Paterson document dump reveals high-stakes wheeling and dealing to win Aqueduct racino competition

Kenneth Lovett New York Daily News 02/17/2010 05:11

Gov. Paterson

ALBANY - Documents in the secretive Aqueduct racino deal show the winning bidder kept increasing upfront payments to the state and suddenly projected sharply higher profits as the chaotic process unfolded.

Racino project winner Aqueduct Entertainment Group nearly doubled its promised upfront payment to the state in a mere matter of months.

And as five competitors jockeyed for the lucrative deal, AEG's predicted revenue from slots surged from the back of the pack to the front.

In the end, AEG pledged more cash for state coffers than any other bidder.

The hundreds of pages of records released by Gov. Paterson yesterday raise as many questions as they answer.

AEG's initial promise of a $151 million upfront payment to the state jumped to $301 million in August of last year, with the condition that the company could add more than the set 4,500 slot machines. Without the prospect of more machines, AEG met a state-imposed minimum of $200 million in the final round of bidding.

That, the documents show, put AEG behind the $301 million offer promised by Penn National Gaming, and two other outfits that pledged $200 million upfront and $100 million down the road.

Still, AEG was the pick, provided it put up a additional $100 million to match Penn National - a condition the group agreed to.