NEW YORK— Alpha Hospitality Corp. announced that it has closed on the previously announced agreement to acquire additional interests in a casino project in New York. In addition to the Native American casino, the project involves plans to develop additional gaming activities at Monticello Raceway in Monticello, NY. Under the agreement, Alpha acquired a 47.5% share of the casino and racetrack interests of Watertone Holdings, LP in Catskill Development, LLC. With this acquisition, Alphas interest in the casino component of Catskills business increased from 40% to approximately 49% and its interest in the horse racing and VLT component of Catskills business increased from 25% to 37%. An Alpha spokesperson indicated the company issued 575,874 shares of common stock to make the acquisition. Catskill is reportedly working with the New York State Lottery to explore the feasibility of installing video lottery terminals at Monticello Raceway. No final decision on the implementation of VLTS has been made. Catskill and Alpha continue to prosecute their $6.3 billion lawsuit against Park Place Entertainment Corp (PPE) alleging “tortuous interference and conspiracy to restrain the development of a Casino at the Raceway.” PPE is accused in the complaint of having unlawfully induced the Tribe to terminate certain agreements and the Tribes relationship with Catskill one week after the Secretary of the Interior had approved an application for a 29-acre parcel of land adjoining the Raceway, which was to be used for the tribal gaming enterprise. It is expected that the discovery portion of the proceeding will be completed soon.
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