This very recent article shows that the Mashpee effort is going no where as far as the investors and professionals are concerned. Genting is instead focused on killing the competition in it’s New York stronghold and that competition would be the “Great Shennacock Nation”….just recently recognized. Of course the chairman’s fondness for the New York Natives is admirable, but you can rest assured that the investors paying his salary, are working hard against his close friends, and if history offers any clue, Genting will do whatever it takes to maintain its gaming advantage and crush the Shennacock. Lovely group. We’re not trying to depress you, just keeping you informed.

Dickinson Wright PLLC Global Leaders in Law

United States: Tribal Casino And The Asian Global Giant: A Modern David vs. Goliath?

Article by Dennis J. Whittlesey

July 25, 2011

Genting is the Malaysian global gaming juggernaut that has been working on gaming projects within the United States for several years and finally appears to be on the verge of opening its first domestic casino before the end of the year. Yet, one of its top executives has just suggested that a tribal casino proposed for Long Island could wreck its plans for a major racino development at Aqueduct in New York City.

Colin Au is a senior executive of Genting New York LLC, the company that was selected to develop the Aqueduct facility which will operate under the name “Resorts World New York.” He also has been publicly identified for other company projects in the United States, including a sidetracked casino in Fall River, Massachusetts, in partnership with the Mashpee Wampanoag Tribe, after leading that tribe out of an agreement with the Town of Middleborough for a major casino resort development. But Mr. Au now is expressing serious corporate concerns that the Aqueduct project could be put out of business if the newly recognized Shinnecock Nation of New York opens a casino in Long Island’s Nassau County.

The Mashpee project seems to have been something of a diversion for Genting, since its most serious efforts to gain a foothold in the Unites States have been in the state of New York. Its latest and largest effort is the proposed development at Aqueduct which would include both the racino and a major convention center nearby under plans publicly announced by the company. Upon winning the competition for the Aqueduct contract, Genting made a $380 million upfront payment to the State for a 30-year contract period and an option for an additional 10 years. The racino component is already under construction.

Only last Monday, Genting Chief Financial Officer Christian Goode made a detailed presentation of his plans to the state Franchise Oversight Board at the State Capitol in Albany. In addition to major renovations to the existing facility, Goode unveiled plans to initially open the racino with 2,500 machines; earlier statements indicated an ultimate installation of 5,000 gaming machines producing some $380 per machine per day. That level of play would generate a drop of $1.9 million daily, or approximately $700 million annually. These estimates are based on the facility’s location, a glitzy resort-type development plan, and an affluent customer base in Long Island, Queens, and Brooklyn. The proposed convention center would only add to the total attraction.

Also addressing the Franchise Board on Monday, Mr. Au said, “Here is a place where many conventioneers can fly in for a day. Of course, this will be done with private money that is our money, not bonds.”

But Mr. Au then ominously warned the Board that Genting could be bankrupted by a Shinnecock casino on Long Island, expressing emphatic opposition to the proposed Long Island Indian casino. If such a casino is opened, he said, “It would be disastrous. We probably would have to close shop.” The implication was that the state would be the big loser in that case since the taxable revenues generated at Aqueduct would be permanently lost, as well as a commitment to pay 7 percent of revenues to the New York Racing Association and 1.5 percent to the breeding industry.

While Messrs. Goode and Au painted a rosy scenario for the state with development of a competition-free project, they then stated the bottom line to their message, which is that the State must refuse to negotiate a Tribal State Class III Gaming Compact with Shinnecock. Since such a compact is required under the federal Indian gaming law, a State refusal to enter into the agreement would foreclose the competition that Genting seems to fear.

It is a fact that a tribal casino could offer full casino games not permitted at the Aqueduct site, including blackjack, poker, and roulette – all are games that are extremely popular with the gaming public. In the face of that potential competition, Mr. Au flatly warned the Board to prevent it from becoming reality, “We are absolutely on a very different level playing field. It’s important for the Governor’s office to recognize they should enter into a compact [pursuant to the Indian Gaming Regulatory Act].”

Genting claimed to have been a great fan of Indian gaming a couple of years ago when it pried the Mashpee casino project away from that tribe’s original development partners – a project that appears to be in a state of permanent paralysis. Conversely, the company currently is telling Governor Andrew Cuomo that he must block any Indian gaming in New York. There might be some consistency to Genting’s attitude about Indian gaming, but the corporate spokesmen have not yet explained it.

The content of this article is intended to provide a general guide to the subject matter.

New York State Comptroller promises more looks at NYRA’s books

Published: Wednesday, July 20, 2011
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By PAUL POST, ppost@saratogian.com

SARATOGA SPRINGS — The state comptroller intends to look, with some skepticism, at the New York Racing Association’s books to see what it’s doing to get out of the red.

“NYRA has a history of overspending,” Thomas P. DiNapoli said in a press release Wednesday. “I want to ensure that this is one tradition that doesn’t continue.”

DiNapoli’s review will examine NYRA’s response to two earlier comptroller audits, which called for significant cost reductions, including salaries and consultant fees. NYRA hasn’t posted a profit since 2000, reported a $17 million operating loss last year and projects an $11 million loss this year.

In June, state Budget Director Robert Megna asked NYRA for a long-term business plan, which NYRA said it cannot provide until after the six-week Saratoga Race Course meet that begins Friday. NYRA says it needs to see how Aqueduct’s new casino, scheduled to open in early October, actually performs before making long-term financial projections.

Megna also chairs the state Franchise Oversight Board and recently criticized a nearly 8 percent spending increase in NYRA’s $141 million budget. The budget included a more than 5 percent hike in salaries, with some executives making between $255,000 and $460,000. Megna also questioned the firm’s ability to get back in the black.

However, NYRA on Wednesday announced positive results from the recently concluded spring-summer Belmont Park meet. Attendance was up 14.4 percent over last year, total on-track handle (including money bet on simulcast races) was up 72 percent — increasing to $141 million from $82 million — and total all-sources handle (including money bet on simulcast races) was up 1.2 percent, increasing to $579 million from $572 million.

Also, NYRA Rewards telephone wagering was up 146 percent, increasing to $13 million from $5.4 million, and NYRA Rewards internet wagering was up 231 percent, increasing to $22 million from $6.5 million.

NYRA is three years into a 25-year contract with the state to operate Saratoga Race Course, Belmont Park and Aqueduct. The racetrack operator is currently operating with a

$25 million loan from Genting New York LLC, the casino’s operator. The first 2,500 gaming machines are slated to open around Oct. 1, with the rest coming on line before the end of this year.

One June 21, Megna asked NYRA to submit a plan to bring racing operations into long-term solvency. “We are working on a five-year plan which will not be final until the fall, as we need firm numbers on VLTs so we can better gauge how long it will take to pay back the $25 million loan from Genting,” NYRA spokesman Dan Silver said.

In addition, New York City Off Track Betting, which closed last Dec. 8, accounted for 18 percent of NYRA’s revenue stream.

“We’ve made some of that up, a significant amount, by our on-track business,” NYRA President Charles Hayward said. “But we need to work on, and we are working on a strategy to get back in the city and that relies on some approvals from the state and city government. So we’re moving that forward, but we can’t get that five-year plan done until we have some certainty about revenues from VLTs and some clarity about New York City OTB.”

Benefits represent one of NYRA’s largest spending increases — roughly

$4 million (27.2 percent) — from $15 million in 2010 to $19.1 million this year. “Several factors contribute to this increase, including a 36.7 percent increase in health care due to rising health care costs and a significant spike in claims correlated with WARN Act notices issued in May 2010,” NYRA’s budget said. NYRA sent out the notices last year, a requirement having to do with potential layoffs, when faced with a possible racing shutdown.

Salaries are NYRA’s singe largest expense, $59.2 million, and have gone up 5.2 percent (roughly $3 million) from last year’s $56.3 million. Of this, NYRA has had to pay an extra $1.4 million for additional pari-mutuel and television staffing to handle increased business activity when NYC OTB closed.

NYRA expects to save $500,000 by hiring 900 temporary workers during the Saratoga meet compared to 1,100 last year.

A new blog that does a lot of digging exposed Cedric Cromwell to the world today. It also looks inside the gaming process on Beacon Hill. It is pretty hot.Clearly, they got “sources.”
Great pictures of Sherry and Cedric back in the day though.
Have a look for yourself.
wampaleaks.blogspot.com

The Cape Cod Times had a picture of a little girl on the front page with a rawhide head band on. That was the first official photo of the 2011 Mashpee Wampanoag Pow Wow. Not a single Mashpee Wampanoag could identify her. Not a single Mashpee Wampanoag could identify her…..period. Not by family resemblance, not by regalia. Any Mashpee looking at the newspaper website online photos was horrified by the photos because out of about 15 pictures only 2 could be identified as Mashpee.
The prediction came true, the city people had erased us. They allowed people to show up wearing costumes, imitating Indians. It was the ultimate insult. Again, no tribal identification to verify heritage. People all over the place were playing Indian. Worse than any other pow wow. Other tribes were praised and honored on our sacred grounds for three days….’The great Shennecock Nation’ was repeated over and over by the MC…..to the chagrin of the few members present. Even the children took note.
The Mashpee had stopped coming to their cherished homecoming celebration. The event they used to plan for meticulously the day after it was over, has become a cheap Indian Circus. It was reduced to people imitating Indians in “costumes” and very very few Wampanoag in attendance. The few Mashpee that showed up muttered “this is awful.” They had so few adult dancers they were dancing the kids into the ground for 3 days. “Hoka.” We won’t talk about where the prize money went and to whom. Guess who the host drum was…right the Shennecocks….they were…….downright awful.
Driving into the parking lot was frightening. A rough crowd was in charge. The warmth and hospitality of the event was replaced with chaos, clutter, tents everywhere and no security. You felt like you needed protection from the people in charge, whoever they were. There were a couple of tribal members children on the gate and they were 13 years old. Once you got inside the parking lot….that was something else altogether. Tribal members would come in and they would get the hell out ….fast….and then there were those who just did not show up. There were hundreds of the “not show uppers.”
The transition to the Indian Circus meant June did not do the Clam bake…..the first time in the history of the pow wow where there was no bake.
We should not hang our heads about what was in the newspaper. The real Mashpee did not support the Indian Circus and it was their decision. For everyone who thought that being Mashpee just came naturally….well now you know don’t you? We don’t wear costumes and stupid headdresses. A Pow Wow is one thing and an Indian Circus is something altogether different ain’t it bird?