The heads of two Thoroughbred groups say New York Governor David Paterson’s latest plan for naming an Aqueduct gaming operator could be the “death penalty” for New York racing.
Paterson wants the state to follow normal procurement policies rather than leaving the decision up to himself and legislative leaders, a process that has drawn heavy criticism in the wake of a failed deal that would have seen Aqueduct Entertainment Group run Aqueduct’s racino. The state Division of Lottery refused to grant AEG a gaming license, saying it failed to provide some of the required background information.
Paterson says a racino operator could still be named this spring, hopefully by May.
But Assembly Racing, Wagering and Gaming Committee Chairman Gary Pretlow (D-Yonkers) says the governor should simply choose one of the remaining four bidders to expedite racino construction.
“Pick one!” he said Thursday. “My concern is that a VLT facility gets built so we have a revenue stream to keep the [racing] industry going. Anything else— whether it’s retail or senior housing—is extra.”
The four remaining bidders are Penn National Gaming, SL Green Realty Trust and partner Hard Rock Entertainment; Peebles Corp./MGM; and Aqueduct Gaming LLC led by Buffalo-based Delaware North Companies.
New York Thoroughbred Horsemen’s Association and New York Thoroughbred Breeders Inc. also want the state to quickly name one of the remaining bidders. Any type of new process could result in a prolonged delay, contributing to an already dire situation, they say.
“Governor David Paterson has reinstituted the death penalty in New York state, at least when it comes to the horse racing industry,” Jeffrey Cannizzo, Executive Director of the NYTB, and Rick Violette, President of the NYTHA, said in joint statement. “The governor’s shocking plan to re-bid the Aqueduct casino project, a process that his own staff says could end up delaying the decision until December 31 is disastrous. It is incomprehensible at a time that New York state is drowning in red ink, that this governor would not seek the fastest, most intelligent solution, one which would infuse a million dollars a day into the state treasury.
“Instead of hiding behind a needless pointless process, which will only cost taxpayers money, jeopardize education and put the final nail in the horse racing industry’s coffin the governor needs to decide which of the remaining casino bidders will be awarded this project. Any delay will surely kill horse racing and cost 35,000 hard working New Yorkers their jobs.”
New York Racing Association is slated to get 7% of racino revenues. Of more immediate concern, however, is the fate of New York City Off Track Betting Corp., which claims to be on the verge of closure. Without income from OTB, NYRA might not be able to keep operating this year.
“If they stop paying NYRA, that’s it,” said Bennett Liebman, an industry analyst and head of Albany Law School’s Racing and Wagering Board Program. “Really, that’s more important than VLTs at the current time.”
Liebman is also a state-appointed NYRA board member.