ALBANY-A state Supreme Court judge Thursday afternoon partly lifted a temporary restraining order on consideration of Genting New York’s bid for contract to develop a video casino at Aqueduct Racetrack in Queens. Under an agreement between the two opposing parties, the New York Lottery may not issue a recommendation to Gov. David Paterson before a July 23 hearing at which Judge Barry Kramer will consider a lawsuit brought by Aqueduct Entertainment Group, which first won and then lost the contract in the previous round of bidding. However, a lottery spokeswoman tells GlobeSt.com that Kramer ruled the agency may continue evaluating Genting’s bid.

Kramer’s ruling follows his issue Wednesday afternoon of a TRO in response to a request by attorneys for AEG. Crain’s New York Business reported that AEG’s suit, filed just after the Fourth of July holiday, claims that the rules to be licensed as a casino operator were unfairly changed after the group was selected as the winner of the Aqueduct contract in February. AEG’s contract award, which led to questions about the group’s political influence with Gov. David Paterson, was rescinded after the lottery determined it could not license some of the principals.

Genting, the New York arm of the Malaysian company that operates the world’s largest casino, had unveiled its plans for the racino last week. Among other features, the plans include a 75-foot waterfall. The company is apparently the only bidder under consideration after bids by Penn National Gaming and a group led by SL Green Realty Corp. were disqualified.