Gov. David Paterson announced today that legislative leaders have agreed to select the Buffalo-based Delaware North to operate video-lottery terminals at Aqueduct Racetrack.

Senate Majority Leader Dean Skelos, R-Nassau County, originally raised questions about whether Delaware North was committed to investing in the neighborhoods around the Queens racetrack.

But Skelos, after meeting recently in Buffalo with the group, has lifted his objections, and last night Sen.  Serphin Maltese, R-Queens, who is in a tough re-election battle, announced during a television debate that the Senate will sign off on the deal.

The deal is an important one for the state, not only for the annual revenue that the 4,500 terminals will bring but also because Delaware North has pledged $370 million upfront for the development rights.

With the state facing at least a $2 billion budget gap this year, the money will help close the deficit, leaders said.

Delaware North already runs the VLTs at Saratoga Gaming and Finger Lakes Gaming and Fairgrounds in Farmington, Ontario County. The company has said that the deal would likely include 50 new jobs in their Buffalo headquarters and 1,200 in Queens.

Senate Democrats mocked Skelos for his criticism, starting a calculator on how much the state is losing without having Aqueduct up and running.

Paterson in a statement said, “I’d like to thank Senate Majority Dean Skelos and Assembly Speaker Sheldon Silver for their cooperation in making this important decision a reality.

“This is a huge victory for the State, and it comes two weeks after Assembly Speaker Sheldon Silver and I recommended this selection.

“Each day without a deal cost New York about $1 million in revenue. We are pleased that the Senate Republican leadership has finally recognized the significance of this economic development project for the people of New York. This deal will provide a critical revenue stream – especially given the fiscal crisis that is battering our state and nation.”