Gov. Eliot Spitzer wants to split the lucrative state racing franchise to have one of four competitors run thoroughbred tracks and another run video slot machines, according to a state official familiar with Spitzer's thinking.
The decision will be the topic of a meeting Friday between top Spitzer officials and the four competitors - the New York Racing Association, Empire Racing, Excelsior Racing Associates and Capital Play, according to the official who spoke on the condition of anonymity because the meeting will be private. The meeting comes on the eve of the Belmont Stakes, a jewel in New York racing.
On May 1, casino operator MGM Mirage Inc. (nyse: MGM - news - people ) formally withdrew its proposal to develop and manage a video lottery terminal facility at Aqueduct racetrack. That news disrupted the plans to choose one of four competitors for the franchise because MGM's role was assumed in the proposals made in April.
"MGM's withdrawal as the operator of VLTs at Aqueduct dramatically altered the landscape and it's forced a new thinking concerning the construct of the future of gaming and racing in New York state," the official told The Associated Press. "That new construct is hinged on two principles: A restructured racing entity and a separate gaming operator."
The current franchise, held by NYRA since 1955, expires Dec. 31.
The decision could give renewed life to NYRA, which in recent years has lost tens of millions of dollars and faced federal and state investigations into mismanagement. One probe, by then Attorney General Spitzer, ended with convictions of lower level track employees.
But NYRA is the only entity with experience running Aqueduct, Belmont and Saratoga race tracks. NYRA's new management has argued its problems were not with running tracks, but with the old, nonprofit racing model that couldn't compete for revenue with casinos and other forms of gambling.
If NYRA were to get part of the franchise, that could end its legal claim on the race track properties, a contention strongly opposed by the state. It could also make it easier to avoid any disruption in racing if NYRA lost the franchise.
No decision has been made on a long floated proposal to close Aqueduct to racing, the official said.
"None of us are going to know until tomorrow," said Karl J. O'Farrell of Capital Play, the company that turned around racing in Australia and now has a New York City office. "There is a rumor every minute."
But he said Capital Play has a plan to take over racing in as little as 45 days, using NYRA employees, but not the top management. He said Capital Play is now negotiating with several casino developers to join their effort.
"We want to hear tomorrow," he said. "If something else is suggested, we'll listen to that."
Republican Senate Majority Leader Joseph Bruno suggested splitting the franchise a year ago, saying there were strong competitors, each with different strengths.
"Certainly this is a serious proposal," said Charles Carrier, spokesman for Assembly Speaker Sheldon Silver. "We have not yet been briefed on it and look forward to hearing details."
There was no immediate comment from Bruno .
Representatives for NYRA, Excelsior and Empire had no immediate comment.
News of Friday's meeting was first reported by The Blood Horse magazine.
Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
