Aqueduct Entertainment Group deal dead
Another controversy that's surrounded Governor Paterson, and the state legislature, has been the deal to let the Aqueduct Entertainment Group set up a slot machine casino at the Queens horse racing track. Now that deal was deemed officially dead, after the state Lottery Commission said it couldn't license the politically connected business conglomerate. Our Josh Robin has the details.
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NEW YORK STATE -- The long slog at Aqueduct continues. The state yanked its offer Thursday less than two months after its investigation, spawning selection amid concern the winning bidder wasn't fully divulging its finances.
"Clearly, it had major, major, major, major flaws to it," said Senator Craig Johnson.
Now it's back to the starting gate for the 116 year old track with the state facing a familiar problem as a byproduct: The loss of $300 million in expected revenue and a bleak outlook for a quick replacement.
"As a matter of fact, there's now a dispute in Albany, what else is new, between people who want to go back to the other bidders and pick one from that group or think there should be a whole new process. And if there are new bidders, and there could be, this process will take a long time, again," said Greg David.
The decision came after lottery officials concluded they could not issue a gaming license to the winning consortium, known as AEG. Sources privately said that the group was balking at the state's demands for more transparency. The deal quickly fell apart with the exit this week of two high profile partners, Queens minister powerbroker Floyd Flake and rap impresario Jay-Z.
"When the principals walked away from it, there's an understood factor that it would unravel," said Senator Carl Krueger.
AEG demanded the opportunity to address the state's concerns, leaving open the possibility of court action unless the decision was reconsidered.
Near the track, there was anger at the latest delay. Meanwhile, investigation into the January 29th selection continues. Probers are examining political horse trading, whether Paterson exchanged an offer for support for his now-abandoned election bid from Flake. Both deny the charges.