New York City’s Aqueduct Racetrack will soon be getting an electronic slot machine parlor as a result of Genting Malaysia Berhad’s recent payment to the state of New York of $380 million. This amount paid by Genting Malaysia is $80 million more than the minimum amount originally specified by the state for this project.
Genting Malaysia, a private company originally incorporated in 1965, is comprised of two originally separate business units, Genting Berhad and Genting Malaysia, which were combined in 1989 as the result of a restructuring exercise. Genting Malaysia acquired all of Genting Berhad’s gaming, hotel, and resort-related operations, including all goodwill and other relevant assets.
The Kuala Lumpur, Malaysia-based company made the $380 million payment five days before the due date that had been agreed upon between the two entities. In order to finance the massive project, the state of New York plans to sell $250 million of bonds backed by its personal income tax, according to Erik Kriss, a spokesman for the Budget Division of New York.
“After almost a decade of delay, this project is finally becoming a reality and all New Yorkers will benefit,” said Governor David Paterson in a statement. The $380 million payment exceeded the $300 million assumed by lawmakers in the state budget. This excess in payment closed a $9.2 billion gap.
State-appointed analysts are expecting that the new video-lottery machines will produce more than $279 million in revenues annually, after the gambling prizes have been paid out and other expenses accounted for, according to Jennifer Givner, a New York Lottery spokeswoman. The New York Lottery was responsible for handling the bidding for the video-lottery machine project.
The Aqueduct Racetrack, located in Queens, will have 1,600 machines installed at the facility over the next six months. In the following six months, another 2,925 machines, a 2,100-space parking garage, and a pedestrian bridge to the Aqueduct subway station will be added to the racetrack complex. Once all these projects are completed, Genting will begin construction on a new covered entrance to the racetrack.
When the contract between Aqueduct Racetrack and Genting Malaysia was approved, Genting’s stock rose to a two-year high in Kuala Lumpur. The payment was made by Genting to New York just less than two weeks after this sudden stock surge.
“It has been a long drawn out process with a tremendously successful finish and we couldn’t be prouder,” said Gordon Medenica, the director of the New York State Lottery.