Aqueduct AEG racino deal is dead

ALBANY, NY - New York state pulled the plug today ont he controversial Aqueduct Racino deal.

Governor David Paterson's office issued a statement Thursday morning:

"The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group (AEG).
Therefore, the state has officially withdrawn its support for AEG to develop and operate a video lottery terminal (VLT) facility at Aqueduct Race Track.
The Executive Branch advocates that the selection of the Aqueduct VLT franchisee be done pursuant to an expedited, transparent, apolitical and publicly accountable procurement process."

If a new operator isn't found soon, it will leave a $300 million hole in the 2010-2011 budget.

The controversial and politically connected AEG group has been rapidly losing support over the past week, with both the Rev. Floyd Flake and Jay-Z pulling their stakes.

The question now is will this give Delaware North a foot up on getting the contract.