Office of the Governor: STATEMENT REGARDING VLT BIDDING DECISION

FROM THE OFFICE OF THE GOVERNOR

October 10, 2008

Communications Director Risa Heller issued the following statement:

After several months of three-way discussions, today Governor Paterson and Speaker Silver recommended that Buffalo-based Delaware North operate the VLTs at Aqueduct. The three bids were carefully examined by all three parties and underwent significant due diligence, including another review over the past few weeks to ensure financial viability in light of the turmoil in the markets.

Of the bids put forth, Delaware North presents the strongest financial proposal with an up front payment of $370 million. Combined with their successful track record as a partner of Saratoga Gaming, Finger Lakes Gaming and Fairgrounds Gaming, and with vast experience operating VLTs, Delaware North will build and operate a successful facility for the State of New York which will provide additional vital resources for the local Queens community, the Upstate economy, and education needs throughout the State. The Governor is also pleased that Delaware North is committed to a process to specifically address the Queens community’s development needs and will effectively build on that effort in future development phases. This is the best deal for all New Yorkers.

It is shocking that Senator Skelos, who claims to understand the importance of this revenue stream and who has repeatedly and publicly called on the Governor to award this contract, has now decided to stall a significant economic development project. Equally troubling is that he has refused to state what proposal he supports and why. In this time of a financial crisis every day we delay hurts New York. We must work together to ensure that we maintain the integrity of the State's finances instead of allowing political interests to undermine our fiscal health.

We look forward to hearing from Senator Skelos on which alternative would better serve the needs of New Yorkers from Queens to Cheektowaga.