, Justin Leong, head of strategic investments and corporate affairs at parent company Genting Bhd., said his company was “aggressively searching for opportunities to invest in the US casino gaming market. Our strategy is building a US presence.”

Among other holdings in Asia and the UK, Genting owns and operates Resorts World Genting, an integrated casino resort near the Malaysian capital of Kuala Lumpur. The facility attracts 20 million visitors a year and sports six hotels with a combined capacity of 10,000 rooms, a casino with 3,100 slot machines and 500 table games, indoor and outdoor theme parks with over 60 rides, a shopping mall with 170 retail and dining outlets, 150,000 square feet of convention facilities and three performance venues with a combined seating capacity of 9,100. The company is also partnering with Simon Property Group on Chelsea Premium Outlets Centre in Malaysia, a retail project scheduled to open in 2011.

In its August report to Paterson recommending Genting, the lottery cited Genting’s commitment to the local community along with its track record in the gaming industry. “Genting is committed to the preservation of the historic character of the Aqueduct racetrack and has committed to providing 1% of its annual profits to create and fund a Queens Community Outreach Foundation,” the report states.