Video slots coming to Aqueduct

ALBANY, N.Y. - After eight years that included antigambling campaigns, a governor's resignation in isgrace, the bankruptcy of the state racing association, and the start of the economic recession, New York officials are returning to plans to put thousands of video lottery machines at Aqueduct thoroughbred race track.

Staff from the governor's office and legislative leaders were meeting this week with representatives of six bidders who want to land the contract to install 4,500 VLTs at New York City's race track, says Morgan Hook, a spokesman for Gov. David Paterson.

According to the New York Racing Association, the state would gain about $1 million a day if the VLTs operated at Aqueduct. NYRT officials say that with tracks in Pennsylvania and other nearby states offering video slots, New York is missing an opportunity to boost its own racing industry.

New York has eight racinos operating, seven at harness tracks and one at a thoroughbred track near Rochester. But Aqueduct, smack in the middle of the densely populated New York City-Long Island area, is the big prize.

  A series of events delayed the plans, including opponents, legislative gridlock under Gov. Eliot Spitzer and his resignation, the NYRA's reorganization in bankruptcy court and its subsequent state bailout, and the national economic meltdown.

The plan hit another snag this year when Buffalo-based Delaware North backed out of a deal to install the VLTs, saying the nation's credit collapse kept the company from getting the $370 million it needed upfront to satisfy the state. Delaware North has since rebid
the contract.

Meanwhile, New York is seeing some horsemen and breeders take their business elsewhere, including Pennsylvania, where six racetracks -- three harness and three thoroughbred -- offer video slots.

New York's $2.5 billion thoroughbred industry accounts for 30,000 jobs at breeding farms and racetracks, plus thousands of other jobs in such businesses as feed suppliers and veterinary services, said Jeffrey Cannizzo, executive member of the 1,000-member New York Thoroughbred Breeders.

Trainer H. James Bond, who opened a breeding farm in Saratoga County four years ago, said he laid off some employees after the owners of 11 mares moved their horses to Pennsylvania. Bond said he's also doing less business with local blacksmiths, feed stores
and horse transport companies.

"You don't buy another piece of machinery because there's a dozen horses that aren't there anymore, and it just rattles on down," Bond said. "You can't tell me the state of New York
doesn't need $1 million. It's ludicrous."