MGM Withdraws Aqueduct Bid
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LAS VEGAS (AP) – Casino operator MGM Mirage Inc. said Tuesday that it formally withdrew its proposal to develop and manage a video lottery terminal facility at Aqueduct Racetrack and has ended talks with the New York Racing Association and the state of New York.
MGM said it worked with the racing association and the state for almost four years on the project, indicating that the two sides came close to a deal but were unable to reach an agreement.
“(The process) has been fraught with obstacles, ranging from NYRA’s legal difficulties, its Chapter 11 filing, uncertainties concerning the grant of the racing franchise upon the expiration of NYRA’s current franchise at the end of 2007, disputes between NYRA and the state, as well as escalating costs for the project,” MGM Chairman and Chief Executive Terry Lanni said in a statement.
Aqueduct’s video lottery terminal parlor was scheduled to house 4,500 machines and expected to generate more than $400 million annually for the state.
MGM shares fell 39 cents, or 0.6 percent, to $66.86 in Tuesday afternoon trading on the New York Stock Exchange.
