NEWS
Aqueduct racino deal falls through
Posted: Thursday, March 11, 2010 1:25 PM
by Paul Post
The long-awaited deal to name an Aqueduct gaming operator has fallen through, leaving New York's Thoroughbred industry in disarray.
Gov. David Paterson on Thursday announced withdrawal of his support for Aqueduct Entertainment Group LLC to run the racino, which is slated to get 4,500 video lottery terminals.
The facility would give the New York Racing Association the funds needed to boost purses and make much-needed capital improvements. Without it, NYRA’s ability to continue racing might be in doubt, and the state's breeding industry will suffer.
“The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group (AEG),” Paterson said. “Therefore, the state has officially withdrawn its support for AEG to develop and operate a VLT facility at Aqueduct. The executive branch advocates that the selection of the Aqueduct VLT franchisee be done pursuant to an expedited, transparent, apolitical, and publicly accountable procurement process.”
Paterson announced AEG’s selection on January 29. The decision was greeted almost immediately by charges of political favoritism that prompted an investigation into the gaming selection process.
AEG had until noon on Tuesday to submit investors’ background information to the state Division of Lottery and issued a statement saying it had satisfied the state’s requirements. Apparently, some conditions were not met, but Paterson’s office provided no specifics behind the decision not to issue a gaming license.
Paul Post is a New York-based Thoroughbred Times correspondent
