Gov. Andrew M. Cuomo.

Gov. Andrew M. Cuomo. Credit: Newsday/J. Conrad Williams Jr.

Gov. Andrew M. Cuomo said Friday he has scrapped plans with a Malaysia-based casino company to build the "world's largest convention center" at Aqueduct racetrack, a startling conclusion to the centerpiece of his 2012 jobs agenda.

Cuomo made the surprising announcement late Friday on former Gov. David A. Paterson's radio show. Cuomo said talks broke down with the Genting Berhad casino organization. Genting was supposed to invest $4 billion in the project.

"The conversations hadn't really worked out," Cuomo said.

Cuomo said he's still committed to a convention center, but added that he is talking to other developers, and that expansion at Aqueduct could include a full-scale casino. Currently, Genting operates video slot machines at the racetrack.

"That's my thinking now, but it's evolving," the governor said.

Later, Howard Glaser, Cuomo's operations director, expanded on the governor's comments by saying "the best way forward appears to be a single international competition once the fate of the legislation and referendum have been determined."

He referred to a proposal to amend the state constitution to allow up to seven non-Indian run casinos in New York. The State Legislature approved the proposal this year but must approve it once more before it goes to a statewide referendum. That likely would occur no earlier than fall 2013. Glaser said conversations with Genting "have not produced a resolution that is satisfactory for the state and are made more difficult by the lack of certainty about the future of casinos in New York."

Genting had reportedly asked for exclusive rights to gambling activities within a certain radius of Aqueduct as part of its commitment to the expansion. Genting spent $735,000 in lobbying and campaign contributions in 2011, before Cuomo announced he had signed a nonbinding letter with the company to build the convention center.

Glaser said the Cuomo administration is still committed to locating at least one of the casinos in the New York metro area. "There is no doubt from our discussions that a New York City metro area casino and mega-convention center franchise is a most desirable and attractive opportunity for the biggest developers in the world," he said.

A Genting spokesman said the company was still interested in developing the Aqueduct site. "We have several great ideas to develop our site into one of the world's premier destinations for gaming and conventions and we now look forward to working with Governor Cuomo and participating in any competition," Stefan Friedman said in a statement.

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