|MGM Mirage, recently in the news for shelving online casino plans, is alleged by the NY attorney general to be partners with a New York racetrack company involved in 'rampant criminal activity,' in a 62-page report released Saturday. |
The New York Racing Association said it selected MGM Mirage to operate 4,500 planned video lottery terminals at Aqueduct racetrack in New York City. NYRA said it was counting on MGM Mirage to help it finance the $100 million casino-style project. The report claims 'NYRA practices functionally financed criminal operations, essentially allowing tellers to borrow seed money to run money laundering, gambling or loansharking operations.'
The report accused NYRA management of having 'lax controls' and a 'culture of indifference' and recommended the company change management, also adding that the integrity of horse races was unaffected.
The two sides are still negotiating the final agreement, MGM Mirage spokesman Alan Feldman said Monday.
Feldman said his company was just learning about Spitzer's allegations. He said MGM Mirage had yet to speak with NYRA officials.
'We will, as a courtesy, likely inform all of our (casino) regulators of these allegations and we will continue to monitor the situation,' Feldman said. For his part, NYRA CEO Barry Schwartz called the allegations ‘slanderous’.