By Connor Adams Sheets
New York lost a bidder willing to provide at least a $100 million cash influx last week when Wynn Resorts suddenly pulled its bid on a contract to install 2,500 to 4,500 video lottery terminals at Aqueduct Race Track in Ozone Park, according to officials.
The entertainment giant’s unexpected withdrawal from the bidding for the contract came in the form of a letter delivered on the heels of an announcement by Gov. David Paterson, who has repeatedly missed his own deadlines on selecting a vendor, requesting that all bidders be prepared to pony up at least $200 million in cash in order to stay in the running.
Wynn Resorts Limited of Las Vegas was seen as a frontrunner in the race to win the contract, as it had offered a $100 million up-front cash payment in hopes of wooing the state, a mid-level offer compared to reported bids of the other five contenders. The company is the only one of the field of six to drop out.
“All of the other five bidders are still involved,” said Morgan Hook, a spokesman for the governor’s office. “They all responded to our request and they are all still in the running.”
It is the latest in a series of setbacks and delays to the contract selection process, which began almost 18 months ago, Paterson’s critics say.
But Hook said he “wouldn’t characterize anything to date as a delay” in the selection process.
“There’s no timeframe, there’s never been a timeframe. This is a critical decision for the state,” he said. “It’s important to use due diligence so they are taking the time necessary to make the decision.”
Local elected officials and state budget-watchers beg to differ, saying the state is losing as much as $1 million per day as it dithers and waits to make a choice from among the bidders, of which now there is one less. The revenue would go toward education and the New York Racing Authority.
State Sen. Joseph Addabbo Jr. (D-Howard Beach), who said last month the decision was likely to be announced by the third or fourth week of October, said the state has already missed out on $250 million in revenue by waiting to award the contract and that “a decision must be made as soon as possible.”
Once the contract is awarded, it will be eight months to a year before construction will be complete and the new facilities, which will include the slot-machine-like terminals known as VLTs, and associated development such as hotels and restaurants will open for business.
“By now, this decision should have been made, shovels should be in the ground and money should be flowing into the coffers of the state,” Addabbo said in a Tuesday statement. “In this economy and with the legislature meeting in special session over the budget shortfall, our people need jobs now.”
The five remaining bidders are SL Green/Hard Rock Entertainment, Aqueduct Gaming, Aqueduct Entertainment Group, MGM Grand at Aqueduct and Penn National Gambling.
Two Wynn Resorts representatives failed to respond to repeated phone calls and messages for comment.
Reach reporter Connor Adams Sheets by e-mail at csheets@cnglocal.com or by phone at 718-229-0300, Ext. 138.
