Genting in Successful Aqueduct Gaming Bid
September 15, 2010
Cleary Gottlieb represented Genting New York LLC in its submission of a bid to the New York State Division of Lottery for the development of a world class entertainment destination with 4,525 video lottery terminals at the Aqueduct Racetrack in Jamaica, Queens. After a competitive bidding process that lasted several months, the State of New York formally approved its award of the deal to Genting on September 15, 2010, selecting Genting over New York-based and other U.S. gaming companies. The award follows nearly a decade of attempts to open a casino at the racetrack.
Genting expects to develop the facility over the next year and a half, with the initial opening targeted for April 2011. Genting will pay a $380 million up-front license fee to the State and additionally intends to spend another $350 million to develop the facility. The Genting facility at Aqueduct will use the Resorts World brand. New York State Comptroller Thomas DiNapoli heralded the contract as "one of the most important vendor contracts New York has ever signed," and one that "carries the future of New York's racing industry on its back." Cleary Gottlieb continues to represent Genting in the implementation of the successful bid.
Genting New York LLC is a subsidiary of Genting Malaysia Berhad and Genting Berhad, Malaysia-based companies, which are developers and operators of destination resorts, casinos, cruise ships and hotels around the world, including most recently Resorts World Sentosa in Singapore. The aqueduct project will be Genting's first casino operation in the United States. JCJ Architecture and Keating Building Corp, a wholly-owned subsidiary of Tutor Perini, are the architect and construction manager, respectively.