ALBANY — Genting, the Malaysian resorts and gambling company, envisions itself becoming rich in North America by changing the New York state constitution.
The international gaming powerhouse, little-known in the United States, is planning to operate a Las Vegas-style casino at Aqueduct Racetrack, which is banned by the state constitution.
But Genting is spending about $1 million a year with lobbyists in Albany to make its dream of the Queens project a reality by amending the constitution.
The Asian company builds world-class destination resorts. Just two of its casinos, one in Singapore and the other in Malaysia, are expected to eclipse all of the Las Vegas gambling palaces combined in revenues next year.
Genting looks at the 5,000-machine video lottery terminal emporium it is building in South Ozone Park near JFK International Airport as a US beachhead for much bigger things, according to numerous interviews with people in the gambling industry.
The Aqueduct project is named Resorts World Casino New York, even though it is a racino, only able to operate video lottery terminals (VLTs), which Genting executive Colin Fook Yew Au admitted last week arent as good as actual slot machines. Theyre not much better than VLTs, but still better, Au told the state Franchise Oversight Board in a spirited appeal in which he argued against off-reservation tribal casino expansion and revealed a desire to build a convention center and hotel at Aqueduct.
Au did not discuss the big-picture plan of changing the state constitution, but a spokesman said Gentings agenda includes looking at a range of ways to further develop the Aqueduct site — a new convention center is one possible concept — to create more jobs and generate additional economic revenue for New York state.
We also firmly believe that racetrack casinos should be allowed to become fully commercial casinos, the spokesman, Stefan Friedman, said. Neither of these goals is easy to achieve, and we want to give ourselves the best chance of success.
To that end, Genting, working with the newly formed New York Gaming Association, a coalition of VLT operators, is beginning to flex its considerable muscle in Albany to win a constitutional amendment that would allow racinos to convert to full-blown casinos, according to numerous interviews in recent weeks. Although the public disclosures on its lobbying forms dont declare specifically what theyre up to, Genting has slowly built up a stable of influential lobbyists, paying one an extraordinary $35,000 a month in a town in which $10,000 is closer to the norm.
Four firms led by former Senate GOP lawyer John Cordo, former Assembly Democrat communications director Patricia Lynch, veteran Queens lobbyist Brian Meara and former Republican Sen. Nicholas Spano are splitting more than $1 million in fees. They are walking the halls of the Capitol representing Gentings interests, even though the Asian company has no legislation pending.
Its all about building toward a positive vote early next year on a legislative resolution to change the constitution. A second passage of the resolution in the Legislature would have to follow in 2013 to put the proposition before voters in the November 2013 election, said James Featherstonhaugh, president of the New York Gaming Association, which represents all nine racino operators. Featherstonhaugh, a veteran lobbyist with a stake in the Saratoga harness track and VLT operation, said Genting is building a lobbying team to help push the NYGA agenda.
Theyre staffing up to get NYGAs constitutional amendment, he said. Genting actually has two votes on the NYGA board because it also has the controlling interest in Monticello Raceway, which, like the other racinos, has its own lobbying team. Featherstonhaugh said his groups agenda and campaign will become fine-tuned soon after this session when NYGA will install an executive director, Michael Wilton, who has been a lobbyist with Patricia Lynch and Associates. Featherstonhaugh said Genting is very aggressive.
Such characteristics were on display before the Franchise Oversight Board, where Au said the state cannot allow tribes to set up off-reservation casinos in the Catskills or in Nassau County if they want the Aqueduct racino to stay open.
The threat from the Indians are many, Au said. They can stay at their reservations, they have their rights. You should not let them encroach in the main metropolitan areas. Later he told a reporter that the Shinnecock, on Long Island, should not be so greedy to want to build a casino outside of their reservation while they could probably do $200 million in business with an casino on their current territory.
Roger Gros, publisher of Global Gaming Business, said Gentings plan has always been to make New York City a world-class casino destination. This was really just a stepping stone; theyve been interested in getting in the United States for some time, he said. I think this has been their plan all along, that once they got in there they would lobby for table games and a hotel.
Recently, Genting purchased the Miami Herald building and grounds — 14 acres for $230 million — with the intention of building another resort as lobbyists pursue a change of Florida law to allow non-Indian casinos. Genting employs three lobbying firms in Florida to promote their plan, spending what would likely be as much as $300,000 on an annual basis based on Times Union calculations of the value of contracts. Their project in Miami will give them a leg up on other casinos companies should the laws change, said Gros. Lobbyists shouldnt have that power, complained Assemblywoman Aileen Gunther, D-Sullivan County, who sees Genting as working against her countys goals of obtaining a tribal casino and its own convention center. Its not fair. Money talks.
Genting, with $5 billion in cash reserves, paid New York $380 million for the rights to build and operate at Aqueduct, blowing away competitors bidding on the same 30-year contract. The sum was seen as not commensurate with the potential return because VLT operators have to give so much of their betting revenues to the Division of the Lottery for public education funding.
A constitutional amendment in New York is a risky bet, but perhaps the states mood is shifting, said the Rev. Duane R. Motley, founder and senior lobbyist for New Yorkers for Constitutional Freedoms, which opposes gambling. He said the state Senate has become more moderate since the last time it dealt with the notion of a constitutional change allowing casinos. I think they might put it out there to the people, but the people of New York have a history of voting down constitutional amendments; very few pass, he said.
Funded with an ample supply of cash from Genting, the coalition seeking the change will likely develop a slick marketing campaign with TV ads talking about how gambling dollars and the jobs they can bring are being lost to neighboring states. It will come at a time when Gov. Andrew Cuomo will be looking for ways to improve state revenues, an official with one of the participating lobbing firms said. Cordo, whose firm is hired for consulting and public relations services, was part of a team that promoted the $2.9 billion transportation bond act on the ballot six years ago which passed comfortably. He once worked for Featherstonhaugh, who has longstanding ties to the Cuomo family. An aide to Gov. Andrew Cuomo was unsure of the governors stand on a constitutional change.
Reach Odato at 454-5083 or jodato@timesunion.com.
