NY Reopens Bidding for Aqueduct Racetrack Slots by Joan Gralla - Reuters

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The New York Lottery said on Tuesday it restarted its search for a video lottery terminal vendor for Aqueduct Racetrack after the previous choice was rejected amid state and federal probes.

Previously, the governor and top legislators were involved in choosing a slot-machine vendor.

But this time, the winner will be selected by a committee to be led by the Lottery director and staffed by Lottery workers and a representative of the state Division of Budget, the Lottery said in a statement.

In March, Governor David Paterson, a Democrat, said an "apolitical" method would be used to pick a new supplier after state and federal authorities began probing whether Aqueduct Entertainment Group had won the lucrative contract to assist one of Paterson's political allies, the Rev. Floyd Flake, who is a former congressman.

The slot machine probes were one of several investigations that led Paterson to quit his election bid a week after launching it.

The governor had included $300 million from the Aqueduct slots vendor in his initial budget plan, and New York needs the money now more than ever, as its deficit tops $9 billion. The new slots selection committee was given a 12-week deadline for making its recommendation to Paterson.

"All bids will be made public once a winner is selected," and the Request for Proposals will be posted on websites," the New York Lottery said in a statement.

For years, New York governors have tried and failed to offer gamblers slot machines at Aqueduct Racetrack, located in New York City's borough of Queens.

The list of previous companies that bid for the contract includes SL Green Realty Corp (SLG.N) with Seminole Hard Rock Casinos, MGM Mirage (MGM.N), Harrah's Entertainment HAMLEH.UL, Pennsylvania National, Wynn Resorts Ltd (WYNN.O), Delaware North and The Peebles Corporation, as well as the Mohegan Tribal Gaming Authority and the Victoria Racing Club, which were working with New York-based Capital Play.

Bidders Anxious For Racino Action by Dave Lucas- WAMC Public Radio...

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Bidders for the rights to build and operate a racino at Aqueduct Racetrack have increased money they're prepared to offer state... Capital District Bureau Chief Dave Lucas reports.

The Paterson Administration has been accepting bids on an Aqueduct Racino that would house 4500 video lottery terminals, making the Queens Raceway the home of the largest slot parlor in the world. The state hopes it can make $1 million a day in revenue once the Aqueduct racino opens.

The on again off again racino project has been stymied by the economy: bidders have already amended financial aspects of their proposals and final amendments are due Wednesday. Buffalo-based Delaware North had secured the rights to build and develop the racino but backed away in March, unable to come up with enough cash for the upfront fee. Competitors have announced aggressive plans to get the project underway: SL Green's plan calls for a huge food court, a Hard Rock memorabilia bar, retail outlets and other amenities. Aqueduct Entertainment Group has promised the state $151 Million upfront - AEG spokesman Larry Roman says his company is "shovel ready" - AEG is dangling another $100 million before the state IF it will allow 10-thousand VLTS on the premises.

A spokesman for Governor David Paterson's office returned a request for comment by email, stating each bidder was met with individually during the last week of July, and all bids are under review. Once those final reviews are complete, that info will be sent to the governor and leaders for a final decision.

Crain's New York identified the top three bidders: according to the website SL Green bid $250 million, the Aqueduct Entertainment Group bid $151 million and casino mogul Steven Wynn bid $75 million.