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Racino Deal Heads to the Starting Gate

NEW YORK CITY-Aqueduct Entertainment Group has edged out four other partnerships for a 30-year license to operate video lottery terminals at the Queens racetrack.

By Paul Bubny | Updated on February 01, 2010

NEW YORK CITY-A consortium including Turner Construction Co. and Siemens USA has been selected to install and operate video lottery terminals at Aqueduct Racetrack. The consortium’s proposal beat out bids from four other partnerships also vying for a 30-year exclusive license to operate a racino at the Queens track.

Friday’s decision by Gov. David Paterson comes 11 months after an Aqueduct development deal with Delaware North Cos. collapsed. Known as the Aqueduct Entertainment Group, the winning consortium must complete a memorandum of understanding with the state before work on the 328,000-square-foot VLT facility can begin. Terms of the memorandum include an increase in the up-front licensing fee from $200 million to $300 million, according to a release from Assembly Speaker Sheldon Silver.

The earlier deal with Delaware North foundered on the casino operator’s reported inability to come up with the up-front fee. In Paterson’s view, the fee hike apparently won’t be a problem for the newly selected racino developer. “AEG has both the financial viability and ability to pay the required upfront licensing fee,” the governor says in a statement. “AEG complied with every request made during the review process and addressed satisfactorily all matters related to licensing ability. All of the groups have valid proposals, but AEG presented a comprehensive bid that enjoys community support and also offers strong marketing appeal.”

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