NEWS
Judge throws out suit that could have delayed Aqueduct decision
Posted: Thursday, July 29, 2010 5:06 PM
by Paul Post
A New York State Supreme Court justice on Thursday dismissed a suit and request for an injunction that would have delayed selection of a gaming operator for Aqueduct in Queens.
The New York Racing Association is slated to get 7% of the racino’s revenues and could become fiscally insolvent next year if an operator is not chosen soon. The facility is slated to have 4,500 video lottery terminals.
Justice Barry D. Kramer, in state Supreme Court, Schenectady County, disagreed with Aqueduct Entertainment Company's claims that the state Lottery Division wrongfully disqualified it in March.
On January 29, Governor David Paterson named AEC—then known as Aqueduct Entertainment Group (AEG)—to run the proposed racino. In March, the Division of Lottery ruled that AEC had not supplied required background information on several of its main partners.
“The division had the right and power to request any information it deemed material,” Kramer said. “The legislature has granted the division broad power to conduct these investigations.”
He also said the January selection of AEC was not legally binding, that the vetting and licensing process was ongoing, and that AEC never signed a memorandum of understanding with the state.
But Daryl Davis, an attorney for AEC, called Kramer's decision “ridiculous,” saying he only considered evidence presented by Lottery, which is headquartered in Schenectady, and not AEC.
“It's their hometown,” Davis said. “I can't say that I'm surprised.”
AEC was seeking an injunction to halt Lottery’s review of one remaining bidder—Genting New York LLC. AEC hoped to take its case to trial, where it had hoped to prove it was already selected and should simply be granted a gaming license.
Davis said AEC might take its case to the Appellate Division of State Supreme Court in Albany where a panel of judges, rather than one justice, would issue a ruling.
“Because of the issues at stake, it would be expedited,” Davis said.
Kramer granted eight prominent New York breeders and Saratoga County Chamber of Commerce amicus curiae status during Thursday’s proceedings, allowing the group to submit factual information as an interested party, without being an actual litigant. The breeders and chamber say further delays to the VLT selection process would case irreparable harm to New York’s racing industry and upstate economy.
Attorney Neil Murray, representing the ders and the chamber, said he believes AEC will have a hard time winning an appeal.
“Given the comprehensive nature of Judge Kramer’s ruling, addressing every one of their arguments, I think it would be very difficult for them to get some sort of stay pending appeal,” he said. “Any further delay is injurious to horse racing, the state, breeders and everybody else. Barring some unforeseen event, I think we’ll see Lottery make a recommendation next Tuesday.”
Paterson has pledged to accept Lottery’s recommendation. However, final approval still requires agreement by Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Conference Leader John Sampson (D-Brooklyn).
Paul Post is a New York-based Thoroughbred Times correpondent
READER COMMENTS
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Posted by: Rishard, Albany, NY on July 30, 2010 at 12:03 PM
AEG was rejected because they refused to work with the state . The one remaining bidder , Genting , has an international track record of working closely WITH governments . Let's get NY racing on solid footing .
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Posted by: Nancy, Lake Hopatcong, NJ on July 29, 2010 at 05:17 PM
Everyone knows the process to select AEG was crooked, and they still had the nerve to sue. What a joke! Let's just get the VLLt's moving forward, hopefully with the selection of an operator next week.
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