Former Partner Sues NY Aqueduct Video Slots Bidder

MICHAEL GORMLEY

ALBANY, N.Y. (AP) — The former partner of a company bidding to bring lucrative video slot machines to the Aqueduct racetrack has filed a multimillion-dollar lawsuit that could further delay the project and revenues for New York state.

SL Green Realty Corp. claims that its former ally, Delaware North Companies Gaming and Entertainment, wrongly used confidential information from SL Green in an independent attempt to land the state's thoroughbred racing franchise and the video slots contract for Aqueduct.

At stake are hundreds of millions of dollars a year in revenue for the state, the racing industry, and the company that wins the latest round of bidding to install and operate video slot machines at Aqueduct. The state has sought the deal for years.

Delaware North President William Bissett said Tuesday the lawsuit is "a desperate attempt by SL Green to try to enhance their standing in the rebid process."

In March, Buffalo-based Delaware North said the credit collapse on Wall Street forced it to seek a restructuring of its video slots proposal because it could no longer provide the $370 million in upfront payments to the state, a provision that was key to its winning bid.