The NY Post is reporting that authorities are investigating Jay-Z’s involvement with Aqueduct Entertainment Group (AEG), the establishment selected to operate a multi-billion dollar racino (a combined racetrack and casino) over at the Aqueduct Racetrack in Queens, NY.

Recently, authorities have become skeptical about the decision to have AEG head the new venture and are curious as to exactly how Jay persuaded New York Governor David Paterson’s decision. Reports claim that Hov’s been trying to get his hands in the deal since 2009 when he connected with casino mogul, Steve Wynn, who at the time was in a bidding war to control the Queens racino.

Sources confirmed with The Post that directly after Wynn’s deal fell through for control of the property, AEG pursued Mr. Carter to appeal to Paterson. However, AEG denies luring Jay into the deal to sway the governor's decision in any way, but requested Jay’s involvement because of the influence he has in New York and the entertainment realm.

“Given [Jay-Z's] superstardom and his long and deep connection to New York, the partners thought he could bring a unique perspective to shaping a facility that would truly be an entertainment destination," AEG spokesman, Jonathan Rosen told The Post. "The partners were looking to bring in someone who could bring marketing and community advice to the team.”

Though Paterson and Jay’s relationship has visibly grown recently, representatives from the Governor’s office are standing firm about the lack of influence the pair's relationship has in this specific deal.

“There is absolutely no relationship between Governor Paterson’s friendship with Jay-Z and the choice of AEG,”  a rep commented.

Jay has yet to release a statement in regards to the investigation.