AEG sues to win back Aqueduct racino project

July 13, 2010 06:00PM

Aqueduct Entertainment Group, the state’s erstwhile pick for the
lucrative Aqueduct racino redevelopment contract in Elmhurst, Queens,
is angling to sue the state for the “arbitrary, unauthorized and
discriminatory actions taken against them” when the Lottery Division denied the group a gaming license earlier this year, Crain’s reported. AEG
has Asked A State Supreme Court judge for permission to sue the state’s
Lottery Division, along with elected officials including Gov. David
Paterson, Senate President Malcolm Smith and Assembly Speaker Sheldon
Silver, in an attempt to win back the contract, said Dorman Davis, who
is representing AEG. The lawsuit charges that the gambling license
rules were changed after AEG was selected, and that the group’s
rejection was therefore “an abuse of discretion.” The AEG selection is
still under investigation by the state inspector general’s office, and the Lottery Division is expected to make a recommendation for a winner in the latest round of bidding
Aug. 3. Just Genting New York, part of a Malaysian firm that operates
overseas casinos, remains in the running after SL Green and Penn
National Gaming were disqualified last week,
but Davis said AEG is seeking “a temporary restraining order until we
have a hearing or trial.” The Lottery Division said it had not seen the
lawsuit and so declined to comment. [Crain’s]