"AQUEDUCT"

"Mohegan Sun remains interested in developing and managing a casino at Aqueduct Racetrack," said Jeffrey Hartman, Chief Operating Officer of the MTGA (Mohegan Tribal Gaming Authority).

About a year ago the MTGA and their partner Capital Play bid for a casino at the Aqueduct Racetrack, Queens, New York, from the State of New York. Delaware North, of Buffalo, New York, won the bid. Now Delaware North has informed David Paterson, the Governor of New York, that it is unable to meet the terms of the agreement with the state. The plan was for Delaware North to make an up front payment of $370 million by the end of this month (March 2009). the reason given was "a deterioration of the credit and equity financial markets in this recession economy."

Delaware North had proposed a 4,500 VLT (Video Lottery Terminals) in a 184,000 square foot gambling area, a hotel, restruants, and a conference center. Delaware north asked the State of New York if they could defer the upfront payment. New York wouldn't allow it.

New York will now put the Aqueduct racetrack casino up for bids again. Guess what? The Mohegans are supposedly talking of bidding again.

Jeff Hartmann said, "As the premier casino operator in the Northeast we are confident that a Mohegan Sun managed facility will create much need jobs and revenue for the queens community..........and we can develop Aqueduct as a world class entertainment destination, generating millions of tax dollars for the State of New York."

It is unclear at this time if the MTGA's former partner (Capital Play) will be involved in anther bid for Aqueduct with the State of New York.

The way I understand it, the casino would not be involved in the horse racing at the facility. The New York Racing Association has the franchise on the horse racing at the facility. Think about the costs associated with the Mohegan Sun at Pocono Downs in the running the trotter track. I don't know if that is a good thing or a bad thing.

Gary Armentrout, Foxwoods Development Co. (the Mashantucket Pequot Tribal Nation's development company) when asked if they were interested in the Aqueduct project said, "I really don't know yet. We''ll certainly take a look at the state's RFp (request for proposals) and then make an assessment."

Considering the economic climate, should the MTGA be trying to do this again? Can they (MTGA) do it without a partner? Who can they get for a partner? Where will they get the funds to do this? Is it a bad deal? What about diversification? Or is this expansion? What do you think?