Genting pays New York US$380m for parlor

Genting pays New York US$380m for parlor
Published: 2010/09/28

Genting Malaysia Bhd paid New York state US$380 million to develop an electronic slot machine parlor at New York City’s Aqueduct Racetrack, US$80 million more than the minimum specified by the state.

The payment by the Kuala Lumpur, Malaysia-based company arrived five days before the due date. New York state plans to sell US$250 million of bonds backed by its personal income tax to help finance the project, said Erik Kriss, a spokesman for the Budget Division.

“After almost a decade of delay, this project is finally becoming a reality and all New Yorkers will benefit,” Governor David Paterson said in a statement. The payment exceeded the US$300 million assumed by lawmakers in the state budget, which closed a US$9.2 billion gap. Similar assumptions in previous years were inaccurate.

The state expects the video-lottery machines will produce more than US$279 million of revenue annually after paying gambling prizes and other expenses, according to Jennifer Givner, a spokeswoman for the New York Lottery, which handled bidding for the project.

About 1,600 machines are to be installed within six months, followed within six months by another 2,925 terminals, a 2,100- space parking garage and a new pedestrian bridge to the Aqueduct subway station, according to the recommendation by the Lottery. Later, Genting will build a new covered entrance to the race track, which is in Queens.

The payment came almost two weeks after Genting’s stock rose to a two-year high in Kuala Lumpur when the contract was approved. -- Bloomberg

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