The state Lottery Division has “unanimously” and “with genuine enthusiasm” recommended the last bidder standing, the Malaysian-based Genting New York, to receive a lucrative contract to develop and operate a racino at the Aqueduct racetrack in Queens.

The recommendation, which comes after an exhaustive and controversial process that started way back in 2007 and has seen several false starts along the way, “was vastly reinforced by Genting’s financial offer of $380 million as an upfront licensing fee,” Lottery Division Director Gordon Medenica wrote in a letter to Gov. David Paterson.

(That’s considerably higher than what was offered by the other, now-disqualified, bidders: SL Green ($300 million) and Penn National ($325 million)).

“Genting’s proposal was far superior, in concept, scope, detail and execution, to any we have seen in previous rounds of evaluation,” Medenica wrote.

“It is well known that other bidders, and potential bidders, found the State’s requirements too demanding to accept. They made the fatal assumption that the process was still open to maneuvering and negotiation. We acknowledge that the process was tough and the expectations were rigorous, but our requirements were crystal clear. ”

“For Genting to emerge from such a grueling process as a strong winner is a testament to the effort, skill and intelligence of their team. Every aspect of their proposal demonstrated the highest standards of professionalism and respect.”

Medenica said the Lottery’s evaluation committee followed the process as originally outlined ‘lo those many moons ago in an agreement between then-Gov. Eliot Spitzer, then-Senate Majority Leader Joe Bruno and then-Senate Majority Leader Malcolm Smith even though Genting was the only bidder left after all others were disqualified.

The committee’s full report can be read here. Now the governor, the Assembly speaker and the Senate president (still Smith at this point) need to sign off.

A wrinkle: One of the spurned bidders, now known as AEC (previously AEG) has signaled an intent to appeal a judge’s ruling against its lawsuit and again seek a preliminary injunction to block Genting’s selection.

Also, keep in mind the fact that the selection of the politically-connected AEG during the second round of this Aqueduct mess (the first saw the selection of Delaware North, which couldn’t come up with the up-front cash and withdrew) remains under investigation by the US attorney’s office and has also attracted the interest of the state Inspector General.

In the meantime, Genting New York is happy, and issued the following statement from spokesman Stefan Friedman (of KnickerbockerSKD):

“Genting New York is pleased with The Lottery’s recommendation of our proposal which would mean an enormous economic boost to New York’s economy. Our plan would instantly deliver $380 million to New York and create more than 2,000 jobs in construction and operations of the Aqueduct casino.”

“In addition, the casino is expected to generate more than $500 million per year in state revenue, a large portion of which will go towards education funding which would help save thousands of teaching jobs and to NYRA which will help preserve 1,500 jobs that are threatened with layoffs.”

“We hope The Lottery’s recommendation will be endorsed by the Legislature so we can immediately get to work creating jobs, preventing layoffs and delivering more than $15 billion in economic benefits to New York over the next 30 years.”

A recent report by state Comptroller Tom DiNapoli found NYRA would run into serious financial problems if the Aqueduct racino contract cash didn’t materialize ASAP. (Not exactly good news for the cash-strapped association as it prepared to start its annual meet at Saratoga).

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