New York’s Thoroughbred industry could be a big loser following Monday’s Senate coup that saw two Democrats break ranks and form a coalition with Republicans that puts the GOP back in control of the upper house.
Six firms have bid on the Aqueduct racino contract and the decision requires three-party approval by Governor David Paterson, Assembly Speaker Sheldon Silver (D-Manhattan), and the Senate’s temporary president. However, Monday’s series of events has virtually paralyzed state government, with Democrats expected to challenge the Republican takeover in court.
“The whole atmosphere of confusion isn’t good for a firm resolution to the Aqueduct VLT problem,” said Bennett Liebman, head of Albany Law School’s Racing and Gaming Law Program.
Senator Pedro Espada Jr. (D-Bronx) has been elected temporary president. But Senator Malcolm Smith (D-Queens) who had been president and majority leader, says Monday’s coup was illegal and he will not yield leadership without a fight.
The New York Racing Association remains optimistic that Aqueduct’s racino contract can still be resolved.
“It’s too early to speculate on what the implications are of the change in New York state Senate leadership,” spokesman Dan Silver said. “We do believe that the bidding process will stay intact.”
Horse racing, and Aqueduct in particular, may be very low on lawmakers’ agendas as the political uncertainty sorts itself out. If the takeover stays intact, a whole new list of committee appointments and leadership posts would be made.
There is concern that some Aqueduct racino bidders, fed up with New York’s political instability, might focus their efforts elsewhere.
“This certainly isn’t going to make them any more enthusiastic about the prospect of doing business here,” Liebman said.
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