New York Racing Association issued a dire warning on Monday, saying both the spring Belmont Park meet–including the Belmont Stakes (G1), third leg of the Triple Crown–and the Saratoga Race Course season are in jeopardy if the state does not name an Aqueduct gaming operator soon.

Recently, NYRA President Charles Hayward said the firm would run out of cash by June, while adding that state officials are aware of the situation and would likely deal with it before a crisis occurs.

On Monday, however, he said a shutdown is possible.

“We can’t invite trainers from all over the country if we think somehow we’re going to close by June 1,” Hayward said.

NYRA received $30-million in September 2008, when the state renewed its franchise to operate Aqueduct, Belmont Park, and Saratoga, but that money was only meant to last until Aqueduct expanded gaming went into effect. The Queens track expects a third party to operate 4,500 video lottery terminals with NYRA receiving 7% of the revenue.

NYRA still has $15-million, but declining handle and rising costs might tap the organization before the middle of 2010.

“We’re projecting handle will be down 9% at Aqueduct and Belmont in 2010 and 5% at Saratoga,” Hayward said December 10. “So revenue is going to continue to decline.”

In addition to major expenses such as utilities, labor contracts, and needed capital improvements, the bankrupt New York City Off Track Betting Corp. owes NYRA $14.7-million and a scheduled December payment will be put off until January, Hayward said on Monday.

Companies still seeking the Aqueduct contract are Penn National Gaming Inc.; Aqueduct Gaming LLC led by Buffalo-based Delaware North Cos.; the multi-party Aqueduct Entertainment Group whose principals include Larry Woolf Sr., former head of MGM Grand in Las Vegas; SL Green Realty Trust partnered with Hard Rock Entertainment and The Peebles Corp. and partner MGM.

Previously, NYRA has said it was comfortable with any of the bidders and has urged the state to simply make a decision. However, Hayward said Monday that NYRA has “serious reservations” about the multi-party firm Aqueduct Entertainment Group. Hayward declined further comment.- Thoroughbred Times