AEG's Aqueduct deal officially dead

[Buckpasser]

'Unlicensable' AEG may be bounced from struggling Aqueduct racino project as early as today (Wednesday)

The group chosen to run the Aqueduct racino failed to clear all the state's hurdles and could be bounced as soon as Wednesday, the Daily News has learned.

The news comes a day after high-profile investors Jay-Z and Queens Rev. Floyd Flake ran away from the project.

The Lottery Division last night forwarded a memo to Gov. Paterson's chief of staff, Larry Schwartz, and chief counsel, Peter Kiernan, stating that Aqueduct Entertainment Group is "unlicensable" for numerous reasons, a source told The News.

A second source said Schwartz and Kiernan - who have final say for the administration after Paterson revealed yesterday he recused himself from any involvement in the project - had not made a final decision as of Tuesday night, but that "a decision could be made as early as [today] as to what the fate of AEG will be."

http://www.nydailynews.com/news/2010...#ixzz0hsx1Tp2S