Penn Angered With NY
Penn National Gaming (PENN: 25.62 +2.85%), the apparent high bidder for New York’s Aqueduct gaming contract has grown frustrated with the lack of progress being made by Governor David Patterson in the selection process.
Peter M. Carlino, CEO of Penn National has reportedly written a letter to the Governor to voice that frustration.
The casino operator has offered the state a $301 million upfront payment for the 30 year contract to manage Aqueduct’s 4,500 video lottery terminals, last fall.
However Paterson and legislative leaders responsible for selecting an operator have yet to reach an agreement, although the New York Racing Association says it will run out of money by June.
In the letter, Carlino voiced his concerns that the lack of news and open discussions has brought about rumors and gossip, the latest of which is that although Penn has submitted the highest bid, other operators may have “a leg up by virtue of their being New York-based companies.”
“If our being a Pennsylvania-based company in any way prejudices us in the bid process, we wish we had known that going in,” Carlino wrote. “We have played by the rules of the game since this process began, despite those rules being changed midstream—namely allowing others to increase their bids to match ours following the original submission.”
“We have more slots at racetracks than any other company in America,” he said.
Carlino reaffirmed Penn’s commitment to seeking the contract and reiterated that Penn’s gaming credentials are without question and that the company has the cash in hand to write a check “to get this ball rolling.”
Penn’s plans include opening a temporary racino with up to 2,500 VLTs within ten months and a permanent facility completed within a year after that.
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