Friday, October 24, 2008

NYC Racetrack's Slot Parlor Contract Awarded To Delaware North

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Updated 2

Two weeks after New York Gov. David Paterson recommended Delaware North to develop and operate a slot parlor at New York City's Aqueduct Racetrack, the state Senate finally agreed to the selection.

Delaware North was selected over two other bidders, one of them was a group that included the Mohegan Tribal Gaming Authority and Capital Play. Another group included Hard Rock Entertainment and SL Green.

The latest competitor in the northeast market, the $250 million slot parlor at Aqueduct will be the first slot parlor in New York City. In addition to the 4,500 VLT slot machines, the complex will have multiple restaurants, a 300-room hotel and a 60,000-square foot conference center. The project will be completed in phases over a 5-year period with the slot machines slated to be operational in 15 months.

New York officials said Delaware North was chosen because it offered the most money up front out of the three bidders.

Delaware North is a Buffalo-based company that also operates a slot parlor at New York's Saratoga Springs racetrack.

New York's rejection of the Mohegan Tribe comes about a month after the state of Kansas rejected the Tribe's bid to build and operate one of four commercial casinos approved in that state. Three days after the state of Kansas rejected the Mohegan's proposal, the Tribe announced plans to halt construction of its high-rise hotel on the Reservation.

The Mohegan Tribe claims that it could be involved in developing and managing Indian casinos in the state of Washington and Wisconsin and has spent tens of millions of dollars on those two projects.

One of those Indian casinos is being proposed by the Menominee Tribe in Wisconsin and the other project involves the Cowlitz Tribe's proposed casino in Washington state. The Menominee Tribe asked the federal government yesterday to halt the review of their casino application while the Cowlitz Tribe in Washington state are awaiting word from the Department of Interior on their plans.