NEWS
Aqueduct gaming expected to take three months
Posted: Wednesday, April 14, 2010 11:57 AM
by Paul Post
Democrats and Republicans in New York are pledging complete transparency in their respective plans to name an Aqueduct gaming operator.
Under separate proposals revealed Tuesday by both parties, the decision would also be non-political and be based on the recommendation of an outside entity.
However, the bottom line in both scenarios is that a selection is about three months away, leaving questions regarding cash-strapped New York Racing Association’s ability to keep operating, especially with the cuts NYRA is expected to take under the state’s plan to save New York City Off Track Betting.
“It’s embarrassing the incompetence that went into this [gaming decision], that we have to do this all over again,” state Senator Roy J. McDonald (R-Saratoga) said Tuesday. He and fellow GOP lawmakers, including Senator Marty Golden (R-Brooklyn), say both new and existing bidders should submit bids. Under their plan, a major accounting firm, recommended by the state comptroller’s office, would review all bids and make a recommendation to state leaders.
A joint public hearing by the Assembly and Senate would follow with a final selection with 15 days, and the GOP anticipates its plan would take 2-3 months.
However, to put such a plan in place, the GOP needs the legislature’s approval, and as the minority party in both houses, it is unlikely that its plan will pass.
Gov. David Paterson, a Democrat, said the selection should follow the state’s existing procurement process for all government contracts. Paterson said he would accept a recommendation by the state Division of Lottery, with input from other agencies. The Senate and Assembly leaders would still have to sign off on it, but if they objected, the burden would be on them to explain why.
“When the process is completed and someone is selected they have to sign the MOU (memorandum of understanding) and hand over a check for $300-million,” said Peter Kiernan, the governor’s counsel. “There can’t be any negotiation of the terms.”
Kiernan said he hopes to meet today with Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Conference Leader John Sampson (D-Brooklyn).
A new request for proposals could go out next week with a selection expected within three months under the Democrats’ plan.
“Our goal is to get it out as rapidly as we can,” Kiernan said. “Once it’s out, it’s about a 12-week process, soup to nuts. Unless we get a lot of new applicants, that could be accelerated.”
The selected operator is supposed to give NYRA funds to keep operating until VLTs actually start up, but if a firm is not chosen until late July, then NYRA’s funds might run low because it will probably lose some revenue under the state’s OTB plan, which Paterson is expected to reveal today.
The state could advance NYRA operating funds, but it faces a $9-billion deficit of its own, so it is unclear where NYRA will get the money to keep racing.
“That’s a good question,” said Gary Pretlow, chairman of the Assembly Racing, Wagering and Gaming Committee.
Paul Post is a New York correspondent of Thoroughbred Times
