Two proposals to develop and operate a racino at Aqueduct racetrack in New York City were disqualified last week, leaving only one in the running, the New York State Lottery Commission announced last week.

The state expects to receive a $300 million payment for the license to operate a video lottery casino in Queens. It in turn plans to sell $250 million of personal income tax bonds to finance a construction grant that the chosen firm would use to build the facility.

An affiliate of the Genting Group, a company based in Malaysia, is the sole bidder being considered after proposals submitted by both a consortium — consisting of SL Green, Hard Rock International, and Clairvest Group — and Penn National Gaming were ­disqualified.

The Lottery Commission rejected the two proposals because the groups attempted to negotiate more favorable terms than were outlined in a memorandum of understanding, according to a news release.

The commission expects to recommend by Aug. 3 the Genting proposal, provided it satisfies all application and eligibility requirements. The proposal would then need approvals from Gov. David Paterson, temporary Senate President Malcolm Smith, D-Queens, and Assembly Speaker Sheldon Silver, D-Manhattan.

The selection of a firm to operate the racino would end a long-running state drama. In January, Paterson, Smith, and Silver selected Aqueduct Entertainment Group, but that deal fell apart in March after questions were raised about possible political influence in the choice. The state issued the latest request for proposals on May 11.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.