NY Lottery Disqualifies 2 of 3 bidders (UPDATE: Deal finalized)

[freddymo]

Originally Posted by philcski

So after all of this nonsense a MALAYSIAN company gets the bid.

What a bunch of crap.

For what it's worth- Penn National has done a spectacular job with the local casino in Cincinnati, and I was hoping they'd get the bid.

Phil what makes you think their bid will be supported.. Perhaps you need to recognize that all passed but 3 and at LEAST 2 or 3 had major conditions to their bid. Again if VLT's will be operational before 2013 I will be SHOCKED.

[philcski]

Originally Posted by freddymo

Phil what makes you think their bid will be supported.. Perhaps you need to recognize that all passed but 3 and at LEAST 2 or 3 had major conditions to their bid. Again if VLT's will be operational before 2013 I will be SHOCKED.

Fair point, I jumped to the conclusion that they would be which you are right is not a guarantee.

[Kasept]

On the flip side, who's to say Genting doesn't get the OK? May not be a guarantee, but at least they played by the rules as laid out by the state and met every requirement asked to this point of the process.

Based on those laundry lists of what amounts to demands by SL Green and Penn, they can both drop dead. The Malaysians seem to understand the process, likely have the necessary money, and appear willing to comply with how Lottery wants it to go. That's a big plus.

[The Indomitable DrugS]

If I ever - at any time in my life - feel like I'm capable of crafting a decent take on a subject like what's being discussed in this thread .... I will do myself a favor and off myself.

[freddymo]

Originally Posted by Kasept

On the flip side, who's to say Genting doesn't get the OK? May not be a guarantee, but at least they played by the rules as laid out by the state and met every requirement asked to this point of the process.

Based on those laundry lists of what amounts to demands by SL Green and Penn, they can both drop dead. The Malaysians seem to understand the process, likely have the necessary money, and appear willing to comply with how Lottery wants it to go. That's a big plus.

Do you really think the commission is going to support the ONLY group which you hope is complaint?

[Kasept]

Originally Posted by freddymo

Do you really think the commission is going to support the ONLY group which you hope is complaint?

If only one candidate that fulfills the criteria is left at the end of the process, why wouldn't, and why shouldn't, they be supported?

If you were bidding on a big tee shirt deal that had a variety of hurdles and were the last bidder standing, wouldn't you deserve and expect the contract?

[freddymo]

Originally Posted by Kasept

If only one candidate that fulfills the criteria is left at the end of the process, why wouldn't, and why shouldn't, they be supported?

If you were bidding on a big tee shirt deal that had a variety of hurdles and were the last bidder standing, wouldn't you deserve and expect the contract?

They can not and will not award a single bidder the project when the entire free world either choose not to bid(remember a paultry 3 bidders surfaced) or bidded with caveats in place. The state(Lottery) put forth an RFP and from such the received 1 single potentially complaint bid that may or may not be licensible. Ask yourself this, Do ya think Green and Penn believe Genting is real competition? Why on earth would they submit non complaint RFP's IF they thought Genting was likely suitable partner? You think these groups didn't do their homework?

I suggest the current process will end fairly quickly and hopefully when the new Gov, is in place can re start in jan of 2011. In the mean time NYRA had better instutute Plan B:

No racing 1/1/2011 thru 3/15...Hedge Fund can race at Philly park or Penn Nat

[Cannon Shell]

Originally Posted by freddymo

They can not and will not award a single bidder the project when the entire free world either choose not to bid(remember a paultry 3 bidders surfaced) or bidded with caveats in place. The state(Lottery) put forth an RFP and from such the received 1 single potentially complaint bid that may or may not be licensible. Ask yourself this, Do ya think Green and Penn believe Genting is real competition? Why on earth would they submit non complaint RFP's IF they thought Genting was likely suitable partner? You think these groups didn't do their homework?

I suggest the current process will end fairly quickly and hopefully when the new Gov, is in place can re start in jan of 2011.

You may be right

[asudevil]

Originally Posted by freddymo

They can not and will not award a single bidder the project when the entire free world either choose not to bid(remember a paultry 3 bidders surfaced) or bidded with caveats in place. The state(Lottery) put forth an RFP and from such the received 1 single potentially complaint bid that may or may not be licensible. Ask yourself this, Do ya think Green and Penn believe Genting is real competition? Why on earth would they submit non complaint RFP's IF they thought Genting was likely suitable partner? You think these groups didn't do their homework?

I suggest the current process will end fairly quickly and hopefully when the new Gov, is in place can re start in jan of 2011. In the mean time NYRA had better instutute Plan B:

No racing 1/1/2011 thru 3/15...Hedge Fund can race at Philly park or Penn Nat

Spot on!! Penn has a billion in cash on it's balance sheet. They have been bottom feeding for a Vegas casino for over a year now. Penn has done massive due dilligence and there is no way they would take the demands of that RFP to heart. They just told the state to drop dead, as did Wynn, MGM, and Harrah's.

[philcski]

Originally Posted by Kasept

On the flip side, who's to say Genting doesn't get the OK? May not be a guarantee, but at least they played by the rules as laid out by the state and met every requirement asked to this point of the process.

Based on those laundry lists of what amounts to demands by SL Green and Penn, they can both drop dead. The Malaysians seem to understand the process, likely have the necessary money, and appear willing to comply with how Lottery wants it to go. That's a big plus.

True- but in the case of PNG, it seems they wrote in riders to protect themselves in case there are sweeping changes in NYS gaming law causing massive competition (unlikely, of course). I get that- they just took a $125MM writedown on their flagship property in Cincy because of Ohio passing additional gaming (obviously since they own rights to an Ohio location they will recoup that amount) and want to protect their $300MM capital investment, which given they are a public company that has to answer to shareholders makes a lot of sense.

Yes- the Malaysians have the money and appear to comply, but it's concerning that yet another big money project goes offshore. Maybe it's because it's July 4th and I'm feeling patriotic but what will end up being a top 5 grossing casino possibly in the world should be American-owned, in my opinion. Maybe the project isn't as attractive financially for an operator as it appears on the surface which would explain the lack of qualified bids (on the 4th or 5th round.)

[Kasept]

Lack of bidder interest may have more to do with being in business with the state. I'd guess Malaysians are far more familiar and comfortable with being in bed with a government.

[freddymo]

Originally Posted by philcski

True- but in the case of PNG, it seems they wrote in riders to protect themselves in case there are sweeping changes in NYS gaming law causing massive competition (unlikely, of course). I get that- they just took a $125MM writedown on their flagship property in Cincy because of Ohio passing additional gaming (obviously since they own rights to an Ohio location they will recoup that amount) and want to protect their $300MM capital investment, which given they are a public company that has to answer to shareholders makes a lot of sense.

Yes- the Malaysians have the money and appear to comply, but it's concerning that yet another big money project goes offshore. Maybe it's because it's July 4th and I'm feeling patriotic but what will end up being a top 5 grossing casino possibly in the world should be American-owned, in my opinion. Maybe the project isn't as attractive financially for an operator as it appears on the surface which would explain the lack of qualified bids (on the 4th or 5th round.)

Not to worry this has zero chance of going forward..

[richard]

I don't see what difference it makes that foreign owned Genting is the last bidder standing. The state can use the $300,000,000 Genting has guaranteed on the state's terms. Genting has met all the requirements as defined by the refp. The project, as defined by the rfp, is located in the USA . The jobs are USA jobs, etc. It looks like a "go" for Genting to me .

[freddymo]

Originally Posted by Kasept

On the flip side, who's to say Genting doesn't get the OK? May not be a guarantee, but at least they played by the rules as laid out by the state and met every requirement asked to this point of the process.

Based on those laundry lists of what amounts to demands by SL Green and Penn, they can both drop dead. The Malaysians seem to understand the process, likely have the necessary money, and appear willing to comply with how Lottery wants it to go. That's a big plus.

Keep the Faith

[asudevil]

What a complete joke.

[freddymo]

Originally Posted by asudevil

What a complete joke.

Explain.. The State put the thing out to bid and the planet had a shot to gain the business. All but 3 passed(not a good sign) and now we are down to 1.. Even if the Lottery supports this single bidder, surely people will cry foul, or the bidder will realize they are being hosed and pull their offer knowning that any future bid can will be less costly.

The sad part is racing in NY, the mecca of the sport, is basically hopeless without a major shift in the economy

[richard]

Looks like Genting to me . They are the only group meeting the rfp . None of the other groups trust this process at all so that leaves only one . They can all jump back in for the Belmont rfp which will just go to the Indians in the end .

[freddymo]

Originally Posted by richard

Looks like Genting to me . They are the only group meeting the rfp . None of the other groups trust this process at all so that leaves only one . They can all jump back in for the Belmont rfp which will just go to the Indians in the end .

Looks like no deal and another reboot of the process..Again there is zero chance of VLT's before 2013