NY Gov. Paterson drops support for Aqueduct racino consortium, project set back again

NY gov drops support for Aqueduct racino group

ALBANY, N.Y. — New York Gov. David Paterson’s administration has dropped its support for a consortium chosen to build and operate up to 4,500 video slot machines at the Aqueduct racetrack, promising to further delay plans to put a racino in Queens.

The governor’s office said Thursday it wants a transparent process to choose another operator after the state Lottery Division concluded it can’t issue a gaming license to Aqueduct Entertainment Group. The racino has been seen as a way to generate funds to help support public education and the state’s horse racing industry.

AEG attorney Barry Berke called the state decision “arbitrary and capricious” and said the group remains ready to close a deal and pay an upfront $300 million fee. He also raised the possibility of a lawsuit.