New York Governor sees new Aqueduct racino plan within one month

"We are hopeful to find a procedure that would work within a month," Paterson said.

The Daily News first reported yesterday that Paterson administration officials are drafting new rules to govern the selection of an outfit that would operate 4,500 video slot machines after the first choice, Aqueduct Entertainment Group, was scuttled.

The AEG selection was widely criticized as overly politicized and sparked an investigation by the state inspector general's office. Paterson said he intends to meet soon with Assembly Speaker Sheldon Silver and Senate Democratic Conference leader John Sampson to discuss the selection of a new bidder.

Meanwhile, a top state lawmaker said the cash-strapped New York City Off-track Betting could slash at least us$ 56 million from its budget - much of it from its "bloated" top management - and should not replace gambling parlors with automated kiosks.

Assemblyman Gary Pretlow, chairman of the Assembly's Racing and Waging Committee, said OTB's bankruptcy reorganization plan is "unworkable." OTB has sought bankruptcy protection and warned that unless lawmakers sign off on a reorganization plan, it could run out of money by the end of the month.