Aqueduct Casino Bids Made Public as Controversy Grows
The winning bidder of the process to award the operating license for the proposed Aqueduct slots casino released the details of its proposal today in an attempt to quell the controversy over the selection. Aqueduct Entertainment Group says its paperwork will prove that it was justifiably named to manage the gambling venue for the state.New York Governor David Paterson announced a month ago that AEG was the surprise winner over five other groups, including established gambling operators such as Penn National and Hard Rock Entertainment. Paterson and the state lawmakers who determined AEG would be the choice kept bid amounts and operating details under wraps, leading to accusations that the choice was politically motivated.
Paterson is facing a tough re-election campaign, and AEG is associated with Reverend Floyd Flake, an influential Queens community leader.
Penn National publicly protested the process, saying it had submitted the highest bid for the license at $300 million, only to have the review committee give competitors a chance to respomnd to the offer by raising their own bids. AEG's initial bid was $200 million, but it used the opportunity to match the Penn offer.
AEG's paperwork shows that the organization promised the state it would be operating 3000 slots within six months at a permanent facility, and said tax revenue from the race track casino would be between $146 million and $222 million for the year 2011.
AEG's competitors have said they will release their bidding details as well, bringing some transparency to the clouded process.
The New York Post has reported federal investigators are examining Paterson's decision, and are loooking for evidence of corrupt activity in conjunction with New York Inspector General Joseph Fisch.
