Horse Racing Judge: Rejects Aqueduct bidder’s lawsuit
A New York state judge blocked a lawsuit by a group that had been bidding for a contract to operate the proposed video slot machines at Aqueduct Racetrack.
The Aqueduct Entertainment Group had won a bid to operate the proposed ‘racino’ earlier this year following a successful round of bidding last year. The Bid was revoked when concerns about the legitimacy of the bidding process and other controversies surfaced. This was the second time authorities had ruled out a successful bidder.
Since then a new bidding process has begun and the Aqueduct Entertainment Group is not all at pleased. They tried to block the process in the courts and were met with a little early success. The courts initially ruled that the new bidder for Aqueduct Racetrack cannot be sought until the AEG has had its day in court and a ruling on the matter is handed out.
AEG’s objectives were to block the Lottery Division’s consideration of Genting New York LLC, the only remaining bidder for the Aqueduct. It hoped the courts would rule that AEG had already been through the bidding process and had been legally selected to operate the racino. AEG argues that the process was fair and legally binding and that the group should be given a gambling license at the earliest. A $300 million license fee would have to be paid up by whichever group wins the bid.
The New York State Supreme Court found that the AEG’s claim, that it had been wrongfully ruled out of the racino project by the state Lottery Division in March, were unfounded. The Lottery Division took the steps alleging that AEG had not provided background information on several of its major partners.
The judge presiding, Justice Barry Kramer said that the Lottery Division had the right and power to request any information from the AEG that it required and were within their right to disqualify AEG if they failed to submit the information. “The legislature has granted the division broad power to conduct these investigations,” he said.
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