Here is the statement from Governor David Paterson’s office: “The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group (AEG). Therefore, the state has officially withdrawn its support for AEG to develop and operate a video lottery terminal (VLT) facility at Aqueduct Race Track.”
The statement continues, “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.”
Within hours AEG fired back through an attorney, Barry Berk, who attacked the decision.
“The state’s decision to withdraw Aqueduct Entertainment Group’s designation is both arbitrary and capricious,” Berk said in a terse statement. “As AEG has repeatedly stated, they remain ready, willing and able to finalize the Memorandum of Understanding and pay the $300 million licensing fee in accordance with the conditions placed upon AEG’s selection.”
In a thinly-veiled prelude to legal action, Berk continued, “In the event that AEG is not given an opportunity to address the issues raised by the Lottery, and the decision to reverse the prior selection of AEG as the successful bidder is not reconsidered, AEG intends to pursue all available remedies.”
Spokespersons for the other bidders are somewhat unsure what the next step is.
The entire process, from the first Racino negotiation between Aqueduct’s operator, the New York Racing Association (NYRA), and casino operator MGM Grand, have not followed a typical contract solicitation procedure.
“This isn’t like a contract to paint a bridge,” said one spokesperson, in advance of issuing a formal statement. “We all had different visions.”
“Aqueduct Gaming . . . remains very interested in the Aqueduct VLT project, ready to perform, and committed to the project’s success for the benefit of the state, the local Queens community and the stakeholders in the racing industry,” said Bill Bissett, president of Delaware North’s Gaming & Entertainment division upon learning the news.
Delaware North won the bidding in the first round of open bidding, but couldn’t come up with the promised $370 million up front payment – almost exactly a year ago.
