New York attorney general investigating casino license selection

On Monday, Crain's reported that Attorney General Eric Schneiderman had opened an investigation into last year's casino selection process, with a focus on possible conflicts of interest and market saturation.

Jeffrey Gural, owner of the Tioga Downs racino in Nichols, N.Y., later confirmed that he had been interviewed by a representative from Mr. Schneiderman's office. All 16 casino bidders are to be interviewed by the attorney general's office, Mr. Gural said. A spokesman for Mr. Schneiderman declined to comment.

His bid for a Tioga Downs casino was passed over by the New York State Gaming Facility Location Board for one in Tyre, in Seneca County. When an uproar ensued after the economically-distressed Southern Tier was shut out, Gov. Andrew Cuomo requested that the board reopen the bidding process for proposals in that area, which also lost out on a potential economic-development opportunity when the state placed an indefinite ban on hydraulic fracturing.

Mr. Gural said he doesn't believe any crimes were committed during the selection process but expressed concerns about potential conflicts of interest between a law firm hired by the board and three of the casino applicants, as recently reported by Gannett. "Something doesn't add up," he said.

But one gaming expert said conflicts are difficult to avoid in the intertwined world of casino politics. "I don't think you can hire a consultant anymore that doesn't have some ties to somebody," said Alan Woinski, chief executive at Gaming USA Corp., an industry consultant. "Whether anything comes of it, who knows?"