The third Aqueduct Racino deal is dead, and it’s back to the starting gate.
Shortly after noon on Thursday, March 11, Governor David Paterson’s office issued a statement that said the Lottery Commission could not license certain Aqueduct Entertainment Group (AEG) partners, so they would not operate the video lottery terminal (VLT) facility at Aqueduct.
AEG immediately issued a statement calling the decision both “arbitrary and capricious,” and their lawyer, Barry Berk, threatened, “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.”
Nevertheless, the statement from Paterson’s office concluded, “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.”
The statement was not signed by Paterson, who had withdrawn from the process “on the advice of counsel” in the face of growing controversies regarding his involvement in a domestic violence case concerning his closest aide and belatedly-paid-for World Series tickets.
The former losing bidders quickly indicated they were ready to step in with their last best offers to take over the project.
On Friday, March 12, a joint statement from the 100,000 member Building and Construction Trades Council of New York City and the Building Trades Employers Association called on the state “to proceed with selecting one of the remaining qualified proposers.”
However, by Monday, March 15 Paterson, had reportedly said he expected “to have a role” in the selection of a new bidder, saying, “We are hopeful to find a procedure that would work within a month.”
The news was a blow to local officials – and possibly to the future of the equine industry in New York State.
“When they say we’re back to square one, that is not the case,” Assemblymember Audrey Pheffer, whose district includes the track, reportedly said. “We’re really back to zero.”
The loss of AEG’s $300 million payment and delayed gaming revenue leaves New York thoroughbred racing in doubt, according to Albany experts.
Paterson will have to reach an agreement with Assembly Speaker Sheldon Silver of Manhattan and Senate Majority Leader John Sampson of Brooklyn on the new process.
A spokesperson for Delaware North reiterated the Buffalo-based gaming company’s interest in Aqueduct, saying, “We’re looking forward to what the procedure will be.” Spokespersons for the remaining bidders were still consulting with their executives as of press time.
