After the state rejected a politically-connected company's bid to bring video slot machines to the Aqueduct Racetrack amidst allegations of favoritism, Gov. Paterson said he wants to restart the selection process within a month. Paterson said he hopes to choose a winner soon so the state can benefit from a much-needed $300 million in licensing fees before the state's March 31 budget deadline, though officials might turn out delivering the budget late. more ›

Just as the Times's rumored bombshell fizzles, sources say feds are investigating the Queens Racino deal that had Paterson “gnashing his teeth” this week. They want to determine if, by awarding a valuable gambling contract to a politically connected company, Gov. Paterson was angling for the support of influential ex-congressman Rev. Floyd Flake. Flake owns a .06% stake in Aqueduct Entertainment Group, which by running 4,500 video slot machines at a South Ozone Park racetrack, stands to make $180 million annually. "The entire matter stinks to high heaven to put it very bluntly," said Sen. Frank Padavan, a Republican from Queens. more ›

The state once again announced that it is making a concerted effort in trying to lure in companies that will set up video slot machines (or VLTs) at the Aqueduct Racetracks, offering $250 million in tax-free bonds to help pay for the project. The application process was reopened after the company Delaware North had to default on the original $370 million it was granted. Governor Paterson said, "We remain absolutely committed to bringing a VLT facility to Aqueduct, which will provide much needed economic development to the race track, and critical funding for education in New York. It is extremely disappointing that the economic crisis has slowed this development, but we are confident that Aqueduct will be transformed into a destination spot for racing and gaming fans." The state sees millions of revenue each week from gaming taking place at Yonkers Raceway's Empire City. more ›