Jay-Z Pulls out of Controversial ‘Racino’ Project
This whole aqueduct bid has been a bit of a nightmare for Jay-Z. To recap, Hov has had a minor share in a company called AEG (Aqueduct Entertainment Group) that won a contract to open up New York's aqueduct to gambling with video lottery terminals. The contract is extremely lucrative, but has been marred by what appeared to be an unethical business advantage during the bidding process. Now, as the company faces more scrutiny over financials by the state government, the New York Observer is reporting that Jay-Z has pulled out altogether.
Apparently, under new rules, all investors had to submit comprehensive financials to the state that account for personal finances of both investor and spouses. Translation: this means Hov would have to provide a detailed rundown of both his and Beyonce's monetary situation. Obviously, this is something that the rapper likes to keep secret and there is little to no chance that the information wouldn't eventually leak. For Hov, it seems that it's just not worth the effort at this point. Otherwise, the project appears to be moving full speed ahead.
"Aqueduct Entertainment Group is continuing to move forward to complete the MOU, so that we can pay the state $300 million by March 31st and break ground on this vital job-creating project as soon as possible," said Jeffrey Levine, founder of AEG. "All applications have been submitted to Lottery in full compliance with the State's instructions."
So, there you have it. Gambling at the aqueduct is a go. Jay-Z making another killing will have to wait for the next investment.