Former Partner Sues NY Aqueduct Video Slots Bidder

The state was counting on about $250 million in annual revenue from 4,500 video slot machines and jobs for 1,200 people at the Queens track.

But the state wasn't permitted to renegotiate an accepted bid, so the whole project is being bid again.

Delaware North's offer included the largest upfront cash payment to the state at a time when it's trying to close growing budget deficits. At the time, some competitors warned Delaware North wouldn't be able to make good on its pledge.

Delaware North and SL Green, once part of Empire Racing Associates, are both among the bidders now seeking the franchise.

"Delaware North's actions, as outlined in the complaint, damaged SL Green and other Empire Racing Associates shareholders significantly," SL said Green in a statement. "They also harmed the people of New York, given that VLTs at Aqueduct otherwise could have been up and running by now and would be delivering revenue to the state at a time when the state sorely needs it."

Bissett said the lawsuit, which was filed Friday, could delay the new bidding. He insisted the company didn't withdraw its original bid to run the gaming machines, called video lottery terminals, but only needed to adjust it to compensate for the credit crunch.