MGM Mirage Ends VLT Talks With NYRA, State Of New York

MGM Mirage has formally withdrawn its proposal to develop and manage a VLT facility at Aqueduct and has terminated its negotiations with NYRA and the state of New York. MGM Mirage Chair & CEO Terry Lanni said “certain unresolved issues have caused us to withdraw from this opportunity” (MGM Mirage). NYRA Chair Steven Duncker said that “delays in approving the agreement, plus inflation” in construction costs likely impacted MGM’s decision (DAILYRACINGFORM.com, 5/1). NYRA sources said that MGM was “frustrated with the pace of negotiations with the state and that the cost of the project had nearly doubled since its inception, to $215[M].” But Duncker said that NYRA “can find a new lender for up to $230[M] for the VLT project and another company to manage the casino” (Albany TIMES UNION, 5/2). More Duncker: “Over the course of the past four years, the Aqueduct VLT project has encountered numerous setbacks, delays and obstacles. Clearly, some were self-inflicted, while others were the work of a few who desired to see NYRA fail in order to advance their own agendas. ... I anticipate that NYRA will be able to seamlessly introduce a replacement for MGM in relatively short order” (N.Y. DAILY NEWS, 5/2).