Two have been disqualified of three gambling companies that submitted bids on June 29th for the franchise rights to operate slot machines at the Aqueduct racetrack. Genting New York, the remaining company with an active bid, is a subsidiary of Genting Group of Kuala Lumpur, Malaysia.

The New York Lottery disqualified two bidders, a combined proposal by SL Green Realty Corporation, Hard Rock Cafe International and Clairvest Group and proposal by Penn National Gaming, because of their failure to comply with the terms of the bidding process. The Lottery said that in an effort to negotiate more favorable terms for their companies, both parties submitted “altered versions” that sought to rewrite the conditions set by the state.

Penn National Gaming, for example, wanted that after four consecutive unprofitable quarters it should be able to terminate its lottery license. SL Green, by placing it in an escrow account until the state met certain of its conditions, sought to sidestep the upfront licensing fee of $300 million.

On August 3rd, the New York Lottery will make a recommendation to the New York State Legislature and the Governor David A. Paterson.

The installation of 4,500 electronic slot machines, one of the most popular casino table games, was approved by the New York State Legislature at the Aqueduct Racetrack in Queens in 2001. For the Aqueduct “racino” project, New York has tried four times to choose a gambling operator since 2001. Both a casino and a race track are featured at a location called “Racino”.