NYRA in limbo after Gov. resignation

The selection of an operator to run the Video Lottery Terminals at Aqueduct has been put on hold due to the sudden resignation of Governor Eliot Spitzer last month.
Spitzer was negotiating with the private parties interested in building and operating the terminals at the racetrack. Spitzer had been scheduled to make a decision shortly after the state’s agreement with NYRA. A key staff person who had been assisting Spitzer with all the dealings regarding NYRA also resigned, leaving the selection process in limbo.
Governor David Paterson is new to negotiations and has no prior involvement in any meetings concerning Aqueduct nor does his staff. Assemblywoman Audrey Pheffer and Senator Serphin Maltese met with Paterson to impress upon him that this is an important issue and his administration should move on it quickly.
Larry Love, representing Audrey Pheffer’s office, believes the selection will be made sooner rather than later because of the tremendous amount of money the state could lose as a result.
“The state has guaranteed $125 million a year to Aqueduct until the Video Lottery Terminals are up and running. The quicker the terminals are up, the less the state will have to worry about losing money on the deal,” Love said.
Right now, Governor Paterson’s top priority is the state budget which is due April 1. Love expects Paterson to focus on Aqueduct after the budget has been completed. “This should be one of the first issues he deals with,” Love said.
Installation of video lottery terminals at Aqueduct is expected to generate over $300 million annually for education in the state. Love is hopeful that everything will work out.
The state will advance $105 million in financial support to NYRA to assist them in emerging from bankruptcy. The advance will be recouped by future Video Lottery Terminal revenues from a new VLT facility in Aqueduct. It is estimated that over 4500 terminals will be installed.