NEWS

Industry News

Most Popular Stories

Most E-mailed Stories

Racing industry wants N.Y. to move quickly on gaming

Posted: Thursday, February 04, 2010 10:59 AM

by Paul Post

Although a New York Senate leader has called for a public hearing regarding the process that ultimately awarded Aqueduct Entertainment Group with the franchise to operate expanded gaming at Aqueduct, Thoroughbred industry leaders want the state to move quickly on executing an agreement.

Following a meeting with Gov. David Paterson and AEG staff, the governor’s office said Wednesday that it expects the state and AEG to reach a memorandum of understanding within 30 days. Paterson awarded the Aqueduct gaming franchise to AEG on January 29.

But Senate Minority Leader Dean Skelos (R-Rockville Center), is calling for a one-day public hearing to review all bids, asserting that the selection process was done behind closed doors and might have been based on politics more than merit.

“The governor’s selection of AEG has raised more questions than answers,” Skelos said Wednesday. “After seeing news reports about possible political considerations … (and) that AEG may have been the lowest-rated bidder by the Lottery Division, the public has every right to be skeptical.”

However, other lawmakers and Thoroughbred racing officials are calling for prompt finalization of the long overdue gaming decision.

“I’m on the side of urgency,” said Senate Racing, Wagering and Gaming Committee Chairman Eric Adams (D-Brooklyn). “We need to make this happen. We need to seal the deal.”

New York Thoroughbred Horsemen’s Association President Rick Violette said, “This window of opportunity could shut very quickly.”

Jeff Cannizzo, executive director of the New York Thoroughbred Breeders Inc., said any additional delays will cost New York not only revenue from the machines but also lost economic impact from the racing and breeding industries.

“Even a temporary delay would prompt a flight to other states, a catastrophe for the industry,” Cannizzo said. “Why now? Where [was Skelos] for nine years?”

The state legislature first authorized expanded gaming at Aqueduct in 2001.

Assembly Speaker Sheldon Silver (D-Manhattan) reiterated Wednesday that he supports AEG’s selection, but that conditions he called for, such as a $300-million upfront payment instead $200-million, are “not negotiable.”

“We want to move forward,” AEG spokesman Andrew Frank said. “We’re going to fully comply with all conditions of the state put in front of us.”

AEG said that it could have the first 3,000 of 4,500 planned video lottery terminals in operation within six months of signing a memorandum of understanding with the state.

Paul Post is a New York correspondent of Thoroughbred Times