[NYguy]

On to round three...

http://www.nydailynews.com/news/2010...ueduct10m.html

'Unlicensable' AEG may be bounced from struggling Aqueduct racino project as early as today



BY Kenneth Lovett
March 10th 2010

The group chosen to run the Aqueduct racino failed to clear all the state's hurdles and could be bounced as soon as Wednesday, the Daily News has learned.

The news comes a day after high-profile investors Jay-Z and Queens Rev. Floyd Flake ran away from the project.

The Lottery Division last night forwarded a memo to Gov. Paterson's chief of staff, Larry Schwartz, and chief counsel, Peter Kiernan, stating that Aqueduct Entertainment Group is "unlicensable" for numerous reasons, a source told The News.

If the plug is pulled on AEG, it's unclear whether one of the other losing bidders would be chosen. The cash-strapped state has been counting on the $300 million upfront payment from whoever is chosen to run the racino.

Also at stake is a potential cash bonzana for whoever is chosen because gamblers are expected to pump $6 billion a year into the video slots.

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The Saga of Aqueduct ...
http://www.nydailynews.com/news/2010...cino_mess.html

October 2001 - State lawmakers approve virtual slot machines at Aqueduct.

April 2003 - The New York Racing Association taps casino giant MGM Mirage to run 4,500 video slots at the race track.

August 2003 - MGM Mirage pulls the plug as feds probe NYRA. Years of delay follow.

September 2007 - Gov. Spitzer reopens bidding on slot machine contract.

October 2008 - Gov. Paterson chooses Delaware North to run Aqueduct racino, but state Senate Republicans immediately object.

March 2009 - Delaware North pulls out, citing recession. The bidding process starts anew.

July 2009 - Seven gaming groups join the latest hunt for slots contract, including the politically connected Aqueduct Entertainment Group.

November 2009 - Five remaining groups retool their bids at Team Paterson's request, raising eyebrows from watchdogs and participants.

Jan. 29, 2010 - Paterson picks AEG, whose investors include influential Queens Rev. Floyd Flake and rapper Jay-Z. The award comes just days after Flake says he might back state Attorney General Andrew Cuomo for governor.

Feb. 4 - Losing bidders hurl charges of favoritism and bid-rigging at Paterson and AEG.

Feb. 13 - The state inspector general opens a probe into AEG's selection. The feds also start asking questions.

March 9 - Flake and Jay-Z both bail out of deal. AEG vows to press on. Paterson recuses himself.

March 31 - Looming deadline for AEG to pass background checks and pay $300 million upfront fee.