Observer » New York Racing Association

Aqueduct Negotiations Round Final Curve, Enter Home Stretch

Dana Rubinstein — Fri, 25 Jul 2008 18:35:08 -0400

ThoroughbredTimes.com -- our favorite horse racing rag -- is reporting that the state's selection of a vendor to convert the Aqueduct Racetrack in Queens into a racino should be happening soon. Real soon.

That's because New York State's Division of Lottery has finally reviewed all three proposals and deemed all three viable.

The parties vying for the chance to remake the dilapidated racetrack include SL Green in partnership with Hard Rock Entertainment; Delaware North Companies with Saratoga Harness Racing; and Capital Play, in partnership with Mohegan Sun, Extell Development and Plainfield Asset Management.

Morgan Hook, a spokesman for the governor, told ThoroughbredTimes.com that Governor Paterson, the Senate majority leader, Dean Skelos, and Assembly Speaker Sheldon Silver now "can begin to have discussions about which one will be best for the state."

Given the government's budgetary woes, it's a high-stakes game for both the bidders and the state.

“If that [racino] had been up five years ago we’d be $2.5 billion better off in this state,” the former Senate majority leader, Joseph L. Bruno, said recently.

Negative Ad About Spitzer’s Horseracing Pick

Azi Paybarah — Tue, 13 Nov 2007 21:47:21 -0400

Capital Play, one of the bidders for the state's horse racing franchise, is about to start running this ad slamming the New York Racing Association--the group recommended by Eliot Spitzer.

The ad juxtaposes images of a dilapidated stadium and children in a classroom, along with the following narrative:

"NYRA's even been investigated by the federal government. And now they want you to bet on them again with $250 million that would help fund public school education. Don't place a losing bet on NYRA."

The Spitzer and NYRA Pick

Azi Paybarah — Tue, 04 Sep 2007 18:33:22 -0400

In his statement today to announce the recommendation of NYRA to continue operating the state's horseracing franchise, Eliot Spitzer included this key line:

"The state, in consultation with NYRA, will choose an experienced gaming operator to operate the VLT franchise at Aqueduct."

The VLT franchise is the lucrative casino operation whose operator will be picked within sixty days. So now the question is, who will NYRA recommend? They seem to have worked closely with Excelsior before, and seem likely to recommend to the governor that the franchise be awarded to that group.

Would that recommendation be enough to give the administration, which also has ties to Excelsior, cover against the inevitable conflict-of-interest accusations that will follow the decision?

UPDATE: Karl O’Farrell, Chief Executive Officer of Capital Play Inc, said the group was “disappointed,“ with Spitzer’s recommendation, but added, “We intend to cooperate with the Governor and the State Legislature to demonstrate that Capital Play is the best team for racing and VLTs.”

$30 M. Race-Track Bail-Out

Mon, 02 Jan 2006 13:56:00 -0400

Sorry, this is a bit late, but we were busy gambling away our Christmas bonus on Friday afternoon.

Apparently Albany on Friday announced some $30 million in aid to the New York Racing Association, the private firm that runs the racetracks at Belmont, Aqueduct and Saratoga on a state franchise,to keep it from filing for Chapter 11 bankruptcy protection. From the AP:

The deal provides an immediate $1 million advance from the Port Authority of New York and New Jersey as part of a $5 million agreement to buy NYRA-owned land near its Aqueduct track in NewYork City.

The NYRA also will be given a $5 million loan through the Empire State Development Corp. and another $20 million from the Lottery Division that will be paid back after the operation of video slot machines starts at Aqueduct next fall.

See, the big plan to make New York's racetracks profitable was to institute video slot-machines at the tracks. Go to gamble on the horses, stay to press a button that's kind of like the arm of a one-armed Jack!

But that wasn't going to work if NYRA went under first.

Video slot-machines are controversial in other states, like Connecticut and New Jersey, where economic development has already been tied to gambling operations. Donald Trump was no friend to the idea of video slot-machines at the Meadowlands, for instance. Not really a problem here, it seems.

- Tom McGeveran