According to The NYTimes.com Jay-Z and Floyd Flake have dropped out of the Aqueduct Casino deal which was going to be built at Aqueduct race track in Queens. The reason it seems that Flake dropped out is because the state wanted certain documentations that could not be provided at the deadline and also Gov. Paterson involvement.  However, Flake released a different statement:

“Unfortunately, my ongoing participation in Aqueduct Entertainment has become a distraction that has taken me and my attention away from the community projects I created and nurtured,”

Good thing Jay-Z dropped out before it got dirtier.